Scott Galloway is professor of marketing at NYU’s Stern School of Business. He is a prolific writer, commentator and provocative analyst of America’s economic successes and failures.
The following is an excerpt from a much longer December essay on current trends titled Prof G Person of the Year:
The real Person of the Year in 2023? A: Money.
I’ve experienced this firsthand, watching as faculty who can’t teach or pen relevant research create a weapon of mass distraction from their mediocrity: DEI. But that’s not what this post is about.
America is becoming more like itself every day: Money is the arbiter of … everything.
There’s a view that the rise of money is a good thing. Or at least not all bad. Human society has never been fair, and as long as people are status-seeking, competitive animals in a world of scarce resources, it won’t ever be. Historically, many of the lines that divided society traced innate characteristics like race or sex, were based on inheritance, or were determined by the exertion of physical strength.
Money doesn’t care about any of these things, and it has washed away barriers in ways that potentially make institutions more accessible. There are now nine Black American billionaires. Good news — and their rise is correlated to an increase in civil rights.
What stops this from being a Hallmark channel version of capitalism is that money, when not reinvested/redistributed (pick your word) quickly pools and concentrates, and innovation and competition decline. “Competition is for losers,” is how Peter Thiel puts it. And he’s following through, buying Senate seats (his protégé, J.D. Vance, is leading the charge to defund Ukraine) to secure the influence of his money.
We aren’t going to end the power of money any time soon. In an economy increasingly run on financialization, with so much wealth in circulation, our objective should be to ensure that it keeps circulating. Money = power, and power should be distributed as widely as possible. . .
My Comment
Galloway’s critique is one of the reasons for cooperatives such as credit unions in a capitalist economy. That is until the alternative begins to act like capitalists.
I believe the greatest challenge for credit unions is not external–competition, economic uncertainty or technology disruption–but rather internal. That is, the loss of confidence in who we are and how we try to counter the inevitable goals of more and more money and power, not for members, but for our personal and institutional ambition.
The greatest challenge is how do credit unions re-engage with members, not as mere customers, but as real owners in the “distribution of power” as Galloway describes it.
Yesterday the treasury market closed at these yields for the maturities listed:
Yield Maturity
5.50% Overnight
5.55% One month
5.46% Three month
5.24% Six month
4,80% One Year
4.33% Two Year
3.95% Ten year
This inverted yield curve, where short term rates exceed long term, can be an ideal time for asset management.
This is because return and liquidity are both optimized by staying short. If an asset or investment manager is matching with specific liabilities, the prospect of a duration gap between asset and liabilities can be minimized.
This is a Goldilocks ALM environment where return and liquidity are both optimized. By going long now, an investment manager will have a lower return versus staying short. That might seem like a surefire market bet as Chairman Powell has forecast several rate reductions this year. That is until inflation possibly comes back, and further reductions put on hold.
The Credit Union Opportunity
An additional advantage, besides reducing ALM mismatches, is that it allows balance sheet management to remain agile. Shorter maturities provide more opportunities to respond to market and/or liability changes.
A prime example is NCUA’s management of the $22 billion NCUSIF investment portfolio. The fund continued its 7 year ladder as rates went to near zero in 2019-2021. When the market turned, the entire portfolio was underwater, burdened with an average duration of almost three years.
Through October 2023, the year-to-date return on the Fund is 1.92% and the portfolio reports a $1.7 billion unrealized loss.
When looking at historical trends, a yield on the NCUSIF portfolio of just 2.5% would result in a breakeven, that is stable, equity ratio in almost all years.
Recognizing this liability target for asset returns, makes NCUSIF investment decisions easy in this rate environment. By moving from overnight to maturities up to two years, the yields would be more than sufficient income to maintain the Fund’s equity ratio at or above 1.3% for any scenario.
Many investment managers were surprised by the Fed’s rate reversal to counter inflation. Today’s interest rates provides a rare moment for stabilizing both liquidity and return for credit union portfolios and the NCUSIF.
