December 19, 2005


Comments

 
 
 
  • I think Randy is "right on" with his comments. However, he also needs to mention that in some instances, the egos of the CEO and board play a major role in the decision to convert to a bank.
    Anonymous
     
     
     
  • A fascinating take on the conversion controversy. Sober and thoughtful, unlike the slander-riddled rhetoric that has emanated from a few so-called industry leaders in the past.
    Anonymous
     
     
     
  • Boredom...what a concept! Many of us can't begin to conceive of it, though. Our shop is $60 million in assets, serves low-income members, competes with a local billion-dollar credit union, Bank of America, Wachovia, and Capitol One. Every day is a challenge, and the future is downright frightening. Many of us would love to be bored..just one day. Good luck, guys. I have an idea that your boring days may be over. Not wishing anyone anything bad, but I am reminded of the old saying about being careful what you wish for.
    Anonymous
     
     
     
  • The credit union charter is a good charter. The mutual savings bank charter is different, but also has it advantages. The issue is not which charter gets chosen, but who gets to choose it. It will be worth watching to see if the Michigan CU League leadership (and CUNA) attempt to substitute their judgement for that of DFCU Financial's board, executives and members. If you haven't read the American Association of Credit Union League's lobbying manifesto concerning CU conversions to MSBs, you had better do so. It will scare the pants off of you and demonstrate their eagerness to substitute their judgement for yours.
    Anonymous
     
     
     
  • Lots of conclusions can be reached about DFCU's announcement. While I will not argue with Randy's conclusions I believe there are also some additional factors that we should at least consider. First (and Foremost) is the failure of the Trades (National and Local) to recognize the impact of PCA like regulation. While DFCU certainly did not fit the norm (High growth, Declining reserves) it can be assumed that operational restrictions had a great deal to do with the credit union performing so well. Now it has a window that it will rightfully sieze to ensure that those restrictions will not be needed in the future. Unfortunately we have many credit unions that are facing growth/reserve issues, that in the cold light of day, could be more easily solved in a "bank" charter. 5% is still less than 7%. Until much more emphasis is placed on curing that situation I am afraid we will continue to see the efforts to convert become more commonplace. Passion, in any endevour, is the cornerstone of accomplishment. While passion, in credit union's remains high I believe the Trade's have tanked on this issue. More concerned with their own compensation and power than in the trail they have left behind littered with the corpses of hundreds of credit unions.
    Anonymous
     
     
     
  • We need to step back and take a look at the reason credit unions were formed in the first place. People helping People. If we had done our jobs educating consumers making them aware of what a credit union is. What(should) set us apart from other financial instutions then members would not be voting and allowing the change to happen. Credit Unions need to stop competing amongest each other and start showing why we are the financial institutions for people. There are so many potential members out there. I myself still get personal satisfacton at the end of the day, knowing I have made a difference in the life of just one person. Thats after 27 years
    Anonymous
     
     
     
  • Randy says it's ennui, some commenters say it's greed, another bristles at supposed credit union righeousness and seems to ask, "can't we all just get along?" Well, no we can't. Not when the driving force of providing financial services at a credit union becomes making profits. And I mean profit for it's own sake. That's not what credit unions are about. This country still needs CUs, now more than ever, to remain true to their history.
    Anonymous
     
     
     
  • Bravo. As a 25 year CU vet, I feel the rhetoric from the "CU purists", who view bank conversion as moving over to the evil empire, as a lazy attempt to preserve their own kingdoms. Just because CU's are not for profit and mutually owned does not make them righteous. There are many well-intentioned, customer focused bankers out there. On the flip side, every banker crying about a "level playing field" ought to spend at least as much time thinking about how to really deliver for their customers. Let the passion come from serving people well- whether members or customers.
    Anonymous
     
     
     
  • I agree with Randy that the challenge needs to be there, and should be--it's a common mistake to think there's much that is really beyond your control; very few challenges are "too big", let alone "too small". But it's also foolish to ignore the greed factor--it's likely most of these CEOs and board members are really looking for the payoff rather than a new challenge.
    Anonymous
     
