REMARKS OF
JOANN JOHNSON
BEFORE THE 2002 CUNA
GOVERNMENT AFFAIRS CONFERENCE

FEBRUARY 26, 2002

Thank you Tom for your kind introduction.  Tom is a good friend, who by the way is celebrating a birthday today—will you join me in congratulating him! Thank you, Dan and Barry, for allowing me the opportunity to visit this morning with so many credit union members from across the country.

I’m glad you’re here,  I’m excited to be here. I feel fortunate to have been given the responsibility by President Bush to work with all of you, and for all of you, as a new member of the National Credit Union Administration Board. I am eagerly awaiting Senate confirmation.

I’m here in large part because eight years ago the Iowa League stepped in and supported my first political campaign for an open Iowa State Senate seat.  The League was good enough to consider my race an “opportunity race”, which they defined as a legislative race where a candidate could clearly hurt them or help them.  (While the jury was still out on me, my opponent in that race happened to be a banker who was serving on the board of the Iowa Bankers Association!) In any case, in what I now know to be characteristic credit union fashion that made all the difference – with volunteers knocking on doors with me on warm evenings, an effective grassroots networks and a commitment to credit union principles – I began my public service career.

I’d like to recognize Pat Jury, vice president of the Iowa League, as one of the best lobbyists and association managers in the state.  I’m fortunate that another League staff member, Julie Starnes, vice-president of governmental affairs, has accepted the position as my Executive Assistant and will be joining my office at the NCUA in March.  So, thank you Tom, Pat and Julie, and all the Iowans here today.

I’m very pleased to join my new colleagues, Dennis Dollar and Deborah Matz at NCUA and be able to devote exclusive attention to the many issues and tasks that confront us.  We are all anticipating a professional working relationship and are enjoying the new energy that has developed around this new Board. 

In accepting the President’s recess appointment on January 22^nd, I traded in my legislator duties for regulator responsibilities – and having been a legislator, I appreciate and respect the distinction between the two and their limits.         

In the Iowa Senate I had the privilege of chairing two committees, the Ways and

Means Committee with jurisdiction over taxes, and the Commerce Committee with jurisdiction over many competing economic interests. I learned the skills of a legislator, and the need to hear all sides of an issue and chart a course to an equitable solution. I will be continuing that policy at NCUA and encourage you to continue doing what you do best – let policymakers know what you are thinking and why.

My duties in Iowa did call on me to address important credit union issues:

• the tax-exempt status of credit unions
• providing trust services for state credit unions through CUSO’s
• providing the necessary budget to our state financial regulatory department to ensure the safe and sound operations of our institutions.

Iowa credit unions are predominantly state-chartered federally-insured institutions, and that combination is one that deserves an appreciation of the balance required by the state and federal regulatory roles.  I intend to remain sensitive to that balance and the “dual” credit union system that maintains a place for both federal and state credit union charters.

I have other goals as an NCUA Board Member:

I have been spending much of my time meeting with NCUA office directors, studying NCUA programs, and meeting with CUNA and other trade association representatives in order to get a fair assessment of the big credit union picture. And just when I think I have it all put together – along comes another acronym!

For example, in one of my many briefing books I’ve learned that:

Recently, an (R D), (A R D), and (S E) suggested we issue a DOR, (T L), (P W L), or (L U A) to inform the (F C U) about its restricted (F O M).  The NCUAB can OK this or consider it DOA.

I expect that within a few more days with this audience, I will be completely fluent in credit union-ese.

My visits on Capitol Hill, especially with the U.S. Senate, have been very instructive with a high degree of support among Members of Congress for credit unions.  As a nominee I have been able to speak to these U.S. Senators as one legislator to another.  They are looking for us to exercise good judgment with an emphasis on not surprising them with problems.  That means maintaining a safe and sound credit union financial system, which is exactly what we have inherited and what I am committed to bequeath to my successors. 

Important issues are facing us in the future.  Some we can see now such as deposit and share insurance reform legislation, extending credit for provident and productive purposes, and maintaining our vigilance in this unusual time of national conflict.

With so many people continuing to join credit unions around the nation, more Americans are depending on you and me every day.   Thank you for what you do every day, and thank you for coming to Washington to participate in the very important work of keeping the credit union philosophy in front of the public and policymakers.  I look forward to working with you.