Letter from the CEO:
The Recession, Credit Unions and PNWFCU
Economists have stopped talking about another depression. However,
we are in the worst recession the country (and world) has seen since
the Great Depression. We are
in what is coming to be known as “The Great Recession”.
If you Google “Great Recession” there are over 379,000 hits.
There are many explanations for why we are in this recession. In all of the industries, individuals and institutions held at fault, no one has added the credit union industry to the list of culprits. Throughout this recession more and more financial media personalities and publications tout the benefits of credit unions in these times and suggest that people look into their local credit unions during this time of upheaval in the banking industry. President
Obama just proposed to Congress sweeping changes to way the government oversees financial markets. Part of that proposal includes the elimination of the Office of Thrift Supervision and increases the power of the Federal Reserve, in conjunction with the Treasury, to oversee almost any financial institution in the country. In all those changes the National Credit Union Association (NCUA), the regulatory agency responsible for oversight of credit unions insured by the federal government, has not been changed or consolidated. The Treasury report on regulatory reform says at least twice within its pages that “the National Credit Union Administration (NCUA) would maintain its authority for credit unions.” This is clear message that the credit union industry has stayed true to its mission of “People helping People.” PNWFCU continues to hold to its mission of being our members’ Financial Partner for Life. We have worked with many members that have been intimately affected by the recessions.
Layoffs, reduced hours, pay cuts are all issues we have seen on a personal level. Our employees are daily sitting down with members and working with them to see what we can do to help them during these difficult financial times. President Roosevelt signed the Federal Credit Union Act into law 75 years ago on June 26, 1934. The original logo for credit unions in the 1930s was a person holding an umbrella in the rain. It’s raining again and we are still here with our umbrella.
Thomas E. Griffith, CMA
Chief Executive Officer
Your Insured Funds
Not only is our credit union sound and stable, every credit union in Oregon is federally insured by a fund that is backed by the full faith and credit of the U.S. government. In October 2008, the National Credit Union Share Insurance Fund (NCUSIF) insures accounts to $250,000 per account (with additional coverage of up to $250,000 for certain retirement accounts). Congress recently passed the Helping Families Save Their Homes Act of 2009, which includes a provision extending the $250,000 share insurance coverage provided through December 31, 2013.
Some examples of account insurance coverage include:
- Individual accounts: Deposit accounts (other than IRA accounts) owned by one individual are combined and insured to $250,000.
- Joint accounts: Accounts with two or more owners are combined and insured to $250,000 for each joint owner.
- IRAs: IRA accounts are combined (Roth and Traditional) and insured to $250,000.
To review NCUA's brochure on additional account coverage, click here. You can also use their online Share Insurance Estimator. Click here to watch a commercial that explains how your funds are safe with federally-insured credit unions. The NCUA now also has a call center available to answer insurance questions between 8 a.m. and 6 p.m. (EDT), Monday - Friday. To reach them, call 1-800-755-1030, extension 1.
