BISMARCK, N.D. – Midwest Corporate FCU, one of the smaller of the nation’s 28 corporate credit unions, said yesterday it exploring the conversion to a member-owned CUSO because like most corporates it will find it very difficult to recapitalize under NCUA’s proposed regulations.
Under one proposal being studied by the board and employees, the $250 million corporate would provide some of the same services as it doe snow, including check processing and wire transfers, but not the investment services that are currently the focus of most corporates, according to Eric Musland, chairman of the board and president of LeMoure (N.D.) CU. “We’re looking at ways of getting around having to ask our members to step up and recapitalize,” Musland told the Credit Union Journal yesterday. Midwest Corporate had just $950,000 in capital at the end of April.
The review comes as the corporate’s president and CEO Douglas Wolf has stepped down and been succeeded on an interim basis by Trudy Wise, Midwest Corporate’s long-time vice president of operations. Wolf is currently engaged as a consultant.
Nusland said neither the board or members have decided what form they want to adopt and there are currently no plans to liquidate. There is no date set for a member vote on the structure, he said.
The corporate represents more than 75 members in North Dakota, South Dakota and Minnesota.
