Another credit union bankruptcy

[harry123]

I had thought credit unions were a scant safer than the big banks but this story via Bloomberg about a new bankruptcy shows that's not the case.

http://www.creditwritedowns.com/2008/07/credit-unions-arent-immune.html

[Hydra]

1. The madness continues

And to think there are still light and sunshine people here on DU insisting the trouble is over.

[Pale Blue Dot]

2. No, see, you don't understand.

The stock market has gone up over 400 pts. in the past 2 days, so it's obvious that the worst is behind us.

:sarcasm:

[Common Sense Party]

8. I've never said the "trouble is over."

I have said, and will continue to say, the doom and gloom and hype and hyperbole are overblown.

It's bad, yes.

It may get worse before it gets better.

But it will get better.

So far, we're at about the same pace of bank foreclosures that we were at in 2002--12 of them failed that year, IIRC. Will the pace quicken in the second half of the year? Maybe. Thank God and FDR for the FDIC.

[Pale Blue Dot]

9. 5 banks have failed in the part two months.

That hasn't happened since sometime before 2000.

http://www.fdic.gov/bank/individual/failed/banklist.html

Add that to the 4 credit unions that have failed this month alone, and where does that leave you?

[Common Sense Party]

12. That leaves you where we are. It's not the worst we've ever seen.

From 1987-1991, a total of 1,901 banks and S&L's failed. That's more than 1 per day. (Again, thanks to Republicans and the Fed.) And still, somehow, the system survived.

[Pale Blue Dot]

3. 4 have failed in the past month!

This seems to be going largely unreported. In addition to the one you posted above, I also found these:

Meriden F.A. Federal Credit Union Closes

July 16, 2008, Alexandria, Va. -- The National Credit Union Administration (NCUA) placed Meriden F. A. Federal Credit Union of Meriden, Connecticut, into liquidation today.

The NCUA Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the Meriden F. A. Federal Credit Union within one week. Through the NCUA National Credit Union Share Insurance Fund, credit union members’ deposits are insured to at least $100,000 on regular accounts and $250,000 on certain retirement accounts.

NCUA made the decision to liquidate Meriden F. A. Federal Credit Union and discontinue its independent operations after determining that the credit union is insolvent. It has no prospects for restoring viable operations. At the time of liquidation, the credit union served 206 members and had assets of approximately $337,968.
http://www.ncua.gov/news/press_releases/2008/MR08-0716.htm

NCUA Liquidates Sterlent and Cal State 9 Credit Unions

July 1, 2008 Alexandria, Virginia - The National Credit Union Administration (NCUA) today liquidated two state chartered California credit unions, Sterlent Credit Union of Pleasanton and Cal State 9 Credit Union of Concord. Patelco Credit Union purchased assets and assumed most shares of both institutions.

In the case of Sterlent Credit Union, the California Department of Financial Institutions agreed that the NCUA would serve as liquidating agent of Sterlent. Immediately following the issuance of the order, NCUA liquidated Sterlent and entered into an agreement with Patelco Credit Union to sell certain assets and liabilities of Sterlent to Patelco. At the time of liquidation, Sterlent Credit Union had approximately $94.6 million in assets. Sterlent was established in 1936 as EBTEL Federal Credit Union and became a California state chartered credit union in 2002.

The Cal State 9 Credit Union liquidation and purchase and assumption by Patelco Credit Union had been announced May 22, and was completed today. Cal State 9 had been operating under NCUA conservatorship since November 2007. Chartered in 1948, Cal State 9 was originally chartered to serve University of California employees. It had assets of $339 million and served nearly 29,000 members.

Members of the two liquidated credit unions experienced no interruption of credit union service as their credit unions were purchased by Patelco Credit Union. Patelco will continue operating branches of both purchased credit union, and member accounts in all involved credit unions are federally insured by the National Credit Union Share Insurance Fund (NCUSIF) up to at least $100,000.
http://www.ncua.gov/news/press_releases/2008/MA08-0701.htm

[harry123]

4. What's going on

I didn't see those. I'll have to add an update to the blog entry. thanks.

[Pale Blue Dot]

5. Harry, did you see this?

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3416416

[harry123]

7. Meltdown continues unabated

I didn't see that. And you know, we here on this forum all expect the bankruptcies that are coming because we have been informed but it is still amazing to watch this thing unfold.

Thanks, Finnfan

[DemReadingDU]

10. I wish the NCUA had a link for failed credit unions

This link is for failed banks
http://www.fdic.gov/bank/individual/failed/banklist.html


Failed credit unions would be easier to track if the NCUA would post a link, but I have been unable to find anything.

[Pale Blue Dot]

11. The closest they have is right on their front page

http://www.ncua.gov/

You have to scroll through all of the news items to find the failures.

[harry123]

6. What's going on

I didn't see those. I'll have to add an update to the blog entry. thanks.