One Massachusetts credit union is pledging to donate one hundred percent of its National Credit Union Administration dividend from the closure of Temporary Corporate Credit Union Stabilization Fund to local charities and is encouraging other credit unions to do the same.
The National Credit Union Administration anticipates that it will pay a dividend between $600 million and $800 million in 2018 to credit unions.
Members First Credit Union (Marlborough, MA) stated that giving this unexpected windfall to local charities to address critical needs in its community is the best use of these funds.
However, I disagree. This is a classic example of a principal-agent problem.
It appears that credit union management (agent) may be putting its interest ahead of its members (principal).
Rather than giving these funds to charities, the credit union should return these funds to its members.
Let the members determine how they want to allocate these funds. Members may share these funds with charitable organizations; but they could also save it or even spend these funds.
I firmly believe that the credit union members know what is the best use of these funds.
Read the Members First Credit Union press release.
Wait til the ceo of members first gets the call from McW that there is no dividend, that there’s assessments.
ReplyDeleteIs he going to charge the charities for the payment?
What you say McW?
Mr. Transparency?
The CEO has his favorite charity. The CEO does not want to use his wallet to fund his favorite charity. Instead the CEO uses OPM (pronounced: Opium) - he uses Other Peoples Money. A pathetic hat trick. Return the money to the member stakeholders. Let the members contribute to there own favorite charity. And with such a giving/gifting CEO he can pay NCUA assessments directly from his wallet and not the membership. Easy for the CEO to be so charitable with OPM. Meanwhile the CEO wallet is in lockdown mode never to be open for charity. Genius.
ReplyDeleteGood points.
DeleteThat’s what a lot of CEOs do. They “hero” themselves with OPM.
Madoff, members first cu. no different. Just a smaller scale.