By Frank J. Diekmann
In no prticular order, and with logic not even AI could discern, here’s a grab bag of items from the Reporter’s Notebook…
Best Not to Do the Math
As the CU Daily has reported more extensively than any other publication, we’ve seen some of the massive six, seven and in some cases even eight-figure payouts of the “member-owners’” money to management in mergers (feel free to speak up anytime, trade groups). And then, on the other end of the scale, there are those who would probably be wise not to do the math on what they were paid by the hour.
At Hempfield Area FCU in Greenberg, Penn., which merged into Norwin Teachers FCU, which had $5.26 million in assets at the time it merged, Manager Nadeen Bartlett, was paid one month of severance worth $2,755 in connection with the merger, while Office Assistant Debbie Capozzi received $925.
Those numbers aren’t even the bar tab for some folks during GAC.
It’s Not Always One Member, One Vote
I was speaking with someone at a meeting recently when they suggested that the ability to pay board members in the states that allow the practice can actually contribute to mergers, because the board members have a financial stake in the combination.
It may be one member, one vote at the membership level, but for board members mergers can be many dollars, one vote, as they can be incented to favor a deal, thanks to payouts to those who aren’t part of the combined board, and an increase in compensation for those who made the cut. It’s no longer the “ayes” have it, it’s the “I’s.”
The Old Site Was Mostly Cat Videos
In one recent statement on a proposal to merge, members were given the usual boilerplate language about “improved products and services,” before the CU saved the deal-closer for the end by saying a combination would result in an “informative website.”
This Should be a Requirement
In an unfortunately rare statement in disclosures to members, Fort Financial Credit Union said it has estimated there will be a “reduction of over $280,000 per year in fees for our members with this merger.”
Extra! Extra! You Seldom Read All About It
Here’s a headline you rarely see. From Oswego County Today: “Compass Federal Credit Union Board of Directors Applications Now Available.”
An FOM That’s All About Finger Foods
And speaking of headlines, here’s one below that involves two different businesses, but when read quickly appears to be a credit union that’s a popular place and with a drive-thru that isn’t just about deposits and withdrawals.
A Lesson in Jolabokaflod
One never knows what they’ll learn from a credit union. The CU Daily recently reported that of People’s Credit Union’s Middletown, R.I. branch hosted a “Jolabokaflod’ Christmas book exchange at the Middletown Public Library. What’s a Jolabokaflod?
It’s a “beloved Icelandic tradition of the “Christmas Book Flood,” where books are exchanged as gifts on Christmas Eve and then spent reading them together, often with hot chocolate and treats, turning the night into a cozy, literary celebration. Originating during WWII when paper wasn’t rationed, books became the perfect affordable gift, leading to a huge release of new titles in autumn, advertised in a special catalog, the Bókatíðindi, sent to every home.”
Too Soon?
When Velera hosted its annual VeleraLive event at the Gaylord hotel outside Denver in 2025, the hotel was hit by a power outage that shut everything down. This year in Orlando, as VeleraLive 2026 was set to begin with a song-and-dance welcome routine, things were delayed and the stage remained dark. “Not again,” someone called out.
‘What’s That, Sir? Oh, That’s the Pillow Fee’
I’m as firm a supporter of free markets as anyone, but having just finished four weeks of stays at different hotels for CU events, I have to say I’m onboard with this announcement.
The new Mamdani administration in New York has issued a final rule banning hotels across the city from charging consumers hidden junk fees, which it said are often “mislabeled” as “destination fees,” “resort fees,” or “hospitality service fees,” as well as unexpected credit card holds or deposits, that “cheat consumers and hurt honest small businesses.”
Hear, Hear!
The “incidentals hold” many hotels place on credit cards basically means guests are loaning the corporations that own these hotels money that it interest free, which they aggregate and earn a return on. These hotels don’t need to place a “hold” for any “incidentals” (what are these “incidentals,” anyway?)–they already have the card. So, either give guests some points for lending the hotels money, or pay us our little piece of interest on what you’re earning, hotel owners.
In Orlando over several recent weeks, hotels such as the Courtyard are now charging $25 to park (it was $50 at a Marriott that was hosting an event), on top of other fees. It’s why that room rate you see quoted online is basically just a starting point.
Let me just go ahead and risk all credibility by predicting none of these egregious practices is going to change, as some of the fees/incidental holds/parking charges are finding their way to all of our political representatives.
A ‘Life-Changing’ Moment
Finally, let’s close with something more positive—or at least challenging. Former CU CEO Ed Speed has published numerous eloquent and thoughtfully written pieces on the state of credit unions. You can find some of his observations here, here and here (or just search Ed Speed on TheCUDaily.com).
In response to one of Ed’s columns, a reader shared this: “Thank you for saying the hard things that everyone else avoids. I read that article about their interviews, and honestly, it felt completely performative. And I know firsthand that for at least one of those CEOs, it absolutely was — I’ve seen behind the curtain at their organization.
“They need to get back to the mission and stop acting like a bank trying to pretend to be a credit union. The big banks all say the same things, and it’s supposed to be what differentiates us — but when credit unions start echoing those same talking points, the message gets lost.
“My life was also changed by one of those CEOs when they decided to burn down anyone brave enough to raise a hand and say, ‘This isn’t the credit union way.’ You can claim these are your values, but are you really living them? I know one who definitely isn’t — they even implemented a revenue goal for their so-called “not-for-profit” credit union.
Frank J. Diekmann is Cooperator in Chief at the CU Daily and can be reached at [email protected].
