No longer a movement, no longer an ideal?
"We sold out the magic of financial cooperatives - [link Chip Filson blog] - not for the sake of
being understood for our contribution and confidence in people acting
together. Rather the goal became putting a number on who we are... "
The "new/new" leadership... "strive to be evaluated and on par with ideals that are not the drivers of our member-owners’ success."
"These market driven criteria have a hard time with the ideals
of community ownership ... where acting and living the purpose is
far different from cashing in. "
"This is not a good look for cooperatives. Their “worth” was never meant as one ready to be traded, abandoned ..."
😎 Every credit union member should stop and take a "look at what's going down"...
It’s a good acknowledgment that whatever this traditional movement people speak of is dead. Good. That’s part of the problem that led us here.
ReplyDeleteWrong suggested solution, though. A new bureaucratic administration to help focus on innovation and leadership? Anyone think SECU needs or wants help from a group like that. Have seen suggestions in the past that the NCUA should help drive industry strategy and innovation. That notion, and the recommendation, is a solution looking for a problem. While regulators like to add more value than they do, the NCUA system isn’t broken. They have a simple job - protect insurance fund through safety and soundness regulation, done efficiently with our money. Otherwise, stay out of the way. It’s fair to say there is a shifting in ideals, the NCUA is not the cause of it. They, or some other new bureaucratic admin cannot be the solution for it. Protect the fund, weed out bad actors and operators, stay in your lane, and get out of the way.
If this notion of a member-owned cooperative is dead, then I think two things are very close behind. First, credit unions will lose their tax emption status. There's no logical reason why it should exist if the cooperative model does not. Second, absent the competitive advantage of tax emption - credit unions will soon go away. Why do I believe this? Because there is absolutely no way that credit unions can compete on a level playing field with banks. There is just no way that it can happen.
ReplyDeleteAnd banks have never, ever been known to take prisoners...
"First... credit unions will lose their tax emption status... Second, absent the competitive advantage of tax emption - credit unions will soon go away..."
DeleteMaybe that's the whole plan in a nutshell ... we just need those who'll do the dirty work!
Less unicorns to deal with. We want everyone under the same thumb...
Truly don’t think there is some nefarious plan here. Misguided folks and priorities? Absolutely
DeleteTo all the credit unions who have been trying to be more like the banks and less in line with your intended missions: "play with fire, then don't be surprised when you get burned."
ReplyDeletehttps://www.aba.com/advocacy/policy-analysis/joint-alliance-letter-to-secretary-kies
https://www.banking.senate.gov/imo/media/doc/road_to_housing_act_of_2025_legislative_text.pdf