Join Early Retirement Today
Thread Tools Search this Thread Display Modes
PenFed explores conversion to savings bank
Old 02-25-2009, 11:53 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Purron's Avatar
Join Date: Nov 2007
Posts: 5,585
PenFed explores conversion to savings bank

Interesting article about PenFed from Credit Union Journal (

Pentagon FCU Explores Conversion To Savings Bank
Credit Union Journal | Wednesday, February 25, 2009 ALEXANDRIA, Va. – Frustrated over the huge cost of the corporate credit union bailout, the board of Pentagon FCU has authorized management of the nation’s third largest credit union to explore conversion to a mutual savings bank.
No decisions have been made yet but the board agreed over the weekend to have management look into the savings bank charter, according to several sources.
Pentagon officials declined to confirm the reports. "I have no comment," Frank Pollack, president of the $13 billion credit union, told The Credit Union Journal yesterday.
In an interview soon after NCUA announced plans to have natural person credit unions fund the $5 billion corporate bailout Pollack called the estimated $80 million charge to his credit union "confiscatory" and said he will avidly explore every option to limit the cost to his members.
The $80 million charge would wipe out almost two-thirds of the credit union's $125 million of net income for 2008. The credit union giant had a banner year in 2008, with 16% growth in assets and a 1% return-on-average assets, or ROA.

I purr therefore I am.
Purron is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-25-2009, 12:16 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2007
Posts: 7,176
My local credit union, also a natural person credit union, is like penfed in that they never took crazy risks, they mostly hold their own mortgage notes, so they never went crazy issuing dodgy loans and securitizing them. I think they are in a similar situation as penfed in that they are being asked to cough up tens of millions to bail out other credit unions that weren't responsible. It will interesting to see the outcome of all this.
FUEGO is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
A message from Penfed cute fuzzy bunny FIRE and Money 20 07-25-2008 05:39 PM
Yet another online savings account over 5% - Etrade Complete Savings maddythebeagle FIRE and Money 0 11-28-2006 12:53 PM
World Savings bank Non sequitur FIRE and Money 3 08-31-2006 04:19 PM
PenFed qbkatran FIRE and Money 1 01-01-2006 10:17 PM
Penfed Heads-up Bob_Smith FIRE and Money 8 02-26-2004 01:33 PM


All times are GMT -6. The time now is 04:35 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.