Tuesday PM October 5th, 2010
by: Jack Williams, October 5, 2010 3:10:00 pm
Three large wholesale credit unions, the ones that dole-out loans to more than 7,000 community credit unions, are now under government control. Risky mortgage investments meant billions in losses, but Debbie Matz, chairman of the National Credit Union Association, says customers won't notice much difference and should have confidence in their local credit union.
"This whole resolution process to our wholesale credit unions will be invisible to credit union depositors, to those who have their money at local credit unions. And we also want them to know that their accounts are insured up to 250,000 per account just like at banks and that the insurance is backed by the full faith and credit of the U.S. government."
Matz says credit unions will help pay-back almost 9 billion in losses over the next ten years. She says most retail credit unions are just fine and aren't affected by the meltdown at the wholesale level.