|Having an economic|
... Chart Attack !!!
Get involved quite often due to some concern which has arisen over a decline in financial status or the governance structure of the credit union. Lots of "problems" out there these days! Not much of a surprise that "The Great Recession" has wreaked havoc on credit unions - large and small alike.
The "problems" are generally pretty similar:
- Heightened loan losses and delinquency due to the economy.
- Low returns on investments due to the zero interest rate environment created by the Fed.
- Moderate loan demand due to uncertainty by members about their future.
- Higher operating expenses due to added costs of "doing business" - services, compliance, technology, infrastructure, staff, and "regulatory burden".
Many of these credit unions are being "forced" into unnecessary mergers by overly intimidating regulators - who are misdiagnosing the severity of the financial illness - and often prescribing precisely the wrong medicine, in a fatal dosage, to an unfortunately trusting and obedient patient.
Let's take a quick look at an example credit union...