Have money in COACECSS, think about this

[Lee Zeltzer]

I received this today, I am passing it on with no comment beyond the source is very reputable.

Dear Lee, 

I have been very concerned for months about the marketing of this Savings and Loans Coop (and have been advising clients who ask, not to make deposits in Savings and Loan Coops) and a client just told me last Friday that they have been outside the Tuesday Meetings. 

The financial newspaper in Panama (Capital Financiero) published a note this week saying that the government entity that oversees Savings and Loans Coops has just intervened COACECSS (which is the one being promoted by this group of Americans in Panama) because of an audit which showed the sustained non-compliance with the law that regulates them and the "financial and administrative deterioration of this Coop which jeopardizes the investments of the Coop". 

 

[Fran Hogan]

It is my understanding that Panama's credit unions are not exempt from the newly relaxed banking laws.  I wouldn't assume that they were "safe" from any aspect.

[Gordon James]

It was my understanding that money in credit unions is safer from prying eyes. At least that was the sales pitch I got.

[Johnny Sunshine]

On thing about credit unions that is never mentioned is they keep their money in banks.

[Jim Thompson]

You mustn't confuse failures with closures.  There have been Credit Union closures.  One was Sears Roebuck that shut down it's business, and consequently shut down it's Credit Union.  Everyone got their money back.  It was the same for a newspaper in Panama City.  Credit Unions are responsible to pay out their banking clients if they shut down the business.  It's different than "failing" because you made bad investments.  If they invested in mortgages or businesses, I would be concerned.  This Credit Union invests in their membership of up to 14,000 members with maximum personal loans of $30,000 and are payroll deducted.  This is the Credit Union of Doctors and Nurses and hospital workers.  You won't find that this business will be shutting down any time soon.  If anything, more hospitals will be built.  Thanks.......jT

[Keith Woolford]

Jim, to be fair, the story was in the national press, Panama America for sure, on the 30th, a couple of days before Lee put it up here.

[Jim Thompson]

Thanks Keith...........the issue in the financial magazine has to do with the administration and control of the credit union, NOT the economic stability.  People are getting those two issues mixed up.  There are problems that are being addressed now in the administration and control.  There is nothing, absolutely nothing, that needs addressing involving the economic stability.  They have picked up over $75 million dollars since they closed the books and did an audit at the end of the 2009 year.  After 43 years in business, they only had $44 million.  It has been a meteoric rise in the past two years.......They closed out 2011 with $103 million dollars in assets.  Financially, they are stable.  Managing it needs to be addressed and that is exactly what IPACOOP is helping them with.  With proper management and administration, and all that money, this Credit Union is going to be a force to be reckoned with.  I can see it being number one, in short order.  They were number 8, two years ago, they currently are number 5.  One of the good things about a credit union is that they are a non profit organization.  That means that any profits go back to the membership in the form of programs and services.  Expect a lot more programs and services, along with competive loan and savings interest rates.  Pardon me Keith, if that sounds like a "used car" pitch.  jT

[Keith Woolford]

Jim, my comment wasn't concerning the health or well-being of the entity. I was just pointing out that I read this story in Panama America several days before it was posted here.

[Jim Thompson]

Thanks Keith.  It was Mata-Kelly of International Living who sent information to Lee initially and where this NING thing all started.  I don't know what publication that she was reading.  There was mis-information supplied to, or interpreted by, Lee.  I don't know which.  It could have been in black and white from the magazine article.  Just because it is black and white and printed, doesn't mean that it is true.  It's a writers interpretation of the facts. 

 

Administration and control of the credit union was the issue, NOT the economic stability.  Lee's comments have all been focusing on the economic stability aspect.  That is something that has to be made clear to everyone.  Audits of banks and credit unions go on all day, every day in Panama.  In most cases, they slide by without anyone noticing.  Recommendations are made, boards of directors agree and implement the recommendations, and it's back to business as usual.  That's why Panama and Switzerland are the top two banking centers of the world.  The Governments bodies are there to oversee and make sure that everything is well.....Thanks

[Judy Sacco]

Maybe because they have business visas?

[Lee Zeltzer]

Dear JIM here is the "misinformation" and source again. YOu deny the resolution says what it says? Quit trying to point fingers at the messenger for providing factual information.

This decision was made after a special audit carried out Coacess, which showed a repeated failure to Law 17 of 1997.

Marta was also appointed as intervener Moon Veliz temporary cooperative while the correction of deficiencies found, trying to keep attention to partners and the general public.

The resolution JD/11/2012, by authorizing the intervention, indicated that the audit carried out "details an alarming deterioration of financial and administrative organization through this cooperative and that such circumstances pose a serious risk to the investments by the cooperative and therefore the money from partners and third parties. "

James Sturge, Chairman of the Board of Directors of Coacecss, upon receiving the notification, announced his willingness to work addressing all recommendations made by the institution, said in a statement IPACOOP.

The IPACOOP reiterated its commitment to protect the funds of the cooperative and to ensure adherence to cooperative principles, values and laws that govern it.
Manuel Luna
capital"

see link 

http://www.capital.com.pa/intervienen-cooperativa-de-trabajadores-d...

[mox]

Hello everyone, I just joined this forum so I could get involved with this topic. I was about to invest into "coacecss", but over the last couple of days I am having my doubts, maybe I dodged a bullet, not sure?  I was wondering if anyone has any other "safe" Credit unions or banks they could suggest for my savings. I am hoping for 5% or higher, is this too much to ask, thanks for your time.

[Ray]

Bonds may be an option. No broker is telling you that because they want you to invest in the stock market or to speculate with currencies or to buy shiny metal (gold/silver), and most banks (and credit unions) in Panama wouldn't have a clue what a bond is or wouldn't tell you and still be trying to convince you to lock your money in a term deposit (CD) with no way to get out early, and less and less interest rates.

So bonds of big companies, operating worldwide and not being caught that much by financial turmoils, pay easily 5% on your principal. General Electric, Gazprom, AT&T, Heidelberg Cement, just to name a few.

If you want to know more about bonds feel free to send a message.

Enjoy...