The Atmore Advance, Alabama, noted the visit of U.S. Rep. Jo Bonner, (R-AL) who talked about "concerns about credit unions operating under different rules and regulations as banks." He indicated that "credit unions are moving into areas that years ago they did not operate in."
In a story from the Minnesota Post-Bulletin about Think CU's conversion to a mutual bank, CEO Paul Horgen was quoted saying, "It is not life or death." Leading up to the vote, the newspaper ran a blog featuring members' comments both pro and con (but mostly con), on the switch. "The whole reason I became a member was because they were a credit union," said Mark Rappe. "If I wanted to bank at a bank, I would have done that years ago." Members Lynne and Tony Drumm also had strong feelings, saying: "We like banking at a credit union. If Think CU becomes a bank, then we might as well bank anywhere. Certainly there are plenty of banks closer to where we live." But member John Braddock supported the change based on Think's leadership. "I don't know all the banking regulations behind this. I've been more than impressed with the service and integrity of Think," he said. "From my past dealings with them, I trust them to make the right decision." The possibility of issuing stock after the conversion and management benefits was similarly covered, "I think they are doing this to get rich," said Cheryl Peterman of Rochester. The blog also posted a rebuttal from the CU's leadership.
The Business Journal of Phoenix ran a story about Arizona Attorney General Terry Goddard warning consumers about an e-mail scam involving credit unions.
Members of the Arizona State Credit Union have been receiving fraudulent e-mails seeking personal and credit card information, which is used for ID theft and credit card fraud.
The AG's office warned against ASCU members, (state workers, employees of the state's three public universities and some county governments) and all consumers not to give out such information to so-called "phishing" e-mails purporting to be from credit unions or other sources.
The Wisconsin State Journal did a piece about the state's credit unions earning less money despite growth in assets and net worth, citing a report by the state Department of Financial Institutions. Wisconsin's 267 state-chartered credit unions' earnings were down 17.2% from the previous year even as assets were up 5.73%, net worth was up 6.73% and loans were up 5.7%. Savings also grew, bucking a national negative trend, increasing 6.6 % over the 2005 figure. The earnings decline was due to continued tight interest margins between loans and deposits. "What the report shows is a continuation of this squeeze in interest rate margins that all credit unions are facing," said Brett Thompson, president and CEO of the Wisconsin Credit Union League. "Credit unions are a little slow to the market to adjust fees to make up for less earnings.
The ANN Arbor News in Michigan had a story about how the area's CUs were reacting to the bad news of the Huron River Area CU's conservatorship by state regulators by placing signs on headquarters, branch locations and websites that they were safe and sound. "We knew everyone would look at this not as an individual credit union that was (in trouble), but as credit unions overall,'' said Greg Durka, CEO at Ypsilanti Area FCU. "And that's not true. Each credit union is independent with its own board. What happens at one does not necessarily happen at another.'' MidWest Financial CU and University of Michigan CU were also cited for proactively trying to reassure the stability of other local credit unions.
The Salt Lake City Journal's coverage of Beehive Credit Union's Board of Directors' decision to convert to a bank was estimated to cost $200,000- $300,000, and noted that CEO Scott Jorgensen "isn't looking to stir up trouble," but the Utah Legislature left the credit union little room to grow. A 1999 law now limits the ability of state-chartered credit unions to open branches and attract new members and state-chartered CUs cannot make business loans above $250,000, limiting an important revenue source. A switch to the federal charter would limit its branch locations, so that option was rejected. "We believe in the credit union movement. However, until credit unions are given the regulatory relief necessary, we feel our hands are tied in providing our members with the convenience and services they want and deserve," said Jorgensen. The proposal threatens to reignite the long-standing feud between banks and credit unions in Utah, as Jorgensen said other credit unions also are looking at conversion as "a relief valve."
