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Message to Our Members
February 2009

Unprecedented times just keep getting more so. All of the news sources are filled with “bail out” figures and talk about the fast action that is needed to save our economy.  If you’re tuned into the media, you may read or hear about the latest injection of money into the financial system - this time directed at the credit union industry.  Naturally, you may be wondering how this affects you at VSECU.

The short answer is that external forces haven’t impacted our ability to serve our members.  As a credit union owned by our members, we are in good position to keep business rolling.  Deposits are insured up to $250,000 and we have money to lend.
 
Fundamentally though, credit unions are not immune to the extremely fragile condition of the economy. That is why the National Credit Union Administration (NCUA) has stepped in to provide support to the corporate credit union system by providing $1 billion to U.S. Central Federal Credit Union.  The action taken by NCUA is similar to action taken by the US Treasury to inject money into the banking system except that NCUA is looking to the country’s individual credit unions (like VSECU) to provide this capital.   

The implications of this approach are still being analyzed by many industry stakeholders.  Although credit unions have not been the source of the financial problems facing this country, our willingness and ability to support our cooperative system may be essential to its survival. As your management staff and Board of Directors learn more about how this will be accomplished and what effect, if any, it will have on our business, we will let you know. Stay tuned to this site for updates on this evolving issue.

On another note, I came across a newsworthy article this morning about Vermont and how the mortgage meltdown is affecting our state.  The good news is that Vermont has the lowest foreclosure rate in the U.S.!  You’ll be interested in knowing the reasons why.  I’ve attached a link to a couple of articles below. 

As always, if you have any questions about your membership, our financial safety or how we can help you – call us.

Best,
Steve Post, CEO

U.S. Moves to Bail Out Credit Union Network - Wall Street Journal
Vermont Foreclosures Held Off by Yankee Ways, Land-Use Laws - Bloomberg