topic Re: Let's bet, Wachovia or National City. in General Credit Topics

Let's bet, Wachovia or National City.

wmarat — Sat, 27 Sep 2008 02:57:42 GMT

Who is going down first Wachovia, which tries to sell itself to Citigroup or National City, which seems to try nothing.

It seems we gonna stay with only 5 national banks: Chase, Citi, BOA, WF and USBank . Is this time for anti-trust laws to kick in?

Please notice, no CU was reported to be in trouble, any opinions why?

Re: Let's bet, Wachovia or National City.

Anonymous — Sat, 27 Sep 2008 03:24:04 GMT

e-mail from the CEO of my CU 8/6/08

State of the Credit Union

Is Arizona Federal facing the same challenges as other financial institutions you’ve been hearing about?

Most of the financial institutions making headlines recently are institutions that participated in what are commonly described as “sub-prime” or “alternative” mortgage products. These products were designed to extend credit to borrowers who were in many cases unable to obtain financing through traditional mortgage products. To lenders, these products offered considerable reward – at an equally considerable level of risk. Many institutions decided that the risk was worth taking. However, when the loans began to reset in terms of both interest rate and payment, more consumers struggled to make their payments and those potential risks became real financial losses. These unmet financial obligations then contributed to declining home values as the supply of homes, due to foreclosure, outpaced demand. Of course the demand lessened because lenders would not supply the loans to assist these same marginal borrowers. With the over-supply of housing, wage and income opportunities were lost in the real estate market. And the downward spiral began.

At Arizona Federal, we choose to not directly participate in these mortgage products, and thus we aren’t facing the same type of risks as other financial institutions. Our loan portfolio is a solid mix of traditional equity products, vehicle loans and personal/credit card loans. However, that doesn’t mean that we are not facing challenges in today’s economy. A small percentage of our members are facing financial difficulties brought on by mortgage loans they obtained elsewhere. Combine this with rising fuel prices, wage or job loss, falling home values and/or other economic forces, and this same group of members have been unable to fulfill their financial obligations related to car loans, credit card balances and equity loans. As a result, Arizona Federal has incurred increased loan losses which have caused short-term losses for the first half of 2008.

As a member, be confident in our financial strength and the fact that Arizona Federal is here to stay. We have multiple layers of protection that ensure the safety and soundness of Arizona Federal.

Our income before loan losses is stronger than ever.

We have accumulated capital over prior years to provide for unusual times and circumstances such as these. In other words, we have saved for a rainy day. Our total capital is approximately $200 million and, coupled with our results of operations, is more than adequate to absorb any unusual losses.
We have over 220,000 individual members who support our not-for-profit financial cooperative through their everyday financial affairs. As these members need a place to save, borrow and invest their money, we will be there for them and grow together.
Finally, for your own peace of mind, rest assured that your funds on deposit are insured to the Federal limits. Deposits are insured up to $100,000 for each individual, and IRA accounts are insured up to $250,000 per individual. To learn more, visit the NCUA website on Share Insurance by clicking here.

With that said, we continue to strive to earn your trust in all that we say and do. We provide convenience through our 29 branches, more than 5,000 shared branching locations and a network of over 57,000 surcharge-free ATMs. Additionally, we offer online banking, TT24 and a full suite of services through our call center with extended hours. And, perhaps most importantly, we create and provide measurable financial value through services such as affordable rates, free IDSafeChoice, financial education and student loans. By virtue of our members’ use of Arizona Federal services we are able to leverage the not-for-profit cooperative structure of our credit union to make a truly significant impact on our members' financial lives.

For more Arizona Federal information please read our 2007 Annual Report and President’s Message. Visit the Press Room for information about credit union performance.

Sincerely,

Ron Westad
President/CEO
Arizona Federal - The credit union for the way you define service.

Do you have questions or comments for Ron about the State of the Credit Union? Interested in what others are saying? ››

Re: Let's bet, Wachovia or National City.

marty56 — Sat, 27 Sep 2008 12:52:54 GMT

National City handles my mortgage for Fredie Mac and my Visa card is with them. My luck BofA would by them out.

Re: Let's bet, Wachovia or National City.

wmarat — Sat, 27 Sep 2008 20:56:40 GMT

I am affraid that NC will be allowed to go down, unless, WF or USBank decide to get some piece of it.

Re: Let's bet, Wachovia or National City.

llecs — Sat, 27 Sep 2008 21:00:18 GMT

My last two opened CCs are NAtional City and Wachovia. So, let's hope neither.

Re: Let's bet, Wachovia or National City.

Anonymous — Sat, 27 Sep 2008 21:30:01 GMT

@llecs wrote:
My last two opened CCs are NAtional City and Wachovia. So, let's hope neither.

Only out of respect for you, Ilecs, will I not wish the gruesome and embarrassing demise of Wacky.

And believe me, that says a helluva a lot about how much I respect you. Really.

Re: Let's bet, Wachovia or National City.

marty56 — Sat, 27 Sep 2008 22:50:28 GMT

wmarat wrote:
I am affraid that NC will be allowed to go down, unless, WF or USBank decide to get some piece of it.

I had 2 WF cards in DMP so I hope its not WF. Chase would be okay. BofA would really be bad.

Re: Let's bet, Wachovia or National City.

Red1Blue — Sat, 27 Sep 2008 23:59:19 GMT

I probably should sell the stock I bought in National City. I already lost 60% value to what I paid for stock. I might as well sell the stock and cash it out soon.

Re: Let's bet, Wachovia or National City.

wmarat — Sun, 28 Sep 2008 04:24:12 GMT

I do not see BOA buying neither Wachovia nor NC. I do not believe that chase can spend any money on buying failing financial institutions. The only left players are Citi, WF or USBank. Wachovia tries to be sold to Citi.

Re: Let's bet, Wachovia or National City.

Anonymous — Sun, 28 Sep 2008 04:42:02 GMT

National City just grabbed 2 other banks. They were expanding up until recently? Don't know what's going on with any banks anymore. I thought WaMu was going to pull through. I usually see high int rates on savings as an alarm these days, looks desperate in a bad market.

Actually each time I saw really high int rates on savings the bank were just about to sell out. hmm.

Message Edited by ilovepizza on 09-28-2008 12:42 AM