Monday, September 27, 2010

Credit Union ONE Member Brief

On September 25, 2010 the NCUA took three out of state wholesale (corporate) credit unions into conservatorship. The actions the federal regulator has taken were meant to stabilize, resolve problems of and reform the corporate credit union system. The NCUA took this action to instill stronger safeguards for credit unions and to protect taxpayers.

The leadership of Credit Union ONE is here to assure our members that:

• CUO and all credit unions in Michigan have federal savings insurance to the same level as that provided to bank depositors ($250,000) and is backed by the full faith and credit of the U.S. government

• CUO has never engaged in any subprime lending, of any kind and we are lending responsibly

• CUO did not have investments in the credit unions affected by the government action taken this weekend

• No tax dollars will be used; credit unions will pay all of the expenses associated with this action

• Although we are not immune from the effects of the economic turmoil or the costs of the reported losses to other credit unions, CUO remains fully committed to its members and is confident in the future

• CUO will make over $200 million of loans this year in Michigan to Michigan residents and we continue to provide a safe harbor for federally insured savings to over 110,000 Michigan residents

Moving forward, CUO intends to maintain our focus on adapting to today’s economic reality and maintaining focus on delivering financial solutions that meet the evolving needs of our members.