     
     
  • This is the same credit union that set new standards and broke new ground with the concept of shared branching over 25 years ago. Those folks, Don McKinna, John Elkins, were too busy serving members and building on cooperative values to be bored. What must these gentleman be thinking?
    Anonymous
     
     
     
  • I believe DFCU's intent to become a bank is more a case of having the top executives that are former, but not "reformed," bankers and a board that contains no one from the days when DFCU exuded the credit union spirit and philosophy. Nevertheless, Randy's words of caution are welcome.
    Anonymous
     
     
     
  • I wonder what the "Passion" is in any industry. What do we owe our customers, ourself? What were we hired to do? Being the "Best" is a goal not an end. Hope boredom is not a goal or an end.
    Anonymous
     
     
     
  • hi.i need you help me do for it, because i been work on unites stats 30 years on,i nerver have credit,can you do for me, thank-you
    Anonymous
     
     
     
  • You know I have worked in the banking industry and in the credit union industry for about 10 years - I have worked with the Board of Directors of a small Credit Union I was employeed by. I understand the writer's comment about the Board getting 'bored' and having no challenges. But you what? It is not about the board. That the reason why Credit Unions are so different. And guess what - those Boards will now be able to make an incredible profit (personally) when they turn over to a bank. So to whose benefit are they making their decisions on or for? Make no mistakes - man does not doing something for nothing - they are doing it because they personally will benefit.
    Anonymous
     
     
     
  • If a credit union is bored ,then new challenges should be created such as membership drives, community development, educational workshops.. etc. If credit union CEO's are bored of their current salary then they should gracefully, find a new higher paying job in a different industry. Everyday ,we sell credit unions as "not for profit", "people helping people" and then every now and then there is a credit union conversion. These conversions ruin the credit union philosophy and is a betrayal for members.
    Anonymous
     
     
     
  • Converting the charter because of boredom? Not a stellar reason for making such a controversial change. I suspect the profit motive is at work here -- personal profit. No doubt someone stands to make a nice sum on the conversion, and it's probably not going to be the average member. If the executive team of DFCU needs some excitement, there are plenty of credit unions that could use some help turning things around. Or they could go bungee jumping.
    Anonymous
     
     
     
  • "People helping people" is simply a philosophy, not a charter. A charter is a legal structure. What do the two have in common? Who would argue that DFCU cannot maintain the philosophy of people helping people under a new legal structure? If someone can, I'd love to hear the argument.
    Anonymous
     
     
     
  • Ok, here is the argument. The only reason anyone would/should buy the newly issued capital, is so that they can make as much money as possible. And those shareholders' desire of making money in the form of profits is diametrically opposed to the interest of credit union members desire of recieiving value through low loan rates and high deposit rates and low fees. Those two different groups will clash, and there will be a struggle for control. In the end, the shareholders will win control because they are more active and knowledgeable about the situation. Make no mistake though, there is nothing wrong with the capitalistic shareholders wanting to make as much money as possible. I know that as a member of the former Community CU that I will be buying as much stock as I can. The blame is not with "greedy" shareholders. The blame resides with the Board for allowing them to take over the institution.
    Anonymous
     
     
     
  • I already have a bank account at Charter One. I have belonged to DFCU for 40 years, because it is a credit union. I have been very satisfied, and remain to be convinced that a second banking relationship would be of any value to me. If DFCU makes the conversion, the next thing we'll read is that Chase has taken it over!
    Anonymous
     
     
     
  • The reason I left banks was because they charged unreasonable fees that made it difficult for college kids when their accounts dip. Now DFCU does that and also adds alot of other fees too. This has basically happen since Shobe has been in charge. There are plenty of banks why loose control of our Credit Union?
    Anonymous
     
     
     
  • We will vote against any kind of bank. Bob and Patti Burkett bobandpatti@sbcglobal.net
    Anonymous
     
     
     
  • I just became a member of DFCU any guess on if I will be able to vote in favor of the proposed conversion. I dont know if they have already sent out the material. Thanks
    Anonymous
     
     
     
 
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