Credit Unions Bailed Out - what about us?

On Saturday, September 25, 2010 the Wall Street Journal published an article titled, "Credit Unions Bailed Out."

The article starts,
"Two years after the peak of the financial crisis, the federal government swooped in to stabilize a crucial part of the credit-union sector battered by losses on subprime mortgages.
Regulators announced Friday a rescue and revamping of the nation's wholesale credit union system, underpinned by a federal guarantee valued at $30 billion or more. Wholesale credit unions don't deal with the general public but provide essential back-office services to thousand of other credit unions across the U.S.
The majority of retail credit unions are sound, but they will have to shoulder the losses through special assessments over the next decade."

Click here to read the entire article.

So what does this mean to you as credit union members?
  1. Eaton Family Credit Union is safe and secure. In our most recent audit exam, "it was determined that Eaton Family Credit Union has a low level risk." Click here to read our "2009 Annual Report" and hear our 2009 Annual Meeting.
  2. Corporate One Federal Credit Union, our corporate credit union based in Columbus, Ohio, is safe and secure too. Recently a credit union expert stated, "If NCUA’s proposed capital standards were in place today, Corporate One would be fully compliant with the retained earnings requirement."
  3. How will the NCUA special assessment mentioned in the Wall Street Journal article affect Eaton Family Credit Union? We are assessed base on our asset-size. Just like you, we put away money in our "rainy day" fund so we'll need to keep doing that to pay our part.
  4. What's going to happen to NCUA insurance? All accounts at Eaton Family Credit Union are insured up to $500,000. We believe in the public/private model of combining NCUA insurance with excess share insurance (over $250,000) through ESI.
  5. What is Eaton Family Credit Union's exposure to risky investments? Our investment policy has always been very conservative. Yes, like most financial institutions we have some mortgage-backed security investments but they are not a large part of our portfolio.
Please contact me if you have any questions or comments.

Thank you for your support,

Mike Losneck
President & CEO

Comments

Eaton Family Credit Union said…
"...credit unions in Ohio are enjoying record growth in customers." from Teresa Dixon Murray, The Plain Dealer http://fb.me/J6klQnHL
October 4, 2010 at 1:36 PM
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