Author: Chip Filson

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An Annual Meeting Experience

The formal invitation came by mail and read as follows:

TowneBank

Cordially invites you to attend the:

Annual Meeting of Shareholders

Wednesday May 14, 2025  at 9:30 AM

The address for the meeting was the Richmond Convention Center. The invite closed:

Lunch will be served immediately after the meeting

Kindly reply by returning the enclosed card only if you plan to attend

The reply card asked if the attendees would stay for the luncheon.   The only required information was first and last name of those attending.  There was an addressed stamped envelope to mail the response.

TowneBank is $17 billion in assets with  2,800 employees in 51 branches throughout the greater Richmond, VA area.   TowneBank  converted from a mutual charter several decades earlier.  In that process depositors could buy  newly issued shares if interested.   My wife converted her  savings to stock.

TowneBank’s mission is:

Serving Our Community

Throughout our growth, we’ve never lost sight of our true mission: to continue to be a community asset by serving others and enriching lives.

Respect for the Owners

As a shareholder-owned financial institution, their board’s  goal is to provide its owners an acceptable return and ensure trust and confidence in the firm’s leadership.   Its invitation is gracious, formal in style and intended to encourage owner participation.  It feels welcoming.

A Credit Union’s Annual Meeting

The annual meeting of many credit unions conveys just the opposite impression.  Member-owners must register in advance to attend the meeting.  The event is often virtual only, with no member attendance permitted. The agenda may state as mine did: 

Matters requiring a vote

Please note that there is no new business to discuss. The only matter requiring a vote of the members in attendance is approval of the 2024 Annual Meeting minutes.

There is no voting for directors as the board nominated candidates equal the vacancies. No new items or old business will be permitted. There will be a Q & A for questions submitted in advance, and sometimes those added during the meeting.

This was the setup for Patelco’s 2025 virtual annual meeting last Friday.  There was much material a member-owner might download at this site.   The State of the Credit Union included 46 slides with much information both financial and operational efforts. The 2024 Annual Report is 18 pages of high level summaries, a financial statement (unaudited) and pictures of staff and board.

Patelco’s annual report and CEO meeting update met the letter of the law, but the Friday event lacked any hint of spirit. No celebration, no thank yous to members and carefully scripted to create an impression of a required exercise versus a shared experience with member-owners.

The Q&A Portion

The only section not prepared and sent in advance were member questions. Some were submitted prior and some during the meeting.

The cyber ransom attack was a major disruption in 2024.  It was discussed in the CEO’s summary and in the Q & A.  New information included an estimated total cost of $64 million of which  $37 million was fraud losses caused by some 6,000  members during the outage.  Their accounts were subsequently closed.  The sale of Visa shares in January resulted in a $35 million gain which helped offset part of the cyber attack expense.

The Annual Meeting’s Intent

Is the Annual meeting a mere administrative formality to be closely controlled by the organizers?  Or, is it an opportunity to enhance member confidence and support for their cooperative?

The meeting ritual can be much more than publishing required data and information. It  communicates leadership’s attitude toward their member-owners. Patelco’s approach signals control not mutual responsibility.  There were two examples that illustrate this approach.

Democratic Governance

When asked about the closed election process Chairman Rivera read the formal steps. He said there were no limits to board terms. Two board members’ service began in 1996. As of the next meeting, five more will have served for over two decades. Longevity is certainly an attraction for those in power.

The Chairman carefully avoided addressing the issue of democratic governance for topics such as: When was the last meeting in which there was a contested vote?  Ever? Why does the board encourage members submit proxies, thus surrendering their right to vote in board elections?  Why are no members allowed to attend in person?  How meaningful is the member’s meeting  in which all business is conducted with only employees present?

At a time when every segment of the country’s democratic processes seem to be under direct or implied threat, why is Patelco shutting down the democratic practice meant to be the hallmark of cooperative design?

This was a missed opportunity to highlight  fundamental cooperative governance.

Questions About Threats from Without

The second reason for engaging members is that this is the source of the movement’s political power.  Credit unions cannot out spend political funds or have enough lobbyists to rely on traditional forms of political influence. It is members voting their self interest that will secure credit union success in DC.

