Wednesday, March 12, 2014

One Member, One "Whatever"...

Credit Unions:
Soaring on principle!

The favorite mantra of all true credit union believers is "One member, one vote!"  That, after all, is what co-operatives are all about - right? 

Democratic, egalitarian control is the key, fundamental idea, the core principle, the distinguishing hallmark of the credit union movement.  One for all and all for one - right?
The Imbalance of Power

As a result of the March 10, 2014 post ("Diversity"), several readers asked for a bit more data on how membership voting rights in CUNA were determined.  Here's the info: 

At September 30, 2013*
(* NCUA always is LATE with their quarterly data!)

By Number of Credit Unions
                                                   # of CUs    % of CUs    % of Votes

Class A (25,000 members):        5,961             88%             25%
Class B (>25,000<94,000 ):          613                9%             25%
Class C (>94,000 members):         179                3%              25%
Class D (League CEOs):                      0                 0%              25%

By Assets

                                                    $$$              % of Assets   %Votes
Class A (25k memb):              $231 mill            22%            25%
Class B  (>25k<94K memb):  $325 mill            31%             25%
Class C  (>94k memb):           $502 mill            47%             25%
Class D  ( League CEOs):        $    0                     0%             25%

And lastly, the "all important" member category…

By Members

                                                 # of Memb    % of Memb   %Votes

Class A  (25k memb):                   27 mill          28%             25%     
Class B  (>25k<94k memb):        29 mill           30%             25%
Class C  (<94K memb):                41 mill           42%             25%
Class  D  (League CEOs):               40 (!)             0%             25%

Notice any clear "winners" and  clear "losers" in all this?

Say for example that 88% of the credit unions control only 25% of the votes… that 78% of the assets control only 50% of the votes…and that 100% of the members control only 75% of the votes?



Anonymous said...

This should be il-LEAGUE-al in America.

Anonymous said...

Thank you for bringing this issue to light. I hope this will be the start of some positive change in power structure of credit union movement.
Tommy Cobb, Tuscaloosa CU

Stuart Perlitsh said...

Looks like BC is getting the heck out of Dodge City rather than deal with the historic inequity of CUNA representation. Not too mention the consistent decline of dues paying, card carrying credit union affiliations. True to the good ol' boys network he will assume the throne at Schools 1st CU. And what did BC accomplish at CUNA? Secondary Capital? NOPE. Expanded MBL? NOPE. Wasn't BC a director defendant at both USCentral & WesCorp? Time for a raise.