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Re: [Pen-l] Bad Times for Banks Means Boom Times for Credit Unions



On Thu, Dec 11, 2008 at 6:18 PM, Jim Devine <jdevine03@xxxxxxxxx> wrote:
> raghu wrote:
>> It is a direct indictment of unregulated free market finance that
>> credit unions - the closest thing to a nationalized bank in this
>> country are doing extremely well compared to commercial banks.
>
> huh? credit unions "nationalized"? no, they're community banks,
> usually sponsored by corporations, universities, labor unions, etc.
> and involving people associated with the sponsoring institutions. The
> rules have become lax over the years, but the CUs origins still have
> an impact.

I am taking some liberties with terminology here; maybe I should have
said "non capitalist owned" banks. The important thing they do not
have the rapacious profit motive that led the commercial banks to
over-leverage etc.


> CUs usually don't do mortgage lending at all. They're mostly for
> smaller loans, like for cars. Maybe Texas is different...

Yes they do. I am a member of a CU and I constantly get offers for
mortgage financing. The Time article I referred to has statistics on
the level of mortgage lending by CUs.
-raghu.


--
"His credit rating is so bad that his junk mail comes postage due." - Anonymous
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