Strong Corporates Can Help Credit Unions With ALM

May

The article in the Feb. 9 issue, “Natural Person CUs Plunge Into DIY Investing” (page 6), asks where credit unions will place their investable funds in the aftermath of the five failed corporates. The implication is it won’t be another corporate. I believe such a broad premise doesn’t consider the expertise or high-quality investment services of strong corporates that neither made risky investments nor lost all of their members’ capital.

At Mid-Atlantic Corporate Federal Credit Union, we have always taken a moderate approach to investing, following the long-standing principles of safety, liquidity and then yield. This strategy served us well throughout the financial crisis. And today, we meet the NCUA’s requirements for the leverage ratio and both risk-based capital ratios. We expect to meet the retained earnings ratio before the October 2013 deadline.