Credit check Darren Williams, head of credit union giant Wescom, sees his sector as offering better financial services than banks.It'S difficult to imagine that someone's fondest memories would involve hopping into a station wagon to go to the local credit union with his parents, but Wescom Credit Union Wescom Credit Union is a credit union and financial services company serving Southern California. It has over $3.8 billion in assets and more than 295,000 members[1]. Chief Executive Darren Williams For the Australian novelist, see . Darren Williams (born 28 April, 1977 in Middlesbrough, England) is an English footballer who plays for Bradford City. Williams began his career at York City, but made his name at Sunderland, for whom he signed in 1996. is just that passionate about the world of non-profit financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. institutions. That affinity extends beyond his Pasadena-based credit union and into the larger community. Case in point, when Wings Financial Federal Credit Union launched an unsolicited bid to merge with El Segundo's Continental Federal Credit Union--the first hostile takeover Hostile Takeover A takeover attempt that is strongly resisted by the target firm. Notes: Hostile takeovers are usually bad news, as the employee moral of the target firm can quickly turn to animosity against the acquiring firm. attempt in credit union history--Continental President Tom Glatt Glatt may refer to:
Question: You graduated from Pepperdine with a degree in finance. Why did you end up at a credit union instead of a bank? Answer: From as early as I can remember, my father was always telling me about the virtues of credit unions. He was a volunteer board member at one of the federal credit unions because he worked for the government. He explained to me that, "Yes it's a business but there is an underlying social agenda, not a feigned feigned adj. 1. Not real; pretended: a feigned modesty. 2. Made-up; fictitious. Adj. 1. or forced or contrived social agenda but a real one." That just kind of stuck in my head. Q: And what is that agenda? A: It's no so much an agenda as a way of life, cooperation by nature. It's the banking experience that people couldn't get at banks. We've kept that mentality over the years. When we go out and help with say a building project or a community reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. project, or make our presence known in a community we don't see it as philanthropy. For instance we don't use the word "initiative" to describe community activities. We would probably say it's an imperative not an initiative. Q: Still, when you go on to major in finance, a credit union certainly isn't where most people are thinking about going when they leave school. A: You're probably right and I did work for a bank initially. But my experience at regular banks to this day is pretty limited, because the thing about the credit union is that it had an impact on people's lives whether you worked or did business there whereas--personal biases aside--banking was like going to the post office. Q: But banks claim that credit unions take unfair advantage of tax breaks. A: Then blame F.D.R. It's been the law since 1934 and the Federal Credit Union Act In 1934, the U.S. Congress passed the Federal Credit Union Act, which President Roosevelt signed into law. The purpose of the federal law was to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions. . There's no income tax because there's no income in the sense that (banks) get income. There's revenue but that goes to operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Some institutions see that as an advantage but I don't, especially when credit unions have 6 percent of the total deposits in America combined and that percentage hasn't changed in almost 15 years. But the last 15 years of banking have seen tremendous change. Today, at least four big banks--I won't name them, I don't want guys in three-piece suits Noun 1. three-piece suit - a business suit consisting of a jacket and vest and trousers business suit - a suit of clothes traditionally worn by businessmen vest, waistcoat - a man's sleeveless garment worn underneath a coat on my lawn--together have 60 percent of deposits. Q: Why are you so passionate about credit unions? A: It was just ingrained. This may sound silly but what sticks in my mind is jumping into a station wagon on afternoons and the weekends and being in the car when my mom went to the credit union. Or hearing that my parents were going to get a new car and wanted to go to the credit union to get a loan for it. It sounds hokey hok·ey adj. hok·i·er, hok·i·est Slang 1. Mawkishly sentimental; corny. 