| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 1790.1 | Make a Quality Choice | IAMOK::GRACE | | Tue Mar 10 1992 11:54 | 16 |
| DCU is one of the largest credit unions in the country - a
$370 million member-owned credit union. Like other financial
institutions, DCU is challenged by the economics of our times
as it strives to provide the highest quality services to
members.
It is at times like these I believe we need the most qualified
members on our Board, people who possess the skills and
experience to meet the challenges and uncertainties of the
future.
I plan to carefully review all the candidates' statements when
I receive my ballot and vote for the best choices. Instead of
simply voting for a slate of candidates who appear to be running
for the Board as a "block", I intend to make an assessment of
each individual candidate and vote for the QUALITY CHOICES.
|
| 1790.3 | The petition candidates will agree | MLTVAX::SCONCE | Bill Sconce | Tue Mar 10 1992 13:00 | 11 |
| .1> I plan to carefully review all the candidates' statements when
.1> I receive my ballot and vote for the best choices. Instead of
.1> simply voting for a slate of candidates who appear to be running
.1> for the Board as a "block", I intend to make an assessment of
.1> each individual candidate and vote for the QUALITY CHOICES.
Right you are. (This thing has become so polarized that you may get
a reply or two hinting at a suspicion that your statement means you
support the "old block", but you didn't SAY that.) You said you
intended to vote intelligently. More power to you.
|
| 1790.5 | | BSS::C_BOUTCHER | | Wed Mar 11 1992 11:55 | 108 |
| <<< SMAUG::USER$944:[NOTES$LIBRARY]DCU.NOTE;5 >>>
-< DCU >-
================================================================================
Note 489.2 No 150 word limit here... 2 of 4
BSS::C_BOUTCHER 101 lines 10-MAR-1992 15:25
-< Chuck Boutcher - also see note 430 >-
--------------------------------------------------------------------------------
I believe that you can best tell about a person's future performance
based upon their past performance(s). I have posted some information
about myself in note 430, but will attempt to add to it here.
I have been with Digital for 15 years. I began in Chicago as a
terminal specialist after serving in the US Navy as a Display Tech. 3rd
class. I worked in several positions for Digital and am currently a
Unit Manager at the Customer Support Center in Colorado Springs.
Since I first purchased a home at the age of 20, I have been involved
in the communities in which I have lived. Since I believe that past
performance is an indicator of future potential, I will talk about what
I have done in the past, then switch gears and talk about my
commitments for the future. Also, to be clear, I am running on my own
merit and am not connected to any group - either the nominated
candidates or the candidates running under the "REAL CHOICES" banner.
I hope to be elected on my background and potential and will not engage
in any negative comments about any other candidate or group of
candidates.
At the age of 20, I bought my first house in a suburb of Chicago, a
community of 15,000 people. I served my community in many roles,
first as the President of the Dolton-Riverdale Jaycees, State
Vice-President for Individual Development for the Illinois Jaycees and
a State Project Chairman. In 1983, I was recognized by the Illinois
jaycees as "Outstanding Local Chapter President" and "Outstanding State
Project Chairman".
In 1984, I served on the Illinois Governor's Committee on Private
Sector initiatives, sub-committee on Essencial Human Needs. While on
the committee, I authored a proposal to establish a state wide
clearinghouse for information on emergency food, housing and clothing,
as well as other essencial needs services. The following year, the
State legislature funded $250k for a trial system that I understand is
still in place in Illinois.
In 1985, I was recognzed by my community for my service with the
"Distinguished Service Award". Other capacities I served in was
President of the Riverdale-Dolton United Way, President/Chairman of the
first Economic Development Committee in Riverdale, elected President of
the Riverdale Park District, Trustee of the Riverdale Police Pension
Fund and member of the Tri-City Blood Commission where I personnally
donated 5 gallons of blood over a 9 year period. I was also recognized
as one of the "Outstanding Young Men in America" in 1982, 1983 and
1985.
