What One Credit Union Learned from Its Tussle with Trump
Despite the time it took to unsuccessfully sue President Trump, Lower East Side People's Federal Credit Union would do it again.
[...]
"Bringing a lawsuit like this means that you're getting involved in a highly partisan political environment where many in the middle feel left out of it and are pretty tired of seeing this toxic tug-of-war between what's perceived as the extremes of two political parties," said Scott Wortman, a partner at Blank Rome who works with financial institutions on compliance and fintech related issues.
[...]
The biggest concern shouldn't be fear of retaliation from the federal government, but possibly damaging the perception of the credit union, Wortman said. Taking a political stance doesn't align with the beliefs of the institution's members could drive away business. It could also make it harder to do things, such as recruit talent for executive roles, Wortman added.
Lower East Side People's is currently searching for a new CEO. Levy retired in April but has elected to stay on until a replacement is found. The board had hoped to fill the role before her retirement.
"Anybody that's looking for an executive level job is doing research, and the first thing that will come up is this lawsuit," Wortman said. "This lawsuit really stings of politicizing this business and it's really a question of "~Is that the culture that I'm walking into?'"
"What One Credit Union Learned from Its Tussle with Trump," by Melissa Angell was published in Credit Union Journal on December 28, 2018.