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Two Messages About Peace in Ukraine

This past week I have witnessed four grassroots fund raising for the Ukrainian people in my local area.

The first was a meeting (during the GAC conference) for the Polish credit union charity Via Stella. The credit union attendees immediately pledged $50,000.  St. Andrews Ukrainian Orthodox asked for $2,000 to buy 100 tourniquents for civilian wounded in air strikes. St. John’s Norwood identified six projects totalling $12,000.  The Kiev Independent  requested donations to distribute their film documentary on war medics to six European capital cities.

The American public, despite Trump’s rhetoric and actions, know whose side they are on.

The French Lesson

The poet Robert Burns wrote this famous plea, “O wad some Power the giftie gie us, to see oursels as ithers see us!“ 

Here is how a French Senator sees the American government’s actions versus Ukraine and Europe this past two weeks.  On March 5, in French, with English subtitles:

https://x.com/JaneMayerNYer/status/1897648340256412022

America’s Prior Reputation Before Trump’s Pivot to Russia

The one message Putin fears the most from America.  It may be old-fashioned, but  clear, simple and effective.

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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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NCUA Board Members on the Agency’s Independence

During this week’s GAC meetings the three NCUA board members discussed their view on potential Trump administration’s efforts to limit the NCUA’s independent agency status.

Board member Otsuka’s full speech is  online.  The two other board members’ comments are from interviews reported in the press.

All three took the same Oath of office to  “well and faithfully discharge the duties of the office” which each now holds.

Here are their remarks on their obligation to the agency’s Independence.

Board Member Otsuka (Excerpts)

Congress has entrusted the NCUA with the responsibility to protect credit union members and the credit union system, and our ability to do so depends on a strong, independent agency, . .

Our independence is critical to maintaining confidence and stability in the credit union system. . .

NCUA understands the unique characteristics of credit unions and their members. Our independence from politics and distinction from other financial regulators allows us to focus on what matters to the credit union system.

. .  .credit unions must continue to show the American people what the credit union difference means and live up to the mantra of “people helping people.” . . Too much is at stake to be seen as no different than a bank or a tech company or any other financial institution. The credit union difference is the ultimate competitive advantage.

Board Member Harper’s Comment

Harper told the DCUC’s Defense Matters meeting that the “NCUA board is going through some reconsiderations of how we are going to change the agency and what we are going to do. That’s what a new administration is and does. I’m confident we will get through this as a different NCUA but a strong NCUA.”  

Chairman Kyle Hauptman’s Position

From CUSO Magazine coverage: “Hauptman sat down with Nussle to discuss not only the regulatory concerns of credit unions and his priorities as Board Chairman, but also the uncertain future of the NCUA itself, as executive orders threaten its ability to operate as an independent regulator and as speculation of consolidation calls the fate of the organization into question.

“On the topic of the NCUA’s future, Hauptman declined to speculate or advocate for one outcome or another, noting that while he does not shy away from controversial topics, he keeps himself from getting into debates when he has no authority over the outcome. The fate of the NCUA, he argues, is outside his control and lies in the hands of Congress and the White House:

“Congress created the NCUA in 1970, and there were 27,000 credit unions operating before then…my only view on it is that it is important for people to understand that credit unions are different. So whoever in the future is going to be regulating needs to be aware of this.”

From another news report: Hauptman also briefly addressed rumors that financial regulators could be consolidated, emphasizing that although he has “zero authority over this,” he’s not in favor of it.

What Next for Credit Unions and NCUA

There is much difference in the role that NCUA board members see for themselves to ensure the agency’s future independence.

Otsuka is the most clear and determined in her view. She aligns this position as essential for credit union’s to maintain their “difference” which she calls their “competitive advantage.”

Board Chair Hauptman is also clear.  It’s not my issue. It’s up to Congress.

Harper takes no overt position except to predict a stronger NCUA,  Once again displaying his adept use  of the intentionally imprecise comment.

