NCUA To Break Up Remains Of U.S. Central FCU
LENEXA Kan. – A group of 14 corporate credit unions is submitting a bid to NCUA to acquire the payment products and services currently operated by U.S. Central Bridge FCU, one of the surviving parts of the one-time $52 billion corporate.
The corporates plan to use the payments functions as the basis for a new national payments CUSO, according to sources. A plan submitted to NCUA provides for uninterrupted service to credit unions.
NCUA also is looking to sell other remaining parts of the corporate failure, operated under federal conservatorship since March 2009. Among those parts are a broker-dealer CU Investment Solutions Inc., or ISI, and assets related to U.S. Central’s jumbo mortgage warehouse.
NCUA liquidated the vast majority of U.S. Central’s assets – its investment portfolio – last fall. The regulator sold some of the investments at a steep discount, while retaining others for use in construction of the NCUA Guaranteed Notes.