George Bush
WASHINGTON–A former U.S. president, the current CUNA president, a man who may be appointed to a new post by the president, and what to tell members of Congress—many of whom want to be president–were all on tap during the first full day of CUNA’s GAC here.
Below is a look at some of the highlights of what was shared with some of the approximately 5,000 attendees at GAC:
43 Talks Putin, Political Climate, And Even CUs
WASHINGTON–Former President George W. Bush shared his thoughts and observations during remarks before CUNA’s Governmental Affairs Conference here, addressing everything from Vladimir Putin to the current political climate in the United States.
CUToday.info’s coverage is based on interviews with attendees who were in the audience during Bush’s remarks. Bush’s speaking contract prohibited any press coverage—or even press in the room–as well as any photographs, video or even note taking by anyone in the audience. (The restrictions were not put in place by CUNA.) According to the website of the speaker’s bureau that represents Bush, the former president charges in the range of $150,000 to $175,000 per appearance. Bush’s remarks were sponsored by Harland Clarke.
Bush appeared on stage in a Q&A led by CUNA President Jim Nussle, who served as director of the Office of Management and Budget under Bush. Bush announced his run for the presidency in the late 1990s at a barbecue hosted by Nussle, who was an Iowa congressman at the time. The two men appeared side by side in white chairs on the GAC stage.
Numerous attendees remarked on Bush’s sense of humor and the self-deprecating nature of his comments. He joked about not having much to do on a Monday, as he is retired, and said “sitting around with former world leaders is really boring.”
Bush said he has done his best since leaving office to avoid offering any comments on his successors to the office. But he did address some of the tensions in the country today.
“Do we have to be this angry with each other?” he asked. “I don’t think it is healthy for our country... I think Millennials are starting to question democracy.”
And that is disappointing he said, as the United States is the “strongest force for good.”
George Bush (L) and Jim Nussle
Other Points Made
Some other points touched on by Bush in response to questions raised by Nussle”
- Bush called Russian interference in U.S. elections a terrible situation.
- Bush said he once introduced his dog, Barney, to Russian President Vladimir Putin. Years later, he said Putin showed off his own dog, and made sure to note his was “bigger, faster and stronger” than Barney.
- Referring to the economic collapse that occurred during the final two years of his administration, Bush said Putin asked how mortgage-backed securities were performing.
- Overall, Bush described Putin as “an interesting dude.”
- Bush expressed little trust or a liking for Wall Street. He said he was told by former Fed Chairman Benjamin Bernanke that if he didn’t act as the economy was sinking the country would go into a depression, so he made a decision to bail out Wall Street.
- Bush shared a story about the recently passed Rev. Billy Graham, noting that when he first met him he was drinking at that point in his life, but he found Graham to be very smart. He said later Graham provided him with a Bible which helped him as he achieved sobriety.
- The former president called China a long-term threat to the U.S. economy, and that China fears Japan obtaining nuclear weapons.
- Bush said his coolest pal is the Dalai Lama with whom he said he is “tight.” Bush said he told China, which views the Dalai Lama as an enemy of the state, that he is a “sweet man.”
- When Nussle asked Bush about credit unions, Bush said the relationship is “good, because I left them alone.”
The New CU Spokes-Device? Alexa, Plus Update on Awareness Campaign and More
WASHINGTON—It’s increasingly likely that when it comes to learning about what a credit union is, consumers will be asking Alexa, as opposed to speaking to a live person with a CU, observed CUNA CEO Jim Nussle.
Jim Nussle
“Before Christmas there were 20 million Alexa devices in homes, and according to Amazon tens of millions more were sold at the end of last year,” said Nussle. “With that many Alexas in circulation, that presents a challenge for the future—more people are asking Alexa than us what a credit union is. So, we have to be ready for that. We have to think about the different ways people consume information.”
In the opening general session of CUNA’s Governmental Affairs Conference, CUNA’s president and CEO—as he has done in the last several years at the GAC—urged attendees to “go on the offense” and share with consumers a message of what credit unions are about, what they do, and how they help millions of Americans improve their financial lives. But he stressed the message must be unified, and addressed CUNA’s new awareness initiative, which has been in development for the last 18 months.
Here’s a look at some of the issues raised by Nussle during his remarks:
Awareness Initiative
As CUToday.info has reported, CUNA has created the Creating Awareness Advisory Group that is overseeing the Credit Union Awareness Initiative, which is seeking to do something about the ongoing gap in consumer knowledge of credit unions by creating a national brand awareness platform. In 2017, CUNA stated that a pilot should be in place by early this year. At the meeting Monday, Nussle told attendees they would hear much more about the Awareness Initiative this week.
The objective of the effort, which was put in motion by Nussle after he joined the trade group and said he discovered few people seemed to know what his trade group represented, is to “get credit unions in the consideration set, so people thinking about changing a financial institution think credit unions. Teresa Freeborn, CEO of Xceed Financial Credit Union in El Segundo, Calif., is chairing the Creating Awareness Advisory Group.
The Advisory Group began a year ago and since that time has defined its mission and conducted extensive research among credit unions, associations and credit union members.
CUNA Strategic Plan
Nussle addressed CUNA’s strategic plan, which has three pillars:
1. Deliver best in class solutions—“We don’t want to be second best,” he said.
2. Ensure credit unions are engaged in strong awareness building and consumer engagement efforts. “It’s not just marketing, we need to engage consumers.”
