Finding Leaders: Clean Up Hitters

(from Jim Blaine)

This one’s about leadership, but it’ll take you a little while to find that out.  Leadership’s that way quite often.  With leaders, last impressions are usually more accurate than first impressions;  and appearances, unfortunately, can frequently be deceiving.

But if you survive this next little ride you’ll come away with a surefire, can’t miss, “spot the leader” identification methodology. A “new paradigm” for you MBA types.

How this all got started was a mid-week road trip to Kings Dominion with a small herd of high-decibel youngsters, mostly mine. For the in-cognoscenti , Kings Dominion is an amusement park one exit north of Richmond, Virginia.  They would have built in Richmond, but the State Legislature already runs a three-ring circus at that exit.

 The roller coasters were why we were headed to Kings Dominion. They’re the main attraction. Not to say there aren’t many others. One big draw, for example, is the “volunteers from the crowd” karaoke show, which the emcee promises “requires no talent to participate.” The absolute truth of that statement usually becomes pretty obvious rather quickly. Critics in the crowd overheard to remark, “Heck, I can sing that well” probably haven’t really thought through that observation carefully enough .

Chainsaw Carvings

Another major entertainment is good old-fashioned “people watching.” There is always an extremely wide variety of exotic folks at an amusement park. And, usually there is an exotic variety of extremely wide folks, too. But much like risk-based lending, the rabble can be divided into two distinct groups – the have and the have-nots. In this case, that’s not a distinction based on wealth. The division is between those who have enough clothes on and those who have not. Well, the have-nots do, at least, seem to have the more complete tans. Don’t forget your sunglasses!

Carnival Ride

But my favorite thrill – other than the coasters – is the Scrambler. For those of you who haven’t been around much, so to speak, the Scrambler is 12 whirling cars on three separate pods that sling you toward, and spare you from, oblivion at ever increasing speeds. The Scrambler is the ultimate smile machine. The toughest hombre, the dourest Puritan, even the most jaded CPA can’t resist a broad grin when this mechanical marvel spins into action.

As the velocity rises, each rider’s “public mask” gradually weakens, then falls completely away. And for a few brief moments, you can gaze directly into the hidden child heart of another person’s soul. Souls are private places which, when uncovered, search frantically for shelter from the light. But with the Scrambler, only raw happiness – that which is best in each of us – is spun to the surface. And, it’s quite alright, and very reassuring, to enthusiastically stare. If you do take a look, don’t miss the revelation that we’re all very human and, at heart, very much akin – that’s something really worth learning before it’s too late and the ride is over.

Leadership and Roller Coasters

But, I came to tell you about leadership and that’s where the roller coasters come in. Kings Dominion has a bunch of them with names like The Rebel Yell, The Anaconda, The Hurler, The Grizzly, Shockwave and The Avalanche. You can ride these thrills forwards, backwards, over, under, inside, outside, up, down, sitting, standing, or my recommendation, kneeling and praying!

Riding a roller coaster evokes many of the same emotions as running a credit union, rolling out a new marketing campaign, or leading a DP conversion. “Shucks, it can’t be that bad…”  “This is going to be fun…”  “Whose idea was this?”  “Well, at least it can’t get any worse…”  “If I ever get out of this, I promise…” Guess you get the idea.

This time around, on one particular roller coaster ride there was an unfortunate accident. The to-and-fro and up-and-down was just too much for one young’un, who unswallowed his lunch while being closely held in the lap of his mother. When the ride ended, it wasn’t difficult to tell from Mom’s face (and clothes!) that this unexpected extra little thrill was just about “too much.” As opposed to the Scrambler, this is one of those soul-searching moments when it’s only polite to look away!

Carnival Food

The roller coaster quickly emptied, of course, and the waiting throng watched and waited for the “now what” with much anticipation. The rides are operated by teams of young people. I’m sure they are summer help, awaiting the advent of the fall semester at local universities and colleges. It’s apparent that they’ve been chosen with great care, because all are neat, attractive people in their blue knit and pressed tan khaki.

