Credit unions

SAN DIMAS, Calif. – NCUA told members of WesCorp FCU Friday it plans to begin redeeming all of the corporate’s $3 billion in fixed-rate CDs Oct. 3, even as it works to maintain services at the remnants of the one-time $34 billion corporate.

ST. LOUIS – The pace is heating up on corporate mergers as the deadline for NCUA minimum capital standards approaches, with members of Missouri Corporate CU and Montana’s Treasure State Corporate CU approving the latest corporate merger.

ALEXANDRIA, Va. – The NCUA Board is expected to vote next week on the re-emergence of Members United Corporate FCU, one of five corporate failures, as Alloya Corporate FCU.

COLUMBUS, Ohio – Corporate One FCU announced this afternoon plans to merge with Southeast Corporate FCU, the $3 billion Florida-based corporate that failed last month in its bid to recapitalize.

ALEXANDRIA, Va. – NCUA said this afternoon it mailed out invoices to all federally insured credit unions for their share of this year’s $2 billion payment for the corporate credit union resolution.

ALEXANDRIA, Va. – Slow NCUA action to in identifying and addressing examination problems at Constitution Corporate FCU were among the chief reasons for the failure of the one-time $1.7 billion corporate credit union last year–one of five corporate failures to plague the credit union industry–according to a new study released this afternoon by NCUA’s Office of the Inspector General.

DULUTH, Ga.-A new name in corporate credit unions will begin operating this week and another will soon follow.

ALEXANDRIA, Va.-NCUA Assistant Director of Public Affairs David Small had earlier told Credit Union Journal that if a corporate fails to raise the necessary capital, the agency will begin the process of winding it down.

LENEXA, Kan. – Representatives of 13 corporate credit unions and CO-OP Financial Services said this morning they have abandoned efforts to buy the payments functions from U.S. Central FCU, the latest corporate initiative to fail.

SAN DIMAS, Calif. – NCUA said yesterday after news of the failed recapitalization by WesCorp FCU it has no plans to shutter the failed corporate credit union and is now soliciting acquirers to obtain the WesCorp business in a way that will have minimal disruption of member credit unions.

SAN DIMAS, Calif. – WesCorp FCU, trying to re-charter as United Resources FCU, said this afternoon it fell $110 million short of its capital raise goal and is working with NCUA on an alternative plan. United Resources’ capital call period ended yesterday, raising approximately $90 million, far less than the $200 million sought. Matt Davidson, United Resources chair and CFO for the $3.1-billion Kern Schools FCU, suggested that NCUA will now guide the future of the former WesCorp, and hoped Western Bridge operations and its members can be moved in whole to another corporate. “It is a sad day,” he told the Credit Union Journal. The one-time $34 billion corporate has been under NCUA conservatorship since March 2009 and is one of five failed corporate credit unions. A communication from United Resources President Phil Perkins and Davidson to the corporate’s members asked them to “await the new proposal and to take the time needed . . . to give it the due diligence and consideration.” The communication said that “more concrete details and time frames” will be shared as soon as possible. “For now, if you committed capital to United Resources, it is safe and will be returned to you,” the letter stated. “Furthermore, there is no need to rush to invest in an alternative solution.” Davidson said NCUA had reaffirmed that continuity of service and operations for all Western Bridge member credit unions will be maintained. “There are no plans to close Western Bridge’s operations, move credit unions off the platform, or begin winding down.” David Small, NCUA spokesman and assistant director of public affairs, has reported that if a corporate fails to raise the necessary capital that the agency will begin the process of winding it down. “NCUA will wait to hear the final results of the capital raises in order to give every credit union the opportunity to decide on whether they choose to support the member-driven solution, or transition their services to another service provider,” Small informed the Credit Union Journal last week.

SCHAUMBURG, Ill. – Officials with Members United (Bridge) Corporate FCU said it has received ongoing commitments from as many as 1,000 credit unions nationwide and expects to raise about $75 million in new capital to enable it to emerge from NCUA conservatorship as a new entity called Alloya Corporate FCU.

WARRENVILLE, Ill. – Alloya Corporate FCU, the newly chartered remnant of Members United Corporate FCU, said this afternoon it has raised $71 million in new capital, allowing it to move forward with the reorganization under NCUA’s new cpaital rules.

NEW YORK – NCUA and more than three dozen other investors on Monday lodged objections to Bank of America Corp's $8.5 billion settlement of claims over losses on mortgage-backed securities, joining a growing list of investors and regulators that are challenging the deal.

ALEXANDRIA, Va. – The NCUA Board approved the hiring of five additional personnel to help manage the servicing and monitoring of its corporate credit union resolution program, which the credit union regulator says will take at least another 10 years to complete.

LOS ANGELES – The former chief financial officer of WesCorp FCU, being sued by NCUA for his role in the failure of the one-time $34 billion corporate credit union, has filed a counterclaim against the credit union regulator seeking more than $100,000 in legal fees he has incurred since the onset of the legal battle.

ALEXANDRIA, Va. – NCUA this afternoon approved the combination of Southwest Corporate (Bridge) FCU with Georgia Corporate FCU, one of half-dozen pending corporate mergers.

ALEXANDRIA, Va. – The NCUA Board is widely expected to assess its biggest ever charge to federally insured credit unions – $2 billion for this year’s share of the corporate resolution program – at a special summer-ending meeting Monday afternoon.

TALLAHASEE, Fla. – Southeast Corporate FCU announced this afternoon it has failed to raise its goal of $80 million in new capital and will seek a merger instead.

DULUTH, Ga. – Soon-to-be-official Catalyst Corporate, the result of a merger between Georgia Corporate and Southwest Corporate, reported when it opens its doors its membership will be 869 institutions, including 850 credit unions, representing more than $87 billion in assets.