Category: Credit union History

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The Credit Union Committment to Democracy

On a visit to Seattle a week ago, I found two credit union traces.   The first was a street level branch for BECU near the Pike Street Market on 1st Avenue.

The second  was a listing of books referencing credit unions from the business and industrial section of the Seattle Public Library.  One of the books was The Fight for Economic Democracyin North America 1921-1945 by Roy Bergengren.

Published in 1952 by this co-founder (with Edward Filene) of America’s credit union system, the book tells the founding story  describing those efforts as a crusade for economic demcracy.

As the title suggests, democracy is a key theme for this post WW II cooperative history.  It is more than a movement. Credit unions are integral to America’s  democratic aspirations for equal opportunity.

A Statement of Principles

Bergengren included an example of credit union support for war bond savings drives that proclaims this larger purpose for the cooperative system.  Here is the V for victory poster with the credit union logo and the statements of purpose.

Here are the ten principles retyped for readability.  Some are war related, but others much broader for credit union’s role with members and their communities (emphasis added).

THIS CREDIT UNION HAS ENLISTED FOR DEMOCRACY

  1. Our first objective is to win the war.
  2. We will encourage and promote thrift and the saving of money as a basic personal war service.
  3. We will encourage and promote regular saving by our members and families for security and the future.
  4. We will make loans to foster the growth of stability in our community.
  5. We will urge members to buy war savings stamps and bonds regularly.
  6. We will keep faith with the requirements of the community, state and nation in all our practices and policies.
  7. We will supply our members immediately savings that otherwise might go into channels that would drain the war effort.
  8. We will keep our members mindful that saving, with wise use of the resulting credit, will help shorten the war.
  9. We will keep the records of our progress clear, complete and available.

10.We will maintain the existing democratic character of our credit union and apply the lessons we are learning daily to our postwar democracy.

Today’s Credit Unions

Seventy-five years on, are credit unions living up to the legacy described by Bergengren and passed forward to today’s member-owners?  Is democratic practice described in this statement still a guiding principle?   Most critically, if not, what governance process has replaced it?

As demonstrated this past weekend, many believe America’s political future is at risk.  Can credit unions in their cooperative way show their commitment to maintain the existing democratic character of our credit union and apply the lessons we are learning daily to our  democracy?  

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Federal Government Shuts Down-The Importance of Options

In this latest test of political masculinity in Washington DC, the federal government has shut down.

NCUA says it is still open for business.  As evidence  the agency  reissued this guidance from over 14 years ago:

11-CU-05 / April 2011
Planning and Preparedness for a Potential Government Shutdown

This  test of political will and messaging on both sides has an open-ended feeling about it.  No one knows for how long or at what cost this standoff will continue.

This event and its aftermaths will only add to the many economic, financial and consumer uncertainties now infecting future outcomes.

This is not the first era of credit union’s navigating broad events outside their control. Recalling previous periods of change can remind that one of the most useful responses is to have options–not merely  hunker down to weather the storms.

When Options Matter

The headline reads:  Federal Credit Unions Eyeing State Charters as Rate Ceiling Hurts. It is from the Business & Finance section of the January 18, 1980 edition of the Washington Star newspaper.

The opening paragraphs:

Some federally chartered credit unions are trying to switch to state charters because the government’s 12 percent interest rate ceiling is shutting down their loan business. . .

In the last year, the 12 percent ceiling on loans has either shut down lending at some credit unions or generally restricted granting of loans in others.

Energizing the Options-NOW

Leadership is the art of changing before you have to.  The Trump administration’s one consistent theme is disruption, if not the destruction, of traditional government functions.

Recently in an NCUA board meeting the single member Kyle Hauptman suggested that it was possible the agency might have no board members in the future.

Whether that was just a hypothetical musing or confirming his interest in another government position is unknown.

But assume that scenario.  No board at NCUA.  What would the administration do?  What it has done with other vacancies, appoint an “acting Chairman” likely from Treasury.  And then begin a process of assimilation like the OCC under that Department for the agency’s future.

Just one of many possibilities created when the status quo is not longer as political checks and balances are completely gone.

To protect the independence, integrity and unique role of credit unions, it may be necessary to go back to where the movement started and gained its credibility–the state chartered system.

