Should I pull my money out of these Credit Unions? - Page 3
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Thread: Should I pull my money out of these Credit Unions?

  1. #21
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    The CU system also sort-of includes an organization called Concentra Financial that provides quite a few financial services which I think includes mortgage swaps. I'm not that familiar with this component of Concentra but they are a large organization.

    I say "sort of" because Concentra recently converted to a bank. Apparently, they felt they were being held back by the CU system. I have no idea how this will affect their long term relationships with CUs.

    CUs used to use MBNA for credit card services but they are unhappy with TD's purchase of MBNA so I expect the system will come up with a new provider, at some point. Some have already left.

    The CU system is frequently mentioned as an entity by people like me who work(ed) in the system but it's a pretty lose system. They don't all get along, either. lol!


  2. #22
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    Interesting that Concentra GICs have CDIC insurance. I wonder what Concentra's role in the whole credit union system is.

  3. #23
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    Concentra is now a bank. Not long ago, they weren't. ... and not that long before that, they were Coop Trust.

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  5. #24
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    Concentra is an ambitious organization. I have little doubt that, at some point, they will go public.

  6. #25
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    Quote Originally Posted by TomB16 View Post
    The CU system also sort-of includes an organization called Concentra Financial that provides quite a few financial services which I think includes mortgage swaps. I'm not that familiar with this component of Concentra but they are a large organization.

    I say "sort of" because Concentra recently converted to a bank. Apparently, they felt they were being held back by the CU system. I have no idea how this will affect their long term relationships with CUs.
    I think Concentra was already federally regulated and CDIC-covered as Concentra Trust. What they seem to have done is created a separate Schedule 1 "Concentra Bank" (which I think now houses Concentra Trust as well). You'll notice that CDIC lists both "Bank" and "Trust" for Concentra as separate entities. I think the Trust is/was some sort of cooperative ownership, and the Bank entity will make for easier relationships or abilities or some good reason for doing it. I don't think anything much will change for their CU customers. Concentra seems to have started out as a primarily Sask CU play; I think there were intentions to bring in some of the other systems that didn't fully materialize?

  7. #26
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    Remember when Sask Wheat Pool was a "Publicly traded cooperative"? lol!

  8. #27
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    Quote Originally Posted by james4beach View Post
    ... By the way, from what I know, the credit unions did not have trouble through the 2007-2008 storm ...
    Credit unions also are better capitalized and operate with less leverage than the big banks. They are fundamentally safer operations.
    Maybe ... though I would want to dig further as there are signs that it may not be that simple.

    Ontario's deposit coverage agency lists 111 CU's from 2009 onwards that are closed.
    https://www.dico.com/design/1_3_Eng.html

    Breaking down the list using Excel - 42 were amalgamated, 48 were purchased, 19 were liquidated, 1 was dissolved and 1 was bankrupt.


    Cheers


    PS

    The "index linked" type products were advertised in the local CU years before I saw similar products being advertised at the banks. I can also recall the "use your smartphone's camera to deposit a cheque" from a CU first as well.


    PPS
    From 2009, there are several CU's that were liquidated.
    Last edited by Eclectic12; 2017-05-02 at 03:43 PM. Reason: added PS; added PPS

  9. #28
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    Before you jump to conclusions about the financial crisis, be aware that small CUs do get into trouble occasionally, even during good times.

    I'm not familiar with Ontario CUs during that era so it could easily be related to the crisis. I just urge caution with regard to finding a failed CU and considering that conclusive.
    Last edited by TomB16; 2017-05-02 at 03:49 PM.

  10. #29
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    It seems in Ontario (I am not finding similar listing for other provinces), there were four CUs liquidated in 2009.
    There's another fifteen liquidated from 2010 onwards.

    From 2008 back, one is directed to contact the DICO.


    Cheers

  11. #30
    Senior Member NorthernRaven's Avatar
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    For liquidated, I think a number of those are things like "ACME Buggy-whip Factory Credit Union", where things were just too small to be a going concern, but for whatever reason were just liquidated out, not acquired. Ontario and Toronto seems to have had quite a range of little workplace and ethnic CUs that don't really make sense in the modern banking landscape. The bankrupt one is likely "Portuguese Canadian Credit Union", which I ran across when looking at DICO way back - it had some smelly things like insider purchases of wonky Niagara Falls real estate and some sort of big loss to fraud with an armoured car company or something.

    Last edited by NorthernRaven; 2017-05-02 at 04:07 PM. Reason: Added CanLii link for PCCU

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