Between a Rock & A Hard Place – AKA An Evening with Dan Mica

by Ron Daly 

Last night, DigitalMailer was the sponsor of the monthly meeting of the Metropolitan Area Credit Union Management Association (MACUMA). We got lucky, it seemed, because we were sponsoring a talk that everyone's been chomping at the bit to hear. Dan Mica, President and CEO of CUNA, was talking to the group about TARP, CU-SIP, CLF and the state of credit unions in general and there are some interesting things for the industry to watch for in the coming press. 

Now, here's the deal. I made Jimmy (my Creative Media Director and faithful henchman) take notes on the talk and toss out the bullet point topics without agreeing or disagreeing with any of the sentiments expressed. Some of Mica's talking points: 

• The Trade Associates are finding themselves between the proverbial rock and a hard place on this issue with some CUs saying they’ll leave the trades if they touch TARP money and others saying they’ll leave if they don’t. 
• CUNA has been lobbying hard to get TARP recognition from the Congress and from the Obama administration. Among the roadblocks getting in their way? Several vacancies beneath President Obama's economic/finance advisor, making one-to-one time with the advisor or the president very difficult to get. 

• CRA is still out there. According to Mica, Rep. Barney Frank (who authored HR 384 as we reported some time ago...click here to read more), is set on helping "the little guy" and making all industries that make money on credit and lending more responsible for putting money back in the hands of the people.
• Everyone is cutting back and CUNA is no exception. Mica explained that CUNA is always looking to improve products and efficiencies.
• In regards to TARP, it is being treated as one possible solution to the problems currently facing credit unions. They’re working on 6 or 7 other solutions include the CLF (written about here) and CU-SIP.
• In regards to CUNA and NAFCU, Mica expressed his desire for one national representative for CUs, even if that meant doing away with the leadership of both institutions and making a brand new one.

And the best comeback of the night… In regards to who President Obama should choose to replace NCUA Vice President Rodney E. Hood: Mica (jokingly) suggested someone who paid their taxes. 

All in all, it was a very topical and interesting evening.

Comments

[Morriss Partee]

Jimmy, great job bringing us the highlights without making comments about them. Must have been hard to resist. :)

[Morriss Partee]

Also, Dan Mica is saying that some CUs are telling him that they'll leave if the trades if they take TARP money, and other CUs say they will leave if they don't pursue TARP money. Can we have this conversation on public record? Can we see a roll call of who is calling for what?

As far as I'm concerned, CUs calling for TARP should leave the movement, convert to a bank charter and get in line. They're probably already acting like a bank and not a credit union already.

Take a look at Jim Blaine, CEO of SECU (NC), the 2nd largest CU in the country, stating publicly that he seeks to avoid taking taxpayer money at all costs:

http://unrealizedlosses.blogspot.com/2009/02/meltdown.html

BRAVO, Mr. Blaine, BRAVO!

[Jimmy Marks]

@Morriss - being objective isn't tough. And besides, I just took notes. I wish I'd had a video camera, honestly, because it was very fast paced and I'm sure I didn't hear it all. Nobody send me to the White House press corps is all I'm saying.

DigitalMailer really did enjoy all the CUs who came out and enjoyed Mr. Mica's talk. There was a Q&A and everything, and the CUNA folks were very accommodating. Hope I get to go to more of those kinds of things.

[Ron Daly]

@morriss:

wonder where they fall if the CU industry gets the TARP money nod as a "safety net" but never uses it? The argument you hear how it's better to have it the back pocket and not need it, then to need it and not have it.