A case for credit unions during the financial crisis is made by the executive director of Filene, Mark Meyer, in the attached article.
The Cooperative Business Journal published “Does Capitalism Need Cooperation?” in their November/December 2008 issue and it highlights the uniqueness of credit unions in three distinct ways:- Simplicity
- Member-ownership
- Charter
In summary, Mark states, “Credit unions can’t solve all financial problems, but they are certainly a better shelter for battered consumers.”
Click here to check out the article and respond below with any comments you may have.
Comments
5
Mark,
Can you please send a copy of your article to the following people:
1. Michael, E. Fryzel, NCUA Chairman who recently was on record as saying: “The (Treasury Department) decision not to undertake the purchase of distressed assets…is of concern to me,” Fryzel stated in a letter to Congressional leaders. “A TARP-like program, which creates a market for certain distressed assets, would be of significant and tangible benefit to credit unions. I therefore request your assistance in securing those funds necessary for NCUA to construct a TARP identical to the one” created by Congress for Treasury administration under the Emergency Economic Stabilization Act (ESSA). “NCUA would establish standards and procedures for the use of such funds.”
2. Pat Keefe, VP Communications for CUNA who said: “Our position is that whatever is available for the banks should be available for credit unions.”
Our 100 year history is at risk. Credit Unions were offered tax payer money after the Great Depression and we refused it. Filene was in favor of asking for $100 million in reconstruction credits to be pumped into credit unions.
Bergengren strongly opposed this position, and his view prevailed this time. “To him, it meant destroying the vital principle of the whole movement by converting a community enterprise into an agency of the government. To teach people how to help themselves was more important by far in times of depression than at any other time.”
If credit unions accept tax-payer bailout money – we cease to be a cooperative in my opinion and open the doors wide open for “everything available to banks” including taxation, CRA, and the like.
Thank you for this post and for all Filene does. I’m a loyal subscriber.
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Great piece of work-
and I agree with Denise. Once you “step in it”—it’s hard to get off. Why would credit unions ever want to be grouped with “bankers”?Link to this comment
Denise and Roger,
Thank you for your comments and on-going support of Filene. We work hard on behalf of consumers and credit unions. .
Cheers and happy holidays, Mark
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Great article, Mark. And I loved that Twain quote. The stability of simple, responsible, consumer-driven banking model beats cannibalism and a multi-billion dollar bailout every time.
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Great article, and I am on board with it. However, I do want to point out that that STCU article referenced really shouldn’t be characterized as “recently” since it is dated December 8, 2007. I’m not sure STCU would write the same thing today. It would be great if they are still that solid in their mortgages.
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