Remember 2008? Remember when Lehman Brothers collapsed, followed to the brink by AIG and a host of the largest banks and investment giants? Remember too big to fail and the enormous bailouts funded by the taxpayers…(that’s you…remember)? Remember the great recession?
In 2010, in order to prevent another massive collapse powered by greed and risky investments, a piece of legislation passed Congress. The Dodd-Frank Act forced banks, among other things, to move their riskiest investments…derivatives, trading commodities and default swaps…from Federally Insured accounts to new entities. The principle was simple: don’t ask taxpayers (that’s you, remember?) to pay the bill when your risky investments fail. Never again.
Seemed like a good idea at the time. It passed.
Things changed. Buried in the current 1,600 page omnibus bill that keeps the government’s lights on, is an amendment that changes that provision of Dodd-Frank. The amendment was written, almost in its entirety, by lobbyists from Citigroup. Jamie Dimon, President & CEO of JP Morgan/Chase, called legislators directly to encourage the bill’s passage…and so did the president.
There’s quite a bit of speculation as to how such an amendment could be included in such a must-pass bit of legislation. Here’s a few I’ve read:
- The very rich just really need to get very richer
- The rule would put American banks at a disadvantage against foreign competitors
- It’s part of a larger geo-political strategy to undermine the ruble and punish Russia for the Ukraine incursion
- It really wasn’t effective anyway
- It’s a “a huge gift for Wall Street’s largest banks.” (Maxine Waters, from the House Financial Services Committee, said that)
Here’s reason #439 (in the interest of full disclosure, I totally made that number up…but it’s probably pretty close).
Credit Unions, including Taleris, were not part of the greed-driven bad investment strategies that collapsed the American economy and caused the recession. Banks were. Credit Unions, including Taleris, were not bailed out by the federal government using taxpayer (that’s you…remember?) dollars. Banks were.
Credit Unions, even though they offer the products and services of a bank are not banks…the difference between them is critical. Credit Unions are cooperatives, owned by their members and governed by volunteer boards. You may join a Credit Union because their auto loan rates are better, but when you join you become part of something much larger.
Credit Unions are not-for-profit entities dedicated to helping their members thrive in difficult financial times. Banks are dedicated to profit. You decide where your monies are better kept…and then join a Credit Union.