March 20, 2006


  • I agree that we have a "run away train" now in DC. Everyone is assumed to be Kenneth Lay until we spend XX of unproductive hours and dollars coming up with some vague report that lets congress and regulators say "isn't our fault, we made them dig deeper".
  • "As cooperatives, credit unions already have a level of shareholder (i.e. member) oversight and involvement that is unheard of in public companies, and it is difficult to see benefits from this regulation that come close to outweighing the costs." I quote this line because I feel it is the heart of a flawed argument. You are deluding yourself if you believe that level of member involvement and oversight in most U.S. credit unions is sufficient enough to prevent the kinds of actions that Sarbanes-Oxley is designed to curtail. Hopelessy out-of-date board selection procedures for credit unions make credit union elections more akin to conspiracies than to actual democratic processes. How can such practices result in "increased member value" unless we are defining that as "increasing the value of those members closest to the board"?