Friday, January 8, 2010

Almost missed this one...

Looks like Bako lost one of its Credit Unions this evening.

From the Californian:

An excerpt:

Kern Central Credit Union was closed and liquidated by state regulators Friday due to inadequate capital, but members will be able to carry on business as usual, its former chief executive says, and accounts are safe.

Loans and deposits at the nearly $35 million-asset Bakersfield institution were taken over by the $75 million-asset Self-Help Federal Credit Union headquartered in North Carolina. Kern Central will operate under the business name Community Trust Credit Union, a division of Self-Help. Self-Help already operates six branches in California

Heh. I like the name of the new branch. "Community Trust Credit Union". Just remember what Ronald Reagan said about the Soviet nuclear missile agreement: "Trust, but verify."

Like I said in an earlier post, check the health of a financial institution before depositing your money. The FDIC is effectively insolvent, and the government has shown itself far more willing to bail out large well-connected institutions than small businesses or individuals.

Caveat Emptor when depositing your money...

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