Credit unions have provided a serious alternative to banking with big banks. Their strength in their communities commands a market share that the big banks want. So this news is ominous. Given what I know about credit unions around the country, the theory of financial problems does not make sense. Besides, we did not seize AIG, Citibank or Goldman Sachs. We just gave and lent them $12 trillion.

If you know the real story here, I would love to hear it.

U. S. seizes top credit union clearinghouse

Excerpt:

WASHINGTON, March 20 (Reuters) – Regulators seized the top clearinghouse for U.S. credit unions, citing a critical deterioration in the finances of the provider of services to thousands of retail credit unions.

The National Credit Union Administration (NCUA) took control of U.S. Central Federal Credit Union, a huge wholesale credit union with about $34 billion in assets based in Lenexa, Kansas.

It also seized Western Corporate (WesCorp) Federal Credit Union of San Dimas, California, another corporate credit union with $23 billion in assets.

16 Comments

  1. This TOTALLY pisses me off! I’ve banked at my credit union since college and have worked to support it for the past 18 years. I’m going to contact my credit union, the largest in my state, to get more info and take action. I encourage others to do the same thing to find out what’s going on.

  2. I just sent this note to the executive board of my credit union in Oregon.

    Dear OCCU Board of Directors and Executive Team,

    I am writing to you out of concern regarding the The National Credit Union Administration (NCUA) taking control of a U.S. Central Federal Credit Union.

    http://www.reuters.com/article/companyNewsAndPR/idUSN2052552120090321

    I would like to know if you deem this as a serious issue threatening the soverignty of credit unions nationwide, or a credible and necessary action.

    Thanks so much for your valued service over the years.

  4. Could it be that the credit union business model is too good for the central bankers liking? It would not surprise me if the credit unions are being set up with formerly good institutions being taken over by the powers that be in order to ‘expose a glaring flaw’ and, then set the hook…???

  5. Consolidation-of-the-banks,stealing-money-from-the-small-well-run-banks
    and-gobbling-them-up.

  6. Isn’t this a resuslt of The Fed’s big grab for power way back when Congress passed The Fed’s demand for getting money and The Fed can’t be sued, nor have to account for where the money is spent, etc, etc, etc, etc?????? I do remember thinking that whatever the exact language was that the Credit Unions would be gobbled up by that unlawful entity.

  7. The local food co-op (only profitable due to free labor) has had a banner up pimp’n the local credit union.

    So I visited. When I mentioned I was self-employed and wanted to open a 401K the Credit Union wanted 3 years of tax returns. I asked why, and they claimed it was part of ‘know your customer’ rules.

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