Three questions touched on  national topics. One was whether Patelco was safe and sound at this moment, referring to bank problems. A second asked about possible threats from a government agency. The CEO’s response interpreted the question as referring to credit unions’ tax exemption.

And the last question of the evening: After President Trump fired two of the three NCUA board members—does this threaten our deposit insurance?  CEO’s answer paraphrased: Your deposit insurance is not threatened, the NCUA board is reduced from three to one member but can continue to take the actions it needs to;  your insurance is federally backed. 

These questions referencing the external environment (taxation, NCUA board firings, bank uncertainties) were an opportunity to educate and prepare members for their critical role in countering these threats.  It was the moment to rally the members with straight talk.  Instead general assurances that everything is OK were given.

To suggest taxation is a just another banker’s campaign is to overlook the entire current context.  True as always, but that is not what is going on that makes this a potential opening now. The response that the firing of two NCUA board members means “business as usual” at NCUA and the NCUSIF, is ill informed or naïve.

Both questions were an opportunity to remind members about credit union uniqueness and why there is a federal tax exemption—the purpose and role of cooperatives in a capitalistic market place.   More vital, this purpose is regulated by a unique dual chartering framework. That system includes insurance fund options that require 1 cent of every member’s savings dollar be sent to capitalize their special cooperative fund.

To blithely assure members their fund and NCUA  function like “business as usual” is to misstate the whole intent behind the board’s two removals.  Moreover, the question of NCUA’s single member board authority is anything but settled.

If this is indeed the view of Patelco’s leadership about DC events, they need to do some homework.  More importantly, their power to address these topics will rely on member awareness and the ability to rally their engagement when needed.

The Bottom Line

Credit unions are different by design until those who lead them cease to believe in that difference.

TowneBank believes in courting and encouraging shareholder engagement. They talk the same language as credit unions about community and customer support.  But they back that community spirit up with invitations and hospitality.

Patelco’s actions speak much louder than the many pages of charts, numbers and operational activity in prepared reports. The annual meeting is not a member’s final exam for the prior year. It should be a celebration of mutual progress.

There has never been a time when acting to support democratic values and practice has been more vital.  Credit unions should be leaders in this affirmation of member-ownership and governance.  Without this effort, credit unions will increasingly be perceived as just another example of self-perpetuating oligarchy at work.

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A Tree Planting for Future Growth

Yesterday I was invited to participate in a Yoshino cherry tree planting.   The occasion was to recognize Callahan & Associates’ 40th anniversary (founded April 1, 1985).

The site was on Haines Point a long stretch of land between the Potomac and Anacostia rivers in the District.

There were almost a score of Callahan employees there to celebrate this four decade milestone. The tree is  a symbol of the natural growth the firm projects for the future.

I was asked to turn the first shovel.

Then the staff all joined in.

A fun event, in a lovely park with people dedicated to keeping the credit union spirit alive.

 

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The Sounds of Silence

Cowardness is contagious.  So is courage.

Last week I received along with others on his distribution list, the following retirement announcement from Joe Adamoli, Office of External Affairs and Communications:

Hello, Chip.  Writing to let you know that I opted in to the NCUA’s deferred resignation program. If you need assistance from NCUA Communications after May 2, please contact Ben Hardaway (bhardaway@ncua.gov).

Fair enough.  Just transitioning responsibilities on his way out the door.

So I followed up with the following query:

Is it possible to set up an interview with anyone still around to get an update on events?

The response hours later from Adamoli was:

Hello, Chip. The NCUA declines the request.

I asked for any “press releases or other announcements about events at NCUA. For example have there been any new hires on Hauptman’s staff?”

No response.   So NCUA leadership is so fearful that they wish to say nothing; or so sure of their role, they are no longer accountable to public discussion.  Or perhaps a combination.

It should be obvious that this is not how a governemtn regulatory agency overseeing a $2.3 trilllion system of cooperative credit for 100 million or more citizens is supposed to behave.  Public dialogue is essential for responsive and accountable agency functioning in a democracy.

This is not primarily about the future of NCUA; rather it is about the future of the independent  member-owned financial system in America.