“All social entities or movements need dreams, which can be defined as an indispensable capacity to envision a future for themselves that considers both the practical means at hand and a higher ideal. Societies that do not dream are doomed to die.
“We have no knowledge of any human community where men do fail to dream,” writes Irving Kristol. “Which is to say, we know of no human community whose members do not have a vision of perfection—a vision in which the frustrations inherent in our human condition are annulled and transcended.”*
Source: *Kristol, Two Cheers for Capitalism, pg 153
JPMorgan’s $4 Trillion Balance Sheet Widens Lead Over Rivals – Firm has added the equivalent of one Wells Fargo since financial crisis
“As the spring bloodbath among regional banks began, nervous depositors with more than $50 billion began showing up at JPMorgan’s door. Bank executives went on to raise expectations for net interest income four times throughout the year, eventually pulling in so much cash that managers have taken to warning of “over-earning.”
“That’s put JPMorgan on track for the biggest annual profit in the history of American banking. Analysts predict that by the end of this month, its annual net income will be 36% higher than last year.
“By comparison, the combined earnings of the next five largest banks looks to be about 1%. For JPMorgan and its chief executive, Jamie Dimon, it was a year like no other.” (Source: Bloomberg, December 27, 2023)
As we turn the calendar’s page, which approach will be your credit union’s priority?
Yesterday’s post on The Bank of Dave was a tru-ish movie about an actual effort to organize a local financial institution focused on the needs of the town of Burnley. Dave Fishwick, a real person, was the hero. The antagonists were regulatory bureaucrats, lawyers and of course entrenched financial institutions.
As in It’s a Wonderful Life, the founder Dave is portrayed as someone serving the common good versus personal profit. The movie’s message is that this person’s purpose is one that present day society should honor and support.
How are credit unions portrayed in popular American culture? Are there any movies, books, plays or other artistic recognition of their special history?
Last night I attended a performance of The Seafarer, a play about Irish life by Conor McPherson. The scene is Christmas eve. The four personal friends drink for camaraderie and to cover the darkness in their lives.
A fifth character (Lockhart), the devil in disguise, enters to participate in a poker game, the main action (after drinking) of the second act.
This inebriated poker rounds are a metaphor for Lockhart’s stated intention of capturing the soul of Sharky, a character trying to give up drinking.
During the final betting round, the stakes go higher, and all raise with the last money they have on hand. At that moment the lead character challenges one of the other players, “Where are you going to get your stake? From the credit union?”
In the midst of this realistic-surrealistic tale is a direct reference to a financial reality an Irish audience would understand. The play was written in 2006 as credit unions were becoming more widely available in Ireland, a generation-long process.
Similarly, The Bank of Dave is set in the post 2008/9 financial crisis in Great Britain when consumer lending was unavailable. Current day viewers would be familiar with the real circumstances motivating Dave’s initiative.
American Culture and Credit Unions
Where and how are credit unions referenced currently or in past American literature? Is there a Norman Rockwell painting that illustrates this financial opportunity for a common person? Or a story of a local entrepreneur lifting up the community with a cooperative charter?
Is the credit union story so prosaic that the occasional coverage in the business section of the paper or on CNN/MSNBC captures our public reputation and contributions?
Have the many remarkable achievements of local credit unions been so taken for granted, that they are now just another ready option in the financial marketplace?
Have credit unions so lost their unique cooperative character that American culture and ordinary citizens, no longer see them as doing something special?
Christmas is a time when we remember, honor and celebrate people whose life was the gift of service to others.
Credit unions attract and provide fertile ground for persons with this character. They create an ideal platform for assisting others at important junctures in their lives.
These individuals’ efforts are not measured solely by numbers; more important is the personal legacy of bringing “soul” to their work in the movement.
The following tribute to a long-serving credit union employee is by Jim Blaine.
James McArthur Williams (1943-2023)
Why do we so often become confused when taking the measure of greatness? Why are we so easily distracted – and dazzled – by the spectacle, the swank, and the swagger? Why do we so often miss who is truly important – and what really makes a difference in each of our lives?
