ORNL FCU 75 Years

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Nineteen eighty-one brought both highs and lows. Public policy efforts to shut down the Department of Energy gained momentum, putting the laboratory’s very existence on the line. On the positive side, President Reagan signed into law the Economic Recovery Tax Act (the Kemp-Roth Tax Cut) in an effort to jumpstart the still sluggish economy. ORNL Federal Credit Union capitalized on this new legislation (which enabled all working taxpayers to establish IRAs) by creating All Savers Certificates. Estate planning seminars helped educate members on the importance of this retirement savings program.

OUR OWN WORDS Every time we make a decision, we ask: how will this affect our members? Is it good for them? Because that’s our number one mission. We also ask: is this good for our employees? Because we have a huge commitment there as well. It’s not just talk. It really is what we’re trying to do here. It is the mission of this financial institution. RANDY GORMAN Chair, Board of Directors

One difficult decision was made, however. To remain financially sound, the pricing of services was adjusted, thereby increasing member fees. The high interest rates paid for deposits over the past two years had caused a severe strain on the credit union’s earnings, and it was imperative to find new sources of income to avoid sustaining a loss for the year. Members responded to an appeal for these funds by stepping up to show their faith in the credit union, depositing millions throughout July 1981.

Efforts were also made during the year to streamline existing services through its new Loanliner program, which substantially reduced the loan paperwork process.

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In 1982, Michael Jackson released his Thriller album, the first CD player was sold, Walt Disney World’s EPCOT opened, the World’s Fair came to Knoxville, and unemployment in the United States reached a post-World War II high. Tennessee banking authorities closed United American Bank of Knoxville, with deposits of $794 million, after federal bank examiners uncovered a pyramid of unsecured loans, forged loan documents, and bank fraud. ORNL Federal Credit Union added several new products including a ninety-one-day money market account and variable-rate consumer and real estate loans. The credit union also began cashing US savings bonds. While deregulation of the financial industry resulted in a more complex operating environment, the credit union continued to position itself to provide for future needs and services by upgrading its computer system. As it had in the past, ORNL FCU strengthened its long-held bond with the Oak Ridge National Laboratory, extending its support and counseling to member employees who were affected by a reduction in workforce.

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1979-1988 STRUGGLES & TRIUMPHS | 37

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