Credit Unions: Safe Harbor in Turbulent Financial Market

ALBANY, NY (07/16/2008)(readMedia)-- In the wake of IndyMac's closing, the Credit Union Association of New York wanted to assure credit union members and consumers across the state that credit unions remain a safe harbor for consumer savings and borrowing, and that credit union's as a whole are healthy and well capitalized financial institutions with strong balance sheets.

Unlike IndyMac Bancorp, once the 10^th largest mortgage lender in the nation, and other more traditional financial institutions, credit unions are more conservative when it comes to their lending programs. As not-for-profit cooperatives with their member-owner's interests at heart, they hold onto mortgage loans vs. selling them to a secondary market to make a quick dollar. Credit unions also do not believe in boosting profits by adding fees or pushing costly products that are not in the best interest of their members.

"Credit unions always have and will continue to lend responsibly, which is why they have been able to steer clear of the subprime crisis that is negatively impacting other financial institutions," said William J.Mellin, president/CEO of the Association. "It's also why New York's credit unions, which count over 4.2 million members and have more than $40 billion in assets, have gone virtually unmentioned in the adverse financial headlines that have proliferated the news."

"Strength and security in both good and bad financial times, that's what credit unions have offered members since their inception," added Mellin. "Given that, I want to make sure that credit union members and consumers alike know that all credit union accounts are federally insured to at least $100,000 through the National Credit Union Share Insurance Fund (NCUSIF). The NCUSIF is administered through the National Credit Union Administration, the credit union equivalent to the FDIC.

To find the right credit union for you to join, go to www.CreditUnionsForYou.com.

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