Regulators Seize Control Of 2 Credit Unions

[Renae]

DRUDGE REPORT 2009®

CREDIT UNIONS? I wonder which ones? I'ma huge fan of CU's and all my money... is in two CU's.... this is madness.

 

[Kandahar]

DRUDGE REPORT 2009®

CREDIT UNIONS? I wonder which ones? I'ma huge fan of CU's and all my money... is in two CU's.... this is madness.

Your deposits are safe even if the government takes it over. The only ones who need to be worried are the investors.

 

[Renae]

In the latest dramatic move by federal authorities to prop up the nation's banking system, regulators late Friday seized control of the two largest wholesale credit unions in the U.S. after finding that their losses on mortgage-related securities were even larger than previously thought.

U.S. Central Corporate Federal Credit Union and Western Corporate ...

Regulators Seize Control of Two Largest Corporate Credit Unions - WSJ.com

 

[GottaHurt]

Your deposits are safe even if the government takes it over.

In light of recent events, I'd say my money is safer if the government doesn't get involved.

 

[Kandahar]

In light of recent events, I'd say my money is safer if the government doesn't get involved.

Really? So you'd be better off if your bank collapsed and the FDIC didn't exist? Care to elaborate a little?

At some point, I think a major nationalization of all the "sick" banks is going to be necessary. The government can't keep bailing them out while getting nothing in return, because it isn't fair to the taxpayers...but at the same time, it can't just allow them all to collapse, as this would start a cascade effect because they all owe money to each other. Temporary nationalization of some sick banks is rapidly becoming the only reasonable course of action.