Playing at being a banker.
We're taking a look at the growing sense of internal rot within the credit union movement nationwide and specifically at the financial loss credit union member-owners are, or may soon incur. Using just SECU members as an example, the stakes are high in North Carolina [link] - $6 billion!
The national alarm is being raised on many fronts, one example of which you saw yesterday in MisApp #3 [link]. Chip Filson's blog is full of detail and a difficult slog. But, here's the bottom line: What is a Massachusetts credit union chartered in the 1950's to serve a local Air Force base doing buying a commercial bank on the eastern shore of Maryland?
There doesn't appear to be any sound economic nor financial justification for this non-transparent and perhaps non-arm's length purchase. The member-owners certainly didn't come up with this idea and appear powerless to object. The regulators are sitting on their as-... e-r-r... hands. There are no adults in the room to supervise the "child's play". Any of this sound vaguely familiar?
In the last 18 months 32 credit unions have acquired 35 banks with assets of $10+ billion [link]. Would you suspect these sort of for-profit, commercial bank purchases will reinforce support for the tax exempt status of credit unions - including SECU?
😎 If you answered "yes" to the above question, I have a bridge in Brooklyn - and a bank on the eastern shore of Maryland - to sell to you.
Can't happen in North Carolina... you're at risk, already has!
How can you say the member owners didn’t come up with the idea. The Board is approved by member owners and all of the Board are members.
ReplyDelete12:40 pm Reductio ad Absurdum: A Logical Fallacy of Reducing an Argument to Absurdity... or simply see nonsense, lunacy
Deletethat's why they want to silence us so they can just proceed uninterrupted... aka ...
ReplyDelete"You'll know what you need to know when you know it."
Because if they let members complain about RBL at the meeting that will stop them?
DeleteHow many banks has SECU purchased over the last 8 decades? 0. How many banks does SECU plan to purchase? 0. How much value is in this post? 0.
ReplyDeleteYou will hear how great SECU is performing at the Annual Meeting. Yet they’ve reduced employees PTO, approved an amazing 2% Merit raise to some, and still on a hiring freeze.
ReplyDelete