An Unhealthy Situation?
✋ SAFE Credit Union is a California community asset, hand-built over 85 years by its 245,000 member-owners in Sacramento. Twelve SAFE Board members have voted to give that asset away - without any dialogue with the other 244,988 shareholders.
The California Department of Financial Protection and Innovation (DFPI) has full authority to require the SAFE Board to make that dialogue happen, prior to any approvals. ✔ "It’s time to hit pause, pull back the curtain, and explain exactly what is being voted on. "
😎 Why does California DFPI continue to sit on its' hands? Other watchdogs and regulators actually do step up on behalf of consumers when CEOs and boards overreach. Case in point:
✅ Raleigh, N.C. 5/1/26: North Carolina State Auditor Dave Boliek on Sunday publicly called for a delay of the vote on the merger of WakeMed, the local, community-owned non-profit health system, with the larger for-profit Atrium Health. [link] His statement read in part:
✔ "WakeMed is the largest health system in North Carolina’s largest county. This merger will significantly impact the cost and quality of care across Wake County".
"The rollout of the proposed hospital takeover raises questions. The lack of transparency does not instill confidence; in fact, it calls for greater scrutiny and explanation."
"Wake County taxpayers built the hospital’s original physical plant and retained through the Board ultimate say over any change in organizational structure. At this point in time, it’s highly doubtful that the average Wake County citizen is even aware of the pending takeover. The stated benefits published by way of a Friday afternoon press release should be subject to stakeholder input."
"Whether you support this transaction or not, taxpayers deserve full transparency from their government. It’s time to hit pause, pull back the curtain, and explain exactly what is being voted on. It merits a transparent, deliberative process. "
😎 Hope this object lesson rings some very loud bells in Sacramento, because "it’s highly doubtful that the average SAFE member is even aware of the pending takeover."
Did we run out of SECU content?
ReplyDelete4:51pm You don't think this SECU content?
DeleteSorry if you can't see the distinct similarity to credit union giveaway mergers.
DeleteSame low rent, non-transparent, screw the members/public leadership.
But specifically, for us, it's unlikely we would be considered the "acquired" credit union, given our size. The SAFE and BECU should be noteworthy us, though. It's not just a given this is good for BECU members. How are we protected from the Board using our capital to merge with some random, out of state credit union? SAFE seems to be saying its BECU that is going to pay for all the stuff being promised. How would we like our money, going to out of state markets and some other credit union's members. And, we'd never even get to vote whether we think merging in a credit union is in our best interests. It likely wouldn't be. So this situation is absolutely relevant to us, but as much or more from the perspective that we'd be the BECU in a merger situation, and we'd have no input, control, or vote on the outcome. Not a good situation to be in.
DeleteCAN’T SEE THE FOREST FOR THE TREES !
Delete11:35pm Some good points. Need to get you thinking about a couple of ideas:
Delete1) A merger with SECU doesn't require the acquirer to be larger! May not sound right, but a $10 million CU could "acquire" SECU if our board agreed.... which is why giveaway mergers among credit unions don't make financial sense.
2) The real risk is that larger (and also smaller) CUs will convert to for-profit savings banks driven by growth and greed ambitions of insiders.
Both scenarios are happening across the Country... NC will not escape... that's part of the reason to show you the WakeMed story ... and also why you've seen SAFE featured so much as a startling example of a sell out of the membership, the giveaway of a community asset.
9:28; You're right, both scenarios are possible, but don't happen very often at all, so not highly likely scenarios, especially charter change in the absence of a catalyst like losing the tax exemption, which is a real risk for larger CU's in particular.
DeleteWe have seen, however, the surviving CEO in a merger is from the acquired, usually much smaller credit union. Strategy and culture of the acquirer can really be impacted and have the same affect as being acquired by a big bank-like CU. Look at Hayes.. we chose him, but didn't "acquire" him, but that's the type of scenario we could see - small CU CEO takes over and comes with solutions to all our "problems" We saw how that worked out.
1:02 pm Be careful about assuming "...but doesn't happen very often at all, so not highly likely scenarios,..."
DeleteThe past is not predictive of what is coming... what's coming is "highly likely"... and already happening.
Looking in the rear view mirror isn't going to help on this one...
The biggest mistake in life is believing it can’t happen to you...
DeleteWant to see how you "sleaze" a merger:
ReplyDeletehttps://www.wral.com/news/local/wakemed-atrium-health-planned-deal-state-auditor-calls-for-delay-may-2026/
Sound familiar...
ReplyDeleteFrom Bradford B. Briner, Treasurer, State of North Carolina:
"3. The effective sales price of WakeMed is ZERO. A promise of new capital investments and jobs that will most-certainly be created anyway means that authorizing this consolidation is selling WakeMed for no real upside - and a lot of downside for Wake County residents already feeling the pain of skyrocketing cost-of-living increases. My background is in finance, but it does not take my expertise to know this is a raw deal."
Take a look at how this non-transparent, middle-of-the-night merger malfeasance has exploded in the face of WakeMed's Board... and take note of the same-old-stuff, yada yada from the CEO... it's the CU mega-me game plan played out in the community-owned hospital space.
ReplyDeletehttps://businessnc.com/wake-county-pauses-wakemed-merger-with-atrium-health/?utm_source=Business+North+Carolina+Daily+Digest&utm_campaign=da070adef8-EMAIL_CAMPAIGN_8_12_2019_COPY_01&utm_medium=email&utm_term=0_7ae5defd0d-da070adef8-122910649
"WakeMed has shown a strong ability to compete in the state’s most populous county with UNC Health and Duke Health, both of which are tied to their major research universities. WakeMed reported net income of $177 million with revenue of $2.6 billion in the 2025 fiscal year. It has an A+ investment grade rating from the Fitch service."
ReplyDeleteMuch like SAFE CU in terms of performance and local impact and control! Why the need to merge?
Hard to re-earn trust once the whiff of deception arises. In fact, the situation usually gets much worse... as you can see:
ReplyDeleteGov. Josh Stein released a statement on the WakeMed.
“North Carolina health care consumers benefit when competition is strong," Stein said. "The Governor has been in touch with Attorney General Jackson about his plans to carefully review any transaction. But the Governor knows from his time as Attorney General that the Department of Justice needs more tools in the toolbox to ensure these types of transactions are transparent and actually benefit the public. He continues to call on the General Assembly to empower the Attorney General to better protect North Carolinians.”
The California Department of Financial Protection and Innovation should take note and call for a pause on SAFE... until members have a chance to understand what is happening.
Why would DFPI be afraid to take some time to assure citizen/consumers are protected?