BankThink

Earlier this year during Credit Union Journal’s Grow Show one of the speakers, who has had some terrific success in growing a small business into a large one, urged credit unions to finally “come out of the closet” and admit to being a cooperative.

Regarding CUNA CEO Dan Mica’s salary surpassing $1 million, once again it looks like we got the best leadership money can buy. So this must explain where all that CUNA dues money is going.

In the last year, the subprime issue has upended the mortgage market; numerous trading firms and banks have declared huge losses, and the dollar’s value has even dipped below the Loonie. Americans are overwhelmed with this financial upheaval and are seeking stability and credibility.

First there was (and is) CURIA, and with it much hope and optimism and, naturally, lots of PAC money. And then there was (and is) CURRA, and with it there was tempered hope and semi-resigned optimism, but still, naturally, lots of PAC money. And now there is (and may be) CUBTRRA, which is about as easy to pronounce as it is to deduce whether credit unions should be pleased or pickled over it. Regardless, there is still expected to be lots of PAC money.

Ten years ago a Starbucks opened next to a coffee shop in Kansas City, Mo. Today, the coffee shop remains, but the Starbucks is closing its doors, according to the New York Times. Reportedly, Starbucks is struggling across the country, facing slowing sales and increased competition. Howard Schultz, who built the chain, has resumed control in an attempt to revive sales. “Mr. Schultz has said he wants to refocus on the ‘customer experience,’ recapturing some of the magic...He said the company’s decision has been ‘too driven’ by improving same-store sales rather than consumer needs...” The Times wrote. “What we hear from consumers more than anything else is, ‘It’s not that I don’t like Starbucks, it’s that they are no longer relevant to me as they used to be because I’ve changed and they haven’t changed with me,’ Schultz was quoted.

Being a Seattle resident and living in Starbucks’ hometown, their strategies and actions are often first applied here. Like credit unions they want to continually differentiate themselves and create individual community relevance while promoting a strong international brand. It goes without saying that they have been extremely successful as they are a household name in North America and across the world.

Consider the irony that charter choice has become all but extinct in the credit union movement, and then along comes the Treasury’s proposed Blueprint to consolidate banks and CUs with its requirement of a common federal charter for national banks and federally chartered thrifts and CUs.

Credit Union Journal gets the letters. And the e-mails. And the “off-the-record, and you didn’t hear it from me, but...” whispers of concern. And when it comes to one issue, so, too, does NCUA Board Member Gigi Hyland.

As housing sales continue to plummet in 2008, pressure is increasing to get more profit out of mortgages. Existing home sales were down almost 600,000 units in 2006-2007, and while levels are moderating, the boom is clearly over. Wholesale and direct lenders, title insurance companies, plus thousands of real estate attorneys therefore must develop new business practices that streamline core processes and cut costs. One recent development is the deployment of remote check funding to gain a further advantage in the marketplace.

Imagine for a moment your local school board has announced a plan to somehow compensate themselves, but they decline to provide further details, saying only that everyone will just have to trust them. Or, let’s say a local government agency is pressed to be a little more forthcoming on what that budget line item “management rewards” might entail, but it, too, says there is just no need to do so, arguing it would invade some people’s right to privacy.