In 1987, I was elected as a Village Trustee in Riverdale. During my
time on the Board, I served as Chairman of Appropriations and Finance
with a $5 million budget. I was instrumental in changing the Village's
book keeping methods and development of appropriations, increased the
Village's public works bonding authority and helped in the creation of
our first working cash fund. I then trained as a volunteer Fire
Fighter to gain a better understanding of what value our 40 person VFD
added to our community and was later appointed by the Mayor to head the
Fire Department and Inspectional Services. I nominated that Department
to be recognized for a Govornor's Home Town Award for volunteerism, and
they were so recognized in 1989. I also instituted an employee
recognition program as well as an employee assistance program.
Since moving to Colorado three years ago, I have once again active in
my community. In 1991, I certified as an Emergency Medical Technician
while I served as a volunteer Fire Fighter/EMT. I am a member of the
American Red Cross/Pikes Peak Chapter, Disaster Services team. I was
appointed by the County Commissioners to serve on a county wide
planning committee and am a member of the Calhan Lion's Club, as well
as the Non-Commissioned officer's Association at the US Air Force
Academy.
So much for the accomplishments over the past 14 years of my life. At
the age of 34, I plan on continuing this track record and hope to do so
as a Director for the DCU. As stated before, I only represent myself
in this election. I would like to express a set of beliefs that I
follow, and will continue to follow, long after the election is
history.
I believe in open and honest communication and will make every effort
to insure what I say is truely representative of how I feel and what I
believe. I think the success of the DCU is dependant upon the
involvement, creativity and dedication of its employees and membership.
I hope to contrinue to an environement where information is freely
shared and communication is a two way street. I will take actions
which I believe to be in the best interest of the membership at large,
not what may be the politically expediant or easiest path to follow. I
will support clear and timely communications from the Board, insuring
thatwe are consistant in our policies and procedures. I personnally
hope to provide the "path of least resistance" in communications with
DCU membership.
You may feel free to contact me directly if you have any questions
about where I stand on any specific issues. I have voiced my opinion
on issues in the medium, and will continue to do so after the election.
You can also feel free to call me at home (719)749-2270. I have a
recorder on my phone if I am not home. You will only hear a selection
of different music (music I enjoy) when you call. Those that know me
know I hate voice mail and recorders, but also understand that they are
required at times. I will respond to all calls within 24 hours. I
know this was wordy, but I thought that this was what .0 was looking
for.
|
| 1790.7 | sorted differently :-) | CVG::THOMPSON | DCU Board of Directors Candidate | Wed Mar 11 1992 14:41 | 32 |
| > The following is a complete listing of the candidates that will be
> listed on the DCU ballot in alphabetical order:
Why does everyone sort by last name rather than first? :-)
Abbott Weiss (N,I)
Abhijit Gupta (P,RC)
Alfred Thompson (P,RC)
Charles Boutcher (P)
Christopher Gillet (P,RC)
Claire Muhm (N)
Deepak Goyal (N)
Gail Mann (N)
Gim Hom (P,RC)
Jay Tredwell (P)
Lisa Demauro Ross (P,RC)
Paul Kinzelman (P,RC)
Paul Milbury (N)
Phil Gransewicz (P,RC)
Ray Schmalz (N)
Richard Luciano (P,RC)
Rick Sample (N)
Susan Shapiro (N,I)
Tanya Dawkins (P,RC)
Tom McEachin (N)
NOTATIONS:
I = Incumbant
N = Nominated by DCU Nominating Committee
P = Nominated by DCU Membership petition
RC = Affiliated with "REAL CHOICES" Candidates/Statement
|
| 1790.8 | A list, by any other name, is complete | BSS::C_BOUTCHER | | Wed Mar 11 1992 14:56 | 3 |
| Either way, it is a complete listing of ALL the candidates running in
the upcoming DCU election, not just a listing of affiliated candidates.
I have deleted my version (1790.6) in favor of yours.
|
| 1790.9 | Quality Direction, Priorities & Goals | GUFFAW::GRANSEWICZ | Vote for DCU Petition Candidates | Wed Mar 11 1992 17:58 | 36 |
| RE: .1
The people on the joint statement you refer to are not running as a
'block' and don't expect people to view them as a 'block'. They are
helping each other in various ways yet still maintain their own
identity. However, there are some issues which they do agree on and
that is what was written.
