Last week, I reported that the Board of Directors of Gropaco Federal Credit Union (Groveton, NH) recommended that its members support liquidating the credit union.
The Berlin Daily Sun is reporting that the membership of the Gropaco approved the voluntary liquidation of the credit union in a special meeting held on October 12.
The credit union hopes to finalize the liquidation in six months.
Read the story.
Wait, the members had to approve the liquidation? But I thought the members didn't really own their credit union. I'm so confused....
ReplyDeleteThey get to own it but only at the end when it fails to continue. Not what they needed.
DeleteAnd if there are excess funds remaining (aka capital), they most likely will be returned to the members. Wow, what a concept!!!
ReplyDelete'Returned' to members. Who sent what when?
DeleteIf they can get 90cents on the dollar liquidating during a glut of supply and declining demand, even if it has 10% net worth, no excess for owners.
If less than 90cents, then we cus all get to really own GFCU when the loss is 'returned' to us from the NCUSIF.
And keep in mind.
ReplyDeleteNo other credit union wanted it.
None.
smart members. CU is too small to continue, loans can be sold with 2%-4% reserves for losses and members put 12%-15% in pockets along with all their deposit money. why not liquidate.
ReplyDelete