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.

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.

DULUTH, Ga.-Georgia Corporate FCU and Southwest Bridge Corporate FCU, which plan to merge and form Catalyst Corporate, reported they have transferred members' pledged Perpetual Contributed Capital into escrow, a sign the planned merger will "succeed," the corporates said.

VISTA, Calif. – Bluepoint Solutions has announced a plan it says provides an alternative for check capture and item processing to credit unions that would be affected by the liquidation of Western Bridge Corporate in the event the planned successor corporate, United Resources, does not come to fruition.

SCHAUMBERG, Ill. – While it appears that United Resources Corporate FCU will not reach its capital raising goal [Credit Union Journal online, Aug. 11], Alloya Corporate CU is confident it will hit its target.

PHOENIX – First Corporate Credit Union (FirstCorp) said it now has a leverage ratio of nearly 6%, well above the minimum regulatory requirement of 4%.

ARLINGTON, Va. – The National Cooperative Bank and The Members Group, a subsidiary of the Iowa league, yesterday formalized an agreement in which the NCB will provide for the delivery of correspondent services to Iowa credit unions.

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.

ALEXANDRIA, Va. – NCUA on Tuesday filed suit in California against New York firm Goldman Sachs & Co., alleging violations of federal and state securities laws, as well as misrepresentations in the sale of securities to now-failed U.S. Central and Western Corporate federal credit unions.

DULUTH, Ga. – Georgia Corporate FCU and Southwest Bridge Corporate FCU, which plan to merge and form Catalyst Corporate, reported they have transferred members’ pledged Perpetual Contributed Capital into escrow, a sign the planned merger will “succeed,” the corporates said.

ALEXANDRIA, Va.-NCUA last week said it failed to obtain the self-imposed minimum commitments of $500 million for its voluntary prepaid corporate assessments plan, and therefore had canceled the program.