Posts

Posted on

A Credit Union Enters the Valley of Dry Bones

The description of the  Valley of Dry Bones in Ezekiel is always brought back to life with  Halloween.  And in the song Dem Bones or the spiritual version  Dry Bones. “Toe bone connected to the foot bone, foot bone connected to the heel  bone etc .”

However this metaphorical story came to mind when reading the announcement of the proposed merger of the $1.3 billion Community Credit Union-Florida (CCU) with Launch Credit Union. also $1.3 billion.

Both are in sound financial condition with CCU maybe a step or two ahead on several vital indicators. However the main occasion for the merger appears to be the announced retirement of CCU’s  CEO, a 29year employee, in October of 2023.

This is certainly the outcome reported in the mid-August 2024 public  merger announcement:   “Joe Mirachi, president/CEO of the $1.3 billion Launch in Merritt Island, Fla., would lead the combined financial institution. Laurie Cappelli, president/CEO of the $1.3 billion Community Credit Union of Florida in Rockledge, would retire and would serve in a consultant’s role as needed through system integration.“

These two announcements meant that for almost a full year, the five member CCU board and CEO have been working on a merger versus hiring a new CEO to lead this very successful credit union into the future.

CCU’s web site About Us describes the founding in 1963 as Brevard County Teachers credit union stating:  Eight of the ten teachers signed a Certificate of Organization, and each of them subscribed to one share in the Credit Union for a total of $40.” Today the credit union manages $1.142  billion in shares for  57,938 members.  The net worth ratio is over 11%.  What happened?

Who Is Responsible for This Decision?

Who made this decision about the future of these 58,000 owners?   From the public record, just six persons: the five board members and the CEO.

CEO Cappelli joined the credit union as a member service representative in January 1996 or over  28 years ago.   She became CEO in February  2018.  She  describes herself on LinkedIn as  a “Servant and Motivational Leader, Credit Union Advocate, Positive Influencer.”

Prior positions were at Black Hills FCU  (13 years) and  Kennedy Space Center FCU ( 2 years). Her public resume shows this is a person who would be fully aware that this act pulls up the ladder she used to ascend to leadership from all those now serving with her.

The public and professional credentials of the five-person board with their service tenures are described on the CCU website.

Board Chair Patmann has been a director since 2006 .   Now retired he lists numerous community and board leadership roles.

Vice Chair Marvin has been on the board since 2016 and on the audit committee prior.  He started his own company and has served on many educational and civic positions of leadership.

Board Secretary and Treasurer Dale joined the board in 1994.  She is a CPA who owns her own firm and has served on multiple other public boards.

Board Member Gindling is the President/CEO of Space Coast Health Foundation and a board member since 2016.

Board Member Rains serves as the Executive Director of Communications at Eastern Florida State College and joined the Board in 2022.

All six of these leaders have extensive responsible community positions, individual professional qualifications and longtime roles with the board and credit union.

Why have they decided to transfer all of the credit union’s substantial resources to a leadership team with no history, no local involvements and no legacy relationships that built their credit union’s success since 1963?

One would have expected there to be a thorough strategic assessment, an in-depth due diligence of options and explicit member-owner benefits to justify the transfer of this self-sustaining, six decade old, member-owned financial firm.

Unfortunately, the press release was full of the rhetorical cliches and absent any specific facts or data that would substantiate why this option was chosen.  Here is a typical excerpt:

“This collaboration demonstrates the credit union philosophy of ‘People Helping People,’ because together our combined resources and shared commitment enable us to offer enhanced products and services to our members while maintaining the high level of personalized service our members have come to expect,” Mirachi said. “We are excited about the opportunities this merger will bring and the positive impact it will have on our communities.”

Together, we will build on our legacies of trust, integrity and exceptional service to empower our members towards financial success,” Cappelli said. “We look forward to a very bright future together.”

Sounding Out Any Opposition

Moreover the FAQ’s with this public announcement appear to be a public “tolling” to see if there will be any  opposition to this charter’s death:

We know it is not typical for a merger to be announced while still in the pre-agreement stage, however, we believe strongly in the benefits of this merger and believe that being transparent with our employees and members to keep them involved and informed throughout this process is the right thing to do. This also means we do not have all the answers as the boards are working to ensure all details are carefully considered. As the merger process continues, Community Credit Union will keep members informed of progress, including sharing important notices, dates, and events.  

The Failing of the Cooperative Model

This case is not an isolated example of a deeply troubling reversal of the whole legislative and political justification for a non-profit credit union option in America.

Based on the public information and the latest financials, there is no member benefit to be gained, and no future service that the credit unions could not each accomplish.  CCU’s board  and CEO appear to have  failed in their most basic  fiduciary duty: to have a leadership succession plan for this 167 employee organization founded almost three generations earlier.

