Grace Mayo presented information to the House Small Business Committee's Subcommittee on Tax, Finance and Exports proposing raising the cap on MBL on March 9, 2006. So, how's she fared since that time with her restricted limit?
6/2006 - Assets = $601.8 Million, Capital = 10.5%, DQ = 1.15%, Net C/O = 1.53%, ROA = 1.06%
6/2011 - Assets = $347.1 Million, Capital = 6.25%, DQ = 11.03%, Net C/O = 3.37%, ROA = <.21>
One shudders to think how much worse shape her credit union would be in today (assuming it wouldn't have been liquidated already) if the House Committee had actually listened to her "sage" advice.
What I find amazing is that CUNA, NAFCU, et all, haven't changed the rhetoric one bit since 2006.
TELESIS CREDIT UNION - Take a look at their NCUA Call Report. Charter No.: 68396. Briefly here are the numbers for TELESIS:
ReplyDeleteYEAR END: INCOME:
12-2007 NEGATIVE $7,692,857
12-2008 NEGATIVE $13,521,550
12-2009 NEGATIVE $10,973,476
12-2010 NEGATIVE $11,2207,887
06-2011 NEGATIVE $395,220
TOTAL NEGATIVE: $43,790,990
12-2007 NET WORTH $65 MILLION
6-2011 NET WORTH $22 MILLION
Telesis has lost over $43 Million in Net Worth. This is the members money. The members are the credit union shareholders. Telesis has 38,000 members. Do the math. Each member has actually taken a loss of $1152. If Telesis was a Bank the stockholders would have recalled the Board of Directors and fired the CEO. Telesis credit union members should obtain a class action lawsuit attorney to sue the Telesis directors for breach of fiduciary duties, negligence and wasting credit union assets. The members are the shareholders and have such a lawful right. Telesis bought AutoLand and made it a Telesis CUSO. Telesis paid $12.5 Million. Today it is worth $3.8 Million and Telesis has loaned the CUSO $3.8 Million. Maybe you can't fix dumb. Sorry 1st Thoughts but TELESIS is STUck on STUpid.
Now CUNA took its best and brightest and paraded Telesis before Congress in 2006. Maybe they should bring Telesis back to Congress for a post-mortem. Telesis can explain how their capital has dropped from 10.5% in 2007 to 6.34% in June, 2011. How does a CEO lose money for over 3 1/2 years and still hold on to the throne? Has the CEO continued to get those filthy stinking fat corporate CEO raises while the credit union continues in a major rectal bleed? I would not hire this CEO to run a Korean B.B.Q. roach coach much less a credit union. Does CUNA have a CEO DARWIN type award for credit unions that lose the most money? I think we have a winner.
You would think the leaders at CUNA and NAFCU would want to be forthright and ask Mayo to carry the MLB torch again.
ReplyDeleteWhen will CUNA and NAFCU give up the expanded MBL fight? Not until another issue comes along that "justifies" member dues.
When is the last time either group was able to pass meaningful legislation? Was it 1998 with the Credit Union Membership Access Act? Thirteen years is a long dry spell by any measure.
Guidestar.org published the IRS 990 report for Telesis Credit Union. IRS 990 for 2008 reported the 1099 CEO Compensation at $436,542. Telesis Credit Union 2008 net income was negative, in the red: ($13,521,550). Telesis Credit Union year end assets for 2007: $600,899,309. Telesis Credit Union year end assets 2008: $573,564,976. Assets growth was negative $27,334,333. Negative Income. Negative Asset growth. Monstor salary. NICE!
ReplyDeleteIt is not all that unusual to observe a credit union being raped, pillaged and plundered by its MEMBERSHIP. What is unusual is to observe a credit union being raped, pillaged and plundered by its MANAGEMENT. The above post reports over 4 consecutive years of huge losses. Meanwhile there is absolutely no change in management. After 4 consecutive years of huge losses does MANAGEMENT expect a change in outcome or more of the same? Give Management credit for one thing. At least they are being consistent in reporting huge losses.
ReplyDeleteSEPTEMBER,2011 DATA: TELESIS CREDIT UNION
ReplyDeleteASSETS: $335,591,601
NET INCOME: NEGATIVE -$1,663,769
NET WORTH: 6.08% REPRESENTING: $20.4M
FIXED ASSETS: 6.90% REPRESENTING: $18M
RETURN ON ASSETS: NEGATIVE -0.60
THE HUGE NEGATIVE INCOME TREND CONTINUES.