Letters to the editor

Another CU flaw

      You were kind to the credit unions when you did not mention an additional flaw in their business model: their capital (Capital Constraints, 2-15-10).

      Credit unions do not expense their deposit insurance premiums paid to CUNA: they capitalize them. Now when CUNA is taking hits, the credit unions must write down that asset, reducing capital at the wrong time!

Pete Allen

First National Bank

Milaca . . .

This content is only accessible to members with a current subscription. If you are a subscriber but don't have online access, please contact us at 952-835-2275.

Purchase Subscription