The CEO’s retirement announcement in the fall of 2023 was instead a mating call for other credit unions to step up with an offer.  The details of that offer by Launch have yet to be disclosed.

A Sellout Worth $300 Million

Given the board’s abdication of its most important responsibility for CCU’s self-sustaining, it is virtually certain the members and the employees will receive nothing for their decades of loyalty and effort.

This is a blatant failure of democratic cooperative governance-a board oblivious to its accountability to the member-owners.  Credit unions were designed to reflect a new and more equitable approach to consumer choice.  A critical goal was to place the welfare of the community first and not the preferences and rewards for those who gained positions of power.

This sellout to a third party is unfortunately another example in which the members receive nothing except that which they already have—the promise of future service.  This charter surrender is a betrayal of the credit union owners and the cooperative system.   We know from multiple credit union purchases of banks that the owners of an institution with this track record, financial strength and market position would easily command a price of 1.5  to 2.0 times book value –or up to $300 million in an actual market sale.

Moreover bigger does not mean more success.  This merger, like others, undermines the trust that members have placed in their leaders to do the right thing.  Without trust there is no foundation for the future.

Into the Valley of Dry Bones

The source of this leadership failure stems from a breach of faith.  This is a current example of the old story of the Valley of Dry Bones..  Instead of an organization that is focused on sustaining member welfare, the owners are left with only their separate individual resources.

Their collective future is transferred over to another board and leadership team they do not know, and did not select.  They are now disconnected from each other and from their past legacy.  Their loans and savings accounts are just a heap of dry bones with no special purpose, history or connection.

These six “leaders” have lost the passionate spirit that cooperatives require to be successful in serving the common good.  The eight founders who contributed $40 to gain a charter did not succeed because of their financial capital.  They possessed something much more important–the inextinguishable human spirit committed to the success of this singular financial enterprise.—in perpetuity.

And that is what Ezekiel‘s prophecy illustrates by the metaphor of the Valley of Dry Bones: “I will put my spirit within you, and you shall live, and I shall place you upon our own soil.”

The spiritual Dry Bones is about broken connections between people.   It also states what is required to put all these bones functioning together again.

When that spirit is missing, this most critical contribution of human capital, the  enterprise falls apart.  These one-time credit union leaders are now sending their members into a Valley of Dry Bones.

Posted on

A CEO’s Lived and Led Business Strategy

“Empathy emancipates making us greater than hate or vanity;

That is the American promise powerful and pure.”

(A phrase from poet Amanda Gorman’s, The Sacred Scene, read on August 21, 2024, Chicago)

I reached out to Great Basin FCU’s CEO Jennifer Denoo to discuss three topics:

  1. To learn about the credit union’s announcement of an affordable housing project with the FHLB San Francisco. How would this help and what was their role?
  2. Why a 2010 video of an interview of the  first President and his wife about the credit union’s founding in 1951 was linked to their website.
  3. The reasons why that website presents a very different “vibe” than most.

The Financials

At June 30, 2024 Great Basin reported strong financials, partly due to a recent small merger with another Reno, NV credit union.

Total assets:  $313 million; Loans $215.5 million; Net worth 11%; Delinquency .47%; and ROA of 1.93% and share growth in double digits, results helped by the merger.  It serves 25,000 member-owners.

The Affordable Housing Initiative and Goodwill

The credit union had joined the San Francisco FHLB in 2023 to have a liquidity backup.  Jennifer asked questions about other FHLB services offered. As a member-owner, she wanted to learn if services could be more than a transaction.  Was it a relationship opportunity?  She learned that few other Nevada financial firms were taking advantage of recent federal government funding and FHLB grants to support affordable housing projects (AFP) in the state.

One such program was undertaken by a non-profit developer, Sunwood Housing. It approached the credit union to partner in a new development in Lovelock (pop. 2,000), the only incorporated town in a very rural county.

The credit union’s role was to monitor the disbursement of the $663,000 FHLB’s AHP grant.  The oversight required their expertise and time; there was no interest or fee income.  The grant then freed up other federally authorized funding for this 24-unit development for low income residents.

Jennifer said the credit union’s support for this affordable housing project could open further possibilities with the developer, the county commissioners and residents, and the FHLB.  The expertise, market awareness and goodwill could lead to future AHP partnership opportunities; but the immediate gain is the positive impact on a small community she serves.

 The Founding Video-History Never Gets Old

The credit union created a video interview of its first President Jack Dunn and his wife Laura in 2010.  It tells the story of the beginning in 1951 as the Reno-Bell Phone Company Employees FCU.