Had the privilege of attending the funeral of a great man last week at St. Paul A.M.E. Church in downtown Raleigh. James Williams was a beloved husband, father, grandfather, brother, cousin, and friend. He married his high school sweetheart Ginger; he called her “Bread“. They had two children – JaSonne Yvette and James Eric.
James Williams was a veteran, 33rd degree Mason, Emeritus Board Steward in his church, graduate – and beyond ardent supporter – of his HBCU, “THE” North Carolina Central University – “Go War Eagles!“. James was a devoted family man at heart, loved traveling, and as an empty-nester, cruising with Ginger. A full life – important, meaningful.
James Williams came to work at the State Employees’ Credit Union in 1973. That was 50 years ago. That seems like a long, long time ago. Much has changed in that time, much hasn’t.
James McArthur Williams was the first Black employee to work at SECU. He faced some unusual challenges, not of his making. But he persevered, he persisted. James Williams was a senior lender at SECU for over a quarter of a century. No individual was more important in building the reputation for integrity and fairness at State Employees’ Credit Union than James McArthur Williams. With humor, grace, and kindness, James Williams navigated all the “historical difficulties”; he left a positive mark on all he touched; because he knew how you felt – he had walked in your shoes.
Thank you, James Williams, for helping me and many, many others to understand better.
Can an organization have a soul? As a faithful “soul man”, James McArthur Williams spent a lifetime showing us there is a path…
Can you measure greatness in people and in institutions? Here is what SECU members say:
“James will long be remembered as a person who showed many of us how to overcome obstacles in the world of finance. He demystified bank forms and protocols. And most importantly, he always encouraged patrons of SECU as we realized with God all things are possible!”
“James was our greatest ally at the State Employees’ Credit Union.”
“James and Ginger are two of the warmest people you’d ever want to meet. Many state employees knew James through the State Employees Credit Union in downtown Raleigh.”
After a public hearing, multiple written comments and some give and take between board members, these are some of my initial observations from last Thursday’s board meeting on the 2024 Agency Budget.
Only .02% of 1% was reduced in the final budget of $385.7 million by the board from the initial staff amount.
No discussion of why the Office of Information Serves (i.e. computer support) depends on contractors for 71% of its operations totalling $44.5 million.
A 16.4% in the federal credit union operating fee when the Operating Fund’s cash on hand now would almost cover a full year’s expenses. Or why the $24 million “carry forward” from 2023 (unspent amounts collected) is not returned to credit unions, but “reallocated” to 2024.
Why only four new charters justifies a 18% increase and 41 staff in the office of Credit Union Resources and Expansion(CURE); also when the industry’s total numbers declined by almost 170 credit unions.
Most curious was the increases in staff to a total of 23 and 20% budget raise to $6.4 million in the Asset Management and Assistance center when the total reported losses to date in the NCUSIF are just $1.0 million. The remaining corporate AME’s are to be disbursed soon. The office is spends more on staff than on the assets it oversees.
The CLF’s $2.2 million budget is nothing more than an effort to transfer NCUA’s overhead expenses to another set of books which credit unions fund separately. The CLF’s 4.62% third quarter dividend was at least .75% below what credit unions could earn in the overnight market, meaning NCUA requires members to subsidize this inert operation.
There are multiple other expenditures that appear with no specific goals or outcomes. The board discussions were general observations. Credit unions deserve more coherent and specific details to have confidence in how their funds are used.
In the spirit of the season, this cartoon caught my eye. It summarizes NCUA’s budget review from a credit union perspective.
December’s NCUA board meeting will set the spending budget for 2024. What will be the guiding star in the voting, to borrow words from yesterday’s post We Three Kings?
Is the guiding star one that illuminates the unique design and resilience of cooperatives? Or will it enhance bureaucrat resources as the number of credit unions falls to its lowest level since before the passage of the 1934 FCU Act?
