Sunday, July 04, 2010

Credit Union Merger Fails

I noted here on May 26th that the Keys Federal Credit Union (our bank since 2004) was merging with the Dade County Federal Credit Union.

Mysteriously, and with very little information as to why, the Dade County FCU backed away from the merger, keeping KFCU under the supervision of the National Credit Union Association.

There doesn't appear to have been a Plan B in place.  Nevertheless, we're OK with leaving our deposits where they are, since they are well below the NCUA deposit insurance that covers them.

It seems to me that a membership organization, which KFCU is, owes its members some kind of explanation or, if not them, the NCUA, but I guess bank secrecy has some kind of exemption from that rule.  God knows, the Federal Reserve is a model for that.

Maybe we'll take a trip to the mainland and stay at a Red Roof Inn.


Anonymous said...

Can you imagine such a thing? A membership organization, acting in secrecy, little transparency about major organizational decisions....lacking a Plan B for effective operations? What kind of organization would that be?

Anonymous said...

I got over $80,000 there earning over 5% for 3 more years and it's insured, my last avenue of income now all the other cd's have expired and there are little well paying jobs. I'll ride this one as long as I can, the worse that should happen is they fold and send me a check. Dam this Congress and their "we take any loan" FHA/Frannie/Freddie failed socialized sub-prime mortgage experiment. $500 billion in losses and counting...could go as high as $5 trillion...only good thing, if deflation continues it could add another few percent to the purchasing value of my funds. With little taxes and no job, they can't grab much from me...:)

Use OpenDNS