WALL STREET - The ongoing crisis in the financial markets, which has claimed investment banks Lehman Brothers and Merrill Lynch and could claim Washington Mutual and Wachovia, will be painful for the markets in the short-term, but also provide opportunities for credit unions, according to several observers.
The spreading failures, "will directly impact consumers by drying up credit," said Christopher Sullivan, chief financial officer for United Nations FCU. "But it does suggest an opportunity for credit unions that don't have such exposure and who can step in and fill in the needs of consumers."
Some large banks have already begun shedding branches in recent months. Last week, Zions Bank agreed to sell 68 in-store branches to US Bank, for example. And Wachovia and WaMu have been shopping branches for months in an effort to raise capital.
"We plan to take advantage of opportunities that may arise," said Bradley Beall, president of Nevada FCU. "There's some really good people who will be available (lay-offs), some potential branch sites and the chance to help some good people."
Dwight Johnston, senior vice president for WesCorp FCU, predicted more bank and credit union failures-a shake-out-in the financial services arena. "Credit unions," he said, "can gain market share, but some of them will also be casualties."(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