The Leader’s Test

Surprisingly, on this occasion, all the “service team” seemed to have missed “the mess” and to be thoroughly occupied with other duties; though it was difficult to determine exactly what those “other duties” involved. The team members were all desperately looking anywhere other than toward the “scene of the crime.” As time passed and the tension mounted, the feigned ignorance developed into a serious game of chicken. Who would blink first?

Carnival Food

There are certain problems and situations in life that only a leader will handle. Such problems and situations are of a type which should not be avoided and cannot be ignored; and, of a type which only the uncivilized or unjust would try to delegate to others. These are the type of problems that we all can see “somebody needs to do something about that.” Most of us aren’t willing to be that “somebody.”

Next time you have “a little mess” at your credit union, watch for who steps forward to clean it up. Always promote the first person “to grab the mop.” They really are somebody.

And, if your hand is not the first one on the mop, perhaps you should give that a little thought, too….

(March 14, 2011)

Lincoln’s Insights for Today: # 5

From the Second Inaugural Address March 4, 1865 to a divided nation.

At 701 words this is the second shortest address given by a President. He invokes God fourteen times, and mentions the Bible four times.  He uses inclusive language to avoid polarizing further the nation’s feelings at the war’s termination.  He talks about forgiveness and reconciliation.  In the style of a preacher from the Great Awakening, he first provides a scriptural injunction and closes with an imperative, therefor we must. . .

Both read the same Bible, and pray to the same God; and each invokes His aid against the other.  It may seem strange that any men should dare to ask a just God’s assistance in wringing their bread from the sweat of other men’s faces (Gen 3:19); but let us judge not, that we be not judged (Matt 7:1).  The prayers of both could not be answered; that of neither has been answered fully.

With malice toward none, with charity for all; with firmness in the right, as God gives us to see the right, let us strive on to finish the work we are in; to bind up the nation’s wounds; to care for him who shall have borne the battle, and for his widow, and his orphan—to do all which may achieve and cherish a just, and lasting peace, among ourselves and with all nations.

Editor’s comment:

This excerpt is  from a lecture by Dr. Ronald C. White (BA, UCLA; PhD Princeton University) an independent scholar and authority on Abraham Lincoln. He is the author of Lincoln in Private: What His Most Personal Reflections Tell Us about Our Greatest President.

Lincoln’s words are timeless, especially as we face  our political divisions today.  They were transformative when first prepared.  They feel even more profound today.

Ronald White’s complete lecture can be heard here.

 

The $846 Million Missing Item From Thursday’s NCUA Board Agenda

While NCUA’s $350 million annual budget is the primary Board item, that is not the most important financial issue.   For there is unfinished business stretching back over a decade.  The agency owes credit unions an amount that is 250% greater than the budget it will be discussing.

Here’s the details.

In March 2009 NCUA Board member Rodney Hood along with Chair Michael Fryzel and member Gigi Hyland voted to conserve US Central Credit Union and WesCorp, the two largest corporate credit unions.

My hunch is that board member Hood never expected to be overseeing the continued distribution of US Central’s almost $2.0 billion surplus thirteen years later during a second term on the Board.

Credit Unions Due $846 Million

As of the March 2022 AME financial reports for the five liquidated corporates, NCUA projects over $846 million is remaining to be paid. The majority, $556 million, is from US Central’s estate.

When completed total AME payments to credit union member shareholders will exceed $3.2 billion.   As a comparison, the total capital of the eleven active corporates at December 2021 was only $2.5 billion.

Put bluntly, the collective funds returned by the four liquidated corporates is 132% great than all the equity in corporates active today.  Closing these solvent corporates was a catastrophic error in  judgment!

The March 2022 AME financials presents the total forecasted payments to the four corporate’s members and the remaining amounts due.

