Keith Leggett is at it again. It seems that he wants his nineteen readers to read about every single credit union failure as they happen. His most recent post celebrates the failure of Victorville, California's Members' Own FCU.
Let's see...
National Bank of Commerce, Berkeley, IL., January 16, 2009
Bank of Clark County, Vancouver, WA., January 16, 2009
1st Centennial Bank, Redlands, WA., January 23, 2009
Ocala National Bank, Ocala, FL., January 30, 2009
Suburban FSB, Crofton, MD., January 30, 2009.
MagnetBank, Salt Lake City, UT., January 30, 2009
County Bank, Merced, CA., February 6, 2009
Alliance Bank, Culver City, CA., February 6, 2009
FirstBank Financial Service, McDonough, GA., February 6, 2009
Pinnacle Bank of Oregon, Beaverton, OR., February 13, 2009
Corn Belt Bank & Trust Co. Pittsfield, IL., February 13, 2009
Riverside Bank of the Gulf Coast, Cape Coral, FL., February 13, 2009
Sherman County Bank, Loup City, NE., February 13, 2009
Silver Falls Bank, Silverton, OR., February 20, 2009
Heritage Community Bank, Glenwood, IL., February 27, 2009
Security Savings Bank, Henderson, NV., February 27, 2009
Freedom Bank of Georgia, Commerce, GA., March 6, 2009
TeamBank, NA, Paola, KS., March 20, 2009
Colorado National Bank, Colorado Springs, CO., March 20, 2009
FirstCity Bank, Stockbridge, GA., March 20, 2009
Omni National Bank, Atlanta, GA., March 27, 2009
Cape Fear Bank, Wilmington, NC., April 10, 2009
New Frontier Bank, Greely, CO., April 10, 2009
Great Basin Bank of Nevada, Elko, NV., April 17, 2009
American Sterling Bank, Sugar Creek, MO., April 17, 2009
American Southern Bank, Kennesaw, GA., April 24, 2009
Michigan Heritage Bank, Farmington Hills, MI., April 24, 2009
First Bank of Beverly Hills, Calabasas, CA., April 24, 2009
First Bank of Idaho, Ketchum, ID., April 24, 2009
America West Bank, Layton, UT., May 1, 2009
Citizens Community Bank, Ridgewood, NJ., May 1, 2009
Silverton Bank, NA, Atlanta, GA., May 1, 2009
Westsound Bank, Bremerton, WA., May 8, 2009
BankUnited, FSB, Coral Gables, FL., May 21, 2009
Strategic Capital Bank, Champaign, IL., May 22, 2009
Citizens National Bank, Macomb, IL., May 22, 2009
Bank of Lincolnwood, Lincolnwood, IL., June 5, 2009
Fist National Bank of Anthony, Anthony, KS., June 19, 2009
Cooperative Bank, Wilmington, NC., June 19, 2009
Southern Community Bank, Fayetteville, GA., June 19, 2009
Mirae Bank, Los Angeles, CA., June 26, 2009
MetroPacific Bank, Irvine, CA., June 26, 2009
Horizon Bank, Pine City, MN., June 26, 2009
Neighborhood Community Bank, Newman, GA., June 26, 2009
Community Bank of West Georgia, Villa Rica, GA., June 26, 2009
First National Bank of Danville, Danville, IL., July 2, 2009
Rock River Bank, Oregon, IL., July 2, 2009
John Warner Bank, Clinton, IL., July 2, 2009
First State Bank of Winchester, Winchester, IL., July 2, 2009
Elizabeth State Bank, Elizabeth, IL., July 2, 2009
Millennium State Bank of Texas, Dallas, TX,July 2, 2009
Founders Bank, Worth, IL, July 2, 2009
Bank of Wyoming, Thermopolis, WY, July 10, 2009
Temecula Valley Bank Temecula, CA, July 17, 2009
Vineyard Bank Rancho, Cucamonga, CA, July 17, 2009
BankFirst, Sioux Falls, SD, July 17, 2009
First Piedmont Bank Winder GA,17-Jul-09
Security Bank of Bibb County Macon GA,24-Jul-09
Security Bank of North Metro Woodstock GA,24-Jul-09
Security Bank of North Fulton Alpharetta GA,24-Jul-09
Security Bank of Gwinnett County Suwanee GA,24-Jul-09
Waterford Village Bank Williamsville NY,24-Jul-09
Security Bank of Jones County Gray GA,24-Jul-09
Security Bank of Houston County Perry GA,24-Jul-09
Integrity Bank Jupiter FL,31-Jul-09
First State Bank of Altus Altus OK,31-Jul-09
First BankAmericano Elizabeth NJ,31-Jul-09
Peoples Community Bank West Chester OH,31-Jul-09
Mutual Bank Harvey IL,31-Jul-09
First State Bank Sarasota FL,7-Aug-09
Community National Bank of Sarasota County Venice FL,7-Aug-09
Community First Bank Prineville OR,7-Aug-09
Union Bank, National Association Gilbert AZ,14-Aug-09
Dwelling House Savings and Loan Association Pittsburgh PA,14-Aug-09
Colonial Bank Montgomery AL,14-Aug-09
Community Bank of Arizona Phoenix AZ,14-Aug-09
Community Bank of Nevada Las Vegas, NV,August 14, 2009
First Coweta Bank, Newnan, GA, August 21, 2009
Guaranty Bank, Austin, TX, August 21, 2009
CapitalSouth Bank, Birmingham, AL, August 21, 2009
ebank, Atlanta, GA, August 21, 2009
