Eastern Financial posts $49.5 million loss for quarter

How does a non-profit organization get involved in sub-prime lending or absurd investment portfolio's. The definition of a credit union is to manage and increase the well being of its members, this loss should be blame on greety individuals who see growth in large proportions as the only successful conclusion( hint: you are not a Bank America). "You want to minimize the impact of your crisis"? How about you ask for the resignation of every individual who approved such an absurd business plan for your Credit Union

pancho villa

Valencia, CA

the agressive type of lending that led to this huse loss should be a lesson on giving away money to risky ventures.

pancho villa

Valencia, CA

I completely agree with you, there is absolutely no accountability for these losses, but the employees keep getting laid off. I want to let you know this is the tip of the iceberg, there are a lot of bad loans that were made thru other programs.

Miramar wrote:

How does a non-profit organization get involved in sub-prime lending or absurd investment portfolio's. The definition of a credit union is to manage and increase the well being of its members, this loss should be blame on greety individuals who see growth in large proportions as the only successful conclusion( hint: you are not a Bank America). "You want to minimize the impact of your crisis"? How about you ask for the resignation of every individual who approved such an absurd business plan for your Credit Union

Lets Hide

In addition, what was audit department and Audit Committee was doing? I guess they were sleeping at the helm and overlooking each financial review. What kind of Supervory Committee is this? They must be held accountable.

Norma Rae

O Yeah wrote:

"The credit union is taking significant steps to minimize the impact," said Mark Holmes, vice president and marketing director. "In the meantime, we want our members and the public to know that Eastern Financial has always been a robust and growth-oriented financial institution."

Tell that BS to the pople who will lose their jobs [ and it already been decided who will go] It sounds good as a press release but in reality both the Board and the Presisdent have been using EFCU as their own money tree for a long time and until they criminally prosicuted and removed NOTHING will change.

Focus

We are all under a lot of stress right now! This is happening everywhere! Look at the economy!!There are 200 employees leaving but 600 staying!! We need to stay focus!! This happens in the best of families lets keep this within our home!! The Credit Union has been around for a long time and we need it to be here for a long time for our loyal members!! We need to be strong!!

member

Eastern Financial has been committed to South Florida for many years. It is not time to stand divided, but to unite and support a company that has been dedicated to its members and community for the past 70 years. Obviously the economy has dictated many of this institutions actions. Many of South Florida financial institutions are going through similar situations.

GUNTHER TOODY

Yes, and hats off to all those dedicated people who have strived for years to make EFCU what it is today. However a desease has crept into the Credit Union and those people are using the CU for their own profit and gain and are undermining the efforts of those who are honest and hard working. THe solution: Get rid of the Board and terminate the President with out any of those big severance packages . Reward the people who are working not those who think the CU funds are there for their own private pleasure

accountability

Wilson, NC

In regards to getting rid of the board of directors, this has already started, thanks to an FBI indictment for fraud. This is an example of who serves on Eastern's BOD:

http://miami.fbi.gov/dojpressrel/pressrel07/m...

GUNTHER TOODY wrote:

Yes, and hats off to all those dedicated people who have strived for years to make EFCU what it is today. However a desease has crept into the Credit Union and those people are using the CU for their own profit and gain and are undermining the efforts of those who are honest and hard working. THe solution: Get rid of the Board and terminate the President with out any of those big severance packages . Reward the people who are working not those who think the CU funds are there for their own private pleasure

Concerned Citizen

The fact that this has been happening everywhere does not excuse the lack of responsibility by the chief executive and all those responsible for involving the credit union in what has turned out to be a fiasco. As far as I can remember, a credit union is established to serve its members by safeguarding their funds, and yes, investing those funds on good solid products, not gamble it away without regard. Furthermore, is the board going to follow suite the steps of the big houses and, if they decide to fire the CEO and those who had a decision making role into these consistent investments, will the board then reward them by giving them a bundle of money. I say fire of that inept and insensitive bunch. If I fail to do my duties in my job, I’m certain that my company will get rid of me and not reward me. It is noble for you to ask for peace and calm, however, I don’t see this aspect being displayed by your chief and board. It seems the easy way out, and a current American trend is to cut those lower level employees but leave those big Whigs alone since they are the brains of the whole operation. Well, I think this time around there should be a precedent started where the big Whigs are let, and leave the lower level alone, and bring in management that will show real concern for the institution which is EFFCU and its dedicated employees who are the ones that serve us, the customer with much care and concern.

got out of dodge

Judged:

Sad wrote:

Its been a sad few years at Effcu. They lay off 12 employees that made an average salary of $30,000. WOW!! Then they have a christmas party that costs about $100,000. WTF? Now the executives decide that WE have to pay for there mistakes. Employees have questioned for years, why do we keep opening new branches?, why do we keep hiring consultents? why are we giving loans to people the dont qualify? Employees knew for years what upper management just figured out. Were tired of these leaders, EFFCU needs someone to get us out of this mess and get us back to the family we always knew and loved. By the way, how much does it cost to advertise at the Panthers arena? Most likely about 20 employees yearly salaries....

because they always thought and still do think they know more than the little people who see it and work it everyday! It's the Eastern way and I see that it hasn't changed since I left.

So sad....

JIMMY HOFFA

Investigate the charge offs that have occured over the last 2 years, If it was not for the reckless manner in which the president runs the place it would be in better shape. Who has been rewarded with Bonus's for mediocure performance. The president and the board reward each other for not blowing the whisle on each other

Op knocks

Boca Raton, FL

Where can I get a job application?

got out of dodge

Joined: Feb 7, 2008

Comments: 9

JIMMY HOFFA wrote:

Investigate the charge offs that have occured over the last 2 years, If it was not for the reckless manner in which the president runs the place it would be in better shape. Who has been rewarded with Bonus's for mediocure performance. The president and the board reward each other for not blowing the whisle on each other

you don't know how close to the truth you really are....

got out of dodge

Joined: Feb 7, 2008

Comments: 9

Mad as Hell wrote:

<quoted text>
If Mr. Magoo and his cronies had a shred of decency or honor they would resign, en masse. Sadly, Mr. Magoo has lied repeatedly, in public, demonstrating his lack of honor. Steve, baby! You told your employees "no more layoffs while I'm in charge" last year. Well, are you still in charge, or did you lie? You instructed your managers to keep the layoff memo confidential, then told the rank and file that those same managers with held the information against your wishes. Did you think the rank and file would see you as riding to the rescue? Pig. It's a pity that you don't use your moral compass to find your way to the sixth floor. If you did, we'd never see you again. Grow some stones and do the right thing.
Enough of the rant. I seriously hope that the Sentinel monitors this blog. There's Pullitzer Prize material here for an investigative reporter. Follow some of these leads. Talk to some employees. Obtain documents. Expose these executive vermin. That's the responsibility of our free press.

I for one would love to be contacted....

Hmmm

Judged:

Maybe we can use WOW bucks to charge off those loans...

Friend

Are there any blog sites about this anywhere? I heard of a blog that mentioned a trip to Hawaii? Link?

Concerned Member

We as members should attend the annual meeting and ask the questions.

Concerned Member

We are members must attend the annual meeting coming up shortly to ask questions.

got out of dodge

Joined: Feb 7, 2008

Comments: 9