US Central:     $1.832 billion with $ 556 million due

Mbrs United:  $  622  million with $130 million due

Southwest:      $  613 million with $127 million due

Constitution:   $     48 million with $  32 million due

There are no payments for the $1.1 billion of credit union member capital at WesCorp.  NCUA projects a WesCorp deficit after all recoveries at $2.1 billion.  This is the only loss to the NCUSIF from the five corporate liquidations.  (from line B4-Due to Government March 2022 AME financials)

Total Corporate Surplus Now Tops $5.8 Billion

The above amounts do not include the $2.563 billion added to the NCUSIF when the TCCUSF surplus was merged on October 1, 2017.   Adding this amount brings total recoveries to almost $5.8 billion.

This surplus continues to point the need for an objective review of the entire corporate resolution effort.

When US Central was seized in March of 2009 NCUA Chair  Fryzel was quoted in a Wall Street Journal March 21 article:  “With us in control, we’d get honest numbers.”

If subsequent events have shown anything, it is that  “honest” numbers in an environment of uncertainty depends on who does the accounting.   Especially when the underlying process relies on valuation  models that claim to project the economic climate and related cash flows  years or even a decade into the future.

The Core Regulatory Failure

The problem is not the models or their incorrect assumptions, both of which were wrong.  The error is that predictions should not be the primary basis for resolution strategy.  All models are wrong; some are useful.

The required response is managing the daily dynamics as markets change.  Trying to predict the future  as the basis for today’s tactics led to disastrous decisions in NCUA’s  assessment of the corporate assets.

With NCUA’s ALM/NEV supervisory tests becoming more prominent in today’s rising rate environment, the limitations of financial modeling  is a much needed lesson to bear in mind.

The Need for a Look Back

But a look back is important for another reason.   Still today NCUA Chair Harper and senior staff use the apocalyptic estimates and conjectures thrown out in 2009 as NCUA  projected future events.  The hyperbolic forecasts were incorrect then; it is double injury to repeat them today when the actual facts are known.

In the same WSJ article above, Chairman Fryzel was quoted:  “regulators aren’t concerned about the health of any other wholesale credit unions besides the two brought into conservatorship.”  Yet just a year later when no longer chair, member Fryzel supported the liquidation of three more corporates, a decision that was devastating for the system and individual corporates.  Both Southwest and Members United are paying liquidating dividends on top of returning all their members’ capital shares.

By forecasting disaster, NCUA took unilateral action without any industry involvement except paying the bills.  There was no check and balance, no transparency and no alternative solutions developed.

Unfortunately, that unilateral regulatory mindset continues today.  It undercuts the unique cooperative advantage of collaboration represented in the common credit union funded resources  in the NCUSIF and CLF for individual turnarounds.

The most important takeaway from the corporate debacle is not estimation failures or the value of patience when resolving problems.  Rather it is NCUA’s failure to understand the unique cooperative capabilities when developing regulatory work out plans.

That lesson should include respect for the institutions in difficulty and a willingness to work together for solutions versus liquidating problems to make them go away.

The one board member who is best positioned to state the importance of this learning opportunity is Rodney Hood.  He was there at the Alpha and now hopefully, the Omega.

His counsel should be heard.  And credit unions should get their funds back ASAP. Enough delays!

PS:  I hope a board member will ask what the additional $10 million in liquidation expenses paid (outside the NCUA budget) in the first quarter from the AME recoveries was used for.

 

When Less Is More: NCUA Board’s Mid-Year Operating Budget Review

This coming Thursday the NCUA board will review the agency’s midyear budget.  To do so thoughtfully, it is useful to put the operating budget’s long term and recent trends in perspective.

Below is a summary of the growth rate of NCUA’s operating fund budget from 1999-2001.  The first column shows the compound annual growth (CAGR) for the entire period; the second column for the most recent five years.   Note the annual growth rate is per year.

  Annual Growth of NCUA’s Operating Fund Expenses (1999-2021)

 

Account CAGR’99-’21 CAGR ’16-’21
Beginning Cash Balance $MN 11.47% 22.43%
Operating Fee Receipts $MN 4.27% 8.97%
Operating Expenses $MN 3.66% 9.48%
Net Fund Bal at Yearend $MN 16.92% 26.01%
Ending Cash Balance $MN 12.32% 21.33%

What the Recent Numbers Mean: Expenses Out of Control

During these 22 years, NCUA has transferred ever higher amounts of its operating expenses to the insurance fund.    This is via the Overhead Transfer Rate (OTR) process. That rate of expense allocation has been as low as 52% in 2008 and as high as 73.1% in 2016.   Currently it is 62.7% an increase from 2021.