Rodney Hood’s Credit Union Service
Hood has served as an NCUA board member during three tumultuous financial decades. The first (November 2005-August 2009) saw the Great Financial crisis unfold. The second from April 2019 included the Covid national economic shutdown and the highest inflation since the 1980’s.
This meeting may be his final one as his current term ended in August. His two tenures over 18 years provide a unique perspective on the board. He brings a shared history of an important era for the cooperative system.
We can only understand and celebrate the present when we appreciate how it came to be. In the words of historian David McCullough, “history is who we are and why we are the way we are.”
Hood’s Focus as a Board Member
Relevant for today’s meeting is his support for the long time, traditional NOL cap on the NCUSIF of 1.3%, full transparency for all financial calculations including reserves, and most urgently, a more meaningful presentation of the fund’s equity ratio using current data in both the numerator (the 1% deposit) and denominator (insured risk.)
As chairman he oversaw the only year in NCUA history since 1984 that recorded an actual fall in NCUA’s expenditures. He has supported returning to credit unions the increasing surplus cash built up in the Operating Fund.
Another example of his expense focus is that his office is the only one of over 25 NCUA budgets to request a lower amount in 2024, by 1.8%, versus the current spending level. NCUA’s 2024 overall operating budget projects an 11% growth.
An Honorable Gentleman
The first time I met Rodney was at a credit union meeting in New York during the emerging financial crisis. He was and still is a true gentle man, unfailingly polite and easy to talk to.
His manner at NCUA board meetings is always respectful. Even when staff’s answers to his questions might be non-responsive, he never publicly challenged the presenter.
In his voting, he rarely dissents even when he disagrees with the motion or policy. He would explain his vote as either deference to the Chairman’s role or to promote bipartisanship. These acts of corporate courtesy were not the practice when he was chair.
As a board member in 2008 he approved an NCUSIF dividend when the NOL exceeded 1.3%. That was the last time a dividend was paid. This is a legal commitment intended to reward credit union’s perpetual 1% deposit underwriting. Last year he succeeded in urging the board to reduce the cash stockpile in the operating fund by giving credit on the FCU operating fee for 2023.
His approach to budgeting and board decisions to set meaningful agency guardrails reflects the experience and wisdom of his years of credit union service.
Should this be his last official board meeting, his perspective will be missed. As Pearl Buck’s observed “if you want to understand today you have to know yesterday.”
In recent Board meetings, Rodney has tried to raise important issues and seek meaningful data. What might he propose today to recognize credit union’s exceptional performance this year? Tune in at NCUA.gov at 10:00.
The Question in The Three Ships Carol
To recognize the pivotal nature of today’s many board votes, I believe the lyrics of the carol I Saw Three Ships are most relevant.
Here are some pertinent stanzas:
I saw three ships come sailing in On Christmas Day, on Christmas Day I saw three ships come sailing in On Christmas Day in the morning
And what was in those ships all three On Christmas Day, on Christmas Day? And what was in those ships all three On Christmas Day in the morning?
This is a story of a credit union led by an extraordinary CEO. It is so heartening that the writer prepared two articles to describe fully her accomplishments.
The headline says it all: The Tiny Credit Union Powering Brooklyn’s Economy. The author’s writeup illustrates the power of passion and commitment in service to a community.
This account is a beautiful gift for all who believe credit unions can do something special. It demonstrates the good will created with a small amount of resources and dedicated leadership.
My summary is to encourage you to link to the full accounts.
“With just $50 million in assets, Brooklyn Cooperative Federal Credit Union is a rounding error compared to the nation’s largest brand-name banks. But in terms of impact on marginalized communities, this tiny institution punches well above its weight.”
In this first segment, the writer, Oscar Abello, describes how the current CEO Samira Rajan -a graduate of Harvard’s Kennedy School of Government became involved.
She joined the startup in 2001 in a catch-all position as an AmeriCorps VISTA volunteer program. This paid her a stipend as the new credit union didn’t yet have enough income to offer her a salary. She became a loan officer. First loan she made, went bad.
