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Old 10-07-2008, 04:22 PM
 
11 posts, read 41,989 times
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Howdy, Does anyone know of an analysis of the current stability of Austin-area credit unions and banks? I'm not talking about all those Moody's ratings and crap like that. I'm talking about an analysis of the risky investments banks made (with "risky" being defined in today's world, not last month's). Thanks
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Old 10-07-2008, 06:18 PM
 
Location: Austin, TX
15,268 posts, read 35,630,016 times
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The credit unions, in general, seem to be fine. Dunno about any specific banks. I heard on some random analysis piece that Bank of America is going to be in great shape...apparently, they have managed to avoid the pitiful lending habits, for the most part. But I have no idea personally.
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Old 10-07-2008, 08:55 PM
 
Location: Great State of Texas
86,052 posts, read 84,464,288 times
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Bankrate.com -- Safe & Sound (tm): Bankrate's free rating system for banks, thrifts, credit unions
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Old 10-07-2008, 11:39 PM
 
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Credit Unions are very safe. They are not-for-profit, so mostly wouldn't have any exposure to the subprime quality of loans. Also, they are under additional regulation vs. regular banks.
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Old 10-08-2008, 08:26 AM
 
Location: central Austin
7,228 posts, read 16,100,141 times
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Yes, credit unions rule!! I love University Credit Union. Very safe.

Overall, Wells Fargo is probably the strongest bank nationally. You need to investigate more closer smaller banks, check their exposure to construction loans and commerical real estate.
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Old 10-08-2008, 10:12 AM
 
Location: Texas
835 posts, read 1,322,209 times
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Wells Fargo is very strong...they did not get involved with risky sub-primes and in fact they have made 9% over the past year one of only three banks to do so...the other two banks are also under the Berkshire group with Wells Fargo. Most Texas banks stayed away from the risky mortgages as the S&L scandle wiped out several Texas banks.
Credit unions and Wells Fargo are also lending money....however most credit unions go thru Fannie and Freddie for a mortgage so they are not a good solution for a mortgage at this time. As for my RothIRA.....good thing I'm young and the money is in there long-term my money market is making 10% guess it is still a wash.
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Old 10-08-2008, 10:26 AM
 
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Default A+ Federal Credit Union is Good!

A+ Federal Credit Union is one of the best, from not only my experience, but my wife's and her family's. It was started as a teacher's credit union but it's now open to everyone. They are opening branches everywhere, including Westlake/620 area.
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Old 09-09-2013, 08:11 PM
 
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does anyone have an idea of how to look at our local credit unions to know which ones are the safest - meaning have the strictest lending criteria.
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Old 09-11-2013, 01:57 AM
 
Location: The People's Republic of Austin
5,184 posts, read 7,276,942 times
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Quote:
Originally Posted by atxcio View Post
Credit Unions are very safe. They are not-for-profit, so mostly wouldn't have any exposure to the subprime quality of loans. Also, they are under additional regulation vs. regular banks.
Credit unions bought residential mortgage backed securities just like every other financial institution. In fact, losses on those led to the failure of the largest federally chartered CU at the time. Credit unions are no more or less likely to fail than any other financial institution - thirteen have failed in the US in 2013 YTD.

Bottom line is, if your money is in a federally chartered bank, or in a federally chartered CU ("Federal" in the name) or a state chartered CU that is a member of NCUA, you are insured up to $250,000 of deposits.
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Old 09-11-2013, 12:36 PM
 
7,742 posts, read 15,125,132 times
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Quote:
Originally Posted by scm53 View Post
Credit unions bought residential mortgage backed securities just like every other financial institution. In fact, losses on those led to the failure of the largest federally chartered CU at the time. Credit unions are no more or less likely to fail than any other financial institution - thirteen have failed in the US in 2013 YTD.

Bottom line is, if your money is in a federally chartered bank, or in a federally chartered CU ("Federal" in the name) or a state chartered CU that is a member of NCUA, you are insured up to $250,000 of deposits.
The problem is that the government has said that we dont own our deposits. We are unsecured creditors. So to be made whole we can be given shares in the failed institution. You do not have to be paid in cash

The big bomb is really derivatives trading that the big banks are doing that credit unions dont do. Buying some mortgage backed securities is no big deal. They are directly buying mortgages. The dangerous stuff is the stuff that allowed large amounts of leverage to be used, like credit default swaps on mortgage backed securities.

brokerage accounts - MF global showed that brokerages can use your money if you have a margin account with them. You are an unsecured creditor to your own money.

Bank accounts - you are an unsecured creditor
Safety deposit boxes - in a national emergency the government can confiscate the contents of safe deposit boxes.

Does anyone know which local credit union is the most conservative?
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