This overhead transfer has exceeded 50% even though state charters have always had fewer than 50% of total insured shares this entire time.  NCUA is subsidizing its regulation of federal charters by shifting costs  onto state credit unions.

Following this arbitrary, open-ended expense transfer however, operating expenses still increased 3.66% annually or faster than inflation for the entire period.  Most recently in the five years 2016-2021 this annual growth accelerated to 9.84 % or three times faster than the overall 22 year average.

NCUA invented inflation five years before the rest of the economy could catch up.

After this OTR allocation, the Operating Fee charged to FCU’s exceeded actual operating expenses by an average of 104.5% for this entire period– some years more than 100% and others less. Since 2015 however, the NCUA’s the operating fee collected has exceeded actual expenses every year.

Building NCUA Cash  from Credit Union Funds

The result of these excess fees is that yearend cash on hand has grown from $13 million to $129.6 million (or ten times-1000% ) in this 22 year period.   During these same years, while  annual expenses grew by just 3.6%, NCUA grew cash balances at 12.3%, or four times as fast.

The 2021 year end cash balance of $129 million was 110%  more than that year’s total expenses, and  double the 46% average for the entire period.

NCUA held cash balances for the first 16 years of this analysis  between 30-40% of the actual expenditures.  Since 2016 NCUA has retained  more and more credit union funds.  Yet there has been no change in either the agency’s ability to assess its fee or in its operations to require this ever growing cash and fund balance.

The Latest Numbers: May 2022

As of end of May, cash balances are $191.8 million slightly higher than 12 months earlier.   Operating expenses for the first five months are $48.3 million exactly the same as the prior year.

The net fund balance (equity) is at an all-time high of $141.3 million for this time of year.  In 1999 the net fund balance was just $6 million.   The numbers and trends suggest that  $75 million or more of this excess cash could be returned to credit unions and NCUA still have more than enough to cover all operating expense.

The Board’s Budget Review

American author Edward Abbey observed:  “Growth for the sake of growth is the ideology of the cancer cell.”

This Thursday if expenses lag budget, the NCUA’s habit is to repurpose unspent funds  and/or approve new positions not in the original budget.

Normal business practice would be to reduce the budget, not find new ways to spend a surplus.

How will the board view this ever-growing cash hoard? The traditional government mindset is to spend all the money on hand, whether that is necessary or effective.  Staff is always fearful that if money is left over, it will justify reducing the budget request for the following year.

Chairman Harper has been very public in of his ambition to grow staff, the NCUSIF and the budget at every opportunity.

Will the rest of the board go along with this six-year pattern of uncontrolled operating expenses and buildup of excess cash? Or will they stop the spread of NCUA’s operating fund cancer?

After all this is the members’ money.

 

 

 

 

Lincoln’s Insights for Today: # 4

Lincoln’s meditation on Divine Will September 2, 1861.

The Civil War was not going well.  There had been a second Union defeat at the battle of Bull Run.  He became depressed.   These are thoughts written to himself found in John Hay’s papers.

The will of God prevails.  In great contests each party claims to act in accordance with the will of God.  Both may be, and one must be wrong.  God cannot be for, and against the same thing at the same time. 

In the present civil war it is quite possible that God’s purpose is something different from the purpose of either party—and yet the human instrumentalities, working just as they do, are of the best adaptation to effect his purpose  I am almost ready to say this is probably true—that God wills this contest, and wills that it shall not end yet.  By his mere quiet power, on the minds of the now contestants.

He could have either saved or destroyed he Union without a human contest.  And having begun, He could give final victory either side any day.  Yet the contest proceeds. 

Editor’s comment:

This excerpt is  from a lecture by Dr. Ronald C. White (BA, UCLA; PhD Princeton University) an independent scholar and authority on Abraham Lincoln. He is the author of Lincoln in Private: What His Most Personal Reflections Tell Us about Our Greatest President.

