Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CU earmarks 50 million for local government bonds
RALEIGH, N.C. (11/13/08)--A credit union in North Carolina buoyed its support of local government by committing $50 million in investment funds for municipal bonds in the state. Local Government FCU, an $829 million asset credit union based in Raleigh, said that starting immediately, it is in the market to purchase municipal bonds from North Carolina's cities, towns and counties. The announcement comes as the national credit crunch and nervousness in the investment market has investors sitting on the sidelines, the credit union said in a press release. As a result, there is a lower demand for municipal investment instruments, which means key infrastructure projects in the state are delayed. The credit union said it has two purposes in earmarking the funds:
* It will be investing in ultra-sound investments that will complement its balance sheet; * It wants to encourage other institutional investors to return to North Carolina municipal bonds.
"Financial leadership will help keep North Carolina ahead of the economic crisis," said Maurice Smith, president of LGFCU. "For institutions that do business in North Carolina, we have an obligation to support our communities by showing diligent faith in our neighbors. North Carolina local governments have merited our confidence in their wherewithal to manage risk and attend to the needs of our citizens. Investing locally has appeal for us," he said. Government entities sell municipal bonds as a way to raise funds for public projects such as schools, courthouses, water/sewer infrastructure, roads and more.
Other Resources

RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
1 Day ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
1 Day ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
1 Day ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
1 Day ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
1 Day ago