Thursday, February 15, 2024

SECU Making The News -Telling the Truth?

https://static.tvtropes.org/pmwiki/pub/images/LyingFingersCross_I_swear_4721.png ... about that little $5 billion loan.

😎 Sorry, need to flog this dead horse one last time! [link to prior post]

As the article in BusinessNC explains [see here], the Federal Reserve created the Bank Term Lending Program in March, 2023 to provide short-term "liquidity" to financial institutions which were experiencing large withdrawals of deposits by their customers (called a "run") given the collapse of several large banks.  

The purpose of the program was to support "liquidity", not "profiteering" by banks and credit unions.  What does "liquidity" mean? What's the difference between "liquidity" and "profiteering"? Why do you suspect SECU was "profiteering"?   

In this case, a simple definition of "liquidity" means the ability of a financial institution to meet a withdrawal request. You go to a teller or an ATM and ask to withdraw $100, you expect to get it, no delay, no rigamarole.  That's called liquidity! If the teller says, sorry you'll have to wait a few days that's called "illiquidity"!  And, if told that by a teller; you, of course, change your request to "on second thought give me all my money - that's called "a run"!  The BTLP was intended to be sort of "a payday loan for the banks" (that's kinda ironic isn't it). Got it?

🐄 SECU started milking the Fed BTLP in August, 2023 for @ $1.5 billion. So, did SECU experience a member "deposit run" during the summer of 2023? Total deposits reported to the federal government at 6/30 were $45.3 billion, then total deposits by month...

August 31, 2023:  $ 45.0 billion ... borrowed $1.5 billion from Fed.

Sept. 30, 2023:     $ 44.9 billion

Oct. 31, 2023:      $ 44.7 billion

Nov. 30, 2023:     $ 45.0 billion

Dec. 31, 2023:     $ 44.9 billion  ... Fed borrowing increased to $5 billion.

Looks like deposits only changed by @ $100 million, not $ 5 billion. 

So, it doesn't appear that SECU experienced a "run" on member deposits, does it? Normal seasonal member X-mas shopping is probably a better explanation.

But, how do you know it was "profiteering"? Well, it might be risky, but I take SECU at its word. Here's the direct quote from SECU in Mr. Mildenberg's article. It's that very last line [here check it out]: 

"SECU says the Fed program enabled “additional income with which we can further benefit our members.” 

... Your honor, the defense rests.  BTW, most  SECU savings members haven't noticed any "further benefit" yet.

24 comments:

  1. Oh was that the laughable increase in my mm account rate?! We gotta get these scoundrels away from our credit union!!!

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  2. SECU...

    "What tangled webs we weave when we practice to deceive"

    Or...

    "Liar, liar, pants on fire!"

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  3. Profiteering seems a bit strong if it’s legal and not being done on the black market.

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    Replies
    1. Ok. but. Where are the benefits for the members? Looks like benefits to the administration to me. NOT the members. Boosts the assets back up above 50 billion, which lowers the ratios on everything else. Makes the administration look as though it is "performing" (and aren't they putting on a show!) well. Nope. Don't buy into that self promotion.

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    2. Sorry, did try to clean it up!

      Used "profiteering" rather than several ruder, more profane words. Also, used "milking" rather than 'bilking" to be more moderate about SECU's clip, rip, and strip attitude toward the Fed.

      Take it you support a lizard-like - Gekko! - approach to [insert non-profane word] the Fed?

      What would you feel would work better?

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  4. it's always about the kids and/or members ... yet neither ever see any "benefit" ... it's all a shell game ...

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    Replies
    1. BTW, did they ever give the teachers back 'their' Gym space?

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  5. Good for SECU - they are pimping the fed for personal gain. Not against the law. Not moral? Not ethical? Don't let that slow these pseudo board members and pseudo management down. Pimp it. Kick it. Smash it. - Can we get an Amen? PTL - is it Praise The Lord or SECU - Pass the Loot?

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  6. All of this borrowing 100% under Brady.

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  7. Status update on what was covered at the SVP meeting?

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    1. Probably a meeting about micromanaging employees out is my guess

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    2. Brady spent her time trying to explain away the blog comments on fed. also said Business NC is biased. We need a leader

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    3. Hmm let me see. Probably more of why we’re spending so much of our resources on this study on how to pay our employees bankers wages (want to make more, go work for Wells!), why we’re not building more branches like we used to, why we are allowing UNPROFESSIONAL business casual instead of our tried and true dress code, and why we are trying to replace Bob (which has served us well for YEARS)..and NOT focusing on our true mission—helping our members!

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    4. She’s a puppet. No integrity. She’ll do whatever NCUA tells her to do

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    5. The more they talk about the blog…the more it’s validated. And yes even the crazy blog comments we all thought were crazy but realize these comments are coming more true every day.

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    6. this blog is like a tiny pebble in their shoe ... no matter how hard they try, they just can't ignore it

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  8. Brady caught again with foot in mouth disease. Must thrive off embarrassment.

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  9. some folks whatever they touch turns to gold, others just the opposite ... I guess these new/new thought they were smarter than everyone else who proceeded them ...

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  10. just think how these folks would act if they thought nobody was watching them ...

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    Replies
    1. Exactly. If this blog, Glassdoor, NC Business mag, chip filson blog, and Jim Blaine weren’t shining a light. This place would’ve already been Southeast Credit Union and Jim Hayes would still be your CEO folks.

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  11. She sure had a huge ego boost for herself, sending out that long, pointless, useless memo the other week—more with less, a whole lot less….all fluff, reminded me of Gym spouting out nonsense that just came to his mind 🙄

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  12. If Brady wants a fresh start she can start by telling the truth

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    Replies
    1. Can she? Is that part of her skill set?

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