Posted by Charles Bruen:
Kinecta Federal Credit Union is a $3 billion + federal credit union located in Manhattan Beach, California. You would think that at that size they would have a better looking website. What a mess!
Came across this blog post from last year where I questioned the NCUA's decision to prop-up this credit union. Well, the effort to work with the Credit Union to resolve their issues didn't work out very well.
Posted by Charles Bruen in February 2013:
On February 8th the NCUA seized NCP Community Development FCU. The Credit Union, formed in 1999 and located in Norfolk, VA, failed because compensation drained their net worth.
What caught my attention was this paragraph from the Credit Union Times article:
This make strategy makes no sense to me. Shut it down, let it go and move on. Those folks managing credit unions know the importance of being efficient and making financially sound decisions. Spending our members money to prop up this credit union is strictly a political decision ... part of the ongoing effort to invest in and support the political agenda involving community development credit unions.
This $2 million credit union with 709 employees paid zero for deposit insurance or NCUSIF stabilization in 2012. The cost to the NCUA for managing this seizure and the effort to "resolve the issue" has to be huge. Probably $10-$20 thousand per year or more. I've seen a study that estimates the cost of supervising the average credit union at $5,000/year so the special effort to "resolve" the issues with NCP would push the supervisory fees way up.
I say forget it. Close this loser and move on. I don't see why the NCUA would spend our fees on NCP Community Development FCU. This is a social experiment we can't afford.
Excellent headline and good story!
The passage of I-502 in Washington last November has prompted extensive discussion regarding how credit unions should handle requests to open a business account for a business in the newly legal “marijuana industry.” The NWCUA's David Curtis offers several factors to consider before deciding whether or not to bank these types of businesses. [Read article at NWCUA].
You've probably heard that credit unions have lower fees than banks and offer better rates on loans and credit cards. But while the financial incentives for joining a credit union have been well-documented, membership isn't growing as fast as you might think.
"A lot of people know about credit unions, but their advantages aren't always top of mind," says Patty Briotta, spokeswoman for the National Association of Federal Credit Unions in Washington, D.C. "Oftentimes, people don't look into credit unions until they're shopping for a particular product like a mortgage or a car loan, or when they move and need a new financial institution." [Read article at FoxBusiness/by Michael Estrin].
In Ohio, this serious crook gets 17 months for stealing $480 thousand. Seems to me it should have been 17 years.
Next door in Illinois, these credit union thieves face 30 years for stealing $320 thousand.
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