Yesterday I attended a session from the Whistleblowers’ Summit in Washington DC at the Busboys and Poets restaurant.
The Summit describes itself as “a non-partisan educational and charitable conference. Whistle Blowing is apolitical; it is not about “Left” vs. “Right”— it is about Right vs. Wrong. The Summit is “trans-partisan” in nature because not only do we honor Democrats and Republicans; we also host everyone from Libertarians and Conservatives—to Liberals and Progressives.”
I was invited by Cliff Rosenthal, who with Michael McCray, published their book Community Capital– Race, Equity, and the Credit Union Movement. It is partly Cliff’s telling of his 35+ years working with community development credit unions and the CDFI movement.
The second part is Michael McCray’s recounting of NCUA’s liquidation of Alpha Kappa Psi FCU in 2010. His inside story includes documents from NCUA, first hand conversations from the participants, and the transcript of the court hearing appealing NCUA’s action in late 2010.
I have previously published multiple brief excerpts from McCray’s account. It is at a minimum a story of personal conflict and a regulatory “set up,” that in Cliff’s view would not occur today.
These two credit union authors were among several book presentations by insiders, whistleblowers who go public, about the abuses of private and governmental organizations. One author described the overreach of the guardianship authority in the US. The second, a former State Department Human Rights Employee, detailed the coverup of the CIA’s systematic use of torture at black sites around the world.
Press and Whistleblowers
The theme of this year’s conference is “is “Media Matters—Whistleblowers, Investigative Journalists & Enterprise Reporting.” One speaker, a former journalist at the Hartford Courant, said that a senior editor had counseled him in his initial visit to the federal courthouse beat about the importance of his role.
He was told that in many instances his account of the hearings would be the last, best hope for the persons who have been wronged, whether in civil or criminal matters. If their side of the story is not covered publicly, the chances that equal justice prevails is diminished.
Being a whistleblower, or even in opposition to any organization’s public activity, is an act of courage. For example, when I talk to persons opposing their credit union’s takeover via merger, they tell stories of threats to their jobs or even businesses. These accounts reference the advertising power of the continuing credit union and local media’s reluctance to cover controversy.
This was a theme of opponents in 121 Financial Credit union’s merger with VyStar Credit union. The comments posted currently on the website of the opponents to Member One’s combination with Virginia Credit Union mention this factor.
This former Courant reporter’s observation reminded me of the work that the Credit Union Times reporter, Peter Strozniak, who routinely searches out court filings in cases involving credit unions such as the CBS FCU embezzlement. He presents facts of institutional shortcomings at NCUA and in credit unions that reveal failings understandably absent from the official accounts.
Without credit union reporters willing to cover controversy, the fourth estate’s critical role in holding credit union leaders to account is missing. One has to applaud the ongoing detailed coverage of the merger games being played presented in CUToday’s details from NCUA summary of merger disclosures. These include straightforward examples of self-serving actions and no member benefits, driving combinations of large, sound institutions.
CUToday’s Cooperator-in-Chief Frank Diekmann has had the courage to editorialize as far back as 2017 on the harm these actions are doing to the system.
Sooner or later, such reporting will inspire insiders and others to come forward. For example, this is a post by a senior employee to yesterday’s analysis of the proposed Member One combination with Virginia Credit Union:
Great article here, I’m at the csuite level at Member One and can tell you everything you stated in the article is 100% fact. Over the last year, there has been no transparency with people below the csuite level, even hearing rumors of issues with the voting as tallies have been changed.
A lot of sneaky stuff going on here and most employees know that this spells devastation for their careers as they will be let go in some form or fashion later down the road. Sadly, too late for Members to know the truth.
Doing the Right Thing
Another participant from yesterday’s session commented that she was grateful for hearing these stories and public airings by individuals trying to do the right thing.
Their actions are often at personal risk and cost. The disclosures may end careers in a chosen area, profession, or organization to which they have devoted much time and commitment.
But she drew hope from these examples. They are not intended as disparaging tear downs. These individuals are trying to make their company, their institution or the society a better place for tomorrow, she said.
Credit Union Karma?
To illustrate her point, I close with an observation from the abrupt, unnecessary liquidation of the Kappa Alpha Psi fraternity in 2010. Its sponsor was one of the Divine Nine sororities and fraternities formed by black students shut out of white Greek organizations on the 20th century American college campus.
In 2023, their sister organization, Alpha Kappa Alpha (AKA) formed a credit union, For Members Only FCU. One year later that new charter holds over $4.2 million in assets for 7,500members. One of that sorority’s members is now the Democratic nominee for President.