Lawsuits filed this week to recover $860 million lost by a liquidated Lenexa-based firm and other corporate credit unions might ultimately determine what rate you’ll get on a loan or savings deposit.
The lawsuits against J.P. Morgan Securities and Royal Bank of Scotland PLC mark merely the start of a campaign by federal regulators to recoup money lost by credit unions in 2008’s mortgage lending meltdown.
Whatever money the government can’t generate by going to court, members of credit unions will have to cough up one way or another.
It might mean a credit union can’t afford to open a new branch, or won’t have quite so many employees serving the members who save and borrow money at the institution. It might mean you’ll draw less interest on your savings, or that you’ll pay higher financing charges on that new car.
“The money has to come from somewhere,” said Fred Baker, the president and chief executive of the National Association of Federal Credit Unions.
Read the full story at KansasCity.com