Often in life things happen that you just have to shake yourhead at. We all know this happens in CUs, too. That said, I'm goingto indulge my penchant for sarcasm with a list of how-to's younever want to see.

How to Topple What Might Sorta Be an EconomicRecovery

Talk of the debt ceiling can induce MEGO: my eyes glaze over.News outlets analyzing the horror if the U.S. debt ceiling is notraised and the party politics of it. I found a good blog thathelped me understand the practical aspects of it by Rick Newman atUSNews.com.

The silver lining to this potential black cloud is that interestrates could go up. However, you also wouldn't have many employedmembers left to borrow. My point is that something as ethereal asthe debt ceiling is crucial for CU leaders to pay attention to.(See 'How to Run a Credit Union Using the Ignorance-Is-BlissMethod' below.)

Many are bored to tears or frustrated by politics, but thosecan't be ignored either. Republicans are trying to demonstratetheir strength by threatening not to raise the debt ceiling. Intruth they really don't have much power, especially given thesplintered views within the party. And the Dems don't have to giveup because 1) the Republicans will kill the global economy by notpermitting an increase or 2) Republicans will allow the increaseand the Democrats will be able to go into a presidential electionyear saying, “See what we were able to do.” The ChicagoTribune reported that Senate Minority Leaders Mitch McConnellhas a well-balanced proposal allowing gradual increases in the debtlimit that Congress could halt with a “measure of disapproval” thatPresident Obama could then veto. Crisis averted. GOP facesaved.

Even closer to home for CUs, the tax exemption could get tangledin what the administration has termed “tax expenditures.” In theend, the credit union tax exemption is a lost revenue opportunityto help Uncle Sam pay back all its debts. CUs cannot take athreat to the tax exemption lightly, though as I've writtenbeforeit should not be a sacred cow. CUs must defend the taxexemption with all their might unless there are greater benefits toreap by gaining capital reform or business lending. Don't listen toyour hearts; do the math and see what the best business decision isfor your members.

How to Screw Up Federal Agencies

The CUs and other regulated financial institutions have arguedfrom day one that they didn't need a Consumer Financial ProtectionBureau because their primary regulator already handled that.Lawmakers insisted that the CFPB would ensure consumer protectionacross all financials, including the fringe providers like paydaylenders. Now, with no official leader of the regulatory body,politicians have rubbed salt in the wound since as of this printdeadline, only the less scrupulous lenders cannot be reined indespite seeking public comment on how to do just that.

The NCUA is another agency with an unfathomable structure at thetop. I requested an interview with all three board members togetherand I was denied. I wasn't denied because the board didn't want tobut because a meeting of the majority of the members of the boardconstitutes a board meeting requiring public notice and all thebureaucratic trimmings. It's time to increase the size of theboard.

How to Jump the Gun Without Shooting Yourself in theFoot

A provision streamlining the CU to bank conversion processbecame law in Wisconsin. State League President/CEO Brett Thompsonsaid in a statement that the change would “subvert the interests ofa credit union's full membership to that of a few who intend to ownand profit.” According to the league, the law required “littlemeaningful notice” of a pending conversion vote, no protections ofmembers' voting rights or equity.

The legislation, in fact, does include three notices be sent tomembers and that members could vote either in person at theconversion-vote meeting or by mail prior to that meeting date. Thelegislation isn't very detailed though, and that's a good thingbecause it's always more difficult to change law than regulations.Regulation to implement the legislation is intended to be moredetailed. This is where the league must concentrate its effortsregarding member education in the bank-conversion process.

How to Run a Credit Union Using the Ignorance Is BlissMethod

The Credit Union Leadership Forum recently conducted a survey ofsenior credit union executives and board members. We asked, “Howwould you rank your board effectiveness in carrying out theirresponsibilities?”' Nearly half said the board was somewhateffective (36%) or not effective (6%); 58% responded veryeffective. Interestingly, only 23% performed annual boardevaluations. Further only 12% performed evaluations on individualboard members.

During a recent web seminar held by our Leadership Forum, theattendees were polled on the effectiveness of their board'sculture. While 55% responded they held challenging discussions onthe right issues with the right tone, another 31% said they couldbe more effective in strategic and succession planning discussions.A full 25% responded that they wished the board could be moreengaged strategically. And while most indicated the board doesdiscuss technology at the strategic level, 11% said they neverdo.

Education is the only way credit union executives and boards cankeep up in the modern financial services marketplace.