Two credit unions seized by the government

Credit unions are great alternatives to banks; however, they are not immune to the toxic mortgage-backed securities that are making life miserable these days.

On Mar. 21, The Washington Post released an article about the recent seizure of two large companies that provide critical banking services to the credit union industry and function as central banks for the credit union system.  These two companies, U.S. Central Corporate Federal Credit Union, based in Lenexa, Kan., and Western Corporate Federal Credit Union, based in San Dimas, Calif., invested funds for thousands of small credit unions.  A large portion of these investments were in mortgage-backed securities, which have since threatened the solvency of the two seized companies. Projected losses may exceed their available capital. 

I finally joined a credit union: Delta Community Credit Union

Last week, I attended the grand opening of a new, full-service branch of Delta Community Credit Union (DCCU), Georgia’s largest credit union with more than 183,000 members and almost $3.0 billion in assets.  The grand opening of its Duluth location is the credit union’s 18th branch in the metro-Atlanta area.  

I was invited to attend the ribbon-cutting ceremony and accepted with great enthusiasm, especially since DCCU is my new credit union as of last week.  I was thoroughly impressed with the event, which showcased a beautifully designed, state-of-the-art facility complete with a cozy training room for financial education.  I was even more impressed with the company’s mantra, which stresses “always doing the right thing”.  Still more extraordinary was the fact that the dedication ceremony started off with a solemn prayer.  I suppose we wouldn’t be in such an economic maelstrom if everyone were a member of a credit union.  

Why you should join a credit union now

If you are not a part of a credit union, you should be.  Especially in these crazy times, a credit union is like a breath of fresh air, a respite from the financial miasma caused by many of the for-profit, retail banks. 

Simply put, credit unions are member-owned, not-for-profit financial institutions that provide many of the same financial services that banks do, including checking and savings, loans, credit cards and ATMs.  However, they have added benefits such as better interest rates, reasonable loan terms, educational training, special products, and top-notch customer service.