U.S. takes over 2 credit unions

[eppur_se_muova]

Source: CNN

By Catherine Clifford, CNNMoney.com staff writer
March 20, 2009: 8:03 PM ET

NEW YORK (CNNMoney.com) -- The U.S. has taken over two credit unions, with combined assets of $57 billion, Friday in an effort to stabilize the corporate credit union system.

U.S. Central Federal Credit Union, based in Lenexa, Kan., and Western Corporate (WesCorp) Federal Credit Union, based out of San Dimas, Calif., were placed under conservatorship "to stabilize the corporate credit union system and resolve balance sheet issues," according to a statement posted on the National Credit Union Administration's Web site.

Members of the two credit unions will not experience any disruption in service, according to the release and are free to make deposits and access funds.

U.S. Central credit union has around $34 billion in assets, with 26 retail corporate credit union members. WesCorp has $23 billion in assets and approximately 1,100 retail credit union members.

Read more: http://money.cnn.com/2009/03/20/news/companies/credit_unions/index.htm?cnn=yes

[my2sense]

1. And I was just about to move

what little $$ I had to a credit union thinking they were safer.....

[napi21]

2. What happened to thes cr's? Surely they weren't involved in

CDS's or weird home loans! I think this is the first crs I've heard croaked.

[Pale Blue Dot]

3. This is important.

People assume that credit unions are automatically safer than banks, and that's simply not true. Do some research before you decide where to deposit your money:

http://www.bankrate.com/brm/safesound/ss_home.asp

Using this link will allow you to check a bank OR credit union's rating by state.

[rox63]

7. Just checked my credit union at that site

It got 3 stars, which amounts to a "Satisfactory" rating.

[aquart]

12. Mine is 3 stars, too.

Do I have to worry?

[Seldona]

11. Thanks for the link.

Four stars for the CU I have been with for many years. They have always been good with us. Still, I bookmarked that site. I am interested to see if that will change.

[Le Taz Hot]

17. Mine didn't register anything.

I guess it's too small to be listed. :shrug:

[marketcrazy1]

4. NOTHING IS SAFE

credit unions are infected with toxicassetitis just like the fucking banks!!! ""in an effort to stabilize the corporate credit union system."" the credit union SYSTEM!! jesus fucking christ!!! MORE bailouts on the way!!! how much is THIS going to cost us!!!!

[Warpy]

5. ALL institutional investors are stuck with toxic paper

That means no one is exempt: brokerage, credit union, bank, insurance company, pension plan, state government, foreign governments.

There is nothing magical about a credit union except that it is smaller and you get better service than you do from a McBank.

[Supersedeas]

10. and the Corp Media is focused on GOP talking points

[lostnfound]

14. They aren't leveraged 40 times over.

Doesn't that make a difference?

[KakistocracyHater]

6. at first I thought it said unicorns

:rofl:

[pattmarty]

8. Put down the pipe!!!!!!!!

[KakistocracyHater]

16. No, I was just really tired.

*

[high density]

9. Corporate credit unions

Which means they serve other credit unions... It will be interesting to see how this pans out.

http://en.wikipedia.org/wiki/Corporate_credit_union

[4lbs]

13. Banks and Credit Unions are safe, thanks to the FDIC and the NCUA.

In the 75 years that the FDIC and NCUA have existed, not a single bank or credit union depositor has ever lost as much as a dollar of their money if the bank or credit union goes into conservatorship.

[CountAllVotes]

15. thank you for posting this FACT

I think they (meaning "them") are trying to start a run on the banks so no one will get any interest at all on what money they may have in one. This is a poor strategy at best.

I have no intention of drawing out several thousand dollars in funds because I am worried. I'd be a lot more worried if I had my life's savings in the house waiting for a thief!

CountAllVotes

:kick: & thanks again for these words of TRUTH.