Credit Union Cannabalism Continues With Big Meal-Money to Executives

After over a year of behind the scenes planning and dividing the spoils, the SAFE-Boeing Employees Credit union takeover plan is now officially public.

Below is the link to the just posted Member Notice.  Following is one analyst’s initial  reaction to this free transfer and total future control of over $4.6 billion and $450million of member equity owned by the 245,000 residents of California’s capital city.

However the most important fact for the SAFE members is that the SAFE board intends to do an end run around the California statutory requirement that a majority of members must approve the merger by asking for an exception to the law.  Here is the wording from the ballot:

this is to advise you that the Board of Directors will make an application under California Financial Code Section 15201(b) for approval of the merger in the event that a majority of all members of SAFE do not vote to approve the merger, in person at the meeting, or by mail-in or online ballot.

This pretense of 60days of instant democracy by a board that has had no contested election in recent  memory just compounds this financial farce.

If there was ever a case for the credit union community in California and beyond to stand up for the member’s rights and due process this is it.  Or, at a minumum publish the names of the vendors and advisors who devised this coop travesty  and withdraw any further business.

If this perversion of everything credit unions represent  in cooperative purpose were tosucceed, California will become the next happy hunting ground for every financial predator.

Members Have 60 Days to Learn about a Deal kept Private for Over a Year

SAFE’s  leadership  does not want to even try to get the majority of members to vote because that would require a public PR campaign and open dialogue.   That would give members and the community a chance to learn the full facts of what this sellout will cost them.

Instead SAFE’s ;eaders. the CEO and Board,  intend to rely on the printed ballot vote in a multi-page mailing in which members are asked to approve-no contrary information presented.

SAFE does not want to do the responsible and hard work to get their owner’s  attention and support to win a majority vote. They are hoping their self-serving one side only mailing will cause members to auto-check the yes box.  They want to keep public debate to a minimum and not raise any attention or discussion of the harmful consequences caused by this divestiture of local leadership on the future Sacramento, California’s capital city.

Here’s the link to the full document on NCUA’s web site.

https://www.regulations.gov/docket/NCUA-2026-1552

One analyst’s initial read just some of the facts

Well, looks like SAFE is making its case. So much to chew on here, but a few initial observations.

* A total of $14.56 million in payments to executives that were triggered by this merger.
*No worries, they’re only paying out 33 basis points of the members capital to executives.
*The exec payouts equate to about half of the amount of the interest paid to SAFE members so far this year. Instead of paying execs, how about better rates and make the home grants 3 or 4 million instead of $500,000. Cool member benefit – for all 60 out of the 245,000 members lucky enough to get it.
*The stated, quantified benefits to SAFE members are $7.4 million, spread across 245,000 members, or just over one-half of the amount being paid to 5 executives. I repeat: 245,000 owners get 7.4 million, 5 execs get $14.56 million.
*Interesting approach to tack on a vote for donations to community partners. That shouldn’t be legal to add this this vote, if it is. Clever little PR move to distract and act like they can’t afford to do it themselves.
*Payouts to the community and execs, but no reserve distribution to members. The stated reason is because SAFE’s capital is not higher than Boeing’s. That’s backward logic. SAFE’s capital of is 177 million in EXCESS of what’s required to be considered WELL capitalized. But no, they can’t afford these benefits unless they merge, and now that they’re merging to where the continuing credit union will have an even more extreme excess capital position, they refuse to let member owners have any of their money.
*Carefully worded language about the retention bonus payments through the “post-merger transition.” The translation of that: Faye is leaving in 18 months. The divisions and departments will report into their functional heads. SAFE will be gobbled up, Sacramento job losses wlll be local control? LOL?
*2nd place payout winners? SAFE directors. Boeing reports their execs spend 6 hours a month doing their work. 2 lucky winners get the same job and go from zero pay to $125,000 a year or $400 an hour. Those two directors voted for and strongly recommend this merger. Hmm.. nothing to see here.
(and no, being a director of a CU seven times larger doesn’t not mean it’s seven times more work, or seven times harder)

More comments to follow in the days ahead.  In the meantime here are a number of posts from https://www.secujustasking.com/ documenting the harm to members.