WASHINGTON—The highest honors in the U.S. credit union community—the Herb Wegner Awards—were presented last night in a stirring and moving ceremony. That and other news from CUNA’s GAC, including observations from its new CEO, thoughts on FOM from an NCUA board member, as well as thoughts from President George W. Bush’s press secretary on that job and what the 2016 election might hold.
New CUNA CEO Introduces Himself
WASHINGTON—Jim Nussle introduced himself to credit unions here, stepping onto the stage at CUNA’s Governmental Affairs Conference with a sense of humor and a sense of purpose about what the trade association and credit unions need to do to advance the interests of CU members.
New CUNA CEO Jim Nussle in 'House of Cards' sketch at GAC.
During his remarks, which were preceded by a sketch based on the Netflix series House of Cards, the new CUNA president continually emphasized the importance of advocacy and how important credit unions are in making that effort successful.
Nussle discussed what CUNA’s search committee told him it wanted in a new president: bold leadership. He then went on to say that he talked to credit unions to find out what they wanted from “the new guy.”
In a humorous video segment, Nussle, microphone in hand and sans disguise, interviewed attendees who were unaware that the new CUNA president was standing right on front of them. Nussle asked attendees what they thought of the new CUNA leader and what they expected.
Nussle got responses—and advice—ranging from “I have been impressed so far,” to “CUs are member owned and I think the new president should know that,” to “Listen to credit unions and don’t talk to banks.”
Kidding aside, Nussle also explained that he has done some very serious listening to credit unions in his first few months, saying three things kept coming up about what CUs want from Nussle and CUNA:
- CUs want to a revitalized value proposition for CUNA and the leagues.
- CUs don’t want the same status quo.
- Advocacy is job one.
Nussle emphasized that if CUNA and the leagues are going to deliver on advocacy for credit unions in the future, that the trade association, the leagues, and credit unions have to work together, much like how individual singers in a choir support the group.
With his own father a long-time choir director, and with video of his father directing a choir playing behind him, Nussle called choirs “musical cooperatives,” and cited the characteristics of what makes a good choir perform well. Calling on what he learned from his father, Nussle said good choirs listen to each other, sing off the same sheet of music, work together to understand the challenges and then “practice, practice, practice.”
Part of the regular drills for credit unions should be getting boards and members engaged in the credit union movement, he said, pointing to CUNA’s new political engagement Member Activation Program.
“We are not the only choir in the church,” said Nussle about the challenge of getting Congress to listen. “We are going to have to work harder and smarter than ever before. We have the building blocks to do that—we have 6,400 CEOs who ought to be here today and 80,000 directors, plus 200,000 employees.”
Nussle concluded by noting that the last time Congress passed any piece of major legislation favoring credit unions was the Federal Credit Union Act of 1934, “When Babe Ruth was playing baseball and Bonnie and Clyde were robbing banks. Today we can take on the task of advocacy with a much bigger choir.”
Former Presidential Press Secretary Offers Observations
WASHINGTON—For Ari Fleischer the experience was what he now refers to as being the “man in the middle,” having a desk with the Oval Office 30 feet to his right and the White House press room 30 feet to his left.
Ari Fleischer speaks to GAC.
From 2001 to mid-2003, Fleischer was the well-known face of the White House, serving as press secretary for President George W. Bush. Not surprisingly, he calls those years some of the most exciting and intellectually stimulating of his life—and also some of the most difficult.
“It was a paradox. I didn’t know how I could love something so much that was so hard to do,” Fleischer told attendees at CUNA’s Governmental Affairs Conference, sharing insights into what it was like to work inside the White House.
“I got to meet Pope John Paul II. I stood on the Great Wall of China, I went to meetings with the leaders of Russia. I flew on Air Force One . . . And I can tell you, in that during that time I never hear the words: ‘We are number seven for takeoff.’”
Fleischer also talked about a day when he helped President Bush work on his baseball mechanics.
“I used to play a little baseball and the president knew that. About 90 days into my job I get a message that the president wants to play catch with me on the south lawn. He’s getting ready to throw out the first pitch at a Milwaukee Brewers game. I walked out in my suit and tie and the president shows up in sweat pants and a bulletproof jacket. And we played catch. I looked around and thought to myself, ‘Here I am tossing a baseball with the president on a lawn I couldn’t even look at three months earlier.’”
Before leaving the stage, Fleischer offered some thoughts on what’s ahead with the 2016 presidential election. He cited challenges for both parties, noting the Democrats need to get the young, Hispanic, and African American voters to show up, which they did not in the mid-term 2014 elections. The Republicans, too, he said, need to capture a much greater share of the Hispanic vote.
“If Republicans can’t get 40% of the Hispanic vote they will be forever locked out of the White House,” Fleischer said.
Outgoing CUNA Chair: Make Good Use of That 100 Million
WASHINGTON—During his tenure as chairman of the CUNA board, Dennis Pierce watched credit unions surpass 100-million members. Now, he says, CUs have to make good use of that accomplishment.
