Question for the economic savy guys

[SlowLX]

With all the bank failures going on, how are the credit unions doing?

[dankstang]

excellent question...!

subscribing

[SlowLX]

More specifically Navy Fed :o I'm not super in depth on all that jazz, so at a certian point it seems like a different language.

[thesource]

I'm going to take a stab at this but will say they are much better off than the banks are right now . From what I understand , they are customer owned and operated . I have heard they are held more accountable by the members than what a bank would be held to by its share holders or customers .

[01WhiteCobra]

.


In response to the President's statement last night, Texas Credit Unions clarify that they remain well-capitalized and fully insured. What follows is a statement by Dick Ensweiler, President and CEO, Texas Credit Union League:

Last night, President George W. Bush, in describing the economic crisis in America, brought up the issue of government deposit insurance. It's important for credit union members and the public to know why they can count on the safety and soundness of their credit union.

Credit Unions, which function as not for profit, non-market-based financial cooperatives, have remained well capitalized nationwide and are in particularly good condition in Texas, even amidst the current economic crisis. Credit unions are owned by the members and are not publicly traded on Wall Street. As such, they remain largely insulated from severe market swings. In addition, members deposits are safe and sound, secured by a federal deposit insurance fund established for credit unions specifically and that fund remains healthy. Deposits are insured up to $100,000, and up to $250,000 for retirement accounts.
For more about federal savings insurance at credit unions, see the "America's Credit Unions" website at www.creditunion.coop.

To determine how much of your savings at your credit union is covered by federal insurance, visit the NCUA insurance calculator at http://webapps.ncua.gov/ins/

About Texas Credit Union League
The Texas Credit Union League is the official trade association for credit unions within the State of Texas. The League represents, on a state and federal level, nearly 600 credit unions state-wide, which are owned by over 7 million members (about one-third of the state's population). Organized in 1934, the Texas Credit Union League protects credit unions and promotes their growth, strength and unity. It accomplishes the mission through advocacy services, regulatory and compliance advice, training and event activities, marketing and public relations actions, and by delivering innovative, high value and profitable business solutions to the members. For more information, visit www.tcul.coop and www.creditunionmember.org; write to us at 4455 LBJ Freeway, Suite 1100, Dallas, Texas 75244, or call us at 469-385-6400.

[HOOCBB]

so, let's say Joe Blow wants to join a CU, how would he go about that? Just walk in and say I want to join? Or is it different from CU to CU?

I don't want to contribute to the failure of another bank, but with the way things are going, I've got to cover my ass.

[AL P]

You have to go in wearing a ski mask and carrying a fake gun. Yell "give me all your money!!". That's the password for joining. Good luck.

[HOOCBB]

You have to go in wearing a ski mask and carrying a fake gun. Yell "give me all your money!!". That's the password for joining. Good luck.

lmao, can always count on a laugh from time to time...

[01WhiteCobra]

You have to go in wearing a ski mask and carrying a fake gun. Yell "give me all your money!!". That's the password for joining. Good luck.

But make sure when they laugh at you to tell them you are serious.


CENTEREACH, N.Y. -- Police said a bank teller in suburban New York had a simple question for a would-be robber: Are you serious?

Police said that was enough to spook the female suspect, who fled the Roslyn Savings Bank in Centereach late Thursday afternoon without a dime.

Police said she walked into the bank located inside a supermarket on Route 25 about 4:49 p.m. and handed the teller a note demanding cash and threatening to open fire with a gun if the teller didn't comply.

That's when the teller apparently expressed her crime-fighting skepticism. Police said the woman left without ever showing a gun.

They said she is also a suspect in the robbery of the Bank of Smithtown, also in Centereach, on September 23

[Sgt Beavis]

so, let's say Joe Blow wants to join a CU, how would he go about that? Just walk in and say I want to join? Or is it different from CU to CU?

I don't want to contribute to the failure of another bank, but with the way things are going, I've got to cover my ass.

It varies from CU to CU. For instance, membership at the EDS Credit Union is open to the following:

* All persons who live or work in Collin County Texas.
* All persons who live, work, worship or attend school within a fifteen-mile radius of the EDS Credit Union branch located at 5640 Democracy Drive, Plano, TX 75024.
* All persons who live, work, worship or attend school within a ten-mile radius of certain EDS Credit Union locations.
* Click for a complete listing of zip codes in Texas, Michigan and Virginia eligible for EDS Credit Union membership.
* EDS employees on the U.S. payroll, retirees, and employees of majority owned subsidiaries on U.S. payroll systems.
* Full-time contractors or vendors who regularly work on EDS facilities at one or more EDS locations in the United States.
* Family members of all individuals who are EDS Credit Union members are also eligible to join, regardless of where they live or work within the United States.

https://www.edscu.org/home/about/membership

I joined because they have some of the lowest interest rates in the area. I was able to refi my wife's car for 4.74% I also got a $20,000 unsecured loan for 6.0% @ 60 months.

[1fastdem]

A lot of excellent info on this thread so far. Here is some added information.

It is important to note that credit unions can be Federal or State Credit unions and some "Credit Unions" are actually banks that began as CU but converted into banks later.

Credit unions are doing well as a whole. One reason is because they were legally barred from the type of investments doing so poorly now. (specifically investing in risky mortgage-backed securities) Federal Credit Unions are legally limited to the type of investing they can do as is written here ( http://www.ncua.gov/RegulationsOpinionsLaws/fcu_act/fcu_act.pdf page 14 of pdf). They are allowed to lend to members, other credit unions, and make government backed investments (ie. treasuries, gov. backed securities). The worst they could invest in was Fannie Mae and Freddie Mac and they could invest a total of no more than 10% of the CU's ready cash .

Most State regulations are similiar to the Feds. The bank "credit unions" do not have these restrictions.

[thesource]

Credit unions all have their own requirements . Several years ago , it was kind of hard to become a member at some unions . Over the past couple of years , I have noticed they have not been so strict . I am a member of three myself , none of which I actually have checking accounts with . They were done when applying for vehicle loans .