NCUA required the credit union raise $25 in shares to receive a charter.  The eight organizers were $12.50 short.  So, Jack put up the rest and became the first President.  At the end of the first year there were several hundred members. Records were kept in a founding member’s garage. The credit union was offering loans to members that banks would not, because the volunteer leaders knew their members as “family.”

Jennifer said the video was created so every employee understands “who we are.”  She explained, “As we grow the FOM, now covering 12 counties, it would be easy to be seen like a bank.  We never forget how we were started.  We show it to every new employee so they can feel the passion and mission of the credit union. History never gets old.”

Bank Like a Boss: Members Are the Owners

Jennifer became CEO in 2018.   She began as a teller thirty years earlier but had trouble balancing out her cash drawer. The CEO at the time saw something in Jennifer and suggested she apply for another position–being a collector.  The result: “Best job I ever had.  My goal was to recover payments and assets through empathy and understanding of the member’s situation.  To make them feel like their current financial situation did not define who they were.”

When she was 30, that same CEO and her cherished mentor in the credit union died unexpectedly. She thought about going back to school to become a hospice nurse while raising her three children.  Jennifer saw a parallel between what a hospice nurse does and what a credit union leader does – they teach, they hold hands, they give dignity and grace.  Once she realized she was doing what she was already passionate about– leading with empathy – she chose to stay at the credit union as it evolved its member-centric focus.

Making Member Love a Reality

The credit union’s website feels different.  Here are two prominent statements:

We give a DAMN about every member.

Let us show you why we’re not just member-owned, but member-loved, too.

As CEO she continued the mission and vision of member love.  She admitted the site may feel quirky, but it was based on communicating a fundamental business competitive advantage: employee empathy.  It drives everything the credit union does.  It is the number one skill every employee develops.

Her personal commitment to this effort is shown in her first video as CEO, Just Ask Jennifer.

The skill is practiced in training sessions.   Scenarios with the words to use that first acknowledge how the member feels, in a non-patronizing way–“Say it, to live it.”—before resolving a problem or opening a new service.

Even when the member is not always right, empathy is the first action when taking responsibility for a solution. For example, an older member came into the credit union angry that the credit union would not give him his tracking number for an insurance payment.  He insisted the credit union had it; but he was using the wrong word. He needed the routing number.

The employee put themselves in the shoes of the member, imagined how overwhelming it must be to set up a new insurance deduction and led with an understanding heart before fixing the problem.

Or the 11:00 PM Just Ask Jennifer member query about how to change a password.  Jennifer takes pride in answering each of these inquiries, even at night or on a weekend because she feels how unsettling it is to not access your account online.

The service promises and values stated on the web site are specific.  Take ownership of the situation, show appreciation, step in the other’s shoes, etc. All are important for making these employee skills an essential part of the credit union’s brand.

The overall strategy is to build relationships not merely transactions. For she asserts “It is relationships that will carry the organization over the next bump in the road.” 

Jennifer’s leadership skills have resulted in positions on four other credit union and financial collaborative organization’s boards.   Her bottom line is “You just have to believe in people-and give a damn.”

A sound strategy not just for leading a credit union, but for life.

 

 

 

Posted on

The Windy City in Poetry

Chicago

by Carl Sandburg

Hog Butcher for the World,
Tool Maker, Stacker of Wheat,
Player with Railroads and the Nation’s Freight Handler;
Stormy, husky, brawling,
City of the Big Shoulders;

They tell me you are wicked and I believe them, for I have seen your
painted women under the gas lamps luring the farm boys.
And they tell me you are crooked and I answer: Yes, it is true I have
seen the gunman kill and go free to kill again.
And they tell me you are brutal and my reply is: On the faces of women and children I have seen the marks of wanton hunger.

And having answered so I turn once more to those who sneer at this my city, and I give them back the sneer and say to them:
Come and show me another city with lifted head singing so proud to be alive and coarse and strong and cunning.
Flinging magnetic curses amid the toil of piling job on job, here is a tall bold slugger set vivid against the little soft cities;
Fierce as a dog with tongue lapping for action, cunning as a savage pitted against the wilderness,
Bareheaded,
Shoveling,
Wrecking,
Planning,
Bulding, breaking, rebuilding,
Under the smoke, dust all over his mouth, laughing with white teeth,
Under the terrible burden of destiny laughing as a young man laughs,
Laughing even as an ignorant fighter laughs who has never lost a battle,
Bragging and laughing that under his wrist is the pulse, and under his
ribs the heart of the people,
Laughing!
Laughing the stormy, husky, brawling laughter of Youth, half-naked, sweating, proud to be Hog Butcher, Tool Maker, Stacker of Wheat,
Player with Railroads and Freight Handler to the Nation.

