PayThink

It sounds so noble. Let's "nationalize" the banks. There's an air of "the taxpayers are in charge now" that makes the notion seem romantic and noble. It's very Obama-esque.

This week in Washington promises to be quieter than the last. Some of us have a three-day weekend, and some of us have a nine-day weekend. That´s right; I´m talking about Congress, which gets a weeklong break. Unfair! But they do need time to go home and talk to constituents about their problem-free work on the stimulus package. It was smooth sailing!

It would be wishful thinking to imagine a feel-good movie about banking this year. But does the industry really deserve this latest offering from Hollywood?

Sadly our industry seems to have forgotten our own history. In going after expansion, have we turned our backs on the very reason for our existence?

The credit union movement is at a major crossroad in its storied history. Current economic conditions, combined with market liquidity frozen as a result of the mortgage crisis, has caused pain among all financial industries, especially within the banking industry and the credit union movement. Despite the fact that the "best financial minds in the world" got caught up in this crisis with unheard of losses, it appears that many within the credit union movement would prefer to scrap the whole corporate credit union network because they obviously have no appreciation for the contributions the network has made to the whole movement, or the corporate credit unions' role in the success of the movement over the decades. No doubt, without the corporate credit union movement there would be a lot fewer credit unions, large and small.

After reading the "Finger-Pointing Erupts Over Corporate Bailout" article (CUJ Feb. 6), I have a feeling of consternation yet one of total resolve. For the good of the industry as well as Rockdale FCU, I feel it ill-advised for industry leaders to make proclamations that may not be true. From the last few months' media coverage of various financial events including congressional hearings, is it wise to think Congress is the solution to our challenges when we, as an industry, should and can solve our own problems and in result, better serve America.

As we are all aware, natural-person credit unions are being asked to restore the NCUSIF after the effects of the losses at U.S. Central are recognized. This $5 billion charge will cause untold harm to our members, who took no part in the decisions that led to these losses. In fact, most credit unions in the country will post negative net income during 2009 and will certainly have a meaningful depletion of their members' capital as a result.

You've seen it a hundred times on various TV news shows and, admit it, you loved it. It was painful and embarrassing and you sometimes found yourself squirming as much as the guy you're watching, and still, you couldn't pull yourself away.

Yesterday´s House Financial Services hearing on Tarp accountability pitted high-flying lawmakers against high-flying CEOs, and it was clear that the two groups´ areas of expertise seldom overlapped. This tinted the day´s proceedings with a cast of absurdity that flared up at certain moments to turn the otherwise humdrum hearing into a circus sideshow.

One phrase surfaced over and over during Wednesday´s House Financial Services Committee hearing on Tarp accountability: "Money is fungible."