I agree with what you say for the most part. However, I think DCU is
currently challenged more by the past policy decisions and direction of
the current Directors than it is "by the economics of our times". Had
our money been 'invested' in the membership, DCU would be in a very
strong position. Which leads to my comment on 'most qualified'...
I also agree that DCU needs the most qualified people on the Board.
How each person determines "most qualified" is an individual decision.
I'm very happy to see you use the words 'credit union' instead of
bank. This makes a big difference, to me anyways. When voting for
Directors, we are voting for the future direction, priorities & goals
of DCU. We are NOT electing people to actively participate in the
day-to-day operation of the credit union. Therefore I would urge
members to consider MUCH more than pieces of paper, past or present
financial experience, past banking experience, etc. Look at the
fundamental, underlying beliefs of the candidates. Good sound business
decisions start with a clear vision of purpose.
That clear vision of purpose can then be passed to the very capable
professionals at DCU to execute. I am very confident in their
abilities. I do, however, believe they need new direction, priorities
and goals. DCU needs to become a credit union, a credit union
that 'invests' in the safest of investments, DCU MEMBERS. DCU needs to
understand that it exists to serve the needs of the membership, its
owners. A Board with all the banking and finance experience in the
world won't make DCU a good credit union if they don't understand what
a credit union is supposed to be.
|
| 1790.10 | Re: .4 Don't confuse the issue with the facts..;^) | SMOOT::ROTH | Networks of the Rich and Famous | Wed Mar 11 1992 22:57 | 0 |
| 1790.4 | | WLDBIL::KILGORE | Bill Kilgore -- 227-4319 | Thu Mar 12 1992 09:53 | 37 |
|
RE .1:
>It is at times like these I believe we need the most qualified
>members on our Board, people who possess the skills and
>experience to meet the challenges and uncertainties of the
>future.
Truer words were never spoken.
The question then becomes: what skills and experience are best suited
to making DCU a better member-owned credit union? The skills and
experience related to banking and money management? Or the skills and
experience related to listening to the needs and wishes of peers? Maybe
those related to examining and questioning the operations of the staff in
light of the goals and philosophy of a credit union? Or perhaps a healthy
mix of all three?
And I offer a corollary question: what skills and experience were in
place when Mangone ran off with our money? When we were told in an
annual report that DCU growth was "on target at 0.8%", though the net
income was actually 90% under the previous year's? When we were offered
checking account charges in the guise of "MORE CHOICES"? When an
"Information Protection Policy" was instituted in response to queries
from members regarding the financial strength of DCU? When the DCU
bylaws were changed to increase the number of signatures required for
another Special Meeting from 200 to 5000? When DCU board meetings and
"educational" conferences were held in Nantucket, Maine, Anaheim and
Bermuda? When two incumbents and just seven new candidates were nominated
to run for seven board seats, while previously nominated candidates were
this time rejected?
Answer these simple questions, and then choose your new board.
But choose wisely :-)
|
| 1790.11 | Why the DCU Needs New Leadership | SSDEVO::EGGERS | Anybody can fly with an engine. | Thu Mar 12 1992 11:15 | 234 |
|
WHY THE DCU NEEDS A CHANGE OF LEADERSHIP
========================================
The Board of Directors of the Digital Employees Federal Credit
Union has demonstrated patterns of poor policy decisions, poor
communications with shareholders, and poor oversight of the DCU.
The following concerns brought us to this conclusion, and
convinced us that no incumbent board members should be re-elected, nor
any candidate who shares their attitudes. You may wish to use this
list in evaluating both the nominees and the petition candidates, to
help you vote for the candidates who you are convinced will make the
changes you want at the DCU.
Although the November Special Meeting was a clear mandate for
change we feel that an inappropriate process was used to select the
nominees. Most of the official nominees have similar backgrounds as
the current Board members, and may or may not act to correct the
problems in the DCU.
