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Message to Our Members
January 2009

What Lies Ahead for 2009

As we get ready for the New Year the events of the last few months certainly make it difficult to look into the future with any certainty.  Clearly we’ve experienced unprecedented actions of the Congress, the Federal Reserve and the U.S. Treasury that have resulted in a new kind of economy.  The federal government has stepped in to back-up the country’s largest mortgage businesses (Fannie Mae and Freddie Mac), the world’s largest insurance company (AIG) and one of the world’s biggest banks (Citibank).  And, as I write this, the jury is still out on just how our government will oversee the production of our American-made automobiles.  Add on top of this situation a recession and an increase in unemployment and one might feel paralyzed regarding the New Year.

I know that 2009 will bring challenging times to our members, communities and this new economy.  But I also know that people in general are resilient and eager to find solutions to obstacles that may lie ahead.  I can’t think of a more comforting place to be amidst all of the negative financial news than here at VSECU.

Now, more than ever, is a time where VSECU can and should become the trusted source and resource for everyday financial services.  Decisions to maximize profits, based on short term thinking, have contributed to the faltering financial system.   As a result, the banking system is now bottlenecked and the media reminds us daily that getting a loan for a home, car or to send our kids to college is virtually impossible.  That’s not the case at VSECU.  We are financially strong because we have not engaged in risky decision-making.

Although Vermont is somewhat insulated from the national disaster occurring in the subprime mortgage and credit markets, many Vermonters will still experience economic difficulty in 2009.  We are better poised to help these people and contribute to the health and well-being of our members.

Why? Because we are a not-for-profit institution owned by our members.  We rely primarily on our members to make our cooperative business model work, not outside speculative ventures.  We are pragmatic, prudent and responsible. 

We’ll ring in the New Year with confidence that VSECU is financially strong and able to lend money to our members, while providing the protection of insured savings up to $250,000 for our depositors.  Like every consumer, we’ll be working hard to keep expenses down and looking for opportunities to be more efficient while maintaining a high level of member satisfaction.   

If you need to borrow, use your credit wisely – use your credit union first.  If you need to preserve or grow your savings, find safety – use your credit union first.  Our member-owned cooperative model has withstood the difficulties in 2008 and will be here for you, your family and friends in 2009. 

Thank you for making our credit union what is today. I wish you a prosperous, healthy and happy New Year. 

Best,
Steve Post, CEO