Bradford Bank, Baltimore, MD, August 28, 2009
Mainstreet Bank, Forest Lake, MN, August 28, 2009
Affinity Bank, Ventura, CA, August 28, 2009
First Bank of Kansas City, Kansas City, MO, September 4, 2009
InBank, Oak Forest, IL, September 4, 2009
Vantus Bank, Sioux City, IA, September 4, 2009
Platinum Community Bank, Rolling Meadows, IL, September 4, 2009
First State Bank, Flagstaff, AZ, September 4, 2009
First Bank of Kansas City, Kansas City, MO, September 4, 2009
InBank Oak Forest, IL, September 4, 2009
Platinum Community Bank, Rolling Meadows, IL, September 4, 2009
Vantus Bank, Sioux City, IA, September 4, 2009
Corus Bank, Chicago, IL, September 11, 2009
Brickwell Community Bank, Woodbury, MN, September 11, 2009
Venture Bank, Lacey, WA, September 11, 2009
Irwin Union Bank and Trust Company, Columbus, IN, September 18, 2009
Irwin Union Bank, F.S.B., Louisville, KY, September 18, 2009
Georgian Bank, Atlanta, GA,,September 25, 2009
These 99 banks have failed in just the past nine months. In fact, there have been more bank failures in Georgia (19) and Illinois (16) in 2009 than there have been credit union failures in the entire nation combined (14). The FDIC expects $70 billion in losses due to failures over the next five years, and there are currently 416 banks on its "problem" bank list. This, even with $600 billion in TARP funds allocated to fortify the banking industry's financial statements.
What was your point again, Mr. Leggett?
This isn't a contest, Mr. Leggett. If it is, I just told you the score. Instead, we are talking about thousands of jobs, billions of dollars, and immeasurable consumer confidence lost. Instead of celebrating, why not use your position at the ABA to help your member banks prevent the next global financial meltdown? Seems like a better way to spend your time than throwing mud on the only financial institutions in America interested in helping common, everyday people get the affordable credit they need and deserve.
Showing posts with label Keith Leggett. Show all posts
Showing posts with label Keith Leggett. Show all posts
01 October 2009
03 August 2009
The Keith Leggett Watch
There are few organizations on this planet with less political capital right now than the American Bankers Association. Amazingly, though, they have still decided that the time is right to continue their attacks on credit unions.
I stumbled upon ABA Senior Economist Keith Leggett's "Credit Union Watch" blog today, which held no punches in responding to USA Today's story about credit union payday alternatives. Upon first glance, Leggett makes an excellent point - credit unions are supposed to, as he puts it, be "an alternative to usurious money lenders." He points to payday alternative loans at Kinecta FCU and Nevada FCU that amount to an annualized 275% and 455% APR, respectively.
Written that way, any reader should be disgusted. That's Leggett's plan.
Here's reality.
Credit unions are not-for-profit financial cooperatives owned by members and directed by democratically-elected volunteers. While we serve members of all income levels, we are particularly adept at helping those who have been shut out by the rest of the financial services world - people of modest means. This is precisely the target market of the "usurious money lenders" Leggett describes. The moral dilemma many credit union boards are faced with is: how do we help this segment avoid the payday lending trap (high fees, high interest rates, terms that disallow borrowers from ever getting rid of their debt), while protecting the credit union's (read: members') assets?
Many credit union boards have decided that offering lower cost payday alternative loans is in line with the credit union mission of people helping people. What I personally love about a lot of these programs is the unique ways they are addressing the issue. North Carolina State Employees' Credit Union, for example, has been amazingly successful at reaching out to this population with small, short-term loans (maximum 31 days and $500) at 12% APR. A key component of these loans is a 5% automatic deduction of the loan amount that is placed in the member's savings account. So, through time, the borrower isn't digging him/herself deeper in the hole. Conversely, the borrower is building savings with which the cycle can be broken.