There were  many topics raised at GAC clamoring for credit union’s attention and backing-from taxation to overdraft fee disclosures.

In almost all the most consequential topics, the outcome for credit unions will be decided by their political influence as manifested by their members’ actions not lobbying capacity.

Sooner or later some element of NCUA’s independent authority will arise.  Who can the credit union system count on to support their point of view of NCUA’s status?

 

 

 

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Great Stories Inspire

Telling stories is a leadership art.  They stick in our minds much longer than financial performance numbers or rhetorical marketing phrases.

They present authentic moments from real life situations with which all can relate.

Stories honor individual actions and illustrate the special  service culture of a credit union.

One would also hope these are part of the messages shared with congressional staffs during Hill visits this week.

Here are two examples from WEOKIE CU’s CEO’s monthly staff update.

The 599 FICO Score

“David, a non-member, applied for a loan with 599 credit score. This app would have been easy to decline and move on due to his poor and limited credit. Wanda and Kyla worked together to figure out why he had such challenging credit.

“He has a great career with plenty of income. Long story short he had to spend some time in the hospital which caused a lot of medial debt and insurance was not cooperating. We were able to help him get an auto loan and hopefully, we created a member for life.”

To Whom It May Concern-“She’s a Keeper”

(a member’s note)

“To whom it may concern: I have had the pleasure of working with Shirley for several days now. I just want to tell you that she is a breath of fresh air to customers!

Shirley went way out of her way to help me, while the other bank did everything they could do to cause problems.  She initiated a 3-way call that helped solve the problems the other bank was trying to create. You rarely see this type of customer service anymore, Shirley is one of the best problem solvers I have ever seen. Just a note to whom it concern: she is a keeper!”

 Changemakers in a  Service Culture

The CEO describes these efforts to take great care of  members  as follows:

Changemakers are individuals dedicated to positively impacting the people and places around them. They are often seen as visionary, collaborative, purposeful, and empathetic. They possess critical thinking and problem solving skills as a prerequisite.

No challenge is too big, every story is relevant, and every person has a purpose. Changemakers live the mission of changing the lives in our communities, one person at a time by being the best place our employees ever worked, and the best place our members have ever banked.

 

 

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Credit Unions Support Ukraine

Yesterday I attended a briefing on the work of Via Stella, a Polish charity supported by the World Council of Credit Unions.

The meeting was held at Ukraine House in Washington, DC. Over 50 credit union people attended, including CEOs from the Polish and Ukrainian Self-Reliance credit union communities and multiple other credit union organizations and individuals.

The Foundation supports the millions of Ukrainian refugees in Poland with a three part “Pathway to Safety” program.  These steps include the safe evacuation from the country especially for women, children and the elderly; finding housing, education and jobs; and providing financial support via the Polish credit union system.  All funds go directly for these efforts; there is no overhead.

In an ad hoc, spontaneous fund raising moment, over $50,000 more was pledged in less than five minutes. The effort was initiated by credit union software entrepreneur Jay Mossman who pledged $25,000.  He urged attendees to match his initiative.  It was done quickly by the CEOs, directors and the board members of Via Stella.

There was no dwelling on the recent White House confrontation. There is no ambivalence about the circumstances of this war.  The purpose was solely to demonstrate the American people’s support for Ukraine.  This they did.

Their view, and the majority of Americans’ understanding of events, is shown in this front page New York Post headline.

This effort speaks louder than words.  For all that is said during the Governmental Affairs Conference (GAC) underway now, in the end what is done is what matters.

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The Most Consequential GAC Speech in Credit Union History

NCUA Chairman Ed Callahan  spoke to CUNA’s GAC conference in Washington DC on February 8, 1984.

He urged his listeners to support the most vital change in the system since the passage of the FCU Act in 1934.

His title was Finish the Job.  He challenged credit unions to strengthen their NCUSIF insurance fund by backing legislation redesigning it using cooperative principles.

