Western Bridge Corporate Not Meeting Capital Goal
SAN DIMAS, Calif.-Several sources have indicated that Western Bridge Corporate FCU, the former WesCorp, has been telling credit unions it will not reach the capital raising goal by Aug. 31 that is established to recharter itself as a free-standing corporate called United Resources Corporate FCU.
Credit Union Journal reported Aug. 1 that Western Bridge was short of its capital-raising objective from member CUs willing to pledge funds. Sources said last week it had $52.4 million in executed subscription agreements as of Aug. 11. However, Credit Union Journal has been unable to confirm that during a roundtable of large CUs last week that Western Bridge officials confirmed the target will now not be met.
NCUA placed WesCorp into conservatorship in 2009 and continues to oversee its operation.
When contacted by Credit Union Journal about the capital raising effort at WesCorp, NCUA issued a general statement saying, "The advisory council for the proposed United Resources Corporate Federal Credit Union continues in its efforts to raise capital. NCUA maintains its position from the beginning of the corporate resolution process that credit unions will be provided an opportunity to implement a member driven solution. The proposed solution involves chartering a new corporate and purchasing and assuming certain assets from Western Bridge Corporate. The business plan calls for the proposed United Resources Corporate to raise a minimum of $200 million in capital through its current capital solicitation. Should this capital target not be met, NCUA will need to wind down Western Bridge Corporate's operations. NCUA will strive to maintain continuity of service while minimizing costs to the Corporate Stabilization Fund."