3. Deliver “fierce and bold” 360-degree advocacy. “We need to create our own relevancy,” Nussle said.
Three Other Challenges
Nussle also spoke about the internal and external challenges credit unions tell him they face daily. He said there are three primary challenges CUs face on the internal front.
“The first is the war for talent,” Nussle said. “We need to attract new talent to credit unions.”
The second challenge, data breaches, Nussle said is the one that really keeps credit union leaders up at night.
And third, is “compliance, compliance, compliance.”
Nussle turned to external threats, addressing the rash of ADA lawsuits and the ongoing threat by bankers to credit unions’ tax status.
Nussle emphasized that credit unions don’t have to individually face the challenges.
“We don’t have to face them alone, we have each other. Yes, we each have our own strategies and brands, but we also have a super power—our cooperative super power,” said Nussle about leveraging credit unions, members, the leagues and CUNA. “If you combine all that, what we have is amazing.”
Nussle said that combined power is recognized in Washington. “We are influencing national policy.”
In closing Nussle asked attendees to take out their phones and text the message “we want regulatory relief” to 52886. Nussle said that message would reach senators on Capitol Hill on Monday, letting them know “we want them to pass S 2155,” a bill that would bring regulatory relief to credit unions.
Words Seldom Heard in Washington: “Let’s Reason Together”
Mark McWatters
WASHINGTON—Promising continued inclusion, accountability, and transparency in the NCUA decision-making, NCUA Board Chairman Mark McWatters urged credit unions attending CUNA’s Governmental Affairs Conference here to “reason together” to accomplish common goals.
McWatters spoke to approximately 5,000 attendees at the GAC.
“When people trust you with authority, particularly the authority to govern or regulate, you need to listen, to answer questions, to think through consequences, and to work cooperatively,” McWatters said. “I have incorporated this approach into my professional life, adopting the mantra of ‘Come now, and let us reason together.’ Let the parties come and state their cases; let them negotiate and deliberate in good faith; and let them reach an amicable accord.”
Going hand in hand with reasoned debate, McWatters said, is the goal of finding “the simplest, most straightforward solution,” adding that, in that spirit, he has challenged agency staff to “remain open to fresh and innovative ideas and approaches.” The concept of reasoning together, McWatters said, could likewise extend to community banks and their relationships with credit unions.
McWatters, whose name remains in the running to head the CFPB, described what he said were several significant accomplishments in the past year that he said were achieved with bipartisan cooperation by himself and fellow board member Rick Metsger, with input from credit unions. Those included:
- Closure of the Temporary Corporate Credit Union Stabilization Fund, four years early
- Restructuring of the agency for greater efficiency and cost-effectiveness
- A regulatory relief agenda, including a task force to identify unnecessary rules
- Greater agency transparency and accountability
Closing the Stabilization Fund, McWatters said, accomplished two important goals: making a $736-million distribution to credit unions and avoiding an approximate $1.3-billion Share Insurance premium.
“This has been a year of significant growth in the credit union system and significant progress at the NCUA,” McWatters said. “I am absolutely confident we can build on these accomplishments together. I am looking forward to the year ahead.”
Following McWatters’ address, CUNA president and CEO Jim Nussle thanked the NCUA chairman for “his commonsense leadership for credit unions and their members. Credit unions are further empowered to support their mission and the communities they serve thanks to the NCUA closing the corporate stabilization fund and merging it with the share insurance fund. Credit unions will receive a distribution this year as a result of the CUNA-supported action.”
Hiking the Hill with Three Requests
Ryan Donovan
WASHINGTON—When credit unions Hike the Hill Wednesday, CUNA is asking them to deliver three “simple” points to their representatives.
The trade association wants credit unions to encourage Congress to reduce the regulatory burden on credit unions, enhance payment security so merchants are held to the same standards as issuers, and to continue to preserve the credit union tax exemption.
For one of the most important requests, CUNA Chief Advocacy Officer Ryan Donovan said the “ask has never been easier. Just ask them to say yes on S 2155. That is the bipartisan, common sense regulatory relief bill that is on the precipice of being passed.”
Donovan said he expects the Senate to sign the bill soon and that S 2155 could be on the President’s desk within weeks.
“We have more than 60 supporters in the Senate for this bill, which is what we need,” said Donovan. “However, when you visit the Hill this week you may find some senators who do not support this legislation. But let them know S 2155 does not add any systemic risk to the financial system and that this bill is about small banks and credit unions.”
Donovan also was optimistic on congressional action for stronger data security standards for merchants. He said Rep. Blaine Luetkemeyer (R-MO) will very soon introduce a bill that will call for stronger national data security standards for merchants.
The issue of ADA website lawsuits should be discussed during Hill visits, as well, emphasized Donovan, saying the lawsuits are a “clear example” of gaps in regulatory policy.
Until some action in Washington is taken regarding the rash of ADA website lawsuits, Donovan advised credit unions that one of the best things they can do is make sure their website is in compliance with WCAG 2.0 compliance standards.
Donovan also asked attendees not to forget what Congress just did for credit unions in leaving the CU tax status alone as it passed the Tax Cuts and Jobs Act.
“Give them a big thank-you for preserving our tax status and recognizing that credit unions are fulfilling their mission,” Donovan said.