Big Hat, No Cattle!
Encouraged you yesterday to take a look at Chip Filson's blog [link] on the Texas Credit Union Regulator's approval of a merger between TDECU and Space City Credit Union.
'Course you didn't listen in on the regulatory meeting, neither did I. Life's too short!
TDECU is the former Dow Chemical employees' credit union with @$5 billion in assets. Space City Credit Union is the former Stewart and Stevenson ( a Texas engineering company) employees'' credit union with @$134 million in assets.
But here's "the raw meet problem" of what's happening nationwide with credit union mergers and misfeasance:
The three top execs at Space City CU will receive a minimum payout of $6.5 million+ to "sell out":
✳ One can be sure it was an impartial decision.
Remember this is a small $134 million credit union. Space City Credit Union has only 12,000 members, after 60 years of operation. Each member is effectively paying $500+ bucks "to get rid of" this management team.
😎 As an alternative to this "merger mayhem", the 12,000 Space City member-owners could have told the staff "Thank you", sold the credit union, and simply divided up the $19 million in member equity, which they own.
Each of the 12,000 Space City Credit Union members could have gone home with a check for @$1,500! And if desired, simply go open an account at TDECU for free... since anybody in Texas can join TDECU!
✳ Which choice would you have made...
✅ Coming soon to a credit union near you.
what does this have to do with SECU
ReplyDeleteIf you don't think there are at least a few people at SECU who aren't thinking about payouts, you haven't been pay attention the last few years. It isn't everyone. There are certainly members of the Board and ELT who truly want to help people. But there are definitely also some who are positioning SECU in a way that will provide themselves a payout. Whether through mergers or conversion or some other scheme, it's the plan for at least a few of the top decision makers.
DeleteThe board believes they should be highly compensated for the volunteer job they signed up for. Why do you think they're Lying and pushing so hard to change the law? If they really wanted to help "poor people in financial deserts", why aren't they building or opening a branch in these communities? Have any new branches opened since
DeleteWhat happened in Texas is theft of members' money pure and simple. And the regulators are complicit. Absolutely disgusting.
ReplyDeleteAnd it has everything to do with SECU. Have you not been paying attention? The Board, Hayes and Brady have had their eyes on this prize for 4 years. Their actions speak volumes. Don't be naive.
Difference in North Carolina is that if they pull that trick out of their hat GUARANTEE there will be a class action lawsuit. The members may not win but it will all be brought into the light of day and exposed. Would suppose lawmakers would have a keen interest as well.
I'll take option B ... can we start now and beat em to the punch? Guess the "regulators" won't allow that ...
ReplyDelete