At year-end 7,728 or 97% of all credit unions have an investment in one or more Corporates. These credit unions represent 99.5% of all CU assets. Only 240 reported no investments at 12/31/2008. In addition, of the participants, 7,403 report over $3.6B in membership capital and PIC. These numbers demonstrate that the future architecture of the Corporate Network is about more than investments and settlement. The decisions made will affect every credit union's operations.
As the data show, every credit union has not just a financial interest but also a strategic stake in the direction of the next six month's events. Yet many are feeling disenfranchised. Doug Wolf, CEO of Midwest Corporate was quoted on April 24th. in the Credit Union Times saying, "[Small credit union managers] don't get too worked up about it, they go on about their business of serving members, but there's a real sense of 'what can we do?' They don't feel like they have much of a way to affect the process." Now there is something they can do. Credit Unions Rising.
Credit Unions Rising is trying to raise Awareness, provide Analysis, and drive Action for the Future of the Corporate Network and the need for Alternative Capital. The site is also open to other issues proposed by the Supporters. All supporters are invited to participate in live monthly web-based briefings and priority setting discussions with our team and all supporters.
Our first event is Tuesday, April 28th at 2 PM Eastern on Views of the Future of the Corporate Network. We will use the ANPRs, with a diversity of viewpoints that range from "Let the NCUA impose a structure on us" to "Let the market decide," as a basis for the discussion. Let's face it, you don’t have time to sort through 450 opinions and dozens of options (does NCUA either?).
Let us help you work through the variety of options being proposed so you can make good decisions about what actions you will support and those you wish to oppose.
Credit unions have been the most successful financial performers during this current crisis. They have continued to lend in circumstances in which others have been unwilling or unable. Credit unions have the earnings power to pay the systemic losses from the Corporates whether incurred over the next three, five or seven years.
Instead of approaching Congress with a problem, credit unions' political capital should be used to strengthen the current cooperative model including capital options, an enhanced regulatory structure and numerous initiatives that would help the industry better serve members in a time of crisis. Join Credit Unions Rising today to ensure that future.