(building the) Black Rock Federal Credit Union

Video of Jesse Robbins @ Ignite Seattle (and updates, corrections, retractions, and denials)

The great folks at blip.tv posted the video from my talk at Ignite Seattle I and of course I have a few updates, corrections, retractions, and denials from the event.

1. I was, in fact, drunk when I wrote and presented this talk. I feel the need to state for the record that this event was held in a bar which didn’t have food and I’m I lightweight because I don’t drink that often. So… moving on…
2. I was wrong about Credit Union capitalization.
3. The Open Space Technology (OST) conference where we will write our charter and figure out how we will implement it is currently scheduled for April 7th, 2007. More details will be posted soon!
4. My talk mentions Jonah Burke’s presentation on the Darfur Wall project. Donate!
   
5. The OpenSourceCU folks aren’t creating technology yet, but their sponsor Trabien is a technology company serving credit unions.

1 comment December 19th, 2006

Ignite Seattle slide decoder: Why $1 = $16

What was Jesse talking about at Ignite Seattle?

Credit Unions have $0.06 backing every $1.00 they loan out… which means they can loan $1,600,000 for every $100,000 deposited by members.

If you loan out $1,600,000 at a 7% APR rate you take in about $112,000 in interest on $100,000 in principal. After deducting operating expenses and paying the members interest on their accounts, credit unions use the remainder to offer better services to their members.

Black Rock Federal will offer the same great services any other Credit Union does, and we will use our resources to change the world.

(edited on 12/11/06)

I was mistaken when I gave this presentation. I said that Credit Unions were able to loan out $16 for every $1 in member deposits, because they have a 6% capitalization requirement. I confused Credit Union capitalization ratios with banking Cash Reserve Ratios, and didn’t find out until I spoke with a gentleman from the NCUA today.

Please see this blog entry for a detailed correction.

1 comment December 9th, 2006