By Frank J. Diekmann
Praise for which credit unions are saying thanks, but no thanks. Millions, schmillions. Extraordinary eloquence in actions and words. Carrot trivia. All of it and more could be found during CUNA’s recent GAC, including:
- When two people came out and praised credit unions for all their input into making the Consumer Financial Protection Bureau possible, including the agency’s architect, you could almost feel the squirming in the room from CUs that want no part of the credit for this onerous elephant of rulemaking. This must be what it feels like to find out an IRS building is being named after you. “Um, yeah, thanks for the honor, but…”
With the kind of passion that got her elected Senator after an equally passionate academic career during which she was an outspoken critic of Wall Street excesses, Sen. Elizabeth Warren (D-MA) didn’t dial any of that back for GAC.
Like a CFPB bureaucrat who also appeared at GAC (who opened her remarks by talking about how the agency is listening to feedback and then closed by mentioning a raft of new rules), Sen. Warren told the GAC audience, “Credit unions have been the bright spot. Credit unions did not break this economy…" She praised CUs for being “a great player in helping” to set the CFPB “on the right path.” You wonder if any of these speakers have any idea the path most credit unions would like to push the CFPB down?
- One morning I spoke to a volunteer from a small credit union in the Midwest. It was his first GAC. “You know, until I got here I didn’t even know there were credit unions larger than $500 million,” he told me. He said his CU was struggling with growth, its long-time, government-affiliated FOM having been shrinking for some time. He added that several other CUs in his market were in the same slowly sinking boat. Have you considered a merger, or some back office collaborations, or expanding your FOM? I asked. “We might have to start thinking about that,” he answered. Might have to start? There are some great, dedicated, vibrant board members out there, but there also too many who have ceased to bring anything new to the table, and they need to go. Small credit unions have many challenges, but nothing can overcome small-mindedness.
- GAC was new CUNA CEO (and former congressman) Jim Nussle’s first opportunity to really to introduce himself to the folks who are now paying him, and by all accounts he acquainted himself well (not sure how many people noticed, but his entrance music was The Who’s “Who Are You?”).
He poked fun at himself by going around the Marriott hotel and the convention center interviewing people on camera about what they might know about “the new guy.” However, his introduction on the main stage began with a send-up of the Netflix series “House of Cards,” which was funny—if you’re familiar with the show. Nussle and his wife, Karen, came onstage as the on-stage graphic read “CUNA’s House of Cards.” As one person told me afterward, “You know there were some people thinking, ‘Wait, CUNA’s a House of Cards?’” Netflix has approximately 60 million subscribers, so plenty of people haven’t seen the series, although I’m guessing viewership is higher in Washington, where the show that is all about naked lust for power, sex, and nasty, unscrupulous politics, is not so much an entertaining series as it is a documentary.
- Presenting a $10 million check to Children’s Miracle Network, Nussle initially said $10,000. “I used to be (director of the Office of Management and Budget),” joked Nussle. “If it doesn’t start with a billion, I can’t say it.”
- Finally, Nussle did reframe one long-time credit union issue in a new way: the credit union tax exemption. “Let’s not call it tax exemption,” he said. “Let’s call it non-profit tax status. Words do matter. I think on Capitol Hill people think we’re getting some sort of special break, that we’re exempt from what everyone else does. That’s not what this is about. I think that gives us the opportunity to talk about how we do it and who we do it for. How we communicate on these issues is important. We have this tax status because of how we do it and who we do it for.”
- Arianna Huffington, creator of the Huffington Post, appeared at GAC and didn’t talk as much about politics as she did about getting more sleep and reducing stress in remarks she themed “Sleeping Your Way to the Top.” You know what else is a great stress-buster? Picking up a five-figure check for less than an hour’s work talking about the importance of reducing stress.
- Politicians from both parties run for office and re-election with a near-constant refrain about “attacking the special interests.” That’s always struck me as among the most specious of political attention-grabbers, as everyone is a special interest and most people represent several. That goes for credit unions, as well.
Former Homeland Security Director Tom Ridge noted that in his remarks, observing, “One of the great strengths of a democracy, particularly ours, is it allows for different points of view and special interests. I’ve never denigrated special interests, because the only people without special interests are the deceased. Go to Congress and tell them you have a special interest and tell it loud and clear.”
