The writing on the wall?

[TiAvenger]

New opening page from my credit union.

**************************continues to be financially strong and member services driven, with over $6.5 million in capital. The Credit Union maintains its capital level well above the National Credit Union Administration's (NCUA) “well capitalized” standard.

************** has not participated in any form of sub-prime mortgage lending, and as a result of this sound business practice our exposure to sub-prime mortgage loan losses is limited.

All member deposits are insured up to at least $100,000, and all IRA deposits are insured up $250,000 by the NCUA. Take heart in knowing that not one penny of insured savings has ever been lost by a member of a federally insured credit union. For more information about NCUA, please visit www.ncua.gov or call us at 559-686-1791

* side note:  they just closed a branch only 4 outta 5 left.

[MendoDave]

Get you money now and keep it safe under the bed!

[jdubbs32584]

New opening page from my credit union.


* side note:  they just closed a branch only 4 outta 5 left.

I believe as long as you have less than the maximum insured amount in there, you should be fine. If the bank goes under, you'll get your money from the gov. since they insured it.

If you're nervous, move it to a big bank like BofA or Wachovia (yes, I know they're laying off 10,000 people but I work in Banktown, USA and know how they operate. They're not going anywhere right now.).

[erkishhorde]

For a second I thought you wrote the writing on the stall.

[DucPete]

Two points.  $6.5M is not a lot of money.  Then again I work for the largest consumer bank in the US so my view is jaded.  Perhaps $6.5M is enough to cover any issues that may come up.

Secondly, many banks at time like this will end up going under because everyone pulls their money out.  If people would leave their money in place it would probably be fine.  That's the reason the FDIC insures $100k.  If you have less than $100k and $250k in an IRA than you technically have nothing to worry about.

[ducati_tim]

Credit unions will come out of this fine. Credit unions are different from banks in the type of investments that they are allowed to make. If you liked them before, you should still like them now. Really, the only thing that credit unions have to fear are panicking depositors.

[He Man]

I havent been up to date but I dont think the federal bank has ever actually handed the money back in case a bank goes under. They take everyones account info and give it to another bank, then give the bank the funds the original owners had. Its like nothing ever happened. Though I wonder how long that whole process takes, a bank recently went under again i believe. Is that what happene to Greenpoint bank?