SACRAMENTO, Calif. — Terry Halleck, president and CEO of The Golden 1 CU, Sacramento, Calif., said the task force's proposals "sound like a good plan to me. They definitely need to create efficiencies within the system, so there should be fewer corporates. We had to write off $44 million just for WesCorp, so the investment change is a positive one because we don't want to see the corporates being in that position again. The corporates did a great job of getting additional yields for the credit unions that invested in those, but at a great cost that we have all had to bear this year.
"The corporates need to be around because small credit unions rely on them heavily, but the old model isn't going to work long term. Larger credit unions, such as Golden 1 or Navy Federal, have other options - we already are using other options. The recommendations of the Task Force will allow corporates to be around to support the smaller credit unions."