- In Washington, if you pay your taxi fare with a debit card, you’re given three options for a tip: 20%, 25% and 30%. In other words, a cab ride in D.C. always “exceeds expectations,” is “one of the greatest 12-block rides of my life,” or “I thought I was on the highway to heaven.”
- Two notes about the GAC breakfast meeting hosted by the Global Women’s Leadership Network: first, the keynote speaker was male, Rick Metsger of NCUA. I don’t understand that. Mr. Metsger is a fine speaker, but with all the successful women there are in credit unions and D.C., a female keynoter would seem more appropriate. And second, during his remarks Metsger pointed out that credit unions led by female CEOs had better CAMEL ratings and higher net worth than those led by men. I will admit to not having done the research but I’m pretty sure numbers meant to demonstrate the strength of women in credit union management actually reflect a sad reality of the same: the CUs women lead are primarily smaller, and smaller CUs almost always have higher (sometimes really high) capital ratios. But look at management at the Top 100 CUs by assets, and it’s pretty easy to call it a “fraternity.”
- Jim Nussle wasn’t the most interesting “first” at this GAC: a congressman was. The new rep represents the first person to go from the GAC audience to the GAC podium. Rep. Pete Aguilar (D-CA) is a former CU employee who was elected to his first term in the last elections. “I remember sitting right there with you,” he said. More on Aguilar’s story can be found here.
- Old habits die hard, I guess. One newly elected congressman referred to Congress as “they.” You own it now, congressman.
- While walking past the U.S. Postal Museum (yes, there is such a thing), there was a sign announcing the current exhibit, “U.S. Postal Inspectors: Behind the Badge.” Wow. How have the Law & Order TV series folks missed out on this franchise?
- Three people and one organization were recognized with CUs’ highest honor, the Wegner Award, this year. Besides the Iowa CU League, Mike Mercer, Bob Schumacher and Clarence Hall, Jr., all won Lifetime Achievement Awards. Mr. Hall, 90, was born on the same Mississippi plantation as his grandparents, and his 46-year-history in credit unions is one of those amazing, extraordinary pieces of history that prove CUs remain a “movement.” Their comments after accepting the awards can be found here. The videos that accompanied their nominations and award can be found here.
Mercer, president of Georgia CU Affiliates, offered eloquent and graceful insights into credit unions as he accepted his award. Here is just a snippet: “To achieve vitality and indispensability in the minds of people we will all have to grow in the same direction to achieve an institutional reputation of the central helpfulness. System collaboration and a credit union consolidation have been with two great forces of our time. Will these forces converge to forge a common crusade for vitality? Or will they just coexist while local domain growth routinely trumps global initiative?” The full Mercer comments can be found here.
- Some trivia learned while in Washington that will enrich your life. The U.S. Botanic Garden (every visit to DC should include a trip to at least one of the Smithsonian museums) has a temporary exhibit in place on plant roots. Don’t scoff; where would credit unions be without theirs? Interesting tidbit: carrots have been around for thousands of years, but the orange carrot that we know is just 400 years old.
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Finally, speaking of the Smithsonian, a lesson shared that had nothing to do with an exhibit. While going through the metal scanner at one of the museums along the mall, a security guard opened my bag to see I was carrying a laptop and a camera. This was on a Saturday afternoon. He asked why I was carrying them; I explained I was working. “You have to take some time off,” he said. I’ll admit I was dismissive; after all, what do federal employees or contract security guys know about work? “I don’t really get much time off,” I told him. More firmly, he replied, “You have to. You have to get some time off. It’s important.” I’m still wasn't really taking advice from this guy; I mean, what does he know? As I’m reaching for my laptop, he continues in a calm tone, “I used to work everyday. Had an ice cream business. I had inventory and trucks, I had to make payroll. I worked all the time. Then one day I had a pretty big heart attack. I’m just tellin’ ya; everybody needs to take a day off."
I guess you never really know where the knowledge might come from at the Smithsonian.
Frank J. Diekmann is Cooperator in Chief at CUToday.info and can be reached at Frank@CUToday.info.