The “industry” to which the above headline refers is the credit union industry. Even they are stunned. But we bankers aren’t. We have known for years where credit union “profits” go—outsized salaries and buildings. Just read this
report from the Denver Post.
And credit unions want to increase their member-business-lending authority? Why, so they can pay more credit union CEOs Wall Street–size salaries rather than serve people of modest means? And this is what they will do with the TAX-FREE income from their commercial loans???!! Really?
This is an outrage, but, sadly, not unusual. Telesis Community Credit Union, which just failed recently because of failed MBLs (as reported in the
Credit Union Journal), paid their CEO $2.1 million per year while the credit union was going down. Wake up bankers—rattle the cage in Congress!