Over the weekend I was going through my parent’s personal records. During WW II they had written each other almost daily. The letters are in 15 large manila envelopes along with photos and official documents.
My dad was an inveterate record keeper. In his military file I saw this typed letter addressed to:
My Dear Mr. Filson: and dated December 4, 1946.
It reads in part:
I have addressed this letter to reach you after all the formalities of your separation from active service are completed. I have done so because, without formality but as clearly as I know how to say it, I want the Navy’s pride in you, which it is my privilege to express, to reach into your civil life and to remain with you always.
You have served in the greatest Navy in the world.
It crushed two enemy fleets at once receiving their surrenders only four months apart. . .
No other Navy at any time has done as much. For your part in these achievements you deserve to be proud as long as you live. The Nation which you served at a time of crisis will remember you with gratitude.
The best wishes of the Navy go with you into civilian life. Good luck!
Sincerely yours,
signed
James Forrestal (The Secretary of the Navy)
A Personal Letter from Ed Callahan
Ed was was confirmed as NCUA Chairman in October 1981. Prior to this we had worked together for four plus years when I was supervisor of the Credit Union Division for DFI in Illinois.
I would soon join Ed at NCUA in December. Nonetheless he took time to write.
The letter was addressed to Charles Filson at my Wilmette, Il home, dated November 17, 1981. It reads in part:
Chip:
I’m sitting here in the in the Albany, N.Y. airport for my flight. I’ll probably have many waits like this in the future. It gives me time to reflect.
The past few weeks have been wild. Now that the events are past, I’ve got time to think of all the good friends. The only really important thing is just that-friends.
You have been one of the best. . .
Thank you very much.
I’m looking forward to our future endeavors. We’ll have some exciting times.
E. F. Callahan
Signed Ed
Chairman
“Gratitude and Thanks“
Neither of these exceptional leaders needed to write these messages of gratitude and thanks. But they knew the success of their organizations depended on others, not their individual capabilities.
Government service, whether chosen or drafted, is sometimes under appreciated. Or worse, captured by the political divisions now seeding distrust of any government calling.
These two individuals in very different spheres of influence and responsibility, illustrate in these personal gestures, what makes great leaders in any organization.
“In a leadership role, it’s crucial to surround yourself with individuals who are comfortable telling you the truth. People naturally want to please the boss and tell them how great they are and might hesitate to disagree or deliver unpleasant information. It’s important to create a safe space where people feel comfortable voicing their opinions and assisting in decision-making.
“Everyone has a little bit of an ego. It’s nice to hear that praise, but that can make it too easy to believe everything is going well, so you must actively seek out different perspectives.
“Now that I’m in this role, I realize the importance of this kind of transparency. I knew it before, I’ve supervised hundreds of employees and billions of dollars in business, but now that I’m in the CEO role, I can see it even more clearly.”
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?
A poem/prose reflection on knowledge by Marie Grace.
Cloaks of doubt
“The only true wisdom is in knowing you know nothing.”
Whispered Socrates, setting minds aflutter,
In a world brimming with false certainty,
We don cloaks of doubt, savoring questions
Over answers, seeking what life’s truly about.
We laughed, a stream over convention’s pebbles, “Knowledge is an ocean; we are islands of invention.”
Together, diving into ‘whys’ and ‘hows’ so deeply,
Where mysteries sing lullabies, secrets are kept in sleep.
We built boats from books, paddles from thoughts profound,
Sailing waves of wonder through ‘oughts’ typhoon-bound “Is the sky truly blue, or is it a mood’s reflection?”
Pondered aloud, our journey was an intellectual confection.
In the world’s library, we wander as tomes,
Not to fill pages but to roam where curiosity combs.
Each sunrise is a chapter; every sunset is a verse.
Our story unfolds gently and beautifully.
“Perhaps ignorance is not just a void.”
We mused, “But a canvas, vast, to be joyfully deployed.”
We painted dreams in unknown colors.
We danced to mystery’s tune, seeds sown in others.
Former NCUA Board Secretary Rosemary Hardiman, Public Affairs Officer, Joan Pinkerton, Executive Director and General Counsel, Bucky Sebastion and Director, Office of Programs and CLF President Chip Filson reunite for Bucky’s 80th Birthday on the President’s holiday weekend.
Once upon a time there was a tavern Where we used to raise a glass or two Remember how we laughed away the hours Think of all the great things we would do?
Bucky Sebastian has reached yet another, notable milestone. On February 12, Lincoln’s Birthday, Mr. Sebastian will be rolling the oldometer over one more notch to 80! Eighty years of success in all endeavors: regulator, business entrepreneur, credit union/philanthropy CEO, husband, father, grandfather, fierce friend, free spirit.
Reared in Illinois with 7 siblings – 5 older! – it is surprising that Sebastian survived childhood. The older kids tried to make sure Bucky knew “his place” in the world – last at the table, remain silent until asked, remember you exist only to serve – us! Given the circumstances, Bucky learned early how to fight, regardless of the odds; was imbued with a servant’s heart; but never fully overcame his bashfulness and reluctance to speak.