The talk is  11 minutes.  Ed provides an update on the state of the credit union system in one word, “fantastic.” He puts the current situation in the context of 75 years of credit union history.  He describes how deregulation is meeting the needs of the country’s changing economy.

An Advocate for Credit Unions

His closing is a call to support a Better Way for  the NCUSIF.  He asks credit unions to compare the cost savings under the 1% solution to the current two premium model.  And then to champion the change in a bill introduced by Senator Jake Garn.

The recording is from a cassette of the live speech with the video overlays added later.

(https://www.youtube.com/watch?v=1UcXPyUMtic)

This is an example of the profound change possible for credit unions when all parties work together to benefit members.

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GAC: NCUA Board Members’ Most Critical Talks

The annual Governmental Affairs Conference in Washington is the largest and, many would say, the most important convening of credit union leaders.

In the nation’s capital, attendees from around the country will hear from their congressional representatives.  And from all three NCUA board members on the state of agency policy.

Today’s Washington is not a kind place. Tens of thousands of public servants  have been summarily fired.  Many remaining are at best uncertain and at worst fearful for their personal and professional futures.

The pretense of eliminating waste has been quickly demonstrated to be a political fraud.  An unelected,  billionaire, Elon Musk, who recently used a chainsaw to present his approach to responsibility is in charge of this political stunt.

Trump’s purpose is not governmental efficiency. Rather it is  eliminating any federal role that acts as a check and balance over the animal spirits of the “free market” and its billionaire oligarchs.

The NCUA Board’s Opportunity

Institutions, no matter how well funded and designed, cannot in themselves be constraints on abuses of power.  Or destruction of the democratic process.

It is the people who are appointed as well as those who are elected that must exercise this critical responsibility.

For credit unions, their immediate representatives are the three-person NCUA board responsible for the agency’s management.  That is why their views  are so important.

What credit unions want to hear is how they are interpreting their responsibility having taken this oath of office:

I, [Hauptman, Harper, Otsuka] do solemnly swear  that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same;  that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.  (emphasis added)

The US Constitution requires the practice as explained in this 2019 article:

The reason is simple – public servants are just that – servants of the people. After much debate about an Oath, the framers of the U. S. Constitution included the requirement to take an Oath of Office in the Constitution itself. 

Article VI of the Constitution says, “The Senators and Representatives before mentioned, and the Members of the several State Legislatures, and all executive and judicial Officers, both of the United States and of the several States, shall be bound by Oath or Affirmation, to support this Constitution .  

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

Where Political Power Lies

The three NCUA board members’ remarks in this current effort to concentrate political executive power in one person will be telling.

Will they simply state their role is to “comply” with the administration’s numerous directives of unlimited executive authority over an independent agency?

Or might they simply state their role as guardians of the NCUSIF purse and “protectors of the taxpayer” is their highest duty?

Or will they simply ignore reality and give an AI-like generated talk on regulatory priorities?

NCUA board members’ press interviews and comments at last Thursday’s public board meeting suggest they are still uncertain what their stance should be. One can understand their personal jeopardy and hesitancy to speak up.  In their remarks, all three were like  bipartisan deer frozen by the Trump administration’s headlights shining on all federal agencies.  The sense of an overriding mission was at best formulaic.

But as the board members look out over the thousands of attendees in the convention center, they will see where their responsibility and true power really lies.  It is with the people.  For the grassroots may be slow to mobilize but will be unstoppable when activated for purpose.

The political temptation is to always seek a middle way, a consensus.  All Americans and the rest of the world saw last Friday that we no longer live in “normal times.” When a leader of the free world visited the Oval Office and was publicly scolded by the President and his colleagues for not being “grateful,” for not having any “cards” to play, for “threatening WW III,” we know we are not living in normal times.

The people to which NCUA board members will be speaking at GAC and beyond hold the ultimate authority.  How will they fulfill their oath of office?  The circumstances are not easy, but leadership in crisis is what the Constitution depends on.

