ONTARIO, Calif. – Representatives from several credit unions in the western states on Friday announced the formation of a Corporate Realignment Task Force, which they said will devise a cost-effective, cooperative structure to provide CUs with essential services that historically have been provided by corporate credit unions.
The Corporate Realignment Task Force said it will determine which related services credit unions need and will support, and create a “sound, cooperative system to provide those essential continuing services.” Critical services that will be examined include: item processing, payment system and settlement services, short-term liquidity associated with the settlement process, and, possibly, investment advice and other related permissible services.
The task force will be chaired by Jeff York, CEO of CoastHills FCU, Lompoc, Calif. York also is chairman of the California CU League board. Initial staff support for the task force is being provided by California and Nevada Credit Union Leagues staff. Richard M. Johnson, retired CEO of WesCorp, is a consultant. The task force said it intends to make use of professional staff currently at WesCorp as organizational efforts proceed.
David Chatfield, interim president and CEO of the California and Nevada CU Leagues, told Credit Union Journal the task force is “a work in progress.” “Obviously, it did not happen overnight, but a group of credit union leaders could see something was about to happen and credit unions needed to have a way to preserve those essential services,” he said. “This group of leaders has stepped up and will be joined by others. We have already received thanks from credit unions for being prepared to take this on.”
Regarding the new rules, Chatfield said the California and Nevada leagues have people examining the 255-page tome from NCUA, “but there needs to be a lot more study before we can comment on it.”