2. Noticeably contrived; artificial. hok and corny corn·y adj. corn·i·er, corn·i·est Trite, dated, melodramatic, or mawkishly sentimental. [From corn1. but the tellers knew my name as a kid and that's always stuck in my mind, the family aspect of it. Q: How else did your parents shape your financial mind? A: I don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. that it was shaped as much as it was nurtured. When I got interested in stocks in my early teens my mother didn't tell me I was too young like the broker did. She marched me down to the brokerage and we opened up an account in her name and I made all the portfolio decisions from then on. She was a major influence in teaching frugality, patience and prudence when it came to money. Q: What was your first job in banking? A: My first job in banking was at Imperial Bank (now Comerica Bank) here in the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area. This was my first job after college where I served in a supervisory/management role. Q: What about at a credit union? A: My first job was as a department manager in the loan department at Hughes Aircraft Hughes Aircraft Company was a major aerospace and defense company founded by Howard Hughes. The group was based near Ballona Creek, in Culver City, California, USA, on the Pacific Coast. Hughes Aircraft was acquired by General Motors in 1985. Employees Federal Credit Union. There. I saw credit union philosophy in action through the credit union's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . I liked what I saw. The culture was just so much more different in a tangible and intangible way. The emphasis on customer service, management's emphasis on catering to the members as opposed to meeting earnings targets--that was a fundamental difference once I left banking. Never considered going back since. Q: When you first came to Wescom, what was it like? A: When I joined Western, the credit union was already a very successful financial institution that had served the community for nearly 65 years. They had just reached the $1 billion asset milestone and were already one of the largest credit unions in the country. They had yet to evolve to a community-based credit union and they had a more limited branch network, which was positioned to serve its telecom employees. Q: Would you like to retire as chief executive of Wescom or do you have other plans further down the road? A: Haven't thought about it. Right now I'm very happy being a part of Wescom and what this credit union is doing. Q: Do your kids hear a lot about credit unions at the dinner table? A: My kids know all about credit unions. It's always been a subject at our dinner table, and sometimes I overdo it with my enthusiasm and they probably know more than they ever wanted to know. Q: Last month Wings Financial shook up the credit union world with its takeover attempt Noun 1. takeover attempt - an attempt to take control of a corporation bear hug - a takeover bid so attractive that the directors of the target company must approve it or risk shareholder protest of Continental Federal, even picketing outside of Continental's annual meeting. What does this say about the future of credit unions? A: Nothing at all is what I'm hoping. I definitely hope this is an aberration. All indications now are that it will be. I think we've seen that this approach isn't successful. Credit unions are cooperative and that's why we were on Continental's side. Q: But certainly you can concede that this is a sign of credit union expansion and greater consolidation? A: Sure. There are 8,000 credit unions now when there used to be tens of thousands. And, yes, economies of scale make mergers more attractive, but I think in our business the word merger is literal; it's not a sugarcoated term for buyout or takeover. When we say merge, we actually mean merge and we do it for the good of our members. Q: What regulatory changes specifically allowed this type of thing to happen? A: With charter changes you can double your asset size overnight. We used to serve just telecommunications employees, but I guess about almost a decade ago we proceeded to change our charter to a community charter. As long as you live or work in our designated area, the five-county stretch in SoCal, you can be a member. Q: But aren't some credit unions no longer in existence because of mergers? A: This is unavoidable. But I can say this, you won't see one big giant credit union one day dominating everyone. There will still be thousands that will survive because of our community culture. What you will see in the way of consolidations is joint ventures, joining of ATM networks, partnerships where a member of Wescom can bank out of town as if he or she was in the lobby of the home branch. You'll never see a BofA customer at Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. unless they have separate accounts at the different banks. Q: So greed is bad? A: Not touching that one. Seriously though, everyone wants to be successful and make money and we are in the business of helping people do that. At the end of the day you have to sleep well and enjoy what you're doing. You must enjoy what you're doing and if that has to come at the expense of riches, I can live with that. BY JABULANI LEFFALL Staff Reporter Darren Williams Title: Chief executive Organization: Wescom Credit Union Born: Lynwood; 1960 Education: B.A., business/finance, Pepperdine University Pepperdine University is a private institution of higher learning affiliated with the Church of Christ in unincorporated Los Angeles County, California, United States. The university's location overlooks the Pacific Ocean and is adjacent to the city limits of Malibu. Most Influential Person: A financially savvy mother Hobbies: Messing up the carpet, finger-painting, playing around inside and outside with his children Personal: Lives in La Habra La Habra (lə hăb`rə), city (1990 pop. 51,266), Orange co., S Calif.; inc. 1925. A suburb of Los Angeles, La Habra was settled in the 1860s by Basque sheepherders. Heights with wife and children |
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