Matz said:
"While the worst of the crisis now appears to be receding into the rearview mirror, we cannot forget its lessons. First and foremost, we cannot forget that the federal government had to pump $26 billion into the credit union system to prevent it from collapsing. Without an infusion of $20 billion from NCUA’s Central Liquidity Facility and an additional $6 billion from NCUA’s line of credit at the U.S. Treasury, the credit union system as we know it would probably not have survived.
Even with this extraordinary assistance from the federal government, 102 credit unions still failed. Many of those credit unions appeared to have sufficient capital. That is, until they collapsed. Those failures cost the Share Insurance Fund three-quarters of a billion dollars. Through strong supervision, we were able to prevent an additional $1.5 billion dollars in losses from troubled credit unions that were on the brink of failing."
Read Matz's speech.
Credit union people - why do you say that it wasn't a gov't bail out? Did you even know it was that big?
ReplyDeleteYes, we knew it was that big because we had to pay for it. NCUA coordinated with the US Treasury Dept. during the meltdown and borrowed $6 billion from the government (fully paid back with interest) and our system provided all the additional needed liquidity. Liquidity which was needed because of the meltdown created by big banks, mortgage companies and others who specialized in selling over priced homes to people who couldn't afford them and then securitized the paper and sold that crap around the world. The credit union system was and is safe and secure, especially if we can avoid the traps created by the 'to big to fail' banks and their Wall Street buddies.
ReplyDeleteNice try at deflection talking about banks, but back to the point. You're telling us that when the NCUA's chair said the federal government pumped $26 billion into the credit union system, you think she's lying? And that it was only $6 billion borrowed and the rest came out of credit union's pockets?? You really should learn how to do at least a little of your own research - it's not that difficult and clearly you're listening to the wrong people. It didn't take me 10 minutes to find some of the loans. I found $10 billion that the CLF borrowed from the treasury in 2010, and I see the $2.6 billion in outstanding loans to NCUA, as of last month. Try the Federal Financing Bank's website in the press releases section - and notice FDIC never borrowed any money. In your defense - I do have to say - the post office's loans make credit unions look good.
DeleteRight, it's a bigger bail out on a % of asset basis.
DeleteCuna= liar.
My board chair reminded me that Hample said it would only be 10 bps and credit unions ought to pay it and move on. Just the write down of mcs at the corporates was than 10 bps. He's CEO now!
Paid it all back?
ReplyDeleteStill owe us treasury and the unrealized loss is (still) $6billion.
This story hasn't entered it's final chapter.
Then there's texans and keys and a lot of camel 4/5 credit union assets.
Anybody want to buy some church loans??
Foreclose on the Church and GOD is getting mad. Not sure the credit union's are doing the Good Lords' Work. Tell Jesus to get off the cross...we need the wood.
ReplyDelete