In 2008 she became CEO.
The founding CEO Jack Lawson was a PhD student in economics at the New School in the late 1990s. He was looking for a part-time job related to his research. He received a grant from a local foundation to support his goal of organizing a credit union for the Ridgewood-Bushwick Senior Citizens Council. Over time this startup evolved to become Brooklyn Cooperative.
Until his departure in 2008 he focused on seeking grants from local sources and the CDFI Fund to underwrite the startup expenses and “build the runway” for sustainability.
This process continues. Since Rajan became CEO, the credit union has received eight grants from the CDFI Fund, totaling $11.3 million.
The credit union today can underwrite loans with little to no collateral, to members with an average credit score below 650, and to members without social security numbers.
Residential mortgages for one to four family homes are more than half of Brooklyn Cooperative’s current loan portfolio.
But its small business lending efforts are especially critical for the credit union’s local impact.
Counting by the number of federally-guaranteed the Brooklyn Cooperative is ranked fourth, behind only TD Bank, Chase and M&T Bank. The cooperative’s average 7(a) loan size is $24,000.
The writer’s description of the CEO’s relationship with NCUA is also enlightening. This is Rajan’s candid opening comment:
“Every three years, we have literally a new examiner come in and they’d be like, we’ve never seen this before. Yeah, I know you’ve never seen that before. New examiners have to get their whole head wrapped around the fact that you’re going to be doing lending which is non-conventional, that you’re deliberately going to be lending, knowing that your loss rates will be higher than the normal and you’re going to be lending to borrowers who on paper don’t qualify. … It flies in the face of what apparently you’re supposed to be doing, which is lending only when you definitely have a 700 credit score.”
For the full account of this remarkable institution, read both articles. At the close the author asks the following of his readers and those who work in the cooperative system:
Brooklyn Cooperative is proof that it’s possible to build a financially sustainable institution that provides credit for a variety of purposes to people and communities like those it serves — Black and Brown, immigrant, low-income. . .it raises the question: should there be more credit unions like this one across the borough? Or across New York? Or across the country?
Serving Strangers
During this season, the mail brings more requests for donations than Christmas cards. There are two broad categories of asks. One is the multiple nonprofits serving the arts or education-choral groups, museums, Chautauqua and public television.
More plentiful are the organizations serving human need: Hope Hospital in Seattle, Achungo Community Center (Kenya), World Kitchen and dozens of local efforts to assist others, often strangers, this time of year.
A carol that recognizes this ever present reality of human suffering is Christ in the Stranger’s Guise. This arrangement by Karen Marrolli is from a summer choral workshop in Montreat, NC, and includes the words. They portray for me, Rajan’s example of service to her community.
To understand today’s blog, I would ask the reader to first look at this TV news report on credit unions from KPBS. It is accompanied with a two-part written story by Scott Rodd, the station’s investigative report published on November 29, 2023.
The reporter has a good understanding of credit unions’ public image. His TV story opens with an interview from a member who states “they (credit unions) are not supposed to be in this for making the big bucks.”
The story counters the long asserted public image of credit unions as serving the “little guy.” The key data point is that credit unions are no different from banks when it comes to overdraft fees charged members, even though cooperatives routinely present themselves as “better than banks.”
He quotes the CEO’s statement in San Diego County Credit Union’s annual report that her goal is “putting people first and profits second.” This would be an interesting ranking for any coop leader.
The reporter reinforces this contrast of public image versus organizational behavior by pointing out the CEO’s total compensation has “increased seven-fold over the last decade to nearly $12 million dollars according to the according to SDCCU’s latest financial statements.”
The articles provide examples from other area credit unions of the role of overdraft fees along with six figure CEO salaries. His thesis is that credit unions are not actually what they claim to be, “community-based alternatives to big commercial banks.”
Lessons from This Reporting
The two-part story was triggered by the first disclosure of overdraft fees required by all state chartered financial institutions in California.