(Editors note:  My hometown from 1974-1981 when working at First Chicago and then Supervisor of Credit Unions for Illinois’ Department of Financial Institutions)

Posted on

“I’ve Been Seen”

Real political rhetoric, much more than every day punch and counterpunch,  is in full season.  Last night I listened to the Obamas’ twin presentations at the Democratic national convention.  Afterwards all the TV channels offered their pundits’ assessments of the evening, especially the keynotes by the former President and First Lady.

Sometimes it is hard to know whether one’s reaction to an event is shared by others.  Or even what to think about it until we hear how others appraise their experience.

As the PBS panel went from person to person, one commentator’s reaction stood out from his colleagues’ traditional analysis of each speakers’ effectiveness.  His was a personal reaction, not a reporter’s professional assessment.

He had reached out to a colleague for a handkerchief during the former president’s speech, weeping.  The reason for his reaction was summarized in one phrase.  Reacting to Obama’s description of what America could be, he said “I’ve been seen.”

A Credit Union Counterpart?

His reaction reminded me of a conversation last week with a CEO’s who has an unusual approach to leadership.   I had reached out to learn about the credit union’s participation in an affordable housing program.  To prepare for the interview I went to the web site and looked up the June 2024 financials.

The numbers were impressive.  But the website had a different “vibe” than most.  It had a ten-minute 2010 video interview with the first president and his wife, a reminder of the commitment necessary to start a credit union in the 1950’s.  Then there was this vision: “To be member loved.”

Was this phrase just another cute PR effort?   How could an emotion be translated into a real business strategy?   Who was behind this approach to credit union leadership?

Tomorrow I will share my conversation with the CEO who developed this unique effort of “seeing others.”  It is the central tenet of the credit union’s business model and market advantage.  It takes effort, and it works.

 

 

 

 

Posted on

A Movement We Should All Know About

Christian Nationalism is an unholy union of American exceptionalism, White supremacy and Christian identity parading across stages at rallies and worship services.

Many people, especially traditional believers are confused and left wringing their hands about how to respond?   Is this just a temporary merging of the political right and politics facilitated by leaders who will leave the scene after elections are over?  Or is it something more permanent in our confused and complex American belief system.

During the past six months NPR has presented a number of in-depth stories on Christian Nationalism.  Here is a link to a 25 minute report from July 9.

This week Presbyterian Outlook told the story of three Seattle area church ministers working together to develop a faithful and reasonable response to this distortion of the denomination’s historical Christian doctrines.

How do we keep our sanity amid a chaotic political-religious climate?

On July 7, 2024 Dr. Matthew Taylor spoke on this growing influential force in our social and political discourse.  His talk was called Christian Nationalism, the Capitol Riot and the Rising Threat to American Pluralism.

It was presented as part of the summer speaker series at the National Presbyterian Church in Washington, DC.   His approach is analytical with multiple examples to document  his major points.  Because his talk is almost an hour, here is a brief outline.

  1. The Christian Nationalist presence and role in the January 6th events was neither accidental nor incidental. He provides numerous photos and videos showing this involvement.
  2. These seemingly independent mega churches and evangelical charismatic movements are networked together in an “ecosystem” of social media, round tables, and shared view of the five roles of church leaders. The prophetic and apostolic roles carry the highest authority.
  3. The churches believe in “strategic spiritual warfare” with a mandate for their followers to achieve leadership of the seven mountains of American society.

Every part of his analysis is documented including the leaders’ original outreach to Trump as a candidate in 2015 and then subsequent involvement in his administration.

Dr. Taylor’s goal is to call attention to this growing force which is counter to the historical American openness to diverse points of view whatever the topic.  He shows how the group’s symbols are becoming increasingly mainstream embraced by the current House Speaker and a Supreme Court Justice in their display of the Appeal to Heaven-Flag of Liberty- a prominent symbol seen on January 6 in the Capitol riot.

He cautions these people are “true believers” not temporary cynical hustlers after money and power.   He observes that these coordinated efforts might appear bigger than each of us, but not bigger than all of us.

I believe this factual and historical presentation of this movement is vital as it seeks to impose their vision for all of America.   Movements started with pure intent, can become distorted, even perverse.  Leaders can use their collective resources gathered for one vision, to expand to a much greater goal: power over others.

It has happened before in other countries, when democratic processes are used to support authoritarian prescriptions and then veer into fascism.

Awareness is the first goal in setting bright lines for the freedoms America provides the entire spectrum of believers or non.  Christian Nationalism is a step too far away from an open, diverse and tolerant society.

 

 

Posted on

Awakening the Members’ Spirit at SECU  (Part I-The Beginning)

Democracy is hard work.   Most people have  more urgent personal priorities than worrying about the direction and leadership of their credit union. Or for that matter even the circumstances of the many other organizations organized on democratic principles in which one participates.

