Matz: Corporate Credit Union System Now on a “Solid Foundation”
(Oct. 29, 2012) – Completing three years of efforts to stabilize the corporate credit union sector, the National Credit Union Administration (NCUA) today closed U.S. Central Bridge Corporate Federal Credit Union (U.S. Central Bridge). The agency also used the closing to remind credit unions of the need to address their emergency liquidity needs.
“Closing U.S. Central Bridge is the last step in the effort to stabilize and reform a corporate credit union system that was close to collapsing three years ago,” NCUA Board Chairman Debbie Matz said. “Decisive actions by both NCUA and credit unions brought the system back from the brink. It wasn’t easy, and it required sacrifices, but there was no interruption of service to members while we overcame the worst economic crisis since the 1930s.”
“We now have a stronger, safer system,” Chairman Matz added. “We have set high standards for corporate credit union investments, capital and governance, and we’ve created a new operating environment for wholesale corporate credit unions to serve retail credit unions. The decisions NCUA and credit unions made have produced a solid foundation for the future.”
Chartered in October 2010, the Lenexa, Kansas-based U.S. Central Bridge assumed operations of U.S. Central Federal Credit Union (U.S. Central) to maintain continuity of services to corporate credit union members, prevent disruption to the credit union system, and protect consumers.
Founded in 1974, U.S. Central was once the largest corporate credit union. However, it was part of a group of five corporate credit unions devastated by losses incurred through the purchase of faulty mortgage-backed securities (MBS) in the years preceding the financial crisis that began in 2008. NCUA placed U.S. Central into conservatorship in March 2009, and the credit union was subsequently transitioned into U.S. Central Bridge.