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In a way its kind of immaterial if there is a "run" on a credit union. I can't imagine very many members have shares over the insured limits (250k in checking,
by ElevenLathe 4y ago
In a way its kind of immaterial if there is a "run" on a credit union. I can't imagine very many members have shares over the insured limits (250k in checking, 250k in savings), so the deposits have to be almost entirely insured. Also all the little old widows whose GM pension gets deposited every month are not gonna organize and pull their money like silicon valley VCs. They could still be insolvent and get federalized or whatever, but the damage to real people should be minimal even in this kind of unlikely scenario.
- everybodyknows 3y agoI'm thinking of those little old widow's kids reminding her that 0.1% on her "savings" account is not keeping up with the price of groceries. If she's not too old to be reasoned with, her money is going to walk, to TreasuryDirect, or at least a CD.
- ElevenLathe 3y agoRight, so she walks, and so do a lot of other widows, the credit union becomes insolvent, NCUA comes in and winds it down and makes the other widows whole. Not ideal, but seems fine.