In its endorsement, the paper writes:
"It will be good for the economy. It would allow for more commercial lending, more branches and more jobs. It would let HarborOne expand its lending far beyond what is now possible. It also will raise millions of dollars in taxes because banks pay taxes, while credit unions don’t." (emphasis added)
Read the paper's editorial endorsing the conversion.
hmm.
ReplyDeletethis is interesting and also good for credit unions, like mine, that want the option. as time has passed and cuna has been unable to do anything for credit unions except whine about banks, it has become painfully clear that we are not going to recognize any regulatory improvement to the charter.
however, it would still be better if congress made ncua go back to the reasonable conversion rules like Henry Wirz pointed out.
thanks Keith. we would have never seen this from credit union pepole.
This CU is not converting to a bank. It is converting to a savings bank. There is no provision in the Federal Deposit Insurance Act allowing for mutually-owned (real) banks. By the way, this CU will be getting a bunch of cash back from the NCUSIF. More proof that that insurance fund works as promised.
ReplyDeletePaying for CORPORATE credit union losses was never part of the promise to NCUSIF members, but all who stayed away from CCUs must pay anyway.
DeleteHarbor One will have lost more precious capital dollars to this fund in the past few years than it will get back as simply a cash asset.
So yes, the fund works, but for who. As a cu President, not for me.
Very good point.
DeleteAs a cu president, it does not work for you. Neither does Cuna (cu not accountable).
"more proof the insurance fund works" would be comical if it wasn't so pathetic.
Must be be a Cuna (cu not accountable) employee. Maybe it's bill "white paper on hashish" Hampel
FDIC does not charter banks. Banks are either chartered by either federal or state regulators. HarborOne is converting to a state chartered cooperative bank.
ReplyDelete