{"id":182304,"date":"2015-10-25T18:45:00","date_gmt":"2015-10-25T23:45:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2015\/10\/25\/its-bank-failure-friday-a-week-late-and-a-dollar-short\/"},"modified":"2015-10-25T18:45:00","modified_gmt":"2015-10-25T23:45:00","slug":"its-bank-failure-friday-a-week-late-and-a-dollar-short","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2015\/10\/25\/its-bank-failure-friday-a-week-late-and-a-dollar-short\/","title":{"rendered":"It&#8217;s Bank Failure Friday (A Week Late and a Dollar Short)"},"content":{"rendered":"<p>The 11<sup>th<\/sup> credit union of the year got closed last week, when the <a href=\"http:\/\/www.ncua.gov\/News\/Pages\/NW20151016NCUA-Places-Helping-Other-People-Excel-Federal-Credit-Union-into-Conservatorship.aspx\" title=\"Read the release about HOPE Federal Credit Union\">Helping Other People Excel Federal Credit Union<\/a> was closed on September 16.<\/p>\n<p>BTW, I think that I&#8217;ve figured out why more credit unions have failed this year than commercial banks.<\/p>\n<p>Many of these credit unions are tiny by the standards of commercial banks, the money quote from the above link is, describes the institution as,&nbsp; &#8220;<i>A federally insured credit union with 96 members and assets of $290,927<\/i>.&#8221;<\/p>\n<p>At those sizes, one bad house loan can take the institution down.<\/p>\n<p>Hell, a bad <b>car<\/b> loan can take down the institution for a somewhat expensive car.<\/p>\n<p>When juxtaposed with a structure that tends to mitigate against mergers, it means that there will simply be a lot more institutions.<\/p>\n<p>With commercial banks, you&#8217;ve seen a lot of M&amp;A activity, meaning that there are far fewer banks, with remaining institutions less vulnerable to the failure of an individual customer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 11th credit union of the year got closed last week, when the Helping Other People Excel Federal Credit Union was closed on September 16. BTW, I think that I&#8217;ve figured out why more credit unions have failed this year than commercial banks. Many of these credit unions are tiny by the standards of commercial &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,985],"tags":[],"class_list":["post-182304","post","type-post","status-publish","format-standard","hentry","category-finance","category-regulation"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/182304"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=182304"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/182304\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=182304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=182304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=182304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}