What’s the latest scuttlebutt on the CEO search?
13 replies (most recent on top)
It’s laughable to think the bank would merge with anyone. I’ll be sold in an effort to protect the members and the insurance fund. This clown leadership team actually went backward in their remediation of regulatory concerns.
Though they certainly won't consider me, I wouldn't want to be CEO of any type of insurance company (or bank) right now.
Another bank is for sale thread.
Navy Federal is in big trouble right now. They had to pay 95 million dollars for sc--wing over their depositors. That was the biggest fine ever paid by a credit union. And that is on the heels of being investigated by the feds for discriminatory lending practices against blacks and other minorities. Navy Federal may not survive if all of these allegations are true and they continue to be fined.
Also, I am quite certain that banks cannot be sold when they are under consent orders. Even if they could who would buy a poisonous bank with all the problems USAA has? And these problems are just the ones we know about. Imagine how many we actually have.
It would have to be a pretty unique deal if framed as a merger - basically a reverse takeover. NFCU is better in every way, but the top level branding would have to become USAA for the broader appeal. The only way it would significantly help with some bigger issues is if it also achieved true independence, with enterprise no longer being a BHC, moving to a cobranding relationship with Bank. Separate boards, no shared capital facilities. Just joint marketing.
That would greatly simplify the CEO search.
USAA should do a deal with Navy and merge their banking services. Banks and Credit Unions are merging more often.
In a merger, the first thing they address is how to combine the 2 boards, not enough seats for everyone to stay. Then they do the same with C-Suite, then they start looking at how the machine runs. Which systems, products and vendors to keep versus cut. That then drives the people decisions of which employees are better skilled to execute upon the tech and products they want to keep. You will have plenty of time to see it coming and react.
They’ve just spent a boatload on consultants to update the taxonomy. I doubt they would have done that if the bank was for sale. Just a thought, or maybe they’re trying to put lipstick on the pig 😂
They are interviewing insurance executives outside the company which means the rumor about a bank sale is probably spot on. That’s also maybe why they shed Neeraj and Gilbert (bankers) and haven’t replaced them.
@gjrm+1vFO7nNi
The portfolio includes the members accounts, which is part of the business, and is the basis for the sale. As far as employees, that is up to the new owner. Even in a merger, not all employees are safe. It is a flip of the coin.
Ok so assuming the bank gets sold. Do all bank employyes and members get moved over to the buyer?
@fyea+1vFO7nNi I’d love to say you’re correct in that they’ll sell off the bank but people have been speculating that for years. I don’t think it will happen. There’s no benefit to someone else buying us anyways.
The reason for the long wait is that the USAA Bank will be bought by a major bank in Q1. Or at least the process will begin. This will be explained as doing the right thing for the membership. You can’t go 5 years without profit as a bank and keep the doors open. This will leave USAA as solely an insurance company.
What CEO search? They already know who the next CEO will be. They just haven't disclosed it to the masses.