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$50 million left on the table

Congratulations to Publisher Mike Welch for his editorial in the May 23 issue of Credit Union Times on the subject of corporates. Congratulations also to Editor Paul Gentile. He has become the most informed reporter of corporate credit union business this industry has ever seen. We agree with Mike that,...

By Staff Writer | Updated on June 05, 2001

Congratulations to Publisher Mike Welch for his editorial in the May 23 issue of Credit Union Times on the subject of corporates. Congratulations also to Editor Paul Gentile. He has become the most informed reporter of corporate credit union business this industry has ever seen. We agree with Mike that, “Credit unions would do well to add today’s corporates to the growing list of mind-boggling options available to them.” Here’s another case in point. We at WesCorp believe there is in excess of $50 billion a year of credit union investments being invested outside the credit union network into Treasuries and government agency securities. If that is true-and if our research that most corporates are paying 5 to 15 basis points more than the Treasurer and agencies is correct-this is a lot of money that could be paid to credit union members that is never realized. If our statistics and estimates are accurate, credit unions may be leaving as much as $50 million a year-or more-on the table. ($50 billion times 10 basis points equals $50 million!) To think credit union CFOs would intentionally forego $50 million is truly “mind-boggling.” Have we corporates been doing such a poor job of getting our message out to those with these investment funds, or have they not been listening to us? Mike’s last line may say it best: “Credit unions that haven’t looked lately and still remember the old corporates may be pleasantly surprised.” Richard M. Johnson President & CEO WesCorp San Dimas, Calif.

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