A more complete version of this document, as well as thorough
supporting documentation, is available from each of the people listed
at the end of this statement. A separate document describes our
concerns about the official nomination process.
FAILURES IN POLICY
------------------
The current Board has made numerous policy decisions that harmed
the DCU and did not serve the best interests of the membership.
1. Risky Investment in Cape Cod Commercial Real Estate:
The Board put $18M of our money into commercial real estate
development on Cape Cod. Why did they approve these risky loans
(which they call investments) through March 1990, when prices had
been falling dramatically for over 2 years?
2. Policy to Indirectly Loan to non-DCU Members:
Direct loans to non-members are illegal according to NCUA
regulations. Indirectly loaning money to non-members, which is
what the DCU did by investing in participation loans at another
credit union (BCCU), is unwise since DCU members are a much better
risk, with a 0.3% or lower default rate. Why didn't the Board
choose to loan our money to us instead?
3. Majority Investment in Participation Loans:
Sometimes credit unions get together to share loans. These are
called "participation loans" and are intended to reduce risk. Why
did the DCU Board INCREASE risk by buying all 16 loans from the
same source and by buying an average of 85% of them?
4. Increasing Fees to Increase Profits:
Why did the Board tell us they had to increase fees because
members were costing the DCU money, and that these fees had
nothing to do with the huge losses on the participation loans?
Page 2
5. Unpublicized and Arbitrary Bylaw Changes:
The Board has changed the bylaws frequently in the past year
without informing members. Immediately after the 12-Nov-1991
Special Meeting, they increased the number of signatures required
to request a special meeting from 200 to 2000/5000. This makes it
harder for members to call an unresponsive Board to account. Will
the new Board announce and allow members to vote on bylaw changes?
6. Loans to Board Members and Officers:
Why won't the Board disclose any DCU loans to them? The Boards
and officers of many banks, S&Ls, and credit unions have committed
great abuses in this area. Trusting Mangone cost us $10M -- will
members of the new Board simply insist that we trust them?
FAILURES IN COMMUNICATION
-------------------------
The current Board of Directors has done a poor job of
communicating with the membership. They have withheld information
that the membership has a right to see and in some cases issued
statements to the membership that we believe are incorrect and
misleading.
7. Misleading Annual Report:
Treasurer Susan Shapiro stated in the 1990 annual report that the
"DCU's financial performance improved with Net Income for 1990, on
target at .8% or $.3 million". Actually, Net Income was down
nearly 90%, due mostly to allocations for participation loan
losses. Will the new Board report information accurately?
8. Auditor's Statement and Notes Unavailable:
Since 1985 the Board has not included the auditor's statement and
notes in the Annual Report. 1985 is the same year the DCU began
to invest in participation/commercial real estate loans. The
auditor's notes contained information on the participation loans.
Further, they initially refused to release the auditor's notes to
members who asked to see them. Why did the Board try to hide
them?
9. Misleading DCU Investment Policy:
In 1987, Chairman Steinkrauss told members that the DCU invests
conservatively in member loans, "government securities and
federally insured banks... and doesn't invest in any sort of
`speculative' instruments." However, they already had millions of
dollars invested in Cape Cod commercial real estate development.
Will the new Board accurately report on our investments?
10. Unexplained Firing of Former President Mangone:
During the 1991 elections, the Board announced that they'd fired
President Mangone, but didn't say why -- we only found out why
when the Cape Cod Times printed the story about the massive
scandal at the BCCU. Will the new Board report bad news to us?
11. Misleading Checking Account Fee Introduction:
The "Choices" brochure claimed to give us more choices, but it
actually eliminated our choice of having free checking accounts.
Will the new Board avoid using "PR-speak" to disguise the facts?
Page 3
12. Information Protection Policy:
The DCU Board responded to questions about their activities during
the Mangone fraud by adopting an "Information Protection Policy"
which requires that members demonstrate a "business need to know"
and pay a fee to get copies of such things as Board minutes and
auditor's reports. Many requests have been denied. Will the new
Board reveal information about their performance?