State regulators (NASCUS), state insurance options, trade associations and every credit union, whether state or federal, should now be assessing the ability of the states to be their primary regulatory choice.

It is critical to reinvigorate the state chartering system as a real option as the federal government and NCUA seem to be careening away from any stable leadership and certain future.

Credit unions created the dual chartering system that has evolved into serving tens of milions owners.  It may end up being their best hope for the future.  That is just one history lesson from the 1980’s.

 

 

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NAFCU’s Founding Story

From Iron Wills to Silver Anniversary, NAFCU Turns 25

Credit Union Times, April 22, 1992

By Frank Diekmann, CU Times Managing Editor

Los Angeles — They were a frustrated group when they met for that first time at the Cockatoo Inn in Inglewood, Calif. The idea had been hatched out of the disappointment felt by a handful of managers at federal credit unions who believed the dominant CU trade association had little interest in them—and even less interest in federal share insurance similar to that insuring bank deposits.

No one even knew how many of their compatriots would show up at the luncheon that was held to explore interest, yet more than 50 did. Now, some 25 years later, the proposal that federally chartered credit unions ought to be federally insured is not just accepted as fundamental—it’s one of the movement’s proudest accomplishments.  And the little credit union group that could has evolved into the National Association of Federal Credit Unions, which today has 750 members and a budget of $4.6 million.

There have been bumps, bruises and victories since the group was issued its charter in 1967 and set off on its engaging journey. The comparably huge Credit Union National Association made a determined effort first to eradicate the new association, then to absorb it via merger, and finally—conceding that the upstart was here to stay—to patch up differences so that the movement could present a unified front on Capitol Hill. . .

The CU Times story continues in these further sections on page 8:

First meeting in 1966

Putting the National in NAFCU 

Early opposition

Early support in Florida 

Trade group tension

Early signs of (some) cooperation 

An electronic future. . .

(Source: Credit Union Times Vol.  3, No.16)

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A Great Idea to Learn About the Movement

Last week CUSO Magazine announced  an imaginative collaborative initiative.  The editorial team pronounced July as credit union history month.

They issued a call for all  to submit aticles, photos and other examples of signficant events in their  history with the movement.

Here is the invitation:

Calling all credit unions! We at CUSO Magazine are officially declaring July to be Credit Union History Month, where we’ll be sharing articles on our industry’s history all month long!

To showcase the credit unions and individuals that contribute to our history and make our industry so unique, we’ll be spotlighting credit unions and credit union champions throughout the event.

Does your credit union have an interesting history? Do you have a teller who never fails to make a member’s day? Do you know of someone or a credit union in the industry doing something great? Let us know!

Email us at editors@cusomag.com, or go to cusomag.com/submit-a-story. Share what credit union or individual you believe deserves some recognition! Let’s make July a celebration of all credit unions do!

A Geat Idea

I love this imaginative effort.  In every garage, storage closet, and crammed bookshelf, credit union believers have left some keepsake of a special occasion.  It may be a cassette tape of a speech from a conference, a special edition of a cu publication that mentioned them, or perhaps the handout from a speical event.  For example, the plastic encased credit union stamp honoring the 50th anniversary of the FCU Act in 1984.

As we remember our history and how we got to today, it can only make us proud and more inspired  learning about people’s special moments with the Movement.

I would hope the participation is so voluminous that CUSO Magazine will need to increase their publication schedule from once per week to perhaps a daily to share all the examples from personal archives.

I’ll be making contributions.  For example a copy of Harold Black’s last interview as an NCUA board member in 1981 and his future ambitions. Or a brief history of the first credit union share insurance fund started in 1956 in Illinois.

We all hve special moments and people whose efforts we recall years or decades later. I’m all in.  Are you?

 

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Regulatory Relief or Disruption?

At the moment there are two strong politcal drivers animating government and the public.  One is the very anti-government,  “chain-saw” wing of the Republican party. The second force is represented by socialist Zohran Mamdani (let’s make it free) surprise victory in New York’s democratic mayoral primary election.

Both want to overturn the status quo represented by existing institutions.

Most credit unions would not support either approach. They seek regulatory reflief from CFPB or some NCUA proposals (succession planning).  But by all means let’s keep the status quo on taxation and our anyting-goes business models.

