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View Diary: San Jose: Millions Withdrawn from Bank of America and Wells Fargo! (288 comments)

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  •  But from the other side . . . (1+ / 0-)
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    Senor Unoball

    Interesting story here on what the credit unions are facing as this flood of funds turns their way (story dated August 17, 2011):

    Oregon and Washington credit unions were reminded last week of something they know full well: the S&P downgrade of the nation’s credit rating and the market turmoil could bring in a substantial deposit influx at a time loan demand remains tepid.

    In a message emailed to its members, the Northwest Credit Union Association noted that many investors are “just converting their investments into cash and waiting out the turmoil.”

    The timing, however, “for the potential of servicing more deposit dollars could bring additional stress. . . . [snip] The CU challenge could surface in the NCUA’s 7% net worth ratio, said NWCA.“If credit unions’ capital-to-assets ratios dip below 6%, credit unions’ regulatory burdens increase significantly,” said Troy Stang, NWUA president.

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