Interfaith Federal Credit Union Closes (12th credit union failure this year)

[Pale Blue Dot]

Source: National Credit Union Administration

September 17, 2008, Alexandria, Va. -- The National Credit Union Administration (NCUA) placed Interfaith Federal Credit Union of East Orange, New Jersey, into liquidation yesterday.
The NCUA Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the Interfaith Federal Credit Union within one week. Through the NCUA National Credit Union Share Insurance Fund, credit union members’ deposits are insured to at least $100,000 on regular accounts and $250,000 on certain retirement accounts.

NCUA made the decision to liquidate Interfaith Federal Credit Union and discontinue its operation after determining the credit union is insolvent and has no prospects of restoring viable operations. At the time of liquidation, the credit union served 370 members and had assets of approximately $388,000.

NCUA chartered Interfaith Federal Credit Union in1982 to serve members of the New Hope Baptist Church in East Orange, New Jersey. Interfaith Federal Credit Union is the10th federally insured credit union closure to take place in 2008.

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund, insuring the savings of nearly 89 million members in all federal credit unions and most state-chartered credit unions. NCUA operations are funded by credit unions, not tax dollars.


Read more: http://www.ncua.gov/news/press_releases/2008/MR08-0917.htm

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That's 11 banks and 12 credit unions that have failed so far this year.

[Ian David]

1. Interfaith Credit Union didn't have a prayer. n/t

[tblue]

2. Nucular meltdown.

Another one bites the dust. Wow.

[Hugabear]

3. I thought credit unions were supposed to be more stable than banks?

I've seen several here on DU touting credit unions over banks.

Apparently this isn't the case.

Be afraid, very afraid!

[fascisthunter]

4. That Was My Impression as Well

[NanBo]

5. did you see the size???

370 members. This is not at all the same sort of melt down. I've worked in small credit unions like this and a few bad loans (that aren't very well managed and certainly not professionally) and that's it.

[dixiegrrrrl]

6. I was one of the touters

I also touted money market funds for safety.
If credit unions and money market funds are not safe, then nothing is.

I just now took my money out of my money market fund which was in the highest rated mutual fund company, even tho the fund had very very minimal exposure to Leahman type holdings.
My gut has always been an excellent barometer, and I am listening to it now.

Just now on Bloomberg tv, they cut off a telephone interview with a wall street guy who had started to say the indices do not look like anything he has ever seen, and when they hit ( ????) it means the market has crashed.
Unfortunately, it was not clear what "they hit" was describing as he was interrupted and then cut off.
Just saying........


.

[Efilroft Sul]

8. If possible, switch from money market funds to money market accounts.

Money market accounts (MMAs) are federally insured; money market funds (MMFs) are not.

Of course, if the FDIC goes belly up, so much for the MMA advice I just gave. My financial institution does not offer MMFs; it offers only MMAs. You bet your bottom dollar I spent time there today verifying all my investments.

[Tyrone Slothrop]

7. Anyone taking financial advice from anonymous people on the Internet during a panic,

Was probably going to lose his/her money anyway.