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I did a thought experiment. If FDIC and NCUA deposit insurance didn't exist, would I trust a bank of a credit union more with my deposits? I landed with credit
by kodyo 4y ago
I did a thought experiment. If FDIC and NCUA deposit insurance didn't exist, would I trust a bank of a credit union more with my deposits? I landed with credit unions due to the overt malfeasance of banks.
The FDIC exists to keep banks afloat, because they're untrustworthy on their own.
- LastTrain 4y agoIf everyone moved their money to credit unions, they'd become just as bad as banks.
- kelseyfrog 4y agoI don't consider size to be the primary determiner of how banks operate re: good or bad. I consider the ownership model to primarily determine incentives and behavior. They are, of course, are not uncorrelated, but rather when attributing primary cause, I see credit unions incentives aligned with their clientele because they are one and the same. Whereas banks have a larger discrepancy between owners and customers.
- OkayPhysicist 4y agoA bank exists to serve the interests of their shareholders, a credit union exists to serve the interests of their members. Unless you happen to be a significant shareholder in your bank, credit unions are more aligned with your interests.
- willcipriano 4y agoAll things exist to serve the interests of itself.