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1. Thursday, December 13, 2012 - 10:23 PM
The CEO that built the old Patelco must be turning in his grave
I'm sure he is, God rest him. But then again, he didn't have to endure the current President we have, passing acts like "Dodd Frank", which basically tells banks and credit unions what they can and can't charge.
Lower than average savings rates are a good sign, because that means your credit union doesn't need new funds. Why pay a liability 2% for $100,000 CD, when the bank is going to invest it in the overnight fed rate at 5 basis points? Keep doing that, and your CU will be out of business in a year or less. Everyone, banks and credit unions, need to be selective in what deposits they take in. If you're not making many loans, you don't need the additional liability. If you love your credit union, be happy that they'e not passing out high rates. But I know, the American way is "I only care about me. the heck with everyone else, I want my high rates. Let the other suckers pay the fees and stuff." 3 months later, you're having the converation of "Why are all these banks and credit unions either selling or going out of business???" Because they have $500 million on deposit that they're paying 2% on, but have $50 million out in loans earning 5%.
The low staff morale, unfortunately, is probably due to the fact that Patelco is beating the sales culture into the staff, which is useless in a rate driven environment. Thats my biggest problem with all financial institutions. They threaten everyone's job unless they bring in $XX in new deposits and loans. Nothing kills a staff morale like giving them unattainable goals.
I'm sure he is, God rest him. But then again, he didn't have to endure the current President we have, passing acts like "Dodd Frank", which basically tells banks and credit unions what they can and can't charge.
Lower than average savings rates are a good sign, because that means your credit union doesn't need new funds. Why pay a liability 2% for $100,000 CD, when the bank is going to invest it in the overnight fed rate at 5 basis points? Keep doing that, and your CU will be out of business in a year or less. Everyone, banks and credit unions, need to be selective in what deposits they take in. If you're not making many loans, you don't need the additional liability. If you love your credit union, be happy that they'e not passing out high rates. But I know, the American way is "I only care about me. the heck with everyone else, I want my high rates. Let the other suckers pay the fees and stuff." 3 months later, you're having the converation of "Why are all these banks and credit unions either selling or going out of business???" Because they have $500 million on deposit that they're paying 2% on, but have $50 million out in loans earning 5%.
The low staff morale, unfortunately, is probably due to the fact that Patelco is beating the sales culture into the staff, which is useless in a rate driven environment. Thats my biggest problem with all financial institutions. They threaten everyone's job unless they bring in $XX in new deposits and loans. Nothing kills a staff morale like giving them unattainable goals.
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