However in credit union design, democratic governance–one person one vote–at the annual election of directors is the most powerful tool the member-owners have to exercise their oversight.  The reality is that contested elections are a rarity.   Most boards are self-appointed in a perpetual process of nominating just the actual number of internally selected candidates as there are current openings.

Even routine member Q&A at annual meetings rarely happens when the agenda comes to the “other business,”  item.  Comments are carefully controlled if even allowed.  “All questions must be submitted in advance.”  “Speeches will be limited to two minutes.”  etc

The annual meeting’s formal rules are controlled by the incumbents’ chosen parliamentarian who rules out of order,  any motions or conduct not consistent with the board’s intentions.

A Member-Owners’ Representative Takes the Floor

On October 11, 2022 at SECU’s annual meeting the unexpected happened. A member and  former long serving CEO, Jim Blaine, rose to make a statement about the “change of culture and new direction” the board and recently hired CEO were taking the credit union.

His statement had three parts.

  1. A history of SECU with its strategic and business priorities and overall performance since chartering in 1937.
  2. A description of six current activites for which further explanation to the membership was requested. These changes he called Open Membership, Merger with Local Government FCU, Introduction of risk-based lending (RBL) for consumers and business lending, Cancelation of the tax preparation service and Expansion outside North Carolina.
  3. Two motions were proposed after describing these initiatives. The first called for a response to specific questions about the six areas and the second: The Board update, publish, and make available to all member-owners its’ Strategic Plan for SECU no later than 90 days prior to the 2023 Annual Meeting.  

Several members spoke up in support.  Both motions were approved without any voiced opposition or objection.   Thus SECU’s member engagement and awakening began.

A New Blog: SECU-Just Asking

Blaine’s full statement given at the meeting is here.  He also posted it on his new internet blog called SECU-Just Asking.  The site evolved to become a public dialogue on the board’s response to the motions.  Almost daily updates are being posted on these topics and other events related to SECU’s priorities or performance issues.

Blaine’s writing style is forceful and creative relying on logic and data to support his positions.  He is an ardent advocate for his views.  He is committed to the daily task of presenting observations and alternative views to prevailing priorities.  The blog has become an open forum for multiple member comments.

As of now some of these six topics have been put on hold: the proposed merger with LGFCU, the change in FOM and expanded operations outside North Carolina.  Tax preparation services have been discontinued.

The most significant issue remaining at the forefront of current posts is the impact of  RBL and the financial performance of SECU.

Jim Hayes the CEO resigned in mid 2023 to become CEO at State Department FCU .  He was succeeded by longtime SECU senior executive and Chief Operating Officer Leigh Brady.  She has continued the RBL and other internal projects initiated by Hayes.

A First Takeaway:  What  Democratic Practice Entails

Most CEO’s to whom I spoke about this event were critical of Blaine’s 2022 spokesperson’s role in challenging the credit union’s direction.   Most asserted he had ended his tenure at leadership.  Now it was time for him to be silent and give the new CEO and the board who chose them, the freedom to take the credit union in whatever direction their collective judgement decided.

For Blaine this was not a solo exercise.  His statement distributed at the Annual Meeting was prompted by numerous calls from current and former employees, members and others who were deeply concerned about the direction and new “culture.“ They asked that because of his standing in the cooperative community, he take the floor to articulate their worries and seek public dialogue between the  credit union leadership and the member-owners.

Blaine’s presentation-request is the first lesson in member governance.  Democracy is a public, not a private event.  It entails open meetings with points of view which may challenge current wisdom or practice.  Such public dialogue is often uncomfortable for those in authority.

From the annual meeting video, the moderator seemed surprised at Blaine’s ask  on behalf of the owners.  The  members quickly approved the two motions made under the regular rules order for the meeting.

The first condition for democratic government is public “speech,” ideally full and open to all points of view.  It is no accident that the 1st amendment to the Constitution was for freedom of speech. Or that the public press in America is called the fourth estate, a necessary parallel to the proper functioning of the executive, congressional and judicial branches of government.

Uncomfortable in Public

For those in positions of authority, public dialogue can seem threatening to their prerogatives and assumptions about leaders’ roles.  The response to critics is often PR or marketing campaigns designed to overwhelm one side of an issue.  Sometimes even special crisis managers or experts in publicity are hired to promote the message.

For those in positions of public service, direct dialogue with constituents can be uncomfortable.  Written statements are preferred sometimes with FAQ’s attached, or “no comments” issued about key events.  Public board meetings are carefully controlled and sometimes cancelled.   Speeches by principals to their audiences are made over zoom avoiding live in-person contacts.

Democracy depends on public expression.  Whether it is public rallies to oppose a dictator’s rule as in Venezuela, or the weeklong public conventions shows by the two parties, democracy is best served by open meeting spaces.