That is looking out for the little guy, Mr. Leggett. That is a conservative credit union doing a remarkable job of reaching out to those who need a credit union's touch more than anything. These are the exact same people who the financial institutions you represent have either fleeced for every nickel and dime they could squeeze out of them, or shut out of the system completely. All of this while nearly screeching the entire world economy to a halt and requiring bailouts bigger than the GDPs of several continents.
I won't take one moment of anyone's time trying to defend Kinecta FCU or Nevada FCU, especially since I know no more about their products than what I've read in USA Today and the NCLC Report. I get even more disgusted with poor credit union behavior than I do with bad bank behavior. We expect it out of the latter. We expect much better out of credit unions.
And while I cannot stand people who justify bad behavior with worse behavior, I must point out the amazing timing of Mr. Leggett's comments. On the same day of his post, we learn that Bank of America was fined $33 million for misleading investors about $3.6 billion in Merrill Lynch bonuses paid to failure executives that needed $10 billion in taxpayer bailouts, California banks have cost the FDIC $15 billion, and Colonial BancGroup gets raided by the feds. Maybe you could have waited a day or two...or is there even worse news on the way?
There are bad apples in the financial services world, Mr. Leggett. Unfortunately, there are even a few on my side of the discussion. You have a lot of problems to fix on your side, however, before anyone anywhere will be able to come close to forgiving the banking industry for the nearly irreparable harm you have caused.
(PS...I would have written this on your blog, but you don't allow comments. That's not a blog, Mr. Leggett.)
I stumbled upon ABA Senior Economist Keith Leggett's "Credit Union Watch" blog today, which held no punches in responding to USA Today's story about credit union payday alternatives. Upon first glance, Leggett makes an excellent point - credit unions are supposed to, as he puts it, be "an alternative to usurious money lenders." He points to payday alternative loans at Kinecta FCU and Nevada FCU that amount to an annualized 275% and 455% APR, respectively.
Written that way, any reader should be disgusted. That's Leggett's plan.
Here's reality.
Credit unions are not-for-profit financial cooperatives owned by members and directed by democratically-elected volunteers. While we serve members of all income levels, we are particularly adept at helping those who have been shut out by the rest of the financial services world - people of modest means. This is precisely the target market of the "usurious money lenders" Leggett describes. The moral dilemma many credit union boards are faced with is: how do we help this segment avoid the payday lending trap (high fees, high interest rates, terms that disallow borrowers from ever getting rid of their debt), while protecting the credit union's (read: members') assets?
Many credit union boards have decided that offering lower cost payday alternative loans is in line with the credit union mission of people helping people. What I personally love about a lot of these programs is the unique ways they are addressing the issue. North Carolina State Employees' Credit Union, for example, has been amazingly successful at reaching out to this population with small, short-term loans (maximum 31 days and $500) at 12% APR. A key component of these loans is a 5% automatic deduction of the loan amount that is placed in the member's savings account. So, through time, the borrower isn't digging him/herself deeper in the hole. Conversely, the borrower is building savings with which the cycle can be broken.
That is looking out for the little guy, Mr. Leggett. That is a conservative credit union doing a remarkable job of reaching out to those who need a credit union's touch more than anything. These are the exact same people who the financial institutions you represent have either fleeced for every nickel and dime they could squeeze out of them, or shut out of the system completely. All of this while nearly screeching the entire world economy to a halt and requiring bailouts bigger than the GDPs of several continents.
I won't take one moment of anyone's time trying to defend Kinecta FCU or Nevada FCU, especially since I know no more about their products than what I've read in USA Today and the NCLC Report. I get even more disgusted with poor credit union behavior than I do with bad bank behavior. We expect it out of the latter. We expect much better out of credit unions.
And while I cannot stand people who justify bad behavior with worse behavior, I must point out the amazing timing of Mr. Leggett's comments. On the same day of his post, we learn that Bank of America was fined $33 million for misleading investors about $3.6 billion in Merrill Lynch bonuses paid to failure executives that needed $10 billion in taxpayer bailouts, California banks have cost the FDIC $15 billion, and Colonial BancGroup gets raided by the feds. Maybe you could have waited a day or two...or is there even worse news on the way?
There are bad apples in the financial services world, Mr. Leggett. Unfortunately, there are even a few on my side of the discussion. You have a lot of problems to fix on your side, however, before anyone anywhere will be able to come close to forgiving the banking industry for the nearly irreparable harm you have caused.
(PS...I would have written this on your blog, but you don't allow comments. That's not a blog, Mr. Leggett.)
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