Credit unions have provided a serious alternative to banking with big banks. Their strength in their communities commands a market share that the big banks want. So this news is ominous. Given what I know about credit unions around the country, the theory of financial problems does not make sense. Besides, we did not seize AIG, Citibank or Goldman Sachs. We just gave and lent them $12 trillion.
If you know the real story here, I would love to hear it.
U. S. seizes top credit union clearinghouse
Excerpt:
WASHINGTON, March 20 (Reuters) – Regulators seized the top clearinghouse for U.S. credit unions, citing a critical deterioration in the finances of the provider of services to thousands of retail credit unions.
The National Credit Union Administration (NCUA) took control of U.S. Central Federal Credit Union, a huge wholesale credit union with about $34 billion in assets based in Lenexa, Kansas.
It also seized Western Corporate (WesCorp) Federal Credit Union of San Dimas, California, another corporate credit union with $23 billion in assets.