CUNA's Mike Schenk, vice president, economics and statistics, said he's worried the press and public will misinterpret 1st quarter 2009 credit union financial reports.
"It's easy to report numbers that show large declines in net worth or negative ROA, but without context, it's also easy to misinterpret what those numbers mean," Schenk said, adding that the banking industry is discussing nationalizing individual banks that are larger than the entire credit union industry.
He said CUNA stress tested credit unions against corporate stabilization losses, measuring the impact of taking 100% of share insurance fund charges, plus specific corporate member capital losses, in 2009. About 90% of credit unions would report a net loss in that situation, he said, compared to only 25% without corporate write-offs.
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