The article, "Examining Corporate Balance Sheets" (CU Times, Oct. 15), on corporate credit unions is fairly balanced and should enlighten those who want to believe the worst about corporates. Credit unions and corporates are dealing with the current serious situation very effectively.

I consider myself impartial, although I have worked in credit unions for about 40 years and who knows. Sure there are severe real estate and market problems, particularly in Florida, California and Nevada, and everyone is affected in some way but credit unions and corporates are meeting the challenges. They are managing their accumulated reserves to resolve problems during a time of very unusual market turmoil. It will take some time but we have the resources, reserves and management to do it.

Lest we forget, in the late 1970s and early 1980s, the economy was in the tank: 11% to 12% unemployment, double-digit inflation, interests rates at 21% for mortgages (if you could get one), massive plant and company closings, the price of a gallon of gas doubled and you had to get in line to buy just a few gallons. Credit unions and corporates for the most part had almost no capital or reserves, and almost half were losing money. A thousand credit unions and corporates a year were being liquidated or merged. The NCUSIF was out of money and had to recapitalize itself from the same thinly capitalized credit unions it insured. We came out of that strong, and we will come out of this strong and continue to provide a safe, working alternative to the banking system.

Disclaimer: While it seems like I have worked with everyone in the last 40 years, none of the corporates or credit unions mentioned in the articles are current clients. Also the NCUA, which can make things worse based on my personal experience, has done a very good job in the corporate system during this latest economic trial by staying on top but staying quiet.

I am superstitious and I hope this doesn't cause anyone to get snake bitten, particularly me.

D. Michael Riley
D. Michael Riley & Associates
Middleburg, Va.

Plain Talk on Trade Collaboration

Despite all the smoke and dust on this issue, the plain facts are as follows:

Collaboration between NAFCU and CUNA on lobbying issues is vital. Such collaboration can only be effectively achieved if the elected leadership and senior management of both organizations are committed to making it happen. Now more than ever, teamwork and unity are needed.

On behalf of the NAFCU Board, I have personally extended an invitation to CUNA Chairman Tom Doerty to meet with the NAFCU Executive Committee. That invitation has been declined. I hope that CUNA will reconsider and that the two associations can meet on regular basis to better coordinate their lobbying activities.

Brad Beal NAFCU Chair President/CEO Nevada Federal Credit Union Las Vegas, Nev.

The Trades Merger White Paper: More Than One Way to One Voice

Thank you for discussing our white paper in your editor-in-chief column on "Speaking with One Voice." As you ascertained from the white paper and from your interviews with us, we feel that the time is now for a movement toward speaking with one voice on credit union federal legislation and regulatory issues. It is more important now than it was when we originally drafted the white paper as the ongoing tsunami of regulations provoked by the credit crisis and financial meltdown has to be fought with one voice by the industry.

We have attempted to bring our two trade associations together in a meeting to discuss a process to speak with one voice on this matter. We promoted the idea that a consolidated trade lobbying arm would be the most effective means to that end. We invited each trade to the table to meet with each other and discuss this issue. Initially, CUNA agreed to meet, and NAFCU chose not to. We are attempting to restart this conversation and are hopeful both groups will join us in seeking an agreeable solution.

As you know, we did not go public with our requests and in essence you found us. We would have preferred that all of this work had been done without public posturing. It is too late for that now. We have discussed this important issue with several credit union groups across the country and have found widespread support from the majority we talk to. In fact, currently close to 100 of the largest credit unions, most of which have memberships at both organizations, have indicated their solid support and urge us to continue to push our position forward.

Where we disagreed with you is that you suggested the best answer to the problem is by voicing our discontent by voting with our dues dollars. We understand that we can withdraw from one or both trades, and we may be forced to do so, but it was our belief that if we could get credit union executives together, we could find a viable solution to the problem without a public disagreement. In the end, removing dollars may work, but in the near term we will hurt the movement as the trade associations may become even more active in their disagreements in order to differentiate themselves and win back members. It will hurt more than help.

So we do not think that's the answer, at least not the best one. We stand by our belief that having key credit union leaders of each trade association meet with the common goal of a more effective lobbying organization is the best means to the end. In that regard we sent a letter to each trade requesting a meeting as soon as possible. We hope that a meeting comes to pass before another crisis or lost opportunity occurs to our industry.

Kirk Kordeleski
President/CEO
Bethpage Federal Credit Union
Bethpage, N.Y.
On behalf of the Taskforce for More Effective Trade Groups

From the Editor: Keep Those Letters Coming!

Credit Union Times has a goal for 2008 to include Letters to the Editor in nearly every, if not all, issues. We had letters in nearly every issue of 2007.

Here are a few guidelines on letter submission:

  • Letters can be mailed, faxed or e-mailed. We prefer e-mail submission for timeliness. The faster we get the letter, the faster it gets into print. Letters can be e-mailed to editor@cutimes.com.
  • If you are mailing, send your letter to 33-41 Newark Street, 2nd Floor, Hoboken, NJ 07030 attn: Letters to the Editor.
  • To fax a letter, send to (866) 814-6948, attn: Letters to the Editor.
  • Send your picture please. Readers will notice that photos of the authors often accompany letters. If possible, please include a color picture when submitting a letter, though we will not hold back a letter for lack of a photo.

Credit Union Times appreciates the reader feedback over the years and hopes 2008 will continue to be a banner year for getting your views across to a nationwide audience of credit union industry leaders.

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