Important Credit Union News

March 2009

You may have read or heard in the media that two large corporate credit unions were taken over by the National Credit Union Administration (NCUA), a department of the federal government, on Friday, March 20th.  What this means is that these two Credit Unions, U.S. Central Federal Credit Union in Lenexa, KS and WesCorp Federal Credit Union in San Dimas, California, have been placed into conservatorship, meaning that they are still operating normally, but under the direction of the NCUA. 

It is important to understand that U.S. Central Federal Credit Union and WesCorp Federal Credit Union are not retail credit unions like Credit Union of Georgia and they do not serve individual consumers like you. They are corporate credit unions that operate in the capital markets and hold highly rated, investment grade securities. However, like so many others in these markets, they have seen the value of their investments decline in today’s economic downturn and as a result of this decline, these Credit Unions have experienced significant losses.

Credit Union of Georgia and other retail credit unions like us, as well as the Credit Union Industry as a whole remains safe, strong, and secure as well as healthy and well-positioned to serve your financial needs. At Credit Union of Georgia, we do not originate, invest in, or hold any sub-prime mortgages and therefore our portfolio is completely free of these high risk loans and investments. 

Also, we manage our assets and liabilities in a consistent and conservative manner. This allows us to operate with sufficient liquidity to maintain reserves making Credit Union of Georgia 100% operational in the face of today’s economic instability. 

In addition, your Credit Union of Georgia deposits are insured up to $250,000, with retirement funds insured separately up to $250,000 with the full faith and credit of the federal government through NCUSIF.  So you can rest assured that your deposits here at Credit Union of Georgia are safe and sound.

If you have any questions or would like to speak to someone regarding your Credit Union, please feel free to contact any member of our Senior Management Team via email or by calling 678-486-1111.  As always, we appreciate your membership and look forward to serving your financial needs for years to come.