To date the only dramatic disruption of the credit union status quo was Trump’s dismissal of the two democratic NCUA baord members.   NCUA is now overseen by a single administrator.  I do not inclde the DOGE inspired staff cuts as change since credit unions have been assured it will be business as usual at the agency.

However is this the time to play it safe, preserve  advantages and avoid any major organizational rethinking?  Or is it possible to chart new courses for the cooperative system and credit unions?

The Regulatory Relief Approach

In August 2014 Mark McWatters joined the NCUA board filling the republican minority position.  Fifteen months later in February 2016 he presented a 30 minute speech to CUNA’s GAC meeting in DC.

His speech offered 21 ideas for “regulatory relief.” Many of his suggesions would sound familiar today-extended exam intervals, due process on exam appeals, total review of regs, an IG exam hotline and freeing corporate credit unions from post crisis constraints.

This is the entire 30 minute speech often interrupted by audience applause.  It would be fair to say that not much changed from this list.

(https://www.youtube.com/watch?v=LOssnO8QOnQ)

A Better Way-Challenging Assumptions about Change

To prepare the coop system for what’s ahead challenging current assumptions will be critical.

It all starts at the top by asking does anyone really believe NCUA is effectively  fulfilling it’s Mission?

“Protecting the system of cooperative credit and its member-owners through effective chartering, supervision, regulation, and insurance.”

Or it’s Vision? 

“Strengthen communities and protect consumers by ensuring equitable financial inclusion  through a robust, safe, sound, and evolving credit union system.”

The current NCUA chair states the agency is just an “insurance company.”   And every board member repeats the mantra that their “north star” is to protect the insurance fund.

Can anyone identify any NCUA efforts  to strengthen and grow the role of cooperatives for Americans?

Why not embrace this disruptive politicalmoment to create a eoop system that truly serves Americans better than competitors?  Are the prevailing assumptions about growth, scale and competitive advantage even valid?

Can we ask new questions?  And propose options that would reignite the power of the cooperative model?

Here are some ideas being debated.

  • Separate the insurance-collective capital role of the NCUSIF from NCUA.  Create a public-private corporation ( like the congressionally chartered Coop Bank) with a board of credit union and public appointees to offer savings insurance and (re)capitalization roles.
  • For those who still seek the comfort of federal oversight, authorize the option of  FDIC coverage, similar to the Industrial Loan Charter option.
  • NCUA would be a bureau in Treasury responsible for federal chartering and FCU exams. Its role would also promote credit union  expansion focused on chartering and coop entrepreneurial initiatives.
  • Strengthen member-owner roles in credit union governance and oversight through greater transparency, established member-owner rights in bylaws and explicit member ownership of the coops collective capital.
  • Convert the CLF to become a coop central for liqudity in partnership with the corporate system. It would facilitate  access to the secondary market and be under the oversight of the separate Insurance fund board.
  • Permit charter conversions to for-profit models provided members receive their accumulated capital in full upon approving the conversion.

These are initial ideas. Now is the time to rethink how current trends and, members financial needs can be the basis for a re-designed cooperative system.  Also to be pondered is what roles should established support organizations play?

Now is not the time for the tired phrase of regulatory relief. We’ve been there time and again. Rather now is an opportunity to re-design the coop system so that it can bring out its best promise for the future of its member owners.

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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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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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A Summary of a Call on Congress

A GAC credit union walks the hill:

I was only at GAC for 48 hours and spent most of time with current vendors and team. Record numbers of people  so the economy seems fine even with a lot of uncertainty in the air.

Senator Angus King talked a lot about the constitution and how Trump is concentrating that power in him like a  King or Dictator.  Our fore- fathers didn’t want one person to hold all the cards so to speak. Lol

Gonna be a wild ride esp with the upcoming potential for a govt shutdown. That will move the stock market. Our legislators did not paint a rosy picture at all for what the rest of the year looks like and that includes Susan Collins (Senator).

P:lease send impressions of your GAC hill visits for a perspective on Congress. I will share with readers.

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2025: The  Most Important Annual Meeting Your Credit May Ever Hold

Bylaws require every credit union to hold an annual meeting.  The agenda includes reports by the Chair, CEO, other timely updates and the election of directors for open seats on the board.

In many credit unions this event is purely administrative and perfunctory. It is merely a compliance task, carefully managed to end quickly, and to avoid any real member dialogue.