13. Limitation on Candidate Statements:
The nominating committee that Chairman Steinkrauss picked is
limiting candidates to 150 word statements in the ballot mailing.
This is all most DCU members will see about the candidates. Is
this enough to let voters make an informed judgment? Will the new
Board allow challengers enough words to make their case?
14. President Cockburn on Nominating Committee:
DCU Election Guidelines prohibit any DCU employee from
participating in a DCU election except to cast his own ballot. So
why was DCU President Chuck Cockburn made a member of the
Nominating Committee? Will the new Board follow its own
guidelines?
FAILURES IN OVERSIGHT
---------------------
The current Board failed in its duty of oversight over the
activities of the DCU and over its former President, Richard Mangone.
15. Mangone's Involvement in BCCU:
No one who has any financial interest in a loan is allowed to hear
the Board discuss that loan. So why was Mangone, a founder and
Board member of BCCU, allowed to solicit the DCU Board to loan 18
million dollars, 2/3 of our net equity, to BCCU?
16. Improper Transfer of $3.5M by Mangone:
In June of 1990, Mangone ordered a wire transfer of $3.5M to BCCU,
where it was distributed to persons unknown. How could that much
money have moved on one person's authority, and then escaped the
notice of every member of the board for nine months?
17. Too Much Faith in the President:
Board members accepted loan documentation presented by Mangone
with few or no independent checks. They could have known
something was wrong if the DCU had simply done credit checks on
the borrowers.
18. Lack of Supervisory Committee:
Board member Abbott Weiss stated at the Special Meeting that an
active Supervisory Committee is a key part of the oversight of the
credit union -- and of the Board itself. The Board appoints this
committee, but it hadn't met for years. Why did they fail to
provide proper oversight of the DCU and of their own activities?
Page 4
19. Claimed Lack of Qualified Auditors:
President Cockburn made the amazing statement that the external
auditor that they were using wasn't very familiar with credit
unions -- and there wasn't an internal auditor. The Supervisory
Committee is supposed to oversee auditing, but it has been
inactive for several years. Why didn't this Board provide for
competent auditing of the DCU?
20. Loss of Member Involvement in Credit Committee:
The credit committee used to consist of members (some elected) who
reviewed credit decisions. The Board changed it to an appointed
body of DCU employees. Why did the Board eliminate member
participation in this committee? Will the new Board restore it?
21. Attachment Placed on former President Mangone's Assets:
In October 1990, a court order attached Mangone's assets at the
DCU, as part of a lawsuit against DCU's general counsel. Why did
the Board ask no one except Mangone himself for an explanation of
this?
CONCLUSION
----------
The primary responsibilities of the Board of Directors of the DCU
are to set policy, communicate with and represent members, and
exercise oversight. They have failed in each of these areas, yet have
refused to accept any responsibility, choosing instead to say that
they were taken in by the clever deceit of former President Mangone.
The current Board members, and the Nominating Committee itself, are
primarily from financial backgrounds. It appears to us that they view
the DCU as a bank that offers services to its depositors, rather than
as a cooperative whose prime goal is to work in the best interest of
its member-owners.
The issues and concerns listed above lead us to believe that
financial and management expertise is not sufficient. What we need
are Board members with integrity and common sense. Also, we believe
that a diverse Board -- both in terms of background and geographical
location -- will better represent and better serve the DCU membership.
Over the last few years the DCU has been weakened both by bad loans
and by loss of membership confidence. We believe it critical that the
new board address the issues discussed above and restore member
confidence in our credit union. We hope that the DCU can once again
be the great employee benefit we all want it to be.
Mark Buda Tom Eggers David Garrod Christopher Gillett
Phil Gransewicz Abhijit Gupta Jack Hutchinson Janet Levy
Bill Kilgore Paul Kinzelman Steve Sherman Alfred Thompson
[Permission is granted to distribute this document to any Digital
employee or DCU member, provided that the entire text is included,
especially including the above names, as per Digital Policy.]
|