Some will just want to wait and see, hoping that some confluence of events will protect member’s interest in their institutions.

But if no push back is attempted, we know nothing will happen.  With a challenge, we may not know the outcome, but that is why we must try. Has anyone put forth an action plan on Trump’s takeover of NCUA eight days ago?   It’s time for one.

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Nature’s Ritual

O sweet spontaneous
earth how often have
the
doting

fingers of
prurient philosophers pinched
and
poked

thee
,has the naughty thumb
of science prodded
thy

beauty     how
often have religions taken
thee upon their scraggy knees
squeezing and

buffeting thee that thou mightest conceive
gods
(but
true

to the incomparable
couch of death thy
rhythmic
lover

thou answerest

them only with

spring)

Note from poet’s almanac:  Edward Estlin Cummings, born on October 14, 1894, in Cambridge, Massachusetts, was a poet known for his radical experimentation with form and syntax.

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“Take Action Now”

That was the request of O Bee Credit Union President Andrew Downin’s recent letter to his members.

Dated April 18, two days after the Trump administration fired the two democratic board members at NCUA, I thought this was fast action.

The immediacy of the situation was different however:

We need your help. 

A proposed change in Olympia (WA) could directly impact O Bee Credit Union and the services we provide to you and our community. A last-minute amendment was added to Senate Bill 5794 that would impose a new tax on not-for-profit, Member-owned credit unions like O Bee. This amendment was introduced without any public input and ignores the real value credit unions provide. 

This new tax would reduce our ability to offer affordable loans, low fees, and financial support to our Members. It’s not just a tax on O Bee – it’s a tax on you, our Member-owners.

The email closes with this request:

TAKE ACTION NOW*
* This link takes you to a trusted website from our partners at GoWest Credit Union Association.

The letter ends with: Thank you for being a part of O Bee Credit Union. Together, let’s stand up for what makes credit unions special.

What Makes Credit Unions Special?

In this event, the credit union threat is from a change in the state’s tax exempt status. There is direct parallel at the federal level.

But threats to credit unions are more than taxation. Last week the Trump administration took over NCUA.  With a single board member whose term expires in four months, the agency will either bow to Caesar or navigate to keep member-owners’ interest first.

If the latter course is followed, it will need the support and engagement of the members. This existential threat may be harder to rally for member action versus opposing taxation,  No one is for taxes.

But it is critical to point out the NCUSIF logo on the credit union’s marketing materials represents a uniquely credit union designed and dedicated cooperative fund.  Even this email includes the words:  Federally Insured by NCUA.

During the Silver State banking crisis in 2023, the credit union community promoted their separate insurance fund as well as the differences in institutional structure and risk versus banks.

Many factors make credit unions special.   For me the most important takeaway from this communication is not the issue of a tax change or  the current Agency takeover in DC, but rather the request for members to act.

It is member involvement that will separate the credit union issues from the transactional lobbying circus in Washington.   O Bee does an excellent job communicating their credit union’s uniqueness in their monthly messages.

This corporate discipline to stay connected with members is a potent power.  This was the first but not the last time members will be asked to take action in the months ahead.

 

 

 

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An Easter Miracle in Real Life Yesterday

Most people have  doubts about the Easter events at the core of Christian belief.  From early childhood to our senior years, everyone asks, Did It really happen? The story seems nonsensical.

Our  questions  and skepticism are the same as on that first morning.  No one believed the women’s initial accounts of an emply tomb or of some brief, unusual experiences shared.

But then life intervenes for us.  Real joys, sorrows, tragedies all mingled with deep love by those around us.  Somehow this example of divine goodness in human life comes into our view.

And when we are scared, uncertain or even comfortable sitting on the sidelines of life, we summon the courage to assert hope in a belief that our future can be better than what we face now.

Here is an example from yesterday of this miracle  in one of the most difficult circumstance of life.  The news story captures this fundamental human hope, grounded in a love, that never dies. And the desperattion of those still waiting for their miracle.

(https://www.youtube.com/watch?v=WFff3ADgCKI)

The Mystery of Faith

If a more ordered explanation of why so many have this Easter hope, here is a plain spoken talk on this continually evolving journey of belief.

(https://www.youtube.com/watch?v=BCq6bgGVgcY)

Happy Easter Monday.   Know there is more to come. As we see hope in others, it will rekindle  our own faith that life’s possibilities are more than what we see today.

If you need another living example of this faith, here is one leader’s belief in the future:  Evil has its hour, but God has His Day. 

*https://www.youtube.com/watch?v=nu9Nqn8HQy0)

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Good Friday 2025

Sacrifice in Ukraine befoe the hope of Easter peace.

Young and old carry on.

New Life

Soldier holding out in Mariupol steel plant

Ukraine’s National Cemetary

Easter morning.

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What Trump’s Removal of NCUA board Members Means and  Actions Now Needed

The decision yesterday to remove two of the three board members of NCUA without cause puts the future of the credit union system at grave risk.

Why an Independent Agency in 1978?

Credit unions were critical to passage of federal legislation in 1978   (12 U.S.C. 226) to convert NCUA’s single administrator status to an independent federal agency.  This new design was implemented in 1979 with a three-person board confirmed by the Senate.

A major reason for the change was that credit unions were increasingly concerned about the concentration of power and oversight by a single administrator.   They sought a  check and balance of policy priorities with a board where only two members could be from the same party.

The Credit Union System’s Future is At Stake

It was credit union experience and action that brought about this new structure. Credit unions and their members are the immediate losers in the abrupt removal leaving a single person in place. The authority of this remaining NCUA board member is at best uncertain and at worst entirely without agency to undertake regulatory actions.

An NCUA board of two can and has carried out its normal oversight and policy making decisions.   Without a legal quorum for board action the topic of whether NCUA can make any routine or extraordinary decisions is an open question. Can a one-person board issue a new charter, approve a merger, challenge a bank purchase or even hear an appeal of an exam finding?

Undermines Safety and Soundness

This uncertainty will cause both routine and extraordinary NCUA responsibilities to be doubted or mistrusted.  It will erode confidence in the agency’s ability to respond to credit union problems or crises whether singularly or systemic.

Once the public confidence in NCUA’s capacity to perform is questioned, that trust will be difficult to regain.

These firings occurred yesterday, the day before a scheduled NCUA board meeting, subsequently canceled, to present a plan to reduce the agency’s headcount and budget.  Was this action initiated by DOGE inserting itself into the agency’s operations?  What authority if any does the Chairman as a lone board member have?

An Immediate Credit Union Response

This is the third time Trump has removed democratic appointees to an independent federal agency.  In both the NLRB and FTC removals, the persons fired have filed legal challenges.  The outcome in the courts could take months, or even longer to reach a final resolution.  There appears neither a quick nor clear outcome.

However, in the credit union system there is an important option not available in these other agencies.   Credit unions have a dual chartering system.  In ten states, state charters are eligible to leave the federal system entirely and choose a cooperatively designed insurance fund for their members, namely  American Share Insurance (ASI).

An immediate priority for all system components is to expand this option.  In some states the approval can be by the state regulator, authorizing this choice.  In other states such as Michigan it would require legislation.

The time to act is now to establish more options in more states and to educate credit unions that choice is a critical.  This is one means of saving the system from a fate entirely dependent on whatever occurs at the federal level.

The Urgency is Now

Expanding options now is critical because there is a high likelihood other federal shoes will fall. The discussion of federal regulatory consolidation under Treasury is public.  OCC is now a bureau within Treasury run by a single administrator. Another effort to coordinate federal financial regulatory policy would be to have one deposit insurer, not two.

The removal of NCUA’s board members is the beginning, not the ending step in the makeover of federal credit union oversight.   DOGE’s NCUA staff cuts and budget reductions were just a prelude to force consolidation.

Speak UP and Show Up

More details about the state of board deliberations and other changes DOGE may have required would be useful.  It is important that persons seeing these events share what is the state of the agency.  What is the role of Hauptman, the lone board member?  What is the state of the agency’s exam and supervisory capability?  Have outsiders been brought in and what role are they taking?

Silence is the ally of authoritarian behavior.  Every NCUA employee took an oath of office to defend the Constitution as explained in this post, The Oath:

One purpose of the Oath of Office is to remind federal workers that they do not swear allegiance to a supervisor, an agency, a political appointee, or even to the President. The oath is to support and defend the U.S. Constitution and faithfully execute your duties. The intent is to protect the public from a government that might fall victim to political whims. 

Now is the moment  for NCUA employees who believe in the purpose of credit unions to share the facts about what is going on within the agency.  The two former board members should also speak up about recent internal events.

These firings are a direct threat to credit unions’ future. It is an immediate undermining of the safety and soundness architecture of the cooperative system.

CEO’s need to lead the charge, state the problem and mobilize members to protect their system.  This is a moment for direct action.  A time for leaders to make their views known publicly and not attempt to hand over their role to middlemen or fixers who claim connections. It is time for the people in power to see the power of the people.

Credit unions must join the “hands off” demonstrations around the country.  Show up outside NCUA’s office.   Do this often and show the media what is at stake and the willingness of people to protect their member-owned coops.

This is a fight for the future of credit unions.  The industry did not seek it, but must confront this threat. The time for action is now, not waiting to see how this might play out or for some hypothetical political solution.

Credit unions are the latest in a series of efforts by the administration to control law firms, universities, trading partners, etc.   What we’ve learned is that Trump’s first bite of the apple is never the last.

 

 

 

 

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A Statement of Belief from 1935 by Credit Union Founders

Daryl Empen. CEO of Gas and Electric Credit Union, sent me the first Annual Report of his credit union.  The three pages describe the results for members after just six months of operations in 1935.

His comment: While we are offering services today that could not have  been dreamed of in 1935, in many ways, our mission remains the same – improving the financial well-being of our members.  We are still granting loans today for these same reasons and are still focused on improving their lives. 

Sometimes, I think we make this job too complicated instead of focusing on that purpose.  Reading this brought that back into focus for me.  

I share most the typed Report because the context and accomplisments in just six months are remarkable.  The Report discusses the state of the industry in 1935,  presents multiple member benefit examples and projects an unlimited future-in the middle of the Depression. (I added subheads.)

Annual Report of the Secretary of Peoples Power Employees* CreditUnion  as of December 31, 1935  (January 13, 1936)
To the members of the Union:

On the night of May 9, 1935, a meeting was held in this auditorium  for the purpose of discussing what has already provided progressive and far-reaching steps ever taken by the employees of this company- the voluntary banding together of a group of men and women with a common interest for cooperative saving, service and profit; in other words, a credit union. . .

From that day on, your directors have worked untiringly to make this Union an outstanding success. Much credit is due to the President, Vice President and Treasurer  who have met to transact routine Union affairs and emergency business and consider old and new problems.

CUNA, League Membership and Tax Exempt

Among the more notable accomplishments of the year are the acceptance of the Union into the Credit Union National Association and Illinois State League, the exemption from Capital stock and Federal income taxes, the election of President Weise, a director of the Mississippi Valley Chapter of Credit Unions, Treasurer Dau as executive  chairman of the same organization and reduction of borrower’s insurance from 8% to 5% retroactive to October 1st.

Employees Are Benefitting

Already several employees have been released from the clutches of loan sharks, placed on a definite schedule and are fast getting back on their feet.

Others have settled long standing hospital and doctor bills at substantial savings.

Still others are saving for vacations, Xmas savings, insurance, furniture, automobiles and other wants too long to be listed, all of which, can be accomplished at considerable reduction due to elimination of installment buying.

Page 2

. . . today, there are over 3,200 Unions in operation and new ones being formed at the rate of 150 per month. The statutes of 42 states contain Credit Union laws. In Illinois alone, there are 250, Cook County leading with 126. The Tri-City area, with only a recent start already has 14.  (Ed Note: there is no reference to federal charters in these totals.)

The basic soundness of the organization is evidenced by the fact that with banks closing in large numbers, not one failure of an industrial Union mas recorded during the depression.

The movement is only now seriously getting under way and is rapidly spreading to every state in America.

