By Chip Filson
On Dec. 28th, the 85-year, $35-million Post Office Credit Union (POCU) in Madison, Wis. will close. Its 3,196 members and their savings, loans and abundant reserves will be transferred to the $26-billion PenFed Credit Union in Virginia.
Why care? After all UPS, Federal Express, DHL and even Amazon can fill the needs if the Post Office itself were to close. Same with financial options--aren’t there plenty?
Member-owned cooperatives fill a special niche in every community. The members pool their savings to provide loans to members and businesses with local control and leadership. Founded during the Depression, POCU enables connections and services that are enriched by local knowledge and experiences--especially in a pandemic.
But alas, Madison is not the Bedford Falls of the classic film "It’s A Wonderful Life." There is no Clarence or guardian angel member who will ring a bell asking for a public hearing to shed insight for what this closure means for POCU members.
And there is no George Bailey.
For the CEO of POCU gets to choose between receiving a five-year $650,000 guaranteed salary or an immediate severance of $437,000—after turning over all leadership responsibility to another firm.
There will not be a rerun of A Wonderful Life next Christmas for POCU members.
Is this the message credit unions want to send their members and community this season?
Chip Filson is a co-founder of Callahan & Associates and well known within credit unions as an author, frequent speaker, and consultant. Filson also previously served as president of the Central Liquidity Facility (CLF) and Director of the Office of Programs at NCUA. For more info: www.chipfilson.com.