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Any time a decision is made from the top down, people are going to grumble, and sometimes rebel.
Pentagon FCU recently announced that they are looking into converting to a mutual savings bank, as a reaction to NCUA’s corporate bailout program. While many may be shocked and upset, I’m a bit surprised that the CUniverse hasn’t seen more rumblings of this nature.
(Not to be too cynical, but a $13 billion CU converting to a mutual savings bank would position them as one of the healthiest banks in the country right now. IPO, anyone?)
I understand that most CUs will see this as a betrayal if it goes through. BUT, assuming that a CU president is always supposed to do what is best for their members, can you fault a CEO for objecting to an $80 million charge, and looking at all options?
Personally, I hope it is mainly a threat, a wake up call aimed at the NCUA to make them realize that, in the future, a decision this big is something that everyone should openly discuss on its merits, rather than coming across as a mandate handed down from above.
Granted, I grew up in an era that taught us that we should question authority – so it may be just a gut reaction on my part to rebel against edicts from on high – even when I understand the need, along with the urgency of the situation.
But think about how your members feel when they get hit with an overdraft fee, or any other fee that seems arbitrary to them. Think how you feel when the CEO or Board makes decisions that affect your ability to do your job. It just does not feel fair. It makes you angry. It makes you rebel.
Of all industries, credit union people should understand the meaning and importance of building consensus. If you want to get your people to buy into an idea, you present it before it goes public. You answer questions. You get input. You get consensus. Before taking any action that might make someone bite back.
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“assuming that a CU president is always supposed to do what is best for their members”
Ummmmm, if the CU converts to a bank, it will not have members any more. So by definition, that would not be in the members’ best interest.
It is indeed amazing to me how opaque so much of the CU movement is, from CU boards, to CU management, to CUNA, to the NCUA, to Corporate CUs… when everyone in the movement ought to have been embracing transparency at every turn since day one.
I’ve seen many banks that walk, talk and treat their customers like members. To be honest, most people really don’t care much about the credit union values. They care about being treated right, given value for their investment and ease of access. Banks and credit unions can both do that rather well. The real difference is in the motivation. When greed is the motivating factor, you’re probably behaving more like a bank and caring less about the well being of your customer/member.