On Nov 4, 2011, at 3:01 PM, Jordan Hayes wrote:
>>> why are the CUs just holding onto the money?
>>
>> Because they have no place "in the community" to invest
>> the money safely and profitably.
>
> Rubbish. At the very least they could profitably undercut "big banks" for refis ...
Evidently the CUs don't see it the way you do. Did you notice this passage from The New Republic piece I posted earlier?
> Indeed, a little more than a week ago, in anticipation of Bank Transfer Day, the National Credit Union Administration sent out a memo advising its federal regulators that a large influx of new customers could lead to long-term problems down the road, reminding them that credit unions are penalized if their retained earnings fall short of seven percent of their total assets. In other words, by inundating credit unions with a flood of capital they likely cannot profitably invest, the Bank Transfer Day participants may be pushing those institutions to abandon the perks that make them attractive, like free checking accounts.