BankThink

As anticipation builds ahead of the Obama team´s new rescue plan, a column on Slate.com by Daniel Gross might contain a helpful tip to the architects of the next round of bank rescues: Get rid of the CEOs.

New lobbying rules released today by the Treasury Department may do little more than highlight the mess left over from the early rounds of capital infusions into banks. Following a week of chatter in the media over possible political motivations behind the Treasury´s selection of banks to recapitalize, the agency vowed to adhere to a stricter regimen of transparency in its decisionmaking and to limit banks´ ability to use lobbyists to argue their cases for Tarp funds.

This week, look for progress on the stimulus package, the confirmation of Timothy Geithner as Treasury Secretary, and a possible plan from the Obama administration on how to stabilize the banking sector-again. On that subject, debate within higher-minded circles has focused on nationalization and the troubles it would create. But the Obama team seems to be working on a plan that is centered on foreclosure prevention, toxic assets, and possibly another bailout. Are the nationalization folks getting ahead of themselves? Meanwhile, fights have erupted over various parts of the stimulus package the Democrats proposed. Its fate is uncertain, though its journey is expected to be swift.

Anyone doubting the need for new strategy to combat the economic problems caused by the rising tide of foreclosures need look no farther than daily headlines: "Markets Fall on News of Layoffs;" "Governors Call for $1 Trillion Stimulus to Offset Budget Cuts," "How Will Schools´ Budget Cuts Affect Parents?" These, plucked randomly this week, have become an unending refrain. We can´t waste any more time.

When I first heard about credit unions being all about "people helping people" I thought, "Nice rhetoric," but what does it really mean. That was in back in 1977 when I was hired by the Illinois league to be its first-ever general counsel. I have now been CEO of the league for more than 25 years and have experienced that philosophy in so many ways on a daily basis.

Kulia Ohana Federal Credit Union is a $4-million credit union that serves residents of Wailuku and Kahului, Maui. The credit union is tucked away on a quiet residential cul de sac, and though small in size, the credit union is big on making a difference. One Kulia Ohana FCU member experienced this first-hand.

I enjoyed Frank Diekmann's Jan. 12 column about his CU experiences over the years, as credit unions in America celebrate their 100 anniversary. We all have some stories to tell, don't we? And, that's what's so powerful about member testimonials because they are real-just like our credit unions. Georgia FCU celebrated its 50th anniversary in 2008, starting with $35 in deposits and now $500 million in assets. After 25 years personally with GFCU, I can't imagine working any where else or loving it more! And, could there be a better time to share the good news about credit unions being "safe havens" for consumers than during the current recession?

In response to the Jan. 5 article titled, "Consumers 'Think' Green, But Don't Act That Way," CO-OP Financial Services fully supports the notion of doing our part to reduce the excesses that cause harm to the earth. Late last year, CO-OP opted to discontinue printing its paper directories of over 28,000 surcharge free ATMs and 3,500 shared branch locations. We felt this was practicing good corporate social responsibility on our part.

Can you really afford to attend a conference in 2009? And not just because of the cost. Take a look around at the economy. Who even wants to leave the credit union, or, for that matter, their own house?

Banks aren´t handling their foreclosed properties very well, according to an American Banker story that ran this week (disclosure: I wrote it). That phenomenon is keeping prices down, sure, but there´s another widespread consequence to having so many poorly managed real estate-owned properties around. This one´s-well-itchier.