After high school, Bucky decided to become a priest, but the Jesuits wouldn’t have him. The Jesuits evidently found Bucky a bit too “over the top”, too evangelical!. Perhaps they feared a devil’s advocate? At that age – or at any age for that matter – subtlety was not Bucky Sebastian’s best trait.
Bucky also had some difficulty with the Jesuit vows of “poverty, chastity, and obedience”. He could accept poverty, would work on chastity, but obedience – well he seemed to lack that gene. Anyway, he didn’t like the limited prospect of preaching only once a week! Having decided he couldn’t work for God, Sebastian made the next best choice; he decided to play at being God…and went to Loyola to become a lawyer. The Jesuits tried to hide their disappointment!
Having graduated, and having his never-really-lacking self-confidence reaffirmed with the law degree; Bucky was now even more convinced: that he knew what was right, he knew what you needed, and he was determined to make sure you knew what you needed. So, his next career choice was also entirely logical; he became a financial regulator, ending up at the NCUA. Regulators like telling folks what to do; and, most importantly to Bucky, can usually speak at length without fear of interruption.
At NCUA, Sebastian became an oratorical outrage – and an immediate problem. A bane to pomposity and self-importance, Mr. Sebastian taunted the status quo and all infestations of mindless, conventional wisdom. He was a mischievous mocker, a red hot provocateer. Sebastian invented the novel idea at NCUA that a regulator should listen first and speak last – still reluctantly used.
Bucky Sebastian’s thinking has always been expansive, his mouth more so – with profoundly, positive results! He made folks uncomfortable, prodding them to say what they thought, explain why, and then challenging their thinking. Stand and deliver, prove your point or die trying. Fatalities were not infrequent. But in doing so, he changed minds, he changed hearts – for the better.
But, Bucky Sebastian’s impact was profound even when in error. In 1982, Mr. Sebastian opined that federal credit unions could pretty much forget having any limits on their membership. A bench of Lawyers Supreme said, “un-huh”. An all-hands-on-deck credit union movement effort was required to convince Congress to bail Mr. Sebastian out – which they did, creating a new, brighter future for credit unions.
Sebastian, if you know the man, to this day still asserts that the Lawyers Supreme erred in that decision; claims that Lincoln was born on his birthday, not vice-versa; and that when President Lincoln led off his most famous speech with “Four score…”, Lincoln was simply trying to say…
Happy Birthday, Wendell “Bucky” Sebastian!
(… wouldn’t try to argue with him about it, if I were you!)
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.
This is how one family introduces their children to credit unions, from a post earlier this week.
The parents take their role seriously. The baby is growing up. They are now helping her become familiar with credit union leadership responsibility.
She is looking to find the page on youth programs.
Here it is. One hopes more senior credit union volunteers spend this much time reviewing their board policies, especially on succession planning.
A High School’s Entrepreneurship Program
I graduated from Springfield High School. It never had a program like the one described in the SHS student newspaper from January 25.
The opening introduces a dedicated teacher helping students learn about the realities of small business.
For years, students have been restricted by the confines of the educational system, simply following the “status quo” and doing the bare minimum just to graduate. As time has passed, schools have developed their programs and have prepared students to genuinely pursue opportunities that never seemed possible for a regular high school student.
Springfield High School has developed a plethora of programs for students to grow their experience for potential careers, one of which is the entrepreneurship program.
Karri Devlin, a veteran teacher at SHS, runs this program with the intention of helping students reach their full potential as a business owner. “We try to emphasize the importance of leadership and creativity in regards to starting your own business. We talk about how to promote your business, and how to manage it financially. They also learn how to sell a product and collect the money. Students can pick their marketing team and sell their own product on what’s called Market Days at lunch. They’ll set up their products at lunch and we’ll try to sell them to the student body. We have some grant money that helps buy the supplies but the students pretty much have to come up with the money for the supplies I don’t provide. They also have to determine the markup and how much they’re going to sell it for to make sure that they can cover their costs.”
After describing one student’s efforts, the article closes with this observation:
From Mrs. Devlin’s entrepreneurship program, to creating their own businesses, student entrepreneurs have proven time and time again that they have an unstoppable drive. . .With their innovative young minds, they are the future of the business industry. And to those who do not possess the entrepreneurial spirit, support your classmates by buying local!
This high school in Springfield, Illinois would seem an ideal opportunity for credit union partners in this hands on, real world of “classroom” startups.
Update on the Federal Reserve’s Special Bank Term Lending Program (BTLP)
A week ago I reported that credit unions with only 9% of total financial assets, had taken down 27% of the emergency BTLP.
Also that financial firms were now arbitraging the special fund by borrowing and reinvesting the funds in overnight reserves, earning a spread. Borrowings had grown from $129 billion at yearend to $168 billion this week, in a period of quiet markets.
That opportunity is now over. The Fed announced the facility will close on March 11. The 307 credit union borrowers of $35 billion (as of September 2023) will have to pay off their loans or shift borrowings elsewhere.