The weekend of March 10th saw Banking Regulators from the State of California and New York and also the FDIC close 2 very large banks, 1 in California and 1 in New York. These banks failed because of the poor management of Assets and Liabilities at those banks, it is not a reflection of a systemic economic failure. What does that mean for you, our member? Your money is safe at Bragg Mutual Federal Credit Union.
Silicon Valley Bank was heavily concentrated in loans to startup companies or venture capital investors tied to FinTechs and cryptocurrency clients. Signature Bank was heavily focused on banking cryptocurrency depositors. Heavy concentrations focused in one area, loans or deposits, is not the normal business model for banks or credit unions in the US financial ecosystem.
Bragg Mutual does not make startup business loans or offer venture capital investments. Our loan portfolio is well diversified, and we do not hold any deposits in Cryptocurrencies. We bank our members, not corporations. We are owned by our members, and not investors or corporations that do not have deposit accounts with us.
Federal Regulators took swift action to ensure every depositor at these two banks are able to access their funds. The FDIC will pay out in full, including any amount over the FDIC insured deposit.
The FDIC insures deposits at banks while credit unions are insured by a sister agency, the NCUA. Credit Union members have never lost a penny of insured savings at a federally insured credit union. Rest assured your money is safe at Bragg Mutual.