ALBANY, N.Y. — A task force of New York credit unions that helped create Members United Corporate FCU has moved to revive the failed corporate credit union, currently in the semi-liquidated state under NCUA conservatorship.
A report issued by the New York CU League's Corporate CU Services Task Force calls for the reconstitution and recapitalization of the one-time $13-billion corporate, which was seized by NCUA Sept. 24, 2010. along with two other corporate failures, Southwest Corporate FCU and Constitution Corporate FCU. Members United, which was subsequently combined with Constitution Corporate, is currently being operated by NCUA as a so-called bridge corporate, with the vast majority of its assets-its investment portfolio-being liquidated as part of NCUA corporate bailout.
The New York task force of 27 credit union CEOs said the state's credit union executives have acknowledged the losses at Members United, which erased some $725 million of credit union capital-"and are prepared to move forward."
The task force also noted that a number of the state's largest credit unions have fled the corporate system and won't be coming back.
The task force also recommends that a reconstituted Members United pursue mergers with other corporates under a consolidation of the corporate system.
New York credit unions helped create Members United with the 2006 merger of their own corporate, Empire Corporate FCU, into Mid-States Corporate FCU of Illinois. Empire Corporate CEO Joseph Herbst eventually ran Members United till its takeover by NCUA.