His book is based on 111 private notes Lincoln wrote to himself which provide insights  into his personal, religious and  intellectual journey as a politician and statesmen. 

Lincoln’s words are timeless, especially as we face  our political divisions today.  They were transformative when first prepared.  They feel even more relevant today.

Ronald White’s complete lecture can be heard here.

 

Lincoln’s Insights for Today: # 3

Lincoln’s note to himself on Slavery, July 1, 1854

Lincoln served one term in Congress from 1847-1849.   He was defeated for reelection in part due to his questioning of president Polk ‘s war on Mexico– which Lincoln’s constituents did support.  This brief note shows how he develops his political positions by first presenting his opponent’s point of view.  And then rebutting it.

If A. can prove, however conclusively, that he may, of right, enslave B.—why may not B. snatch the same argument, and prove equally, that he may enslave A.?  You say A. is white, and B. is black.  It is color, then; the lighter, having the the right to enslave the darker? Take care.  By this rule, you are to be a slave to the first man you  meet, with a fairer skin than your own.

You do not mean color exactly?–You mean whites are intellectually the superiors to blacks, and therefore have the right to enslave them?  Take care again.  By this rule, you are to be slave to the first man you meet, with an intellect superior to your own.

But say you, it is a question of interest; and if you can make it your interest, you the right to enslave another.  Very well. And if he can make it his interest, he has the right to enslave you. 

Editor’s comment:

This note is  from a lecture by Dr. Ronald C. White (BA, UCLA; PhD Princeton University) an independent scholar and authority on Abraham Lincoln. He is the author of Lincoln in Private: What His Most Personal Reflections Tell Us about Our Greatest President.

His book is based on 111 private notes Lincoln wrote to himself which provide insights  into his personal, religious and  intellectual journey as a politician and statesmen. 

Lincoln’s words are timeless.  They were transformative when first prepared.  The logic is  still profound today.

Ronald White’s complete lecture can be heard here.

 

Lincoln’s Insights for Today: # 2

From Lincoln’s address Before the Young Men’s Lyceum, Springfield, January 27, 1838

On November 7, 1837, Elijah Parish Lovejoy, a Presbyterian minister, journalist, newspaper editor, and abolitionist, was killed by a pro-slavery mob while defending the site of his anti-slavery newspaper the St Louis Observer.  Lincoln was deeply concerned by the event and the lynching of a freedman in 1836.  This speech was from the time he served in the Illinois state legislature in Springfield ( 1834-1842 )where he shaped his skill as a public debater.

The Lyceum  talk was titled:  “The Perpetuation of Our Political Institutions”.[1][2] In this speech, Lincoln warned that mobs or people who disrespected U.S. laws and courts could destroy the United States. He went on to say the Constitution and rule of law in the United States are “the political religion of our nation.”

How then, shall we perform it?  At what point shall we expect the approach of danger? . . .Shall we expect some transatlantic military giant, to step the Ocean, and crush us at a blow?  Never! All the armies of Europe, Asia and Africa combined, with the treasure of the earth (our own excepted) in their military chest;  with a Bonaparte for commander, could not by force, take a drink from the Ohio, or make a track on the Blue Ridge in a trial of a thousand years.

At what point then is the approach of danger to be expected?  I answer, if it ever reach us, it must spring up amongst us.   It cannot come from abroad.   If destruction be out lot, we must ourselves be its author and finisher.  As a nation of freemen, we must live through all time, or die by suicide.

Editor’s comment:

This excerpt is from a lecture by Dr. Ronald C. White (BA, UCLA; PhD Princeton University) an independent scholar and authority on Abraham Lincoln. He is the author of Lincoln in Private: What His Most Personal Reflections Tell Us about Our Greatest President.

His book is based on 111 private notes Lincoln wrote to himself which provide insights  into his personal, religious and  intellectual journey as a politician and statesmen. 

Lincoln’s words are timeless, especially as we face  our political divisions today.  They were transformative when first prepared.  They feel even more profound today.

