Task Force Member Generally Happy With Plan
STOCKTON, Calif. – Waiting for NCUA to issue its final Corporate System Resolution has been a “barrier” to natural-person CUs going forward, according to a member of CUNA’s Corporate Credit Union Next Steps Working Group, who said he was glad the regulator has laid out what its plans and proposals are.
Frank Michael, president and CEO of Allied CU, Stockton, Calif., told Credit Union Journal, “I am pleased with the concept of the bridge credit union, where the good assets of the conserved credit unions go into a bridge credit union,” he said. “The NCUA always would have kept essential services in place, but the thought was the services would be removed in 12 months – that is now 24 months, which is enough to get the process done.”
According to Michael, from the point of view that the three corporates placed into conservatorship were not viable going forward, the move by NCUA is a “good thing” in the long term. “It is positive for their members because they have a clean slate going forward. I am a member of WesCorp, meaning 18 months ago I was slammed by losing all of my capital. Now, I am forward-looking. This conservatorship will help the members of those three corporates move forward.”