Credit Union Journal (paid subscription) is reporting that United FCU is using an associational common bond as a vehicle to allow all the depositors of Griffith Savings Bank to join the credit union.
The depositors of Griffith Savings Bank by joining the American Consumer Council become eligible for membership in United FCU, thereby satisfying the field of membership issues related to this rare transaction. The transaction is still awaiting regulatory approval.
This is just another example of how some credit unions have used an associational common bond to make a mockery out of the concept of a common bond and to allow them to serve the public at large.
Oh, I see that Dr. Leggett, determiner of all things right and wrong, wants to deprive a group of consumers financial services because of the soon-to-be failure of a for-profit financial organization. A non-profit financial organization steps in to continue affordable financial services to that community and that is bad.
ReplyDeleteOkay then. Where were the other for-profit banks willing to step in and bring those customers into their bank keeping the financial services going for those consumers? The silence is deafening!!!
Well, Dr. Leggett, can't the all powerful ABA find a bank ready to assist those customers of a failing back?!?!?!
Regulators probably like this one. The legality of these inclusions has been tested. Diversification of FOM lessens concentration risk, thereby benefiting the credit union insurance fund. Least cost resolution benefits FDIC. Making a banking problem go away without shifting liability to the taxpayers benefits everyone.
ReplyDeleteKeith,
ReplyDeleteGeniuses like the initial poster are one of the biggest reasons why you'll continue to enjoy iron-clad job security --- and why the credit union "movement" is headed for the ditch.