Ronald White’s complete lecture can be heard here.

 

Lincoln’s Insights for Today: # 1

This is the first of five examples of Lincoln’s thoughts and insights from a lecture described at the end of this post.

When Lincoln first announced as a Candidate for Political Office, March 15, 1832 at the age of 23, the custom was to announce one’s candidacy in the newspaper  which would then be followed by letters of recommendation.

This first public declaration shows Lincoln’s character.  It also is an example of  how each of us might consider our own ambition.

Every man is said to have his peculiar ambition.  Whether it be true or not, I can say for one that I have no other so great as that of being truly esteemed of my fellow men, by rendering myself worthy of their esteem. 

How far I shall succeed in gratifying this ambition is yet to be developed.  I am young and unknown to many of you.  I was born and have ever remained in the most humble walks of life.  I have no wealth or popular relations to recommend.

This excerpt is  from a lecture by Dr. Ronald C. White (BA, UCLA; PhD Princeton University) an independent scholar and authority on Abraham Lincoln. He is the author of Lincoln in Private: What His Most Personal Reflections Tell Us about Our Greatest President.

His book is based on 111 private notes Lincoln wrote to himself which provide insights  into his personal, religious and  intellectual journey as a person, politician and statesmen. 

Lincoln’s words are timeless, especially as we face  our political divisions today.  They were transformative when first prepared.  They feel even more profound today.

Ronald White’s complete lecture can be heard here.

 

Lincoln’s Insight for today: How January 6, 2021 Occurred

There is a temptation for current generations, with their additional perspective, to feel morally superior to prior ones.

For example in June of this year, Cornell University removed a bust of Abraham Lincoln and a plague of the Gettysburg Address from the University library “when someone complained.” Cornell even holds one of the five original copies of the Address in Lincoln’s own writing.

It is true that continual efforts are necessary for achieving America’s aspirational goals of greater equity and freedom for all its citizens.

However previous generations  had  timeless insights about America’s political experiment that are still vital today.

As the January 6th House Committee holds another hearing this afternoon,  I want to share an analysis  that is profoundly prescient of the actions of President Trump.

Lincoln was an Illinois state legislator in 1838 when he gave a speech to The Young Men’s Lyceum titled titled “The Perpetuation of Our Political Institutions”.[1][2]

He warned of the dangers  of a tyrant taking over the US political system from within. This excerpt  could easily define what happened on January 6th, 2021.

It is to deny what the history of the world tells us is true, to suppose that men of ambition and talents will not continue to spring up amongst us. And when they do, they will as naturally seek the gratification of their ruling passion as others have done before them.

The question then is, can that gratification be found in supporting and maintaining an edifice that has been erected by others? Most certainly it cannot. Many great and good men, sufficiently qualified for any task they should undertake, may ever be found whose ambition would aspire to nothing beyond a seat in Congress, a gubernatorial or a presidential chair; but such belong not to the family of the lion or the tribe of the eagle.

What! think you these places would satisfy an Alexander, a Caesar, or a Napoleon? Never! Towering genius disdains a beaten path. It seeks regions hitherto unexplored. It sees no distinction in adding story to story upon the monuments of fame erected to the memory of others. It denies that it is glory enough to serve under any chief. It scorns to tread in the footsteps of any predecessor, however illustrious. It thirsts and burns for distinction; and if possible, it will have it, whether at the expense of emancipating slaves or enslaving freemen.

Is it unreasonable, then, to expect that some man possessed of the loftiest genius, coupled with ambition sufficient to push it to its utmost stretch, will at some time spring up among us? And when such a one does, it will require the people to be united with each other, attached to the government and laws, and generally intelligent, to successfully frustrate his designs.

Distinction will be his paramount object, and although he would as willingly, perhaps more so, acquire it by doing good as harm, yet, that opportunity being past, and nothing left to be done in the way of building up, he would set boldly to the task of pulling down.

To counter this internal threat, Lincoln concluded that there was a need to cultivate a “political religion” that emphasizes “reverence for the laws” and puts reliance on “reason—cold, calculating, unimpassioned reason.”

