Pub. 9 2021 Issue 2

Issue 2. 2021 3 801 .474.3232 | mwsbf .com Tracy Warr & Shea Mears Owners, Ogden Diesel SBA 504 loan recipients BIG THINGS WORKING CAPITAL LOAN UTAH'S #1 SMALL BUSINESS LENDER. Tracy Warr & Shea Mears | Owners, Ogden Diesel SBA 504 loan recipients members are obligated to search out the best deal, but I’d be a hypocrite if I failed to call out the continued exploitation of this tax subsidy just because it is benefitting a few bankers. What’s even more disturbing is what I believe is driving these deals. It’s not because turning traditional credit unions into mammoth “fake” credit unions is good for credit union members. Afterall, why would any credit union member want to pay higher interest on loans and receive lower interest on deposits so their credit union can accumulate enough capital to pay a massive premium to bank shareholders in another state? Perhaps this is one reason customer satisfaction has been higher for banks than for credit unions the last two years. I fear that the driving factor behind these deals is the insatiable desire of credit union executives to grow the size of their business to drive up their salaries. It’s hard to prove because many credit union executives are exempt from the laws that require non-profit entities to disclose what they are being paid. But when you realize that these executives hand-pick their boards and carefully control the information they provide to the tiny percentage of members that show up to their annual meetings, higher salaries are inevitably tied to the size of their institution and that’s what I believe is driving their growth. There is so much wrong here, but every time the banking industry raises questions, the lobbyists for these large credit unions convince Congress to look the other way. Now that banks and credit unions are working together to divert resources away from public programs and into the pockets of bank owners, perhaps Congress will wake up and someone outside the banking industry will start asking some tough questions. Email Howard at howard@utah.bank . n I fear that the driving factor behind these deals is the insatiable desire of credit union executives to grow the size of their business to drive up their salaries. It’s hard to prove because many credit union executives are exempt from the laws that require non-profit entities to disclose what they are being paid.