NCUA Charters Final Two "Bridge" Corporate FCUs

New corