This month the Congressional Budget Office (CBO) released a 27-page report analyzing the Federal Home Loan Bank System.
The significant chapters include an Overview, Financial Condition, Subsidies and Risks.
The FHLB system is the largest lender to credit unions. Hundreds of credit unions have capital invested in individual banks and rely on them as critical partners for liquidity and ALM management. At 2023 credit union borrowings reached a peak in the system’s history:
The Central Liquidity Facility
How can the cooperatively owned, tax exempt FHLB, created to serve the savings and loan system, thrive with credit unions while their own funded CLF plays no role at all? Certainly, the borrowing demand is there.
At February 2024, the CLF reported $913 million in total assets, equity of $862 million and one loan for $1.0 million.
A 5% return on the fund’s retained earnings of $42 million would pay all CLF’s operating expenses. It’s 4th quarter 2023 dividend of 4.62% trailed the overnight market by .75%. Why aren’t members even receiving a market return on their shares?
More importantly, what can credit unions learn from the CBO’s analysis and the system’s response?
The CBO and FHLB Summary
Ryan Donovan, CEO of the Council of the Federal Home Loan Banks posted a reply #FHLBank to the CBO report: “it does a fair job of acknowledging the many things we have been saying.” He singled out a number of key success factors:
Private investors — not the government or taxpayers — bear the cost of any “subsidy” associated with the FHLBank system.
The FHLBank system plays a valuable role in providing liquidity to its members, particularly during times of market stress.
The benefits the system provides accrue not only to the members but to borrowers and the public. In fact, it says,
“Lower financing costs on FHLBs’ debt are passed along through lower rates on advances than members would receive when borrowing in private debt markets. In turn, competition leads members to offer lower rates to borrowers.”
“Because members are both owners and customers of FHLBs, almost all of the subsidy (after afford-able housing payments are deducted) probably passes through to them, either in the form of low-cost advances or, to a lesser extent, through dividends.”
The existence of the FHLBank system “reduces mortgage rates and provides liquidity to the housing market, particularly during period of financial stress.”
The FHLBank system poses very little risk to taxpayers. If one accepts the CBO’s figure of $600 million in federal tax exemption, the roughly $1 billion that the FHLBanks will distribute in affordable housing and community development grants this year seems like a very good investment for taxpayers.
Donovan concludes: The report stymies critics . . .because CBO makes clear FHLBanks pose little risk, they provide significant public benefit, the implicit guarantee is perceived by bond investors and the benefits of the system flow through to borrowers and communities.
The FHLBank system is poised to deliver $1 billion toward affordable housing and community development . . .We’re engaged every day with our members and other stakeholders on how those resources can be used most effectively. (end)
All these housing and community benefits should be possible with the CLF. Why isn’t this happening? What might a CBO report on the CLF say? Would anyone care?
Music for Holy Week
With each daily post I will be adding excerpts from some of the great classical music inspired by this Holy Week. Today’s is the “Resurrexit” from Berlioz Messe Solennelle.
Opening Day of the 2024 baseball season is eight days away. Players are being assigned to AAA from spring training or gaining limited roster spots on the major league varsity.
The sporting press is full of hope and enthusiasm. Every team’s ambitions are equal at this starting line. Accompanying these renewed expectations is the ever present realities of enormous player contracts, team moves to save money and whether multi-million dollar veterans will live up to their salaries and/or overcome temporary injury.
Baseball has become a game as much about money as competitive athletics. “Winners” are those with record contracts but not necessarily leading their teams to greater success.
However there is a counter story. It is about a player who stayed true to the game of baseball and his own values as told in the Imaginative Conservative:
The Baseball Hero Nobody Knows
By Stephen M. Klugewicz
His career stats indicate that he was a mediocre baseball pitcher—perhaps the epitome of mediocrity: 84 wins; 83 losses; a 4.49 Earned Run Average; a Walks-plus-Hits-to-Innings-Pitched ratio of 1.42.
Yet Gil Meche, who played for the Seattle Mariners and Kansas City Royals, was responsible for one of the most astounding, yet almost unnoticed, acts of virtue ever committed by a sports figure. In the winter of 2011, Mr. Meche, then with the Royals, voluntarily retired from the game, foregoing the final $12 million on his multi-year contract.
Mr. Meche was injured and would have sat out the 2012 season while receiving paychecks. “When I signed my contract, Mr. Meche explained, “my main goal was to earn it. Once I started to realize I wasn’t earning my money, I felt bad. I was making a crazy amount of money for not even pitching. Honestly, I didn’t feel like I deserved it.”
Mr. Meche’s decision is nearly unprecedented in professional sports; countless other injured players have gleefully accepted paychecks while they sat out entire seasons with injuries. “This isn’t about being a hero — that’s not even close to what it’s about,” Mr. Meche insisted. “Making that amount of money from a team that’s already given me over $40 million for my life and for my kids, it just wasn’t the right thing to do.”
Though a small event in the great arc of American history, Mr. Meche’s action would constitute an example of good character in any age, but it is especially noteworthy in the America of the early twenty-first century, an era of dishonesty, self-absorption, and greed. It should not go unnoticed, nor should it be forgotten.
Lost Virtues in Credit Unions
Today the opportunity to cash out one’s credit union tenure and leadership position is advertised in direct marketing appeals.
One headline reads:
1,200 Credit Union Mergers by 2030 –
How Are You Positioned?The YOU refers to the CEO ‘s who are being solicited. Either give up and join the merger-sales endgame and /or join in the bidding to secure another credit union’s resources. The need is urgent. Here’s why:
With regulations set to zap fee income, interest rates slowing mortgage action, compliance burden increasing costs and the need for scale driving strategic decisions. . . predictions say there may be as many as 1,200 credit union mergers by end of year 2030.
· Do your financials put your credit union in the position to be a merger or merge?
There is no pretense or subtlety here. Your future is full of threats, give up now and we’ll help you cash out. No mention of members’ best interests. No recognition that virtually every credit union operating today has a charter that has served at least three generations of members and created meaningful reserves of collective wealth and service legacy.
The bottom line in this strategic outlook is that prospective failure can become a CEO’s present success story. So get out while the getting is good!
Instead of character and values being triumphant, some coop leaders and their consultant allies are directing the industry into an America of the early twenty-first century, an era of dishonesty, self-absorption, and greed.
These actions dishonor the character of hundreds of Co-op “Gil Meches” who retire each year and loyally pass the credit union’s torch to their successors.
According to the December 2023 Lane Report, a Kentucky Business Journal, there is change coming to the teaching of financial skills to students in the state:
Kentucky high schools maintain a C grade in a national report card on how well they teach personal finance, but by next year their grade may climb to a B.
Given a C in 2017, Kentucky maintains this grade in the updated 2023 National Report Card on State Efforts to Improve Financial Literacy in High Schools, issued by The Center for Financial Literacy at Champlain College in Burlington, Vt. . .
John Pelletier, director of the Center for Financial Literacy, says that by 2028, 23 states are projected to have an A grade. . .
“Kentucky requires high school students to take vocational instruction, which includes personal finance concepts,” says Pelletier. “The Class of 2024 will be required to take one or more courses or programs with financial literacy content, but implementation will be up to school districts.”
Pelletier says state policy makers are responding to families without financial safety nets during the pandemic, as well as to advocacy by educators, administrators, parents and students.
Prior to the passage of this bill in 2018, there was no specific financial literacy instruction requirement for high school graduation.
The Kentucky Department of Education now lists financial literacy resources on its website to assist schools implementing this requirement beginning in 2024.
The Advocacy Role by Credit Unions
At the recent GAC I spoke with a Kentucky credit union leader, a CEO for just ten years, who has put financial education at the center of the organization.
The credit union offers classes at local high schools, for military retirees and veterans, and for employees of groups the credit union serves.
The CEO has taught some of these classes. As a member and leader of the Kentucky league, the credit union community became advocates for this educational priority in Kentucky schools.
This financial education concern was but one of many initiatives this CEO shared about his short tenure. What impressed me was his focus on “connecting” with the many constituents the credit union reaches. He meets with the leaders of government and private organizations they serve, supports community and other credit unions in the state, and advocates for members’ financial well-being.
The History of Financial Education
His efforts are an example of a generation changing event. His role is more than managing the financial trends of a credit union, but uplifting possibilities for all across the state.
What I didn’t realize was how difficult this education priority was until seeing this brief, five minute history of financial education in America. It shows how educational priorities have changed since the Eisenhower era’s focus on math and science. Today the emphasis on teaching financial life skills is one area of strong bipartisan support.
(https://www.youtube.com/watch?v=0uvurQcj0fs)
This is how one CEO has provided leadership far beyond his membership. Yet without his credit union’s example and the practice of what he was seeking, the effort might not have been as successful.
Now all Kentucky students, and their parents, have the prospect of a “B” or even an “A” in this most important understanding of financial responsibilities throughout life.
The film is Arlo’s first person account filled with dozens of examples of hardship. hope, and grant making through the CDFI he organized to make loans.
There are numerous examples of what it means “to be banking while black” and why there is little trust in the existing banking system. The film provides a brief history of black efforts for economic equality from the post civil war promise of “forty acres and a mule” to modern day red lining in Little Rock-a city divided by inequality and a highway.
The film even shows learning empathy in the “two minute drill” where two former incarcerated men learn to “see” each other’s hurts.
A Potential for Every Credit Union: Economic Justice Rights Wrongs
The film is a study in self-help. It shows the need and power of putting money back into the community. “A tree is known by the fruit it bears,” says Arlo. “If you have all the money and wealth you want, and don’t make an impact, what do you have?”
The film’s many residents assert multiple times that economic opportunity brings freedom. One says that if this (model) catches on, it will become a threat because people can see what they can do to be free. There will be no more excuses for economic injustice.
People Trust Community FCU
The film’s story of Arlo’s efforts ends before the credit union he chartered is up and running. There is a picture of the building and sign, but no recognition.
At December 2023, the credit union reported total assets of $4.4 million, loans of $326,410 and 445 members. It has capital of 11% or $482,000.
The film was released just two months ago and has been viewed 352,000 times with 433 comments posted afterwards.
The impact of this enterprising person’s example is extending far beyond the borders of Little Rock. It is a wakeup reminder for every existing credit union of the potential to change people’s lives and the trajectory of their community.
Viewing this current effort should be a catalyst for conversations in every credit union trying to make a difference in their members’ lives.
Before the organizational titans of today’s cooperative system were created, there were tens of thousands of credit unions chartered by ordinary men and women. Who believed in extraordinary possibilities.
A living example of this belief is Rincones Presbyterian Credit union, chartered on January 1, 1960. This founding predates the “origins” of most of today’s credit union leaders.
At yearend 2023, the credit union was $5.2 million in assets with 804 members. It has three employees with an average salary of $32,745. Last year their loan originations increased 15.7% to total $2.3 million, the majority for autos.
Rincones in Spanish means a “small secluded valley,” or literally a nook. Located in Chacon, an unincorporated area of New Mexico with an elevation of 8,166 feet, harsh winters have given the area the name “Little Alaska.”
Their vision and mission are printed on the sign marking their “head office.”
Would credit unions be even more successful if they followed the Trust of these founders?
After all, that is what we print on all of our coins and currency.
“. . .our results indicate a serious misalignment between the legislation that establishes the credit union mission (a tax exemption in exchange for meeting the credit and savings needs of consumers, especially those of modest means) and the actual performance of credit unions under that legislation.”
Brief extract from: Who Consumes the Credit Union Subsidies? (Queen’s Management School, Research Paper 2022/03 written May 10, 2022)
The Challenge
How would your credit union respond to this academic conclusion?
This children’s book is overtly about the relationship between a tree and a young boy.
He first asks to pick the apples from the tree to sell. The tree says OK. He then requests to take branches to build a house. Again the tree agrees.
As the boy grows older the tree lets the boy take its trunk to build a boat.
For some this is a heartwarming tale that explores the selfless nature of unconditional love. It is a relationship of tree and a boy, a metaphor that teaches valuable lessons about the joy of giving and the importance of gratitude.
For others the morale is more straightforward and simple: it teaches the dangers of being selfish. When life has no boundaries, we just take and take until we end up destroying the source of our well-being.
Current day readers have generated interpretations far removed from what may have been the author’s initial intention. Some argue the boy’s behavior is narcissistic and the tree an enabler.
The power of a good story is to draw forth multiple reader reactions. So at the risk of some reader’s understanding of The Giving Tree, I want to apply its lessons for credit unions.
A Metaphor for Credit Union Behaviors
I believe one takeaway is that the current view of some credit leaders that theirs is an organization with no limits (internal or external), subverts and could destroy the integrity of the cooperative model.
There is no logic or reason between cross-country mergers or even those many states and miles away eg. Maine and Illinois. The continuing credit union’s home market and legacy has no relation to the newly acquired members or local community.
These deals corrupt the merger process making the executive sellers rich and the members poorer. The member-owners who are victims in these financial empire building combinations are asked to give away their accumulated value for nothing.
The justification for buying banks, sometimes completely out of the credit union’s market, is also suspect. These bank owners often reap above market returns. The credit unions readily pay premiums to bank owners, but acquire members’ accumulated wealth in mergers for free.
Both cases use members’ mutual savings accumulated over decades to enable corporate ambition, not improve member benefit. The intangible value and goodwill that created this common wealth becomes the means of transforming the coop’s purpose into a market-driven, tax exempt financial hybrid.
Instead of a more equitable and just financial system, the result is a greater concentration of wealth and power often outside all local connections–the antithesis of the cooperative model’s intent.
There is no virtue in being a tree and allowing someone to take away everything created until there is nothing left. The free market defense of these open-ended expansions, destroys the mutuality on which credit unions depend.
The irony of these takeovers is that they eliminate the critical source of credit union’s abundance-the trust and belief by member-owners that coops are different.
Boundaries are critical for knowing when to say yes and when to say no. It’s time for credit unions to say enough! Let’s remember who we are and how we earned our standing.
The Dish Ran Away
Silverstein was not the only author offering wisdom in a children’s idiom. If one looks at Mother Goose’s brief verses, they can be applied to many areas of our behavior.
Here’s one that is may also be relevant to the above concerns.
To See Such a Sport
The Cat and the Fiddle
Hey, diddle, diddle!
The cat and the fiddle,
The cow jumped over the moon;
The little dog laughed
To see such a sport
And the dish ran away with the spoon.
A nonsense poem to teach children rhyme and verse with familiar words?
Or, might one ask who is the Cat playing the fiddle? Who is the dish running away with the spoon?
Does this seeming blather suggest the pretense that buying and selling cooperatives is somehow benefitting members?
Last night I attended a forum where Spencer Cox, Governor of u Utah and Wes Moore, Maryland’s governor discussed the idea to “Disagree Better.” That is the initiative Cox has put forth in his term as chairman of the National Governor’s Association.
The effort is to model how leaders in positions of accountability can avoid polarization and conflict even when they disagree, but instead learn by listening to contrary points of view.
Cox initiated this approach to leadership in this joint campaign ad in 2020 with his democratic opponent:
(https://www.youtube.com/watch?v=w5_ajRH0QN8)
The two governors are supporting the Disagree Better theme by telling their learnings from each other’s policy successes. They shared multiple examples from addressing childhood poverty, transgender rights, and a “year of service” for high school graduates.
Their bottom line is that everyone wants to be heard—it’s the most fundamental principle of democratic governance. Leaders need to model the ability to listen and the importance of showing up or a “presence” even if not in supporter’s districts. They suggested most issues are not binary, that is a right or wrong solution, but are open to multiple outcomes.
An example of a civic initiative by Moore was the year of service Maryland offers to high school graduates who may not wish to go on to college or work immediately. Participants can choose from multiple areas of interest from environmental to personal care roles.
His observation is that “service is sticky.” It can lead to lifelong friendships (eg military service), builds community and creates the capacity to unite to solve problems later.
In their interchange they talked how to avoid the public polarization on which much of media today thrives. How do political leaders become the adults in the room when national politicians thrive on creating conflict?
Their response: Never forget who put you in the position you hold. People became angry when they feel they are forgotten. Each of us stands on the shoulders of others who brought us to this point.
The Credit Union Lessons
Moore’s description of how ”service is sticky,” is exemplified in the most successful credit unions. They raise up their members in the community and become an essential part of its character.
But I think the example of open, public dialogue that draws from each person’s leadership experience approach to their role, is one credit unions can learn from.
NCUA legal counsel has interpreted the law to say that two board members may not speak to each other except in the context of a public meeting. But what if the public board meetings are not real conversations, with members reacting and learning from each other’s positions? What if they are just written recitations of decisions arrived in advance?
The Kabuki theater of today’s public process minimizes the professional capabilities of board members and of the professionals who are supposedly briefing them. Instead staff read prepared answers to questions given in advance. Credit unions and members deserve to see their leaders as actual leaders, not performers looking at slides or presenting prepared remarks.
The Public Forum
Another opportunity for real dialogue between credit unions and NCUA is the GAC. When I was at NCUA, it was routine for CUNA’s governmental affairs committee to hold their pre-conference sessions with Washington staff and credit union members from around the country. Ed Callahan, Bucky and I would be invited just to listen to these legislative and regulatory priorities or concerns. Not to speak, unless asked, but to listen.
After presenting the annual Chairman’s update at theGAC, Ed and senior NCUA staff would then sit in the Hilton’s café space at tables talking with all comers—often for hours. Impromptu conversations about whatever people wanted to say.
Today those opportunities are rare. In discussing NCUA issues my experience has been that the dialogue often is about who is wrong or right. It is not a search for options, or a better or more just solution. It becomes a defense of the status quo.
This inability to learn by listening carries over to staff. Following a board meeting last fall I wrote to ask for clarity on a single number—was the ratio on an annual basis or for the entire period? After hearing nothing for several weeks, I followed up and was told PACA had to approve the response. The explanation came a week later. The answer was at best unclear, and could have been taken care of in a 30 second phone call.
Whether one is an elected governor or an appointed NCUA senior leader, the most important role is modeling the behavior that you believe consistent with democratic governance.
Do you want to learn by listening or instruct by preaching? Are you open to meeting with those who disagree, or just exchange written communications restating positions? Are democratic norms encouraged or priorities set by a political agenda? Do we remember we stand on the shoulders of those whose work preceded ours, or do we think the present belongs wholly to our dispensation?
Polarization or civility – can the cooperative system be the example that demonstrates the values that America urgently needs for democratic institutions to succeed?
We have officially welcomed over 100,000 Members! We are deeply proud to be the hometown financial institution of choice by so many in our community and we want to say THANK YOU!
From Springfield High School’s student newspaper on the school play:
. . .One of the important aspects of high school is the opportunity to be a part of something bigger than yourself. Being involved in the production process, like Hashmi stated, has allowed students to contribute to the creation of a captivating performance. It is a chance to collaborate with a team of talented individuals and learn new skills along the way. Plus, there’s a unique sense of camaraderie that comes with being part of a play. So, if you enjoy the idea of working behind the scenes and being a crucial part of bringing a story to life, the fall play is definitely worth considering!
A Video: What Good Business Looks Like
This short video “story” from Thailand should be required viewing for every credit union board that has ever contemplated the merging of their long- serving coop. It is a stunning example you won’t forget. It disproves the capitalist adage, “Everybody has a price.”
Einstein’s explanation of the credit union advantage, especially in times of crisis, is simple-Time: The only reason for time is so that everything doesn’t happen at once.
The cooperative member-owner structure gives management and the owners time to straighten things out when problems occur. Let markets cycle through their phases. However, there is no respite in the winner-take-all world of competition when a market owned firm falls from grace.
The Justifications in Self-Serving Mergers in Which Members Get Nothing
In my recent look back on several mergers, I reached out to a participant from several years ago. Had the members seen any change for the better? The reply: it’s just another bank without heart or soul or members, just customers…but then, we might just be American Idiots …
If we’re honest, culture forms us as much as our statements of personal values.
Human beings can live without many things, but not with an absence of meaning. In our “free” market driven economy dominated by for-profit firms, cooperative CEO’s and boards will continue to cloth self-interested actions in moralisms and myths.
On November 9, 2021 the results of one of the most contested credit union merger elections were announced. The members of Vermont State Employees (VSE) had approved a merger with New England FCU. The final tally was 7,622 for and 7,304 against, a margin of 318 votes. Approximately 21% of the members voted, an unusually high participation.
I wrote a number of blogs about the contest. The opposition put up a website Calling All Members led by the former CEO and previous board directors. It presented powerful arguments against ending VSE’s independence. For these longtime VSE supporters, the outcome was a surprise and disappointment. However, they chose not to challenge the results. Since the merger date of January 1, 2023, VSE has operated as a division of New England FCU. A new name/brand is promised for the future.
“In the Room Where It Happened”
John Kennedy once said, “Victory has a thousand fathers; defeat is an orphan.” In this case victory has a mother.
I recount this story from a much longer article about her efforts. This insider’s account raises the question what the outcome might have been had this approach been revealed during, not 8 months after the vote.
This lengthy, first-person story of the voting campaign centers on Yvonne Garand, VSE’s chief marketing manager. The article includes examples of the mailings and other promotions from the campaign which are not included here.
Writer Berg describes Garand’s communications strategy as the “make-or-break factor.” These included messaging to target segments at critical points in what ended up being conducted like a “political campaign” including hiring a consultant expert in political elections.
The author believes this case “offers lessons for other institutions concerned about how customers will react to a change in ownership.” Also an example of tactics necessary to win. He says the fundamental challenge in any merger or purchase-even if members vote: “the customers or members coming on board didn’t choose to bank with the acquirer on their own.”
The Critical Tactic for “Getting out the Votes”
The critical communication tactic was segmentation. Identify key groups and prepare different messages, tone and style for each subsector.
The two credit unions had different histories and business priorities. Both were community charters but VSE’s (1947) legacy was its state employee origins. New England’s roots were as an IBM chartered credit union (1961) with members outside the state from the beginning. These two Vermont based credit unions had created different business models, cultures, and brands.
Garand called her communications strategy a “human-centric approach” that ensured the “messages were empathetic.” In this short video link in the article she summarizes her approach with this point–the campaign couldn’t be a typical merger story about greater scale and efficiency.
“All of those things are important. But that’s our inside jargon. And we knew that if we came out with messaging and communications that sounded like that, people might not understand it, and it might even feel a little intimidating.”
Several key segments included “digital natives,” environmentally minded members, and those located around New England’s branch structure in Burlington.
But the most group was VSE members who lived near the state capital of Montpelier. As the longest tenured members, “We knew that this was probably the segment that would feel the greatest sense of loss because they grew up with VSECU. We really wanted this group to know that they were still going to have the same experiences that they have today.”
As Berg notes in the article, “knowing many “no” votes would come from the state capital area, the credit union focused on reaching potential voters in other areas of Vermont who might be more receptive to the merger plan.” He quotes Garand: “We strategically focused on the Burlington market — Chittenden County — as well as other smaller regions in Vermont, to encourage those members to vote. And it worked.”
Changing Tactics as the Opposition Organized
Garand’s reaction to the opposition, “It did take us off guard just a little bit, how effective this opposition was in the central Vermont area.”
The independence effort was led by Steven Post the former CEO of 26 years and other directors and senior executives. Their website offered multiple, thoughtful reasons for sustaining VSE’s unique values based, Vermont-centric model. I wrote several blogs presenting their position that VSE’s continuation was in the members’ best interest.
The Vermont State Employees’ Association and the Vermont Retired State Employees’ Association, opposed the merger. Given this backing, “we thought we were going to win,” says Post the previous long term CEO.
What made the difference? The opponents say it was VSE’s resources used to promote the merger. If one looks at the increase in marketing and professional services spending in 2022 versus the prior year, it would seem to confirm one critic’s estimate that over $1.0 million was used to convince members to support management’s decision.
From Berg’s article, “If we had had money to put ads on TV, I don’t have any doubt that the outcome would have been different,” says Jerome W. Diamond, the state AG from 1975 to 1981 and a former chair of the credit union’s board.”
The Vital Tactical Change
As the opposition organized Garand changed tactics from a traditional company marketing-messaging effort to a political campaign. Even bringing in outside consultant with election expertise.
Berg’s article includes more details with marketing collateral. This is an insider’s account of her role to persuade members to support VSE’s termination. She avoids debates about member benefits, rather the member communications focus on “feel good” concepts: “Better Together,” “Leading from the Future,” and “Enriching the Quality of Life.”
Garand rejects traditional business logic for mergers-scale, efficiency, innovation- to solicit votes. Recognize the opposition, but don’t engage with the critics.
The credit union controls the communication channels to reach the members including branch signage and multiple message marketings. Focus on advertising a potential bright future not on whether members should give up control over all the resources, relationships and community focus they have created and own.
Learning from the Past
Once eliminated via merger, there is no going back to resuscitate a vital legacy over 75 years in the making. When reporting on the outcome I described the losses that occurred not only for VSE members, but the state credit union system and its citizens.
New England FCU’s acquisition not only eliminated its principal competitor, it also created one credit union controlling 47% of the state’s credit union assets and 40% of members at the merger date. A big egg for one basket.
Tomorrow I will look at the results of the merger one year out. How are members responding? What are the financial trends? It is especially important for a look back while the events and points of view are still remembered.
We can change the future if we are willing to learn from the past. And then take seriously the differing judgments about the event’s consequences. One group lost an election about a credit union’s future role.
However everyone loses when the event is merely another successful example of the power of propaganda, or marketing, whichever interpretation best fits this recounting.