Such an approach this year could be the most costly political mistake a credit union could make with its members. Here’s why:

The future of the federal regulatory system is being overhauled for greater efficiency,  simpler design and more direct White House control.  No more  independent agency policy making.  One example of a question being raised is whether the  government should have two separate deposit insurance funds.

Influencing Political Outcomes

Credit unions, like most industries, have deployed traditional lobbying capabilities to counter political risks to their operations. These common tactics include raising more PAC dollars, hiring lobbyists with ties to those in office, funding PR campaigns, etc.

Credit unions will never outspend or out-hire their opponents.  Money is not the source of their political influence in DC or in their respective states.

Consultant and former OCC examiner Ancin Cooley offers this assessment:

In reflecting on the history of the credit union movement, one fact stands out: our strength has always been rooted in our members and communities. . .While political wins and advocacy play a role, we must never lose sight of our true source of standing. . .our focus should be on empowering our members and meeting their needs.

Activating Member-Owners

People’s voices and votes are the ultimate power in a democracy.  The first call to action with members should be in the upcoming annual meetings. To make this event a rallying cry, the traditional approach must be rethought. However,  this is not a new challenge.

In March 2023 Silicon Valley and two other banks failed in quick succession as the  Federal Reserve increased interest rates.  Many credit unions instantly changed their meeting’s  scripts.  In one I attended, the CEO after summarizing the prior year’s performance, pivoted to explain why her credit union and the industry generally did not have similar problems.

The message was to assure members their funds were safe.  Do nothing and trust your credit union.

This time the message is quite different. The  challenge is to educate members about changes being considered and ask them to act, not just stay the course.  Member-owners contacting their congressional representatives, en masse, is the most powerful influence on political behavior.

1998-The Year of Member Action

In 1998 the Supreme Court ruled in favor of a banking challenge to changes NCUA made in its field of membership regulations in the early 1980’s.  If implemented, the decision would have limited credit unions to their original, or a single, field of membership.  The law the Court interpreted had to be changed and fast.

One of the means to both engage and empower members was a newly created website called The Committee of 70 Million. The name was an echo of Revolutionary War grass roots organizations.

It was created by Scott Patterson, a recently hired techie at Callahan & Associates.  Although the country and credit unions were in an early phase of the Internet era, with social media still unknown, this platform could be linked to every credit union on the Internet.

The site explained the what was at stake and suggested multiple ways members could reach out to their congressional representatives.  Here are six slides from a much longer review in 2001 of the site’s options, information and impact.

The site was then adapted for voting in the Presidential election year 2000.

The Status Quo Is No Longer

Trump promised total disruption of the federal government bureaucracy.  He is on course. Now is the time for mobilizing member-owners.

The annual meeting should be converted to a town hall format. This is an opportunity to connect and  inform about the political changes.  The members’ questions and reactions can be used to plan next steps. After all, it is likely 50% or more voted for Trump’s message.

Credit unions must gain members’ respect and trust for the steps you will propose.  The most important message however,  is that this is not just another political fire drill.

Note: To receive the full slide deck, contact Scott Patterson at spatterson@gmail.com.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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40 Years Ago Today, An Epic Cooperative Event Began

On December 9th, 1984 a unique, one-of-a kind credit union event took place at the MGM Grand Hotel in Las Vegas.

The National Credit Union Examiners Conference was the inspiration of NCUA Chairman Ed Callahan.  It reflected his belief that state and federal  regulators had common purpose with the credit union community.  While each had separate responsibilities their shared goals could best be accomplished through collaboration and continuing communication.

The Operational Context

This unprecedented national initiative was accomplished while NCUA was doing its “day job” overseeing 11,000 FCU’s and monitoring 5,000 state charters with NCUSIF insurance.   The agency was in the process of completing an annual exam for all FCU’s for the third consecutive year. CLF membership, in partnership with the corporate system, included all 16,000 credit unions in its liquidity coverage.

The NCUSIF redesign was passed by Congress with complete credit union support.  This structural change from cooperative principles created the strongest of all three federally managed funds-a fact still true four decades later.