By focusing on this newly disclosed datapoint, the writer suggests that credit union rhetoric and practice do not align because “these fees are typically paid by “the most vulnerable” customers.”
Several observations. Compared with banks, credit unions are not as transparent in operational disclosures. Member-owners have significantly less public information than do bank owners. This is not just about OD fees but many other areas of operations including executive compensation. Only state charters, not federal credit unions, must file a IRS 990 which requires compensation data be disclosed.
Lack of transparency prevents members from having critical data about their credit union’s performance, in both ordinary and special circumstances such as merger or buying banks. Regular public information is also the best antidote to limit self-serving behavior.
Credit union leaders work in a capitalist economy. Often it is difficult for those in coop leadership roles to overcome the residual lures of capitalism. It is easier to adopt the priorities and practices of for-profit competitors than create the innovative options member-ownership offers.
The result of this investigative reporter’s story is “brand devaluation.” It presents credit union as no different from the alternatives cooperatives were meant to counter. It is a loss of real value in the both the public and political market place.
Talking to the Press
Repeatedly throughout his two part series, the reporter tells of his attempts to interview the leaders of the credit unions he is covering. These efforts for comment include the California Credit Union League.
By not participating, credit unions reinforce the idea that they do not have an explanation or response to the writer’s point of view.
One leader is an exception: Bill Birnie, CEO of Frontwave. He goes on camera to talk about the credit union’s courtesy pay product. He discusses his current salary openly with the reporter.
He apparently was the only credit union person willing to engage on this sensitive topic. The story was more than just OD fees and the members this affects. It goes personal by contrasting this practice with the compensation of those implementing the fees.
Leadership is more than trumpeting success. It also requires a willingness to address criticism and possibly poor judgments. This is especially so when done in public where the critic may have the last word or “already has the story written.”
Leadership when confronted with alternative points requires character, a willingness to listen, and the courage to sit down with one’s questioners.
In this case, apparently only one person was willing to stand up and be responsible. I don’t think it was an accident that it was Bill, who came to credit union leadership later in life. Here is a short synopsis of his career before coops:
Bill is a 25 year veteran of the US Marine Corps, retiring in 1997 at the rank of Sergeant Major with combat service in Operations Desert Storm in Kuwait and United Shield in Somalia.
Bill is an example of what it means when “we thank someone for their service” and what it brings to their subsequent civilian roles.
A Seasonal Song in a Time of Conflict
One of the most recognized Christmas songs is I Heard the Bells on Christmas Day.
On Christmas day, 1863, Henry Wadsworth Longfellow—a 57-year-old widowed father of six children, the oldest of which had been nearly paralyzed as his country fought a war against itself—wrote a poem seeking to capture the dynamic and dissonance in his own heart and the world he observes around him.
The words go from despair (There is no peace on earth,” I said;”For hate is strong, And mocks the song”) to hope:
The following persons are in transition. They have dedicated most of their professional lives to the service of credit unions.
A Farewell Address
Jim Dean arrived at Affinity Credit Unions, Des Moines Iowa five years ago. It was a turnaround situation in multiple respects. In September 2023 the credit union was awarded NAFCU’s credit union of the year recognition.
The following is from his farewell message to the credit union members and the team he led.
“As the saying goes, days pass slowly but years go by in a blur. When we moved here from Illinois in September 2018, my commitment to the board of directors was to work as your CEO for five years. It’s been a pleasure leading this member-owned cooperative into its 75th year, but now is the time for me to retire and let a new leader take over.
“Our mission statement and vision of Building Better Lives was an important change introduced five years ago. That has been the focus ever since and we have made this a reality. We have excellent staff from front to back & our volunteers are engaged and motivated to work in your best interests.
“We don’t focus on the community to earn rewards but have earned rewards and the highest acclaim in large part because of our community impact.
“Our marketing focuses on our brand. If you compare our offerings to those big credit unions who do this, we line up quite well throughout our entire product line.