The Depression

The Credit Union has definitely arrived. The question is: Has it arrived in time?

During the past 5 years, the American people have been suffering thru a depression unknown in history. We have machinery in abundance capable of providing a plentiful living for every family in America, but because this machinery is being operated under out-moded financial theories, the result is poverty in the midst of plenty.

And the result of this is a series of mass movements on the part of millions of sufferers. It is useless to point out the futility of most of these movements  such as, “share the wealth” and “soak the rich” or that they are economically unsound.

These people want positive constructive action which will result as soon as possible in definite benefits. And that, it seems to us, is the responsibility of the Credit Union.

You members now have some idea of the relation of money and credit, and our problem is to effect the distribution, not of our present small and dwindling supply of wealth, but of the plenty which we now have the capacity to produce by means of credit.

The credit Unionist can lend his influence to discourage unsound and destructive political legislation which can only result in making conditions worse.

Frankly, your directors have been somewhat puzzled at the continued refusal of some employees to join. Our work is not seasonal and with very few exceptions, there are none of us that are unable to save at least a small sum each month.

Let us look at some of the benefits that accrue to the Union member.

The most difficult step is the first, to resolve that I will have some of my salary laid away for me each month before I can spend it. Deduction is made from your paycheck, this procedure making it even easier than bank deposits.

Once formed, this habit becomes a powerful force as all habits do and before long, the small sums that formerly trickled away, mount up and, before long, the member has a balance that will really be of some benefit to him.

Safe and Sound Operations

Next, the safety of your capital. Your treasurer is bonded. An employee applies for a loan. He must furnish two cosigners, satisfactory to the committee, or collateral, At least one of the directors is personally acquainted with the applicant, we know his reputation, financial status, responsibility and habits. In fact, we know him and his circumstances far better than any bank or loan company can ever know their customers.

In addition, he makes a wage assignment, and his life is insured. The loan is repaid by pay roll deductions, a definite amount each month. And finally, the application is carefully scrutinized and must satisfy the Credit Committee that the purpose of the loan is what we term provident.  That is, the loan will be used for some purpose that will benefit the borrower.

Page 3

Already several employees have been released from the clutches of loan sharks, placed on a definite schedule and are fast getting back on their feet.

Others have settled long standing hospital and doctor bills at substantial savings

Still others are saving for vacations, Xmas savings, insurance, furniture, automobiles and other wants too long to be listed, all of which, can be accomplished at considerable reduction due to elimination of installment buying.

An Unlimited Future

The future of Credit Union functions are unlimited. Some are writing automobile insurance, organized collective buying agencies, and deal in certain types of mortgages. Legislation is now pending in Washington for the establishment of Credit Union banks scattered over the various states to act as clearing houses and care for the details and business of adjacent Unions.

Your directors feel that the Union has accomplished a real service in this company. The employee whose mind is free of financial worry is a better workman, and that which benefits the employee, benefits the company.

In a like manner, the things that benefit the company, benefit the employee. For the first time an employee can turn to his director assured of friendly considerate help in his financial problems, instead of appealing to an outside loan company who can and do, charge him as high as 42% per year.

And let me assure you that no director will ever betray a confidence. You can discuss your needs to him with the full assurance that it will never be violated.

A loan case study in the 1935 Annual Report

Consider two options. An employee decides to buy a certain article for $200.00. He can buy it on the installment plan, paying $5.00 per week 40 weeks, or he can buy it through the Credit Union.

He can buy the same article for cash and get approximately 20% off the installment price for $160.00.  He borrows $160.00 at 1% per month on balances for 40 weeks or ten months. The cost of the loan is $8.80, so this desirable article has cost him $168.80.

Buying at the rate of $4.00 per week, he pays $200.00, plus 6% for a year, so that the installment price is $212.00. The Credit Union member pays $168.80 and the non-union member pays for the same commodity from the same company $212.00. The difference is $43.20 or a total of over 20%.

The Savings Advantage

Or, place $200.in a bank. At the end of a year, they will pay you $5.03. Placed in the Union, the same amount at our present earning capacity would produce $10.00

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What Does Your Banner Say?

