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Conference 7.286::dcu

Title:	DCU
Notice:	1996 BoD Election results in 1004
Moderator:	CPEEDY::BRADLEY

Created:	Sat Feb 07 1987
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1041
Total number of notes:	18759

488.0. "Rumor of the week...." by DEMON::INGALLS () Mon Mar 09 1992 15:19

    I received a message (which had been forwarded many times) stating 
    that the message originator had requested an assessment of the credit
    worthiness of the DCU.  The agency, IDC Financial Publishers, based
    its analysis on the semi-annual report that the DCU files with its 
    insurance agency.  The "overall assessment by the agency is that the
    DCU is in such bad shape that it has a high likelihood of failure".
    
    Has anyone else heard about this?
    
    Thanks,
    
    Gail

T.R	Title	User	Personal Name	Date	Lines
488.1	Nothing new, nothing too much to worry about	CVG::THOMPSON	DCU Board of Directors Candidate	`Mon Mar 09 1992 15:37`	7
	I've heard about the mail message but not seen it. I have seen the report it referes to however. It has some unfavorable things to say about the DCU but doesn't say it's about to fold. It is is mostly critical of the costs of running the DCU and some asset to earnings ratios. I do not know how up to date their information was though. Alfred
488.2	Careful with those rumours out there...	AOSG::GILLETT	Petition candidate for DCU BoD	`Mon Mar 09 1992 15:45`	23
	I would counsel caution in the extreme with regard to this report. I've seen the report mentioned in .0, and it is basically a study of the various ratios that are used in determining fiscal strength. As is well known, DCU has taken some hits on the write down of the participation loans, and so our ratios aren't very good right now. If you've been to Chuck Cockburn's informational meetings last year, you heard him talk at length about his plans to improve these ratios. The report says that there is a higher incidence of failure among credit unions with numbers in our range. It DOES NOT SAY that "DCU is in such bad shape that it has a high likelihood of failure." This report is simply a statistical study - it is not a detailed investigation of DCU, or even a thorough probing. DCU may have it's problems, but it is strong. DCU is NOT going to fail. Period. While I am often very critical of DCU's BoD, I do not fear, nor should you, for the future of DCU. Please, let's be careful with rumours like this. DCU, and especially DCU's shareholders, do not need a run on the bank.
488.3	Nothing we didn't already know	GUFFAW::GRANSEWICZ	Vote for DCU Petition Candidates	`Mon Mar 09 1992 15:45`	14
	RE: .0 Yes, I have seen and read the report. It really states nothing new. Their analysis' are based on ratios. And we certainly already knew DCU's ratios have suffered because of the loan losses. But I would say DCU doesn't have a high likely hood of failure unless people panic (which could cause ANY institution to collapse) or DCU makes another major mistake which causes further loss. So let's just hang in there and get DCU back up and running like it was in its early years.
488.4	Thank you for the explanation!	DEMON::INGALLS		`Tue Mar 10 1992 07:48`	9
	Because this type of rumor can be so harmful, I entered it in this Notesfile for clarification. Since the rumor mongers are sure to spread this, perhaps the DCU should acknowledge the rumor and state the FACTS! Thanks for the information. Gail
488.5	I couldn't agree more!	DEMON::INGALLS		`Tue Mar 10 1992 07:51`	7
	RE: .3 That was my 1st thought - instead of a run, what can we do to SAVE the DCU, if this rumor is, in fact, true. G
488.7		SSDEVO::EGGERS	Anybody can fly with an engine.	`Tue Mar 10 1992 10:55`	4
	Re: .-1 I'm sure Mr. Glover would be as diligent in repsonding to that as he was to 450.0. :-)
488.8	Yeah, that's the ticket	MLTVAX::SCONCE	Bill Sconce	`Wed Mar 11 1992 09:13`	12
	.5> That was my 1st thought - instead of a run, what can we do to SAVE .5> the DCU, if this rumor is, in fact, true. Vote...
488.9	I say we should stay put...	ERLANG::MILLEVILLE		`Wed Mar 11 1992 12:31`	16
	.5> That was my 1st thought - instead of a run, what can we do to SAVE .5> the DCU, if this rumor is, in fact, true. We can also plan to NOT desert the DCU as many have elected to do in pulling out their money. I have noticed no change in the status of the funds in my three accounts other than the interest rates have gone down. The service from the tellers here at LKG is just fine. If I hadn't heard about the Mangone affair, I would have attributed 100% of the low rates to the current economic conditions. Now I know a part of it has been their losses. The bottom line is that ANY business CANNOT survive if its customer base deserts it, even when they ARE in a bona fide CORRECT process of correcting the pro- blems. Some people have chosen to take their funds elsewhere, and they do indeed have that right. Under the current economic conditions, they may find themselves bank-hopping again and again anyway. But as long as the funds are NOT in danger, I say we should stay put.