Yes, our commercials talk about the Best Credit Union Ever, but having received the National Credit Union of the Year in the $500 million and under category is something to shout about.
“We might add that our credit card program is the best ever as well as our checking accounts in terms of fairness and transparency.
“Highlights of my time include our Building Better Holidays campaigns. Non-profit organizations are reluctant to promote themselves, so we’ve done that for many in our community.
“We fought hunger in partnership with the Food Bank of Iowa & through our six-year partnership with the Iowa Wild and by working with organizations like Meals from the Heartland.
“When COVID-19 shut down Iowa, and much of the world, we immediately communicated our decision to waive all fees, allow payment deferments, and alleviate financial pressure that lost wages brought. We closed our lobbies and transitioned many employees to remote working for the first time ever.
“I’m very proud of the annual meetings we have conducted. Member democratic control, as well as education, are two of the seven principles on display the second Tuesday of May each year.
“Most of all, I’m proud of our people. This includes our leadership team, employees, and volunteers. They understand what working in the member’s best interest means and that is emphasized by all managers daily. This is a relationship business and much of our recipe for success.
“I probably should mention that our financial performance has been off the charts excellent, something we don’t mention often.
“My door is a quick left as you enter the Hoffman lobby. The door is (almost) always open, so stop by this month to say goodbye or maybe hello for the first time.
“Thank you for this opportunity.”
Honoring a Lifetime
On October 3, 2024 the cooperative community will inducte five new honorees in the Cooperative Hall of Fame in Washington, DC. One is a credit union veteran. Here is his brief resume from the announcement.
Introduced to credit unions in the late 1970s, Clifford Rosenthal has spent his career promoting financial equity and inclusion in the nation’s most overlooked and underserved communities.
Growing up amidst transformative campaigns for social justice in the 1960s, Cliff began his cooperative journey by organizing and managing food cooperatives in New York City and Connecticut. This led him to Washington, DC, and the National Association of Farmworker Organizations where he was tasked to organize a credit union to serve its members.
Upon his return to New York, Cliff joined the National Federation of Community Development Credit Unions (the Federation), first as a volunteer until he was hired as staff. By early 1983, the Federation was preparing to close for good after federal funding was eliminated.
Sustained by his conviction that community development credit unions (CDCUs) were important and must be preserved, he once again took on a volunteer role as the Federation’s Executive Director. In partnership with Annie Vamper, the pair rebuilt the Federation into a catalyst for transformative change.
Understanding the critical role capital plays in low-income communities and CDCUs, Cliff pursued a two-pronged strategy to capitalize CDCUs by creating new channels to mobilize private investments and by expanding sources of public financing. This eventually led to the birth of the CDFI Fund in 1994 after President Clinton signed the Riegle Community Development and Regulatory Improvement Act. As well, he worked to secure NCUA’s allowing low-income credit unions the privilege of raising secondary capital.
I understand Cliff has another book to be released about his many adventures with low income credit unions.
Washington Credit Union Daily’s New Home
Credit union’s self-awareness depends much on the writers and press dedicated to telling the industry’s stories. One person is David Baumann. He has been covering the credit union industry for more than seven years, first at the Credit Union Times and then at CUCollaborate.
Based in DC, his blog is free on Substack. His focus is the multiple legislative, regulatory, and political developments affecting credit unions. Readers may go to his website, call up a story or scroll down to the “subscribe” option.
The Changing Seasons of Lives
I first heard a performance of O Love by Elaine Hagenberg (b. 1979) a week ago at American University’s December chorus concert.
The concert’s title was Stay with Me. The selections presented the theme of relationships on which all depend.
The beautiful melody might not fall strictly into the Christmas music genre. Rather, it is a message for all seasons.
The words have a story. George Matheson, a Scottish Presbyterian minister, found himself at age 20 alone when he went blind and his fiancé decided to break off the marriage. She left him. He turned to the Lord. In the darkness of the moment, he wrote this hymn in five minutes. It never needed any editing.