Outgoing CUNA Chairman Dennis Pierce.
“Passing 100-million members is an incredible accomplishment,” said the outgoing chair during CUNA’s Governmental Affairs Conference.
“We as leaders, CEOs, and boards of directors have an obligation to engage our members to be active in our advocacy efforts,” said Pierce. “But first we need to treat members like they are members, let them know they are owners and part of the credit union. The only way we will win in our efforts in Washington is to ask members to speak on our behalf.”
Pierce said that CUs need to “get past their own fears” of asking for members’ help. “One hundred million members is an amazing feat, but we have to use those numbers to get Congress to treat us differently. Members are the most significant asset we have to affect and change our future.”
Pierce closed by saying that being part of credit unions has been a passion, and thanked credit unions for the opportunity.
NCUA Vice Chair Talks Field of Membership
WASHINGTON–Pointing to the critical importance of field of membership rules to the future of credit unions, NCUA Board Vice Chairman Rick Metsger urged CUs to get engaged in driving FOM change.
Metsger presented the challenge to credit unions during CUNA’s Governmental Affairs Conference Monday.
Discussing changes in field-of-membership rules, Metsger noted that some states have been more progressive than the federal government in adapting to a changing marketplace, and he encouraged credit unions to take an active role in driving change.
“The biggest single issue where you can make a difference is to add your voice to my effort to modernize field-of-membership rules for federal charters,” Metsger said. “Modernizing field-of-membership regulations and statutes may be the most valuable issue for your credit union’s future—more so than any other effort in which you can focus your advocacy efforts. We can, and must, make progress in this area. I welcome input from the credit union community on how we should move forward.”
Turing to the issue of NCUA’s fixed-assets rule, Metsger said he hopes the agency will complete work in the coming months to remove the current 5% limit on fixed assets and give credit unions decision-making power on facilities and technology purchases.
“We need to turn operational decisions that do not have an impact on safety and soundness over to you as directors and executive management,” Metsger said. “That’s where those business decisions belong.”
Addressing member business lending, Metsger said he supports both regulatory and legislative change to make it possible for credit unions to better meet the needs of small businesses in their communities.
Metsger described cybersecurity breaches as a problem that “has reached epidemic proportions.” He said NCUA and credit unions must remain vigilant to threats. He also said retailers, not credit unions, should bear the responsibility and the cost when breaches occur at their locations.
Speaking to the agency’s proposed rule on risk-based capital, Metsger called on credit unions to participate in the review-and-comment process.
“Our current risk-based capital system is broken and has to be fixed,” Metsger said. “It fails to identify capital-constrained credit unions until it is too late to save them, so we need to adopt a new system. As we finalize that system, I encourage you to help us design the best policy for America’s credit unions and your members.”
Stirring And Moving Tributes To Wegner Award Winners
WASHINGTON—In what is always a moving and stirring ceremony, three people and one organization were presented with the highest honor in credit unions, the Herb Wegner Award.
From left: the ICUL's Patrick Jury, NCUF's Winona Nava, ICUL's Dave Cale, and the NCUF's Laida Garcia.
Herb Wegner Award for Outstanding Organization: Iowa Credit Union League.
“In recognition of its organization-wide dedication to ensuring the prosperity of credit unions and improving the financial lives of consumers,” according to the National CU Foundation, which presents the award, the Iowa league’s award was accepted by Dave Cale, CEO of Financial Plus Credit Union in West Des Moines, Iowa.
Herb Wegner Award For Lifetime Achievement: Bob Schumacher, retired CEO of Mountain Crest CU.
Schumacher, the long-time emcee of the Herb Wegner Awards, moved to the other podium on stage to accept an award recognizing him for a career that began with being hired at CUNA by Herb Wegner himself, the former CEO.
From left, the NCUF's Winona Nava, Bob Schumacher, and the NCUF's Laida Garcia.
During his career Schumacher was involved in creation of the Community Investment Fund, held positions with the Washington league and various CUSOs, did development work in the Philippines, helped develop the Caribbean Development Education program, was very active in the American DE program, was involved in the creation of BizKid$, and much more.
“When you touch lives they touch you back,” said Schumacher. “ I hope on my gravestone the epitaph reads, ‘He helped a lot of people. ‘ There is a saying that when tasked with completing a goal that it takes a village. In my case, it feels like it took a whole country. I see hundreds of people out there who touched me and guided me through during my 38-year career. To all of you I offer my heartfelt thanks.”
Herb Wegner Lifetime Achievement Award: Clarence Hall, Jr., chairman and CEO, Issaquena County FCU, Mississippi.
The 90-year old Hall represents one of the most moving and extraordinary stories of Herb Wegner Award winners.
From left, NCUF's Winona Nava, Clarence Hall, Jr., and the NCUF's Laida Garcia.