The Next Event in Democracy’s Awakening at SECU

Readers can follow the details about the Board’s response to these two 2022 motions by going to Blaine’s blog.   I will pickup the story further down the road  when the board decided that this exercise in member democracy was too unsettling to be left open ended in future annual meetings.

The SECU board’s surprise to this event is itself instructive. Most persons in elected or appointed positions of responsibility believe in their presumed authority.  “I was chosen to make these decisions based on my personal ability.” Or just the explanation, “I’m in charge now.”

An outsider might ask of SECU’s leaders as they would any group in this situation: Were   there no ears to the ground?   Did the board and executives truly grasp the scope of the changes they were introducing?  Were the strengths and advantages of the previous SECU model and its decentralized leadership understood?

As one watches this two-year-old drama unfold, look around and assess one’s own awareness of the organizational environment in which one navigates.   Is there open dialogue on critical issues—or just public posturing?   Are leaders approachable or hiding behind a veil of press releases and written speeches?   Do boards actually meet and discuss vital issues, or just keep the group consensus intact to avoid personal controversy?

Democracy is hard work. It takes practice.  It entails public events.  Many are uncomfortable taking this role; but we can learn from those who do, whether we agree or disagree with their positions.

Posted on

Creating Community with Shared Joy:  The Pub Choir 

There is a unique singing/sharing experience traveling across America and Europe this summer. It is the opposite of a Taylor Swift concert.  In these events, the audience is the show.

These ad hoc communal sings are led by an Australian musician, director and composer Astrid Jorgensen.

Her one night gatherings are called The Pub Choir.   It demonstrates the capacity of one person to help people discover and express their collective joy.

Learning to Sing Together

Here is how one person described her experience:

A few weeks ago, I walked to a small neighborhood arts venue and sang along with 250 of my neighbors at the sold-out event called “Pub Choir.” It was not in a pub, and we were not in a choir, but all in attendance now feel famous because the performers recorded it and put it on the internet. Even months later, I am still bubbling from the collective effervescence of learning a three-part harmony version of “The Best,” famously covered by Tina Turner.

(It’s not about you, but about us)

“Australian choral director Astrid Jorgenson set the stage by telling us to put our phones away. They would be filming us. We were the show. She had us belt out the chorus from “What’s Up,” by 4 Non-Blondes to figure out which voice part to stand with. Before she told us what song we would be singing and recording that night, Astrid said, “You might not know this song. You might not even like this song. But tonight, it’s not about your preferences. This is about us, singing together.”

“Astrid taught everyone their lines with a glorious low-budget PowerPoint presentation. We were instructed to follow our color-coded lines that were accompanied by memes to remind us of the style we were going for.  . .Astrid would sing the line for us, then have us sing it back to her.

(a holy call. .. and response)

“It was a holy call and response with subtle correctives like, “I see you moving a lot and working hard. I like your version, but I am wondering if you might want to try my version?” When she heard that a few of us “got it,” she winked at us saying, “I see you elementary school music teachers out there! Fabulous! Now squeeze the hand of someone near you and whisper to them, ‘We’ve got this’ and make sure they follow you for the slippery part.”

“. . .she moved us into three voice sections telling us we could check in with our friends during the bathroom break. We were not to stand with the section where we might have been placed in other choirs in the past, but where we felt most confident belting it out.

“Singing passionately was the goal. When we sang the line, “Tear us apart? Nooo … ” we were to look like our heart was being poured out like a waterfall. To direct us she danced across the stage, flipping her hair, shimmying, and occasionally pausing the rehearsal to have us all erupt in cheers for one section that finally got the slippery part right.

My friend Julianna and I squeezed hands with our neighbors, poured out our hearts, cheered, and shimmied on command. When Pub Choir ended, we hugged strangers while complimenting them on their passionate singing and practically skipped home.”

Creating Community with a Sense of Unity

I love this example of creating a community of shared effort from complete strangers.  The result is  a moment  of pure joy.   Ok, it is only for 90 minutes and maybe just one or two songs.  But it shows the power of leadership in a common effort-even when some believe they have no singing voice at all.

This is an example of a Seattle video from a Pub Choir singing Tina Turner’s The Best.  Makes you want to skip out of work and go sing.    Singing makes you feel awesome.

(https://www.youtube.com/watch?v=xlc7sHBQ4Oo)

Music at This Year’s Political Conventions

Music is at the center of many communal events. At the Republican convention last month, the following musical motivators were part of the experience:

Among the offerings: Kid Rock performed his 2000 song “American Bad A–”; “Real American” by Rick Derringer; and Lee Greenwood performed “Holdin’ a Good Hand” in person.