This is how the House Committee’s hearings on the January 6th insurrection is fulfilling Lincoln’s call to action 184 years earlier.

 

Ralph Swoboda

(by Jim Blaine)

Annually, the National Credit Union Foundation (NCUF) recognizes an exceptional credit union leader with the Herb Wegner Individual Achievement Award. Can’t think of anything less challenging than being asked to write a nomination letter on behalf of Ralph Swoboda for this honor.

What a waste of time! Really, the selection is just too obvious, a real no-brainer, an eyes-closed slam dunk. And, in a moment, I’ll tell you why that’s so. But first, a bit about Ralph for those who don’t know…

Won’t bore you with the details of Ralph Swoboda’s  credit union career. You can get off of your Tik-Tok for a moment and Google-up Ralph’s remarkable record. Ralph’s reach was international; but of most importance, Ralph Swoboda was to American credit unions what Winston Churchill was to England during the Second World War. Ralph Swoboda led CUNA – and credit unions – through two crucial, turning points, when nothing was certain, the odds were long, and everything was at risk.

You see, Herb Wegner, the charismatic, visionary leader of CUNA in the late 1970’s – for whom the Award is named, understood the future power and potential of credit unions – what they could become. But, that future required great change – new standards, new laws, new systems, greater accountability.

Mom and pop credit unions were on the verge of moving from being post office/factory floor “cigar box cooperatives” to Main Street, USA. Not all credit unions were prepared for this change, not a few were unhappy with the prospect!

Herb Wegner needed someone he could trust without reservation to advise him along this difficult path – to make sure his vision became a reality. Ralph Swoboda was the man Herb Wegner put his trust in when he hired Ralph as his General Counsel at CUNA.

And, after Herb Wegner’s untimely death, Ralph – in several executive roles and eventually as CUNA CEO – did guide credit unions skillfully across that dangerous, inflection point and into the future. Much of what credit unions are today rests on foundation stones and bridges engineered by Ralph Swoboda.

But, like Churchill in England after WW II, in 1994 CUNA sent Ralph packing! Change again was at hand and Swoboda was not as certain of the long-range impact of this next evolution.

The sea-change was in CUNA moving from being a hardscrabble, smoke-filled backroom, vibrantly passionate, states-rights democracy toward a highly centralized, DC-based, political monocracy. Ralph had won the big war, but had lost the last battle! Perhaps Ralph had become too old fashioned, too quixotic, too stubbornly Ukrainian…? Time will tell.

Lastly just for the record, Ralph Swoboda was also a man of great personal charm and presence, but not of the classical sort. Ralph was not exactly a person of well-coifed, smooth-skinned, impeccably dressed and manicured good looks. He was more into the all-natural, slightly rumpled, “came as I got up” style.

He always sported a riotous shock of vigorously unruly hair, flopping around a pair of oversized glasses – the kind the smartest kid in the class always wore. His grin was impish, frequently verging on the devilish. Ralph liked to laugh and it was a full-throated, rough-edged kind of laugh, aged by years of multi-pack-a-day Marlboros. Ralph was a bit Irish at the bar, with good endurance and always fun to be around.

But what Ralph liked best was to talk…and talk…and talk…in encyclopedic depth…especially about credit unions. As a great storyteller, Ralph told the cooperative story from the heart, he made it real, as if he meant it…which all knew he did!

So, what about that Selection Committee decision? Well folks, who did Herb Wegner trust more than anyone else? That person was Ralph Swoboda, who Wegner hired as his chief advisor, his general counsel, his “don’t let me fail in this effort” friend. Ralph Swoboda proved worthy of Herb Wegner’s trust.

Herb Wegner saw the light, Ralph Swoboda made it shine.

What’s to decide? You’re going to question Herb Wegner’s judgment?

Nah… I’m sure you’ll do the right thing!

(Editor’s note:  A history of Ralph’s contributions at CUNA is at: The Cooperative Leadership of Ralph Swoboda (1948-2021)