SAN DIMAS, Calif. – Former members of the board of Western Corporate FCU (WesCorp), who were removed as the result of NCUA’s conservatorship of the corporate credit union, have issued a statement saying they have voted unanimously against contesting that decision.
In the wake of the conservatorship there had been some discussion by trade groups and others that litigation might be pursued against the agency, but in its statement the former members of the WesCorp board said it had “met four times for the sole purpose of reviewing legal options since the NCUA took conservatorship action on March 20, 2009. Counsel was received from multiple law firms located across the country, and the Board unanimously concluded that any legal challenge to the establishment of the conservatorship would be very problematic and the cost extraordinarily high, given the likely outcome.”
“We received encouragement and support from many WesCorp members, but the former Board, after careful consideration, believes litigation is not a viable alternative,” said former WesCorp Chair Bob Harvey, president of Seattle Metropolitan Credit Union.