Here is my suggestion for the Democratic convention taking place next week.  It is the 1971 release byThree Dog Night- Joy to the World:

(https://www.youtube.com/watch?v=M9uoq9gfeL0)

 

 

 

 

 

Posted on

Democracy Takes Work-Especially in a Cooperative

President Eisenhower:

“Dictatorial systems make one contribution to their people which leads them to tend to support such systems—freedom from the necessity of informing themselves and making up their own minds concerning…tremendous complex and difficult questions. But while this responsibility is a taxing one to a free people it is their great strength as well—from millions of individual free minds come new ideas, new adjustments to emerging problems, and tremendous vigor, vitality and progress…. While complete success will always elude us, still it is a quest which is vital to self-government and to our way of life as free men.”

This year’s election cycle is putting the issue of what American democracy means front and center.  Some believe it is about majority rule-the winner calls all the shots.  Others have a more nuanced view of participation, diverse representation and compromise.

One of the ways citizens in America learn about democratic practice is its use in the many civic and public organizations in which we all participate:  churches, local elections, volunteer and nonprofit groups.

Credit unions are designed to be democratically governed.  One person, one vote. The primary means for how this is process is exercised is at the members’ annual meeting and the election to fill board openings.

Practice Without Substance

In a conversation yesterday with a long-time credit union member ( joined at age 5 in 1966) he said he never saw an actual election.  Instead, as he learned,  the Chair would appoint a nominating committee led by the Vice Chair.  That committee selected just the number of persons as there were open seats. The candidates were all familiar faces from the existing board or “associate board” members.   The test was loyalty-would they “go along to get along” with the rest of the board.   The tenures of several of these board members extended over three and four decades.

This description would be familiar to many credit union boards.  The election process is managed so as to perpetuate the incumbents or their fellow travelers.   It is democratic in neither practice nor theory.  In the end the credit union is led by persons who believe in their special skills to remain in office for as long as they wish.

The justification for this self-perpetuating board selection is the idea of a “leadership class” like trustees, that should not have to answer to voting owners, let alone face a contested election.  This is especially so when external factors suggest satisfactory organizational performance.  Why tinker with success?  Aren’t we doing what is expected, and leading successfully?

However when a minority, no matter how talented, takes control of a credit union board and the selection process, the responsiveness and accountability of the institution to its member owners is at risk.  Which means the future of the credit union is not in the hands of the members, but of a small group who eventually may tire of the task and decide to merge—not find new leaders.

A Case Study of a Contested Board Election

Breaking this cycle of self-appointment without member choice is tough.  Democracy is not easy.  However there is an example unfolding at State Employees Credit Union (SECU) in North Carolina now it its second year of a contested board election.

In later posts I will cover the election procedures and efforts to provide alternatives to the traditional board self-nominations and election by acclamation.

The future of credit unions may depend on recovering their democratic roots and practices.  SECU is an example that even very large and powerful cooperatives can change when members engage.

Without the annual accountability of true elections, the “leadership class” will be tempted to just continue on its chosen course and priorities.  That isolation is one reason why the number of credit unions has fallen from 6,000 to 4,600 in just the past seven years.

These are not “safety and soundness” failures.   They are failures of leadership and morale.   And it all depends on having a passive, uninvolved member that will act as a customer and not an owner-especially at the annual meeting.

The Ultimate Goal of Democracy

Democracy is about something more than  elections.  Elections ultimately undergird freedom.  As Richard Rohr has stated in another context: But it’s a freedom we must choose for ourselves. It is almost impossible to turn away from what seems like the only game in town (political, economic, or religious), unless we have glimpsed a more attractive alternative. It’s hard to imagine it, much less imitate it, unless we see someone else do it first.

Future posts will report on how this effort is proceeding at SECU.

Posted on

Transparency: An Advantage When Properly Understood

Spent time earlier this week talking with people who work with a DC non-profit 501 C 3.  It is called Everyone Home DC.

It was incorporated in 1967 by an interdenominational group of religious leaders called the Capital Hill Group Ministry.  For almost six decades the organization has focused on the housing needs of those at the bottom of the socio-economic ladder.

Its Vision:  We support the holistic needs of individuals and families at risk of, or experiencing homelessness.  Housing is our starting point

The group’s website has five components, similar to many credit unions’ content, in an About Us section:  Our Story, Board, Staff, Careers and Funding and Reports.

I clicked on the Funding and Reports tab and found links to the latest five years of Annual Reports, complete external CPA audits, and the IRS 990 filings for nonprofits.  These reports provided an open and full picture of the group’s financial status, trends, how they are funded, and objective measures of their  community impact.

Overcoming shortages of shelter for low income individuals is one of the most intractable problems for every major city in America. The group’s reporting and disclosures give the reader confidence that the leaders know what they are doing and are accountable for their outcomes and responsibilities.