Born in 1924, on land that was a cotton plantation where both his grandparents and parents were born, Hall has sought to make a difference in one of the poorest counties in the United States, even though he had irregular education. The county has a population of just 1,300 people, 300 of whom are inmates. Hall’s mother died when he was 11, and at 17 he enlisted in the military and served in World War II, seeing action in Europe. In 1964 Hall sued the state of Mississippi which did not permit African-Americans to operate not-for-profit organizations. With a victory in court, he and others formed Issaquena County FCU in a small building.
“I hope that that my kids and grandkids know that regardless of where you born, you an rise and do good things for other people,” said Hall. “As long as I can do things to help somebody, I will do it. I am happy that the Lord has allowed me to be 90 years old. I am happy because I was born in the United States of America. I did not in any way make this credit union what it is today. I must thank my board, and the citizens of Issaquena County. It has been 46 years since the credit union organized, March 7, 1969. There were 16 of us at that meeting, only 2 of us left. So tonight I want to say I am honored to receive your Wegner Award. And I am a firm believer that God will prepare you for whatever role. Read the first chapter of the book of Jeremiah and you’ll find it out for yourself. I know where I came from.
Said Charles Elliott, president of the Mississippi Credit Union System, “I can’t tell you how much he has meant to the people of Issaquena County. This is quite simply the best human being I have ever known in my life.”
Herb Wegner Award for Lifetime Achievement: Mike Mercer, President, Georgia Credit Union Affiliates.
Even though his brother, Paul Mercer, president of the Ohio league, said Mike Mercer is an “an unstoppable pain in the ass when his mind is set to something,” Mike Mercer offered eloquent remarks about credit unions in his acceptance speech.
From left, NCUF's Winona Nava, Mike Mercer, and NCUF's Laida Garcia
Recognized for his work in multiple efforts, at the Georgia CU Affiliates, for work in building a partnership with Poland’s credit unions and being fundamental to CU development in that country, and for his work with then Speaker of the House Newt Gingrich in getting HR 1151 enacted into law in 1998, Mercer was praised by people from throughout the credit union community.
“In 1980 I developed a friendship with an economist at the Federal Home Loan Bank of Atlanta. He retired and did some work all over the world, and at one point he told me that American CUs are relevant and meaningful, but credit unions are not vital to people anymore,” said Mercer, whose career began at Filene House in Madison, Wis., in 1977. “By vital, he meant essential. I have to admit the distinction between relevance and vitality began to torment my thinking. That ism y way of framing the possibility of credit unions in the future. People will always need, but rarely want, to save money. They will want to attain things with money that they don’t yet have. Helping people to do these things is fundamental to being relevant. Credit unions could become transformational in our society by aspiring to be vital and indispensable. To become vital, credit unions need to find new ways to help people afford their lives.”
Adams, Schroeder, Bruen All Recognized In Washington
WASHINGTON—Numerous people were reconized for the contributions to credit unions during CUNA’s GAC here. Among them:
* Two Californians have been inducted into the Credit Union House Hall of Leaders. Inducted were Eric Bruen, CEO of Desert Valleys FCU, and Joe Schroeder, president of Ventura County Credit Union.
According to the California/Nevada Leagues, both “received this honor for their significant impact on the credit union movement.”
“Bruen is a strong advocate for the preservation of small credit unions and has served on numerous committees throughout his 15-plus year career, including the California and Nevada Credit Union Leagues’ Shapiro Advisory Committee,” the leagues said. “Additionally, Bruen developed a personal relationship with Congressman and House Majority Leader Kevin McCarthy, which led to an open line of communication between the legislator and the Leagues. He continues to advocate locally through the Ridgecrest Chamber of Commerce where he established its first-ever Political Action Committee.”
The league noted that Schroeder’s work as a credit union advocate extends from the local to the national level. “He is a member of CUNA's Consumer Protection Subcommittee, and previously served on the Leagues’ Government Affairs Committee,” the league said. “Under his leadership, Ventura County CU implemented an outreach program to agricultural workers in Ventura County. It has since opened 500 new memberships to workers who previously had no financial institution.”
Adams Receives Farley League Leadership Award
Meanwhile, David Adams, president/CEO of the Michigan CU League & Affiliates, has been awarded the 2015 Farley League Leadership Award during GAC from the American Association of Credit Union Leagues (AACUL).
“We are pleased to recognize Dave’s enormous achievements with this award,” says Rick Pillow, Virginia League CEO and member of the Farley Award Committee.
Adams has been MCUL CEO since 1997. Prior to joining MCUL, Adams was CEO of the Washington CU League, now the Northwest CU Association, and LSI Inc. for six years. He also was on the staff at the Utah CU League for eight years, including the last three as president/CEO.
"What an honor it is for Dave to be recognized with the prestigious Farley League Leadership Award,” said Tony Carnarvon, chairman of the MCUL board, and president/CEO of Zeal CU. "I couldn’t think of a better person to receive this honor, as Dave embodies all of the qualities that this award represents. He is truly a visionary leader who takes care of the present but always looks toward the future to provide Michigan Credit Unions with significant value and innovative programs.