"If there's a calm in the economic storm, it may be credit
unions, whose investors are sleeping through the night,"
reported Susan Lisovicz of CNN Sept. 18 during an
interview with Neil Weinberg, senior editor of Forbes
"We've had mergers and bailouts and a lot of us
are nervous. Tell us why we should take a second look or in
some instances a first look at credit unions," asked Lisovicz,
amid banner headlines that said, "Credit unions weather rough
Weinberg's answer focused on two reasons why "credit unions
are a safe harbor":
unions are operated as a "stable and profitable business,
taking deposits from you and me through our savings and
checking accounts, and lending out money for car loans,
which earns a spread that is profitable."
- Most credit
union accounts are federally insured by the government up to
"They tend to be conservatively managed and federally
insured, which in this day and age is what you want," advised
He explained that through lobbying in Washington, credit
unions have "managed to open the doors of membership quite a
bit" and in many cases a person related to someone in an
affinity group can join a credit union.
"You want to jump on board," Weinberg advised.
When asked what is it about credit unions that doesn't lead
to the same kind of forecast for other commercial
institutions, Weinberg said credit unions haven't got into the
same trouble as commercial banks that specialized in mortgages
and made risky home loans.
"Typically, credit unions have federal charters and federal
inspectors, with strict, tougher rules. Because they began as
agricultural cooperatives, they are run conservatively. You
want to go for those credit unions."
"I got the message," said the Lisovicz. "You want to go for
a credit union. Grab them while you can."
The Ohio Credit
Union League, with offices in Dublin, is a state trade association
representing 438 credit unions. Credit unions are not-for-profit
financial institutions owned and democratically controlled by
their members. Ohio credit unions provide savings, loans, and
other consumer financial services to their 2.6 million members. To
learn more, visit
www.OhioCreditUnions.org. For more information, contact League
Director of Media Relations Patrick Harris at (800) 486-2917