The 1985 agency budget had been passed in the fall.  It slashed spending by  4.9%.   This spending cut enabled a third reduction in the FCU operating fee of over 20% for a total of 64% over the three yers. Moreover, it was NCUA resources that underwrote the conference including the attendance by all its field examiners plus regional and DC staff.

The credit union system was moving forward in the market. In August the agency reported credit union loans had grown 26.2% over the 12 months ending in June 1984.  Member shares were in their third year of double digit growth following deregulation.

This year was also the 50th Anniversary of the passing of the Federal Credit Union Act, an event celebrated by the agency in many ways, including new chartering and total membership goals.

The Conference  Launch

On March 14, 1984 NCUA’s press release announced the initiative:  NCUA to Hold First Conference of Federal and State Examiners and Credit Union:  It read in part:

“This National conference is a unique opportunity to bring together credit union officials, state and federal credit union examiners and regulators and representatives of the credit union trade associations,” said Chairman Callahan.  “It will be a chance to discuss current concerns and share problem-solving techniques.  Examiners need to be exposed to a wide range of ideas and procedures that will enable them to do a better job of ensuring  the safety and soundness of credit union particularly in a deregulated environment.”

We want to make it possible for the public and private sectors to learn from each other and openly discuss the progress, and problems of the credit union movement.”

A registration card was placed in the NCUA’s 1983 Annual Report sent to every credit union in March 1984.  It showed the two sessions, the first with examiners, and then followed with all credit unions joining from December 9 through the 14th.

The May 1984 NCUA News reported why registrants said they would be coming:

Don Beall, President of NASA FCU was quoted:  I think this is a welcome relief from the  past when we had little opportunity for constructive dialogue with the regulatory. The operational types and examiners live in different worlds.

Robert Sorin, Superintendent of the Ohio Division of Credit unions wrote:  “The field staff has never had the opportunity to gather with other state or federal examinders to exchange ideas. . . we want to come away with some new friendships and many new ideas.” 

And the price was right.  NCUA secured the government room rate of $38 for all participants including spouses.   Two people who choose to share a room would pay only $19 apiece.

A registration form was included in the June newsletter.  A conference registration packet was mailed to all FCU’s that same month.

The form also announced that the agency had negotiated a substantial airline savings with United and gave a toll-free number for credit unions to call for discounts for Vegas flights.

In September the News headline read Two Per Credit Union Attendance Placed on Conference Attendance.   The explanation:  “Due to heavy demand, registration is now limited to a maximum of two persons per credit union, a move designed to allow as many credit unions as possible to participate.”

On September 28, 1984 the NCUA announced the conference was sold out.  Registrations were coming in at 100 per week and the 2,500 person room capacity limit was reached two months ahead of schedule.

“We are thrilled but not surprised by this tremendous response.  Credit unions were quick to recognize this will be the kind of learning opportunity they just can’t get anywhere else,” said Chairman Callahan.

The Conference  Speakers

The conference schedule offered over 60 different panels, workshops and case studies.  The sessions speakers included all three NCUA board members plus Federal Reserve Board Governor Martha Seger; Richard Breeden, staff director to the Vice President’s task Group on Regulations of Financial Services; former NCUA board chair Larry Connell,  former FHLB Chair Richard Pratt,  former NCUA board member Harold Black and Al  McGuire former Marquette basketball coach, and current NBC sports analyst.

When the conference agenda was finalized, more than 300 speakers and panelists were listed including federal and state regulators, leading credit union professionals and trade associations officials.

In posts later this week, I will present some of the content offered and photos.  I believe this will illustrate the unique charater and significance of this extraordinary event.

The Conference’s Significance

This National Conference was a celebration of recent success and a dialogue about the future of the cooperative system.  It was not an addition on top of NCUA’s traditional roles of examination, supervision and administration.  Rather it was a culmination of the values, practices, and common purpose for how NCUA had been involved with the credit unions since deregulation.

Chairman Callahan believed the single most critical responsibility of a leader was communication, both listening and sharing points of view.  From frequent press releases, open press conferences, board meetings on the road, transparent dialogue was the foundation for common industry efforts.

This conference was designed as an optimum opportunity for these exchanges.  It was the high point for a new relationship paradigm for NCUA with credit unions. This “tipping point” in the positive and constructive  relationships between credit unions and regulators would stay in place substantially until undone by athe Financial crisis in 2008 and thereafter.