Technicolor FCU Expected To Jettison Most Staff
BURBANK, Calif.-Technicolor FCU was back open for business after closing its doors one day last week allegedly due to issues with some of its staff.
Management at Technicolor FCU did not respond to telephone calls seeking confirmation of its status, nor was any notice posted on its website. Stuart Perlitsh, CEO of nearby Glendale Area Schools FCU, told CU Journal his CU sent over some of its employees to Technicolor FCU as temporary help.
"There have been some challenges at Technicolor Federal Credit Union and in the spirit of credit unions helping credit unions, we at Glendale Area Schools Federal Credit Union have lent staff to the credit union," he said. "[Technicolor FCU is] going to reimburse us 100% for lending our expertise on the teller line and in the lending department."
Pasadena-based LA Financial CU reportedly also lent staff to the $38-million CU.
Technicolor FCU CEO Eric Dosch remains in place, Perlitsh said. "The CEO is still there and is in control of the situation, but he has had challenges with employees engaging in activity that violated credit union policies and procedures that have necessitated extraordinary action by the CEO. He has taken those steps to enforce those policies and procedures, and some of those employees are no longer working there."
WesCorp Cuts 90 Staff In Cost Reduction Effort
SAN DIMAS, Calif.-Western Corporate FCU (WesCorp) reported it is implementing numerous expense reductions, including the elimination of up to 90 employee positions, as it seeks to return to profitability. The corporate reported a $7.6-billion loss in 2008. Interim CEO Philip Perkins, who was brought in by NCUA after WesCorp was placed in conservatorship, said the objective is to reduce expenses to 2003 levels. WesCorp is cutting 30 employees at its headquarters office, and will eliminate 60 jobs at its branch locations, with approximately one-third of the reductions taking place immediately and the remainder phased in over the next 12 months as it closes its branch locations by mid-2010. Overall, WesCorp said staff is being reduced by approximately 22%. "We looked at the entire scope of our organization with a critical eye for increasing efficiencies and scaling staffing to match business levels," Perkins said.
Regulators Rein In Charter Switches
WASHINGTON-The federal depository regulators agreed to new standards on charter swapping that will make it much harder for troubled institutions to convert charters.
NCUA and the other four members of the Federal Financial Institutions Examination Council issued a joint statement they will only consider applications undertaken for legitimate reasons and will not entertain conversion applications that undermine the supervisory process. The prospective supervisors will follow existing supervisors' work on examination and enforcement actions, including consumer protection and safety and soundness issues.
That means that for institutions rated CAMEL 3, 4 or 5 or that have a serious or supervisory agreement in place or one being contemplated the existing regulator will be given additional reverence.
The regulators said they expect ratings assigned under a uniform system and outstanding corrective programs will remain in place following a charter conversion.
The new policy comes as at least four credit unions are in the process of converting to mutual savings banks, and one, Beehive CU was rejected by thrift regulators for a savings bank charter after it reported a $1.8 million loss for the fourth quarter of 2008.
