The newly chartered United Resources Federal Credit Union in San Dimas, Calif., plans to start soliciting for up to $250 million in new capital, the corporate said on Friday.
The recapitalization is part of an 80-page business plan for the former WesCorp, which would be scaled down to $4 billion to $5 billion of assets. The newly formed corporate plans to issue a private-placement memorandum in coming weeks. Credit unions have until Aug. 31 to decide whether to invest in the new corporate credit union.
United Resources would offer products such as payment services, liquidity products such as term loans, and short-term investments in compliance with the National Credit Union Administration's new corporate credit union regulations.
The failure of the $34 billion-asset WesCorp cost 1,025 credit union members their entire $2 billion in capital, a major hurdle to recapitalization efforts.