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Saturday, September 27, 2008

Why Credit Unions Weather US Financial Crisis?

The US financial crisis effect on credit unions seems quite minimal. Cooperatives normally don't hold many of the investments that are poisoning financial institutions, so they have weathered the crisis fairly well.

Here in the Philippines Cooperatives do not practice selling off mortgage to other institutions, 100% mortgage loans are kept on cooperative books, in the US 70% of their mortgage loans were kept on books according to the Credit Union National Association.

Credit unions in US are lobbying Congress and the Treasury Department to be included in any legislation that would allow financial institutions to unload bad mortgages. CUNA said few of its members would likely need the help, but the group wants to make sure that they have the same options as other lending institutions.

Source: (Credit unions weather crisis) Ylan Q. Mui Washington Post

1 comment:

Nick said...

Contrary to what the main stream media says, wall street as a whole (capitalism) should not be blamed for the actions and policies set forth by OUR congress. There are, in fact, corrupt men in wall street who partnered with corrupt men in government to engineer a win-win situation at the expense of the taxpayer. Capitalism (and our nation or any nation) will only survive when the good and virtuous people are running it. Which means, come this November, you must vote for good men and women who stand by principle and uphold our constitution and not just give lip service to causes that seem noble and just.