DALLAS — The conservatorships of U.S. Central and WesCorp won't unsettle CUs that deposit with Southwest Corporate FCU, predicts Bob Rehm, the corporate's SVP of corporate relations.
Southwest has allayed fears, he believes, through ongoing communication with its member credit unions as the troubles with the corporate community have made headlines in both trade and national press.
"A lack of information would cause people to speculate and what we have tried to do is fill that gap and make sure that our members know what is going on at Southwest," he said. "We have had monthly webinars for some time where we go into detail about our financials and investment portfolio."
On the night of Sunday, March 21, Southwest President John Cassidy sent an e-mail message to members detailing NCUA's actions, highlighting NCUA's statement that Southwest's investment risks, as well as all other corporates' portfolios in the network with the exception of U.S. Central and WesCorp, were manageable.
As for additional corporates being placed into conservatorship, Rehm said, "I don't think this is any sign the NCUA is sending," he said. "They are just taking actions they feel are necessary based on the information they got from the Pimco analysis."