That confidence is vital.  For this nonprofit’s modest budget relies on government grants and private donations.  It is vetted by its funders. In 2023, the organization announced that the Bezos Day 1 Families Fund had granted them their first-ever multi-year, multi-million dollar funding.

Trust from Transparency

Transparency is critical to Everyone Home’s credibility.  it is a non-profit, totally dependent on external funding and engaged in an area of social need where work is never finished and endgame always distant.

It is an example credit unions who are dependent on member and community support might learn from.  Especially the posting of the latest five years of IRS filings, CPA audits and Annual Reports.

A  long-term practice of open and full communication with a group’s supporters is vital when hard times or unexpected challenges arise.  A foundation of trust is built through transparency.  It becomes the intangible capital (goodwill) that can be the difference between a successful recovery or a demise.

Sweeping a Problem Under a Cobalt Rug

Contrast this expectation with the events in an August 7th  Credit Union Times story of the recent merger, without a member vote, of the $67 million Creighton FCU (Omaha) with the $1.2 billion Cobalt Federal Credit Union in Papillion, Neb.

The Times’ story reports the credit union’s net worth ratio went from 9.09% at March 2024 to a negative 10.95% three months later at June’s quarter end.

In announcing the merger Cobalt’s explanation for the consolidation, per the Times, was the July 31 retirement of Creighton’s President/CEO Thomas C. Kjar.

One does not have to be a financial analyst or even a credit union member to know there is something dreadfully wrong for a deterioration of almost 20% of a credit unions assets in just 90 days.

Creighton was a federal charter, filing four quarterly reports per year and presumably subject to NCUA’s annual exam oversight.  It was organized in 1951 and operated five branches with 20 employees.

At June 30, 2024 its balance sheet of $43 million in loans and $23 million of investments appears normal, and not much different from a year earlier.  The allowance for loan losses is just $277K.

The one unusual item is a $12.5 million under miscellaneous expense (compared to $15K a year earlier).  This one time significant amount suggests a newly discovered financial hole due to misappropriation or other sudden loss event. That one entry accounts for most of the $13.5 million YTD loss, which eliminated all of Creighton’s net worth.

How can such a catastrophic loss occur under the agency’s supervisory nose?   I can find no NCUA announcement of this forced merger.  Silence undermines confidence in the NCUA’s examination and supervision competency.  It suggests there is something to hide.

When problems of any kind are swept under the rug, there is no learning by either credit unions or the agency from whatever went wrong.  This forced merger transaction deserves more explanation  than the FAQ’s of Cobalt FCU, the rescuing party.  An accounting is due for Creighton FCU’s members and to the credit union community about what happened and NCUA’s role.

Now Creighton’s 10,000 member-owners are left in the dark about their institution’s oversight and why NCUA  ended its existence.  Such an abrupt, unilateral and forced action can only increase  skepticism of a government agency about  its openness and responsibility to the public.

In the example of Everyone Home, transparency is critical to carrying out its mission.   At NCUA the opposite seems to be the norm.

NCUA has an obligation in  its supervisory role to provide its funding constituents the circumstances about any major failure.  This is the kind of event the agency is supposed to prevent.

The published call reports are the only “facts” available on this $67 million credit union’s closing. They scream for an explanation of this sudden 90-day catastrophic loss.

The agency’s failure to address its actions at this most critical junction in a credit union’s life, poses basic questions about its competence, not just its transparency.

Posted on

How to Start Riots Throughout a Country

You may have read about the multiple riots in Great Britain following the stabbing deaths of three children in Southport.  How did this horrible crime lead to instant countrywide rioting and attacks on mosques, immigrant shelters, minority shops and stores, and ultimately the police?

The Five Minute News is a free daily pod and YouTube broadcast by Anthony Davis, a British journalist who lives in the US.

This episode is a case study of how disinformation is created and then spread by both foreign media (Russian  Today-RT) and domestic extremists.

Disinformation is intentionally designed to spread anger, fear and chaos.  It is false.  The initial creator in this instance is quickly identified and the post taken down in an hour.  But it had already spread throughout the world by social media provocateurs in Britain and elsewhere with this completely made up, totally false, account of the person in custody.

The Role of Musk and X

This broadcast also documents Elon Musk’s role in spreading the false information and augmenting it with other fake documents.  He ultimately adds his prediction of civil war in Britain.  The country’s far right extremists all amply these apocalyptic predictions.

This is the full broadcast, ten minutes rather than five!

(https://www.youtube.com/watch?v=uEuJ3V1yzzQ&list=PLGNXhNKeaOmWgTQ3T7oA5ioACZvSB5cRC&index=2)

It should be a mandatory watch for anyone concerned about the state of public discourse and the role of social media in the US and around the world.  And the malicious intentions of Elon Musk.