Credit unions as depositories provide safety and local return on investment
Public Date: October 22, 2009
Contact: Andy Meisner, Oakland County Treasurer
Phone Number: 248-858-0624
Pontiac, Michigan – Andy Meisner, Oakland County Treasurer, today issued his support for a County Commission resolution sponsored by Commissioner Dave Woodward (D-Royal Oak) to allow the County Treasurer to make investments in Oakland County credit unions provided that the institutions are backed by the full faith and credit of the National Credit Union Administration (NCUA), the credit union counterpart to the Federal Deposit Insurance Corporation (FDIC). National Credit Union Week is from October 15th through October 22nd.
"Investing Oakland County taxpayer dollars in Oakland County is an absolute priority," said Andy Meisner, Oakland County Treasurer. "Credit unions represent a community-based investment option that is actively lending money to residents, without the same exposure to toxic assets that some of their competitors face, but with the same deposit insurance as banks."
Public Act 40 of 1932 permits County Treasurers to invest in financial institutions, including credit unions. The unprecedented financial crisis requires all safe depository and investment options to be explored, especially when those investments will cycle through as loans to Oakland residents.
According to the National Credit Union Administration (NCUA) web site, "NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 89 million accounts in all federal credit unions and the overwhelming majority of state-chartered credit unions."
"A partnership with our local credit unions is a win-win for Oakland County," said resolution sponsor County Commissioner Dave Woodward. "Credit unions are local membership-owned financial institutions, and are a great tool to help keep our county money local and further strengthen economic activity in our communities."