By Frank J. Diekmann
Apparently, the smoke has not quite cleared. As CUToday.info reported here, last week Rachel Pross of Maps Credit Union was one of a number of panelists to testify before the Senate, calling on the always nimble Congress to finally enact legislation that would provide a safe harbor from federal anti-pot laws for credit unions in states where cannabis has been legalized by voters (why do I have a feeling credit unions will be right back on Capitol Hill debating this in the next Congress as well?)
Pross’ testimony was yet another sign credit unions are being taken seriously as significant financial players in the country, right?
Well, maybe. It seems there is still a ways to go when it comes to understanding just what credit unions are.
Consider this sentence from a story that was distributed by the Associated Press and picked up by publications all over the country: “Because credit unions are not federally insured, they're the most likely to welcome weed money.” Dude, that’s harsh.
That’s the kind of national exposure that will have credit unions welcoming weed for other reasons.
A Unique American Story
On a more positive note, if you missed CUToday.info’s reporting on how the new headquarters of U.S. Senate FCU in northern Virginia came to be named after Bertie Bowman, you should pause for a moment or two and read a unique slice of American history that involves the Senate, the credit union, and a heck of a lot of pluck by one young man when it was a different era in the United States and especially Washington. You can read the story here.
Something Else to Avoid
About a year ago, I sat through a breakout session on commercial lending during a CUNA Council meeting and came away with one absolute certainty: no sane lender ever makes a commercial loan. The risks are enormous, and it seemed easier to identify areas that weren’t risks than those that are.
The presenter during the session, Jim Devine, CEO of Hipereon in Kirkland, Wash., had any number of buckle-your-seatbelt observations, one of which he summed up this way: “We like to call collateral CRAP: Can’t Render a Payment.”
If you didn’t see the story and just want to partake in some lessons to be learned or maybe you’re just a schadenfreude type and want to read about some loans gone bad, go here.
I Stand Corrected
I thought Devine’s cautionary tales would never be topped, but I stand corrected, a I recently sat in another audience and began to fidget nervously as another person shared their expertise. This time I came away with a second absolute certainty: I would never hire any actual human beings. (At least you have the option of not making commercial loans.)
Commercial loan risk seems almost quaint after you hear Carlos Molina, a risk manager with CUNA Mutual Group who specializes in personnel-related issues, talk about all the HR landmines a credit union faces. One thing I learned: HR stands for Hazardous Requirement.
Molina touched on everything from the #MeToo movement to transgender employees to new physical workplaces and even employees labeled as “404s, as well as age discrimination, disability discrimination and race discrimination.
“No employer runs their business in a way that they think will land them in court. But employment practices liability represent 47% of claims dollars paid over the last five years,” Molina shared.
Easy to File, But…
Such claims are easy to file, hard to get dismissed, give the plaintiff opportunity to recover attorneys’ fees (while the CU must defend itself) and consume significant time, he cautioned.
Sexual misconduct and harassment are serious issues—and often underplayed by male managers—but they also can have nothing to do with physical act of sex, wanting to have sex or being physically attracted to the other person.
But, hey, other than that, what’s not to like about employing people?
Are you in HR or management and just want to make sure you’re up to speed, or perhaps a commercial lender who just wants to read about someone who has it even worse? Then by all means, go here.
Frank J. Diekmann is Cooperator in Chief at CUToday.info and can be reached at Frank@CUToday.infoor @FrankCUToday.