Why Did The SAFE Board Vote To Sack The Credit Union?

                                              If so, is Sacramento being "Sac"-ked"?

The discussion of the proposed acquisition of SAFE Credit Union by Boeing Employees" has heated up! The takeover has gained notoriety not because it is unique, but because it may foreshadow the demise of credit unions as cooperative financial alternatives. The irreversible paradigm shift, the canary in the cooperative coal mine.

The SAFE Board of Directors and CEO Faye Nabhani stated these reasons to pull-the-plug on SAFE as a locally controlled, independent home-town business:  "The new credit union will bring more value and benefits to our members and the communities we serve, with enhanced technology, increased community support, and more convenient banking services for members through all stages of their financial journeys."

✔ Let's check that statement out: [link here for broader 'Scorecard"]

1]  Better rates                                           YES ◻    NO   ❎

2]  Lower operating costs                             YES ◻    NO   ❎

3]  Enhanced technology                              YES ◻    NO   ❎

4]  More branches/ATMs                               YES ◻    NO   ❎ 

5]  Retain local ownership/control               YES ◻    NO   ❎ 

6]  Assured increase in community support YES ◻    NO   ❎

7]  In-state California regulation                  YES ◻    NO   ❎

8]  Return of capital to SAFE members         YES ◻    NO   ❎ 

9]  Member dialogue prior to agreement      YES ◻    NO   ❎ 

10] Will strengthen the Sacramento area     YES ◻    NO   ❎  

✔  Perhaps the SAFE Board and CEO should come out of hiding and fulfill their fiduciary responsibility to the Sacramento community by explaining their reasons for pulling-the-plug on 85 years of success ?     YES  ❎     NO ◻    

 What's to hide, when Sacramento has so much to lose?

 

 

 

  

 

 

 

The SAFE Mega-Me: A Malware Merger ?

              Technically speaking, this merger doesn't compute.          

An oft-harped "reason" used to justify merger is management distress over outdated technology and the "overwhelming" costs required to go "digital".  Seems to make sense...  until you think about it.  Failed leadership, not old technology, is the usual culprit in the decline of a credit union.

In the case of SAFE Credit Union, last century technology is not a problem creating a need to merge. Actually the opposite is true. How do you know? Because SAFE CEO Faye Nabhani says: "In her role with SAFE Credit Union, Faye was the strategic leader and executive sponsor of SAFE’s core system conversion to Fiserv DNA, completed in April 2022. "

Not so with Boeing Employees Credit Union which has not made the latest transition to its Fiserv DNA software - a high risk, highly expensive, and often member-disruptive opportunity for misadventure. The proposal to merge will be a step back in tech-time for the member-owners of SAFE.

So, lets add "Issuing A Blank Check For A Future Tech Wreck?" to round out our Top 10 list of reasons that the Board/CEO give-away of SAFE Credit Union  just doesn't add up.

✅ The "Mal-Merger"  Incredibility Scorecard: It has been shown that 1) any benefits of the merger can be obtained for free by SAFE members [link], 2) the SAFE Board has voted to give away a financial institution with a fair market value over $400+ million [link] without member compensation, 3) the current cost of operating SAFE is superior (much lower!) [link] than BECU, 4) current services/rates at SAFE are equal or better [link] than BECU, 5) if necessary, there are several better CU merger candidates in California [link], 6) the SAFE Board 's "future" community commitments of April 21, 2026 [link] and questionable "increased returns" claims [link] are "faux-ish", 7) the absence of an independent, arm's-length market valuation of the merger has created a fiduciary legal exposure [link], 8) the lost of local independence and autonomy [link], 9) no greater access to branches [link], and 10) less advanced technology [link]. 

  Ten outa' Ten! A Bo Derek Merger!

           Malware, Malarkey, Malpractice... Malfeasance?