Another story which the financial media ignored this week, and sadly, due to my schedule, I missed until tonight when I had a chance to scan the stories from the non-mainstream financial media.
From Credit Union Times:
NCUA Approves 46 Mergers During the Second Quarter
The headline is shocking enough. The subheading was even worse:
Four CUs receive the green light to consolidate because of poor financial condition; another four are unable to find a new CEO
Why is this an important marker as a pre-recession indicator? In the days of old, where the “younguns” had no concept about credit unions, those instruments and institutions were and are often used by unions, private corporations, and non-government affiliated organizations to provide banking alternatives (i.e., USF Federal Credit Union for the University of South Florida) to regional or local banks.
The favorable lending terms provides credit to members and often at quite favorable terms.
But the headline and subheading only hint at the issues underlying this story.
Excerpt:
The NCUA approved 46 mergers during the second quarter of 2024, up from the 26 consolidations that received the green light to consolidate during the first quarter and 36 approved mergers during last year’s second quarter.
Dramatic, yes. How dramatic?
Twenty-two mergers got the green light for expanded services, two for inability to obtain officials, one for poor financial condition and one for poor management, according to the federal agency’s Q1 Merger Activity and Insurance Report released Monday.
In other words, all is not well and even the National Credit Union Administration is not trying to advertise that there is an issue. Because credit union’s ability to loan money and assist their members with loans and credit is a sign of difficulty for the average working person, aka, the middle class.
But don’t worry, once the defaults start accelerating, it’s only going to get better, right?
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