The Santa Cruz Sentinel reported that many local residents were voting "with their feet." The story noted that some customers of Washington Mutual, which was acquired by JPMorgan Chase, and Wachovia, was acquired by Citigroup, were moving to credit unions, such as Bay Federal, which reported it had opened 1,270 new accounts totaling $15 million over a two week period, a 40% increase over typical volume. The story also quoted Sheila Schat of Santa Cruz Community CU.
The Lawrence Journal World in Kansas reported that the "national economy is in turmoil, but a relative calm exists at state and local credit unions." The story noted that at Kansas CUs' assets increased 9.8% in the second quarter, and quoted John Smith, administrator of the Kansas Department of Credit Unions. Smith said the increase in deposit insurance to $250,000 per account should also help to stabilize credit unions. Also quoted in the story was John Beverlin, CEO of Credit Union of Johnson County, which is merging with Free State CU, and Tina Christian, a branch manager for Midwest Regional CU.
