A story on the Credit Union Journal Web site (CUJournal.com) says a lot about the state of public discourse and it reveals a weakness in credit union advertising and leadership. It is one more example of polarity. The polarization in politics, in world affairs and in bank-credit union relations makes it much more difficult to solve problems and make this a better world.
Suppose the headline read, "San Diego County CU's Labor Day Beach Promo Bashes Muslims." Would Credit Union Journal print that story? Is there a difference between bashing any group in public? I would argue that the same prejudice and false reasoning lies behind all bashing.
It isn't even good advertising. You don't promote your credit union by denigrating banks. If San Diego County Credit Union is such a better deal than a bank, they should focus on explaining the benefits of the credit union. And, of course, it isn't true that all banks are bad. I would argue that there are good banks in every size category-big or small. For example, I would rate USAA Bank as one of the best financial institutions in the world.
There are also bad banks. I would argue that Goldman Sachs and other investment banks did a lot to cause this financial crisis. I wonder how many credit unions wrote a letter to NCUA asking NCUA to file suit against the investment bankers, like Goldman Sachs, instead of filing suit against the Wescorp board of directors. Credit unions would be far better off if they focused their anger against banks on those who have caused us harm.
The anger against banks has lead to some irrational decisions. The CO-OP has been a strong anti-bank advocate, much to the disadvantage of its owners. The CO-OP has a policy to exclude banks from participating in its shared ATM network unless the bank is a mutual savings bank that has converted from a credit union. Many other credit union CUSOs will have nothing to do with banks (and vice versa in many cases). The argument is that banks are bad or they are our competition. The competition argument is really baffling. Field of membership rule changes has long ago changed the landscape and made most credit unions our competition, too.
I urge Credit Union Journal to stop giving credence to those who bash banks by reporting on their bashing. I urge credit unions and those who care about credit unions to rise to a higher standard of advertising and to focus on what is good about credit unions. For those who feel a need to take it out on banks-urge NCUA to vigorously file suit against those banks who packaged and misrepresented the mortgage backed securities (and to drop the wasteful and wrong Wescorp lawsuit).
Henry Wirz, CEO
SAFE Credit Union, N. Highlands, Calif.
