Corporate Reform Looks For Leader
ALEXANDRIA, Va.-NCUA's newly passed corporate rules are expected to unleash a major restructuring of the corporate credit union network that will entail consolidation of the disparate group of 28 regional corporates. The question to be settled is who will lead that effort?
NCUA repeated its position that it will not direct the restructuring, leaving those decisions to the corporates and their members. NCUA Chairman Debbie Matz emphasized the future of the system will be determined by the private sector and "not by any government dictate".
But leaders of the corporate system have been wounded by their own roles in the meltdown of the corporate system, making it difficult for them to collect support. CUNA and the leagues, which created the corporate system, have been hurt by their own leadership of U.S. Central FCU (the trade group controlled the board of the one-time $52-billion corporate before its 2009 takeover by NCUA) and by their own recent report calling for a retooling of the corporates into little-more than pass-through entities for investments.
CUNA leaders said the group's corporate task force issued its final report last week and is scheduled to disband (see related story). But the CUNA Board will discuss continuing it to discuss and potentially develop a restructuring plan.