WesCorp Plan A Prelude To Members United Hook-Up

Register now

 

SAN DIMAS, Calif. – The member advisory committee for WesCorp Bridge Corporate FCU voted overwhelmingly to apply to NCUA to re-charter the one-time $34 billion corporate credit unions–a first step in what is expected to be the pursuit of a merger with Members United Corporate FCU.
Both entities are being run under conservatorship by NCUA, which has stripped out all of their investments and is liquidating them as part of the corporate resolution. Earlier this week, credit unions in New York voted to pursue a re-chartering of Members United.
The panel votes came a week after NCUA warned off the two failed corporates from hooking up before they shed their so-called bridge status and are re-chartered as proper corporates. It also came a day after NCUA issued new corporate chartering guidelines.
The next step will be for the WesCorp Bridge Member Advisory Executive Committee to engage NCUA’s Office of Corporate CUs to gain support of the business plan to be submitted before March 31. 

John Updyke, chairman of the advisory committee and president of Honda FCU, said they will seek consent of the remaining WesCorp member credit unions before seeking final approval from NCUA. 

SAN DIMAS, Calif. – The member advisory committee for WesCorp Bridge Corporate FCU voted overwhelmingly to apply to NCUA to re-charter the one-time $34 billion corporate credit union–a first step in what is expected to be the pursuit of a merger with Members United Corporate FCU.

Both entities are being run under conservatorship by NCUA, which has stripped out all of their investments and is liquidating them as part of the corporate resolution. Earlier this week, credit unions in New York voted to pursue a re-chartering of Members United, which they helped create.

The WesCorp panel vote comes a week after NCUA warned off the two failed corporates from hooking up before they shed their so-called bridge status and are re-chartered as proper corporates. It also came a day after NCUA issued new corporate chartering guidelines.

The next step will be for the WesCorp Bridge Member Advisory Executive Committee to engage NCUA’s Office of Corporate CUs to gain support of the business plan to be submitted before March 31. 

Jim Updike, chairman of the advisory committee and president of Honda FCU, said they will seek consent of the remaining WesCorp member credit unions before seeking final approval from NCUA.

 

 

For reprint and licensing requests for this article, click here.
Corporate credit unions
MORE FROM AMERICAN BANKER