I asked a question. Can credit unions do bail-ins?

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https://www.google.com/search?client=opera&q=can+credit+unions+do+bailins&sourceid=opera&ie=UTF-8&oe=UTF-8

AI Overview
Yes, but it is highly unlikely for credit unions to perform bail-ins because the regulations are designed for large, systemically important banks, not smaller, community-based institutions.

Bail-ins are a tool under the Dodd-Frank Act that allows a struggling financial institution to be recapitalized by its creditors, such as bondholders and large depositors, instead of using taxpayer money.

Credit unions are structured differently and face significant practical difficulties in meeting the requirements for a bail-in, such as issuing the specific "bail-in-able" debt instruments and finding a liquid market for them.

How bail-ins work

A legal tool:
The Dodd-Frank Act allows large banks to use a bail-in in a crisis to absorb losses and recapitalize, avoiding taxpayer-funded bailouts.

Creditor responsibility:
When a bank fails, its creditors—including unsecured creditors, shareholders, and large depositors (above the insurance limit)—may have to write down their debt or convert it into equity to save the institution.

Clear disclosure:
Banks must clearly disclose which debt instruments are subject to bail-in, and large institutions have to create "living wills" to plan for their failure.
Why credit unions are unlikely to have bail-ins

Regulation focus:
Bail-in regulations were created for large, complex banks, not community institutions like credit unions.
Practical difficulties:
Credit unions would have significant practical problems trying to issue the necessary bail-in-able debt and finding investors for it, as there is no liquid market for their capital instruments.

Regulatory burden:
The regulatory burden of issuing bail-in-able instruments is not considered appropriate for community-based financial institutions, as noted by the World Council of Credit Unions.

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Hence ifn ye can, it might be advisable to switch to a c/u if ye're still in the banking system.