There was some interesting news this week worthy of comment:
-CUNA has renewed CUNA President/CEO Dan Mica's contract. The deal is for up to four years, but either party can terminate the deal with one year's notice. Mica has been good for credit unions. His deep legislative ties and political savvy have helped grow CUNA into the political powerhouse it is today. CUNA CEOs typically wilt out at seven years. Now 11 years in, Mica has crushed that trend and deservingly so. There are too many important political things in play for credit unions to lose a big player like Mica. Of course he has his detractors, but so do all leaders of major credit union organizations. Some early analysts of Mica thought he was a hotshot former Congressman who would stay for a few years and move on to bigger and better things. Mica has certainly shown his dedication to credit unions. He has been through the wars and his long tenure gives him even more credibility with lawmakers.
-Members United Corporate has jumped into the consumer directed health care market with its new CUSO, Members Health Network, LLC. The idea for the CUSO was born out of the corporate's "innovation" team. CUNA Mutual, Filene, leagues and others all now have internal innovation departments that work on ideas submitted from clients and members. Members United hit a homerun on this one. With the problems in health care, more Americans are looking to take control of their health care spending. Health savings accounts are one tool credit unions can offer and the new CUSO helps. I like the idea of credit unions getting into health care solutions because it gives them more clout with small business owners and even smaller SEGs.
Recommended For You
-Speaking of corporates, I still believe they are not being utilized to their potential. Corporates control a lot of capital, have deep relationships with their members, and only do well when credit unions do well. I think corporates need a bigger seat at the credit union industry table and should continue to look for new ways to help credit unions. My well-known dream of a national credit union branding campaign could get a big boost from corporate participation. Corporates, why not step up for something like branding, which can help your members in the long run?
-The ugly story of the construction loans gone bad in Florida that led to the failure of Norlarco CU and Huron River Area CU took a deadly turn this week. Frank D'Alessandro, a real estate developer who was tied to the loans, was found dead off the coast of New Jersey. D'Alessandro was reported missing after kayaking off the Jersey Shore, where by the way Credit Union Times has its editorial headquarters. Despite his death, prosecutors say a class action lawsuit in which he was named will go on. Unfortunately for credit unions, the story of Norlarco has been picked up by a few major newspapers and is getting a lot of play.
This story has so far been mostly about how a credit union in Michigan and Colorado could get into trouble over construction loans in far off Florida. I think a bigger part when the dust settles is going to focus on the secrecy surrounding the conservatorship. The Colorado regulator apparently didn't want to alarm members prematurely, however this delay has caused an uproar among some members. NCUA has moved to quell member fears by sending members a letter explaining the reasons for conservatorship and that their money is safe. Good move by the agency, but this case will probably spur faster such communication from regulators in any similar scenarios down the road.
-The merger of the American Bankers Association and America's Community Bankers quietly rolls on with the ACB board unanimously approving the merger. The story has died down but the impact to credit unions shouldn't be taken lightly. Now CUNA and NAFCU face one much bigger banking association with members controlling 95% of banking assets. I believe the new ABA will be able to make some of its arguments more believable as it is now bringing more community banks into its fold. It's hard to take "expansive" credit union arguments seriously from the likes of Bank of America. (Kudos to the U.S. PIRG and CUNA for keeping the heat on PR wise on BofA's $3 ATM foreign fee.) Plus, the economic efficiencies and the ability to speak with one voice could make the new ABA a more formidable foe.
–Comments? E-mail [email protected]
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
