✔ Hasn't been hard to document that the proposed mega-mess merger between SAFE and Boeing Employees of Washington State is a "Cat-5" financial mistake. The SAFE Board and CEO claim the merger will bring indistinct benefits to SAFE members. Independent assessments find otherwise:
✅ The "Otherwise" Credibility Scorecard: It has been shown that 1) any benefits of the merger can be obtained for free by SAFE members [link], 2) the SAFE Board has voted to give away a financial institution with a fair market value between $400 to $800 million [link], 3) the current cost of operating SAFE is superior (much lower!) [link], 4) current services/rates at SAFE are equal or better [link], 5) if necessary, there are several better merger candidates in California [link], 6) the "faux-ish" Board commitments of April 21, 2026 [link] with the questionable "34% increase in money returned to them" claim [link], and 7) the absence of an independent market valuation creating a fiduciary breach legal exposure [link].
✔ Time to add #8 to the list - Local independence and autonomy are better for SAFE and California! SAFE CEO Faye Nahbani recently announced several promising new initiatives for SAFE members including "Green Energy" and mortgage rate, closing cost and refinancing discounts! [CUDaily link]. Even free MLB tickets!!! [link]
✔ Great moves! Play ball! But you know, Ms. Nahbani simply - once again! - confirms that SAFE does not need to merge with Boeing Employees "... to bring enhanced value to members", and "... to continue to make meaningful community investments" [link].
😎 Granted for Boeing Employees, the proposed merger will "... extend BECU’s community-focused banking to new markets across a broader geographic footprint." [... and pick up $400+ million in free pocket change!]
Why should SAFE's 245,000 members have to give up a $400+ million local community asset to help fuel Boeing Employees' "me-me" narcissistic ambitions ?
https://thecudaily.com/safe-cu-offering-two-incentives-to-help-members-with-homebuying-costs/
ReplyDeleteSo at their annual meeting, in obvious response to public pressure on this merger, SAFE announces $500,000 for housing grants of 8,000 each, and $1 million more in community investment - subject to and AFTER the merger with Boeing...It was a nice try manipulating members as a reason for vote for the merger. Then in your posts and other comments, it was highlighted how disingenuous it was because there is no reason they couldn't do it now for their members... So now they come out with 2,000 in closing cost credits? What happened to the 8,000? Did it get cheaper to buy a house in CA? Is the SAFE Board giving into pressure about the obvious manipulation of members? This is a desperate attempt to save face for them, but it makes them look even dumber if you ask me. The initial question still stands - if those grants are a good thing for SAFE members, and a good use of SAFE capital, why can't they offer it now, instead of holding their members hostage over it for a vote?
Jay Hadley on Facebook
ReplyDeleteBeing a member of SAFE Credit Union for 50+ years, I am disappointed that they are merging with a Credit Union in Washington. I understand that the Headquarters in Folsom will be closed. They already closed the Branch in Rancho Cordova which was the closest to me. I have always received great service from SAFE, but this makes me concerned that they felt the need to let someone else take over. It always felt comforting that SAFE was local. Now I feel the need to start the quest of finding another place to handle my account. They say they listen to the members, but maybe that is not true. Sure did not see any pre-information request go out, just an annoucement that it is done.
By the way, the disclaimer below really tells they don't want our opinions:
"Most relevant is selected, so some comments may have been filtered out."
Exactly. There is absolutely no need to merge, so great question. Why do they feel the need? Because of the exec payouts? Cushy high paid board positions? No vision for the future? Lack of Board confidence on the CEO and Exec team? Hard to figure, but whatever their perceived “need” to do this, SAFE members are being sold down the river. Employees too. CEO was looking for a payout. Layoffs to non-beach staff will be massive. I don’t think those employees are asking or easily willing to give up their jobs and they sure as heck won’t get 1.5 years of salary like the CEO will after 18 months.
Delete"The combined credit union’s greater resources mean that SAFE members will be able to take advantage of enhanced products and services."
ReplyDelete"1) First-time home-buyer programs and grants that help people purchase homes and make the most of their investment." **[Just did that without an expensive merger]
"2) Loan programs that lower rates as credit scores rise to reward healthy financial habits." [ Just lowered rates without an expensive merger]
"3) Increased investment in our community through partnerships and philanthropy." ** [Just did that without an expensive merger]
See entire "justification letter from Ms. Nahbani here:
https://www.safecu.org/combination