If Europe falls and banks go under, how would credit unions do?

Ok so here's something that confuses me. If Greece defaults or there's a big mark-down in EU debt, highly leveraged European banks would begin to fail. This would probably set off a chain reaction, causing banks to fail here in the US. Bank of America would probably be the first to go, followed by JPMorgan, Goldman, and then some regional banks backed/bought by these big banks. It's probably fair to say that people would essentially be locked out of their banks and not be able to get their money out. They would have to wait until the FDIC figures out what the heck to do.

If a worse-case situation like this does occur, how would credit unions fare in all of this? Would they fail also, or be okay since they're not for-profit and probably don't invest?

 

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Well, I think, and this is just me. That credit unions would fare better than any other institution because of the fact that you have already mentioned. Since these institutions are owned by the depositors, the people that run them seem to be more conservative with these funds. Most of the monies kept in credit unions are used by depositors to purchase homes, cars and other luxury items for themselves and not lent out to other outside agencies.

I do not believe the credit unions would fail because of these facts.

 

Hopefully the credit unions wont fail since it is so reliant on the unions. But the banks should be stable enough.

Even in greece, they will do fine.