Concern, Resolve In Wake Of Crisis
After reading the "Finger-Pointing Erupts Over Corporate Bailout" article (CUJ Feb. 6), I have a feeling of consternation yet one of total resolve. For the good of the industry as well as Rockdale FCU, I feel it ill-advised for industry leaders to make proclamations that may not be true. From the last few months' media coverage of various financial events including congressional hearings, is it wise to think Congress is the solution to our challenges when we, as an industry, should and can solve our own problems and in result, better serve America.
The comments from the article do not represent my feelings as enough information is not in to develop a true understanding of the matters at hand or a conclusion.
As a credit union industry (which includes help from our regulators, corporates, vendors, legislators, leagues, trade associations and through the support of our members), we have together in a cooperative effort built a very strong capital base to support challenges and opportunities. Our industry is strong enough to withstand the challenges and take advantage of the opportunities that now abound. Our industry capital, although not our desire to have to use it, is very capable of withstanding very negative economic times.
Concerning investments that have been made that are not performing as expected, it appears that there has been a paradigm shift in a business model that was considered totally acceptable and secure in 2006/2007. It is possible, that what has happened was most difficult to foresee. Many companies, corporations and the financial industry have been affected. Many had very high risk investments although many had "business model/industry accepted" risk investments, that under normal conditions, were considered investment-grade securities.
Having been in the credit union industry for 22 years, it has been ever-changing and will continue in the same mode. Thank you, everyone, for being a part of such a wonderful financial cooperative effort to serve Americans. After more information through cooperative efforts results in the best solution to our challenges, let us all look forward to a bright future.
Ron Montgomery, President
Rockdale FCU, Rockdale, Texas
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