I took this picture in Bethesda yesterday.  Where do you think this banner is hanging?  The local primary school, our town hall, outside a car dealership, a grocery store, a CVS drug store, or maybe a bank?

It is in the front yard of St. John’s Norwood Episcopal church.  You probably guessed this from the picture.

St. John’s has an active community presence.  My wife has volunteered at their Opportunity Shop for two decades.  A group within the congregation holds regular fund raising efforts for Ukraine in partnership with nearby St. Andrew Ukrainian  Orthodox Cathedral.

Last week the two churches held an Easter bake sale that raised $8,600.  The week before there was an appeal for 200 civilian tourniquets at $100 each.  In three days they collected over $4,000.

Welcoming the stranger,  you might say, is what churches are supposed to do. Right?

A Shared Value

That welcome is also one of the foundations of America as a land of hope and opportunity.  For at one time in our family histories, we were all strangers to this land.

Americans by and large take pride in their roots elsewhere.  In our family the kids trace their heritage back to the Scots-Irish, China, Africa and Missouri.  Why Missouri?  That’s where my Mom and Dad went to get married after Pearl Harbor because there was no required waiting period as in Illinois.

American businesses, such as Ancestry.com and 23 and Me, were created to help us trace our many heritages.  Families sometimes refer to their Mayflower or Daughters of the American Revolution relatives.   We are all immigrants for one reason or another.

However national daily events  are undermining this core American ideal and strength.

Transactions Versus Values

Would your credit union put the above sign outside your main office? Some have sought to serve recent arrivals even using alternative identification numbers.

But credit unions compete in a capitalist society in which dominance and control are sought and celebrated.  The deal maker is now as honored or more so than the entrepreneur.

Credit unions were designed as an alternative to this drive for power.  The industry’s top public policy priority at the moment is to protect their tax exempt status.  This was granted to reflect the non-profit purpose of serving those whose needs were unmet or taken advantage of by profit driven firms.

Values were core to this purpose.  Individuals could find personal economic opportunity through a cooperative structure they owned and directed.

But market realities and personal ambitions have a siren allure that is hard to ignore.  Here is the latest press release of this cooperative drive for market dominance headlined with the words:  A Powerful Partnership

San Diego, Calif., (April 11, 2025) – In a move that would change the financial landscape of Southern California, California Coast Credit Union (Cal Coast) and San Diego County Credit Union (SDCCU) have announced plans to merge, pending regulatory approval and a Cal Coast membership vote.

Upon approval, the combined credit union will boast a powerhouse organization with assets totaling nearly $13.5 billion, 65 branch locations, and more than 1,400 employees serving members in Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara, and Ventura counties. The organization will remain the fourth largest credit union in the state and become the 16th largest in the nation.  (emphasis added)

Size, power,  dominance, strength, resilience are all elements of a transaction versus a value motivation.

Both institutions are financially strong, viable, creative and successful.   However the cooperative merger math is that 1 + 1= 1.   No longer are their two boards, two management teams and business strategies seeking to better serve their longtime member-owners.   Not a single benefit is listed that is not already available for a person choosing to join either credit union.  The industry has in fact reduced not expanded its reach.

The Stones Will Cry Out

One would hope that the long standing service of these credit union directors would have given them some insight into what makes credit unions different and successful.  It is not size, ranking within their state or nation, or even the number of branches or ATM’s.

Values inform purpose.  Together they can make credit unions a force to serve where for-profits will not.  Without these integrated in the institution, the cooperative difference is lost.

Values are talked about at funerals.  I attended performances of Brahms German Requiem this weekend.

Two English translations summarize the realities we all face:

“All flesh is as the grass, and all the glory of mankind is as the flower of grass.  For the grass withereth and the flower thereof is fallen.”

And in case we miss the point, “Verily mankind walketh in a vain show, even his best state is vanity.”

The sign above has a little noticed two words in the lawer left hand corner.   It says “Faithful America.”

The Brahms Requiem and two words on the banner remind us of our transient and transcendent opportunities. If we are silent in these moments of responsibility, one  prophecy  says the “rocks will cry out” the truth of our behavior.  What sign will you put outside your credit union?