"Quelle surprise"! (Pardon my French.)
😎 This exchange recently occurred in the comments:
- AnonymousFebruary 25, 2025 at 10:11 AM
In no way whatsoever are we a bank.
AnonymousFebruary 25, 2025 at 10:41 AMHow do we know?
- AnonymousFebruary 25, 2025 at 10:45 AM
our charter, for one. is that even a serious question?
😎 This headline and article appeared the same day in the national credit union publication CUToday:
"Credit Unions Brace For Tax Exemption Battle—Could CU Conversions To Bank Be On The Horizon?" [2/25/2025 - [link]
"... most credit unions that are taking some kind of action today
are running what-if scenarios—evaluating what losing their tax status
would mean to the bottom line and to their members. But some are looking
at what’s involved in converting to a bank."
"What if" ?! If it walks like a duck, looks like a duck, acts like a duck... well, y'know...
it is not that current crowd doesn't know, they don't care.
ReplyDeleteArticle is about the topic of charter conversion, in the event the industry loses its tax exemption. That’s a legit question cu’s should ask and answer if that happens.
ReplyDeleteOnly reason CUs might lose tax exemption is that they are CUs in name only. Might as well stop being hypocrites about the charter issue.
DeleteNever has been a "legit question"... either uniformed BS or a "CU leader " looking for an excuse.
DeleteSee 12:37pm article...excerpt: "“Other statements claim that paying taxes would have a direct impact on the safety and soundness of CUs,” Goad said. “I know these claims are well-intentioned, but they are over-statements and mistakes.”
hasn't been a legit question to date. in current state, there is no reason for a CU to convert. IF the tax exemption goes away, and IF the same restrictions on asset, investment and capital exist, at point CU's would go from a competitive advantage (in the banker's eyes), to a competitive disadvantage in terms of bringing value to its members and supporting growth of the cooperative. In that case, CU Boards would need to evaluate the merits of converting, and if they didn't it would be a breach of their duty.
DeleteYou could actually argue that we acted and looked more like a thrift than a CU because we were a savings club that did mortgages, which were the overwhelming majority of our loans.
DeleteThankfully that's been more diversified int he last 5 years, and our balance sheet looks more and more like you would expect a CU's balance sheet to look.
2:05pm "... like you would expect a CU's balance sheet to look." Same old, same old .. another clear definition of "industry standard"!
DeleteLemming leadership - "...an irresistible metaphor for human behavior. Someone who blindly follows a crowd—maybe even toward catastrophe—is called a lemming."
1:43pm Definitely can tell when the members are expressing their views on their credit union.
DeleteThis is the mentality that has so many concerned that credit unions have lost sight of their purpose and values...
Credit unions were not created to compete with banks, were they? Why do they think they have to?
Credit Unions offer deposit accounts, loans, and other financial products. Banks offer deposit accounts, loans, and other financial products. The difference is the why. We do it for our members, banks do it to earn money for their shareholders.Both operate under federal regulations but Credit Unions are governed differently. In summary, Credit Unions were established as an alternative option but we both compete with similar products.
Delete@2:14.. you play the industry standard card ad nauseum. think though it a little. members have a broad set of product needs, not just mortgages. if a CU tried to meet most / all of their members needs, their balance sheet would look different than a one trick product pony and an 85% mortgage concentration. If meeting members' needs at better rates and lower fees so they aren't forced to go somewhere else is industry standard, that's ok to me.
DeleteSECu been quacking since 2021
ReplyDeletehttps://www.cutoday.info/site/THE-feature/Credit-Union-CEO-Breaks-It-Down-The-True-Cost-Of-Losing-Tax-Exemption
ReplyDelete@1:43. no CU's weren't created to compete with banks. Why do they think they have to? Silly questions.
ReplyDeleteSo we don't need to compete with banks? So do you think if we declared to the world we don;t compete with banks, our competitors would have said, ok, we won't take your deposits?
we have to compete out of necessity to deliver on our mission to members.