When a financial institution fails, what happens to its customers savings and loans?
Normally, when a financial institution begins to perform poorly, its regulatory agency steps in to take a more active role in the management of the institution. In cases where the financial institution seems headed for failure, the regulatory agency takes the institution into “receivership” which means the management of the institution is fully handled by the regulatory agency. When this happens, the regulatory agency seeks another financial institution to take ownership of the failing institution through a merger. This generally results in a transfer of the savings and loan accounts belonging to the customers of the failing institution to the new merging institution. QUESTION: Has Golden 1 ever been asked to assist a failing institution by merging with that institution? If so, how has it affected the financial condition of The Golden 1? ANSWER: Yes. Over the years The Golden 1 has been provided with numerous opportunities to merge with other credit unions that were having financial di
