BURLINGTON, Mass. — One corporate is expecting the ranks of corporate CUs to get smaller.
Alan Bernstein, SVP with EasCorp, told Credit Union Journal the conservatorship of the two corporates was a "surprise," and that EasCorp has fielded a number of calls from credit unions. "Mostly people want more clarification around what's going on," he said.
EasCorp, one of four corporate credit unions to elect not to participate in NCUA's expanded guarantee program, was "pleased to see NCUA take what was very decisive action," said Bernstein, who added the NCUA action suggests there could some day be a thinning of corporate ranks. "Over the long run I think the corporates will be there, as they have been in past. There may be some winnowing that takes place, as it did on (March 20)."
Earlier, CEO Jane C. Melchionda told her member credit unions, "EasCorp has no relationship with WesCorp. Second, we have reduced our relationship with U.S. Central during the past 18 months such that 1) our total investments in U.S. Central are less than $250 million as of Feb. 28, (of which deposits are guaranteed in full); and 2) we rely on U.S. Central for a very small number of operational activities including securities brokerage and a minimal number of so-called national settlements."