 

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Character and Leadership in a Crisis

All organizations and most individuals will at some point in their journey encounter a crisis.  These could be threats to their livelihood or maybe existence.

It is important to remember that crises do not form character; they reveal it.

Yesterday the NCUA board met in public during grave uncertainty about the agency’s future. The board members’ response in this time of uncertainty will be for another time.

Today the President of Ukraine  meets with  President Trump.  Zelensky has been leading his country in a war that has entered the fourth year.

This post is about the character of the people who elected him President during this battle for their freedom.  And an example of American supporters.

Three Ukrainians

I want to introduce you to three Ukrainians.  Here are the first two, an obstetrician and his nurse attendant in their “office” near Kiev.

They literally have their hands full with their work-in this case, twins.  And an exhausted mother.

Their children’s hospital was hit by a Russian missile and destroyed last fall.  So in November 2024, a group from St. John’s Episcopal Church , Chevy Chase, MD, held a fundraising dinner with St. Andrew’s Orthodox, a local Ukrainian church.

They hoped to raise funds the doctor needed to purchase a new neonatal unit for their rebuilt  hospital clinic. That evening, the group of Americans contributed the entire amount. The funds were sent to Ukraine immediately.  A new neonatal unit was purchased and put into use within 60 days of the dinner.

Here is the third Ukrainian I want you to meet.  This photo of a current occupant of this new unit came yesterday.  Ukraine’s next generation.

The translation:  “Baby boy, weight at birth 3.08 lbs.  Now feeling comfortable due to this neonatal unit.”

Amercans and Ukrainians are together working to build a better future for this new generation.

Zelensky and Trump

As context for this Presidential discussion about continuing America’s support for Ukraine, I believe two recent articles provide insight into the character of the Ukrainian people. The first is the initial two paragraphs from a longer analysis called:

Ukraine’s deep history of peacekeeping in other wars

Even in the most difficult times, Ukraine has demonstrated a willingness to help others by participating in peacekeeping missions worldwide. However, the world has delayed decisive help now that Ukraine is the one that needs peacekeeping. It is a question of justice: can countries who contribute to peacekeeping count on reciprocity when they are threatened?

Before the full-scale invasion, Ukraine was known for its peacekeeping efforts. It participated in 36 military operations, becoming the ninth largest contributing country of military personnel to UN peacekeeping missions.  (click the above link for the the full article which describes these UN missions)

A Rapid Response When U.S. AID Ended

A digital-only English language news site was started in late 2021 by young Ukrainian journalist entrepreneurs, called The Kiev Independent.  It is a subscription only model, publishes dozens of stories daily and relies entirely on online “member” subscriptions.

When the February 2022 Russian invasion began, it focused on daily war coverage for readers outside Ukraine.

When the January U.S. AID cutoff threatened other local Ukrainian language news outlets,  the Independent asked its readers to send funds to support these smaller news sources.  Here is the report about this effort of less than a week:

Feb 8, 2025 from Editor-in-Chief, Olga Rudenko

Even more good news. Last week, we launched a fundraising campaign to help out three Ukrainian newsrooms in the cities close to the front lines. They were all hit by the freeze of U.S. foreign aid and we wanted to offset some of the damage.

We aimed to raise $50,000 and ended up raising $66,000 in just three days. Over 700 people contributed — a huge thank you for that! We are now in the process of transferring the funds to the newsrooms. Each will get about $23,000, which will cover their expenses for the next couple of months. They are shocked and grateful.

These are brief but I believe representative examples of the character of the country which elected Zelensky President.

The public reports of their meeting will display two examples of leadership.  One whose character and that of its people is under daily wartime attack.  And one who uses threats as a standard political tactic.

The character example I prefer is that of the US-Ukrainian group that helped restore the neonatal unit of a children’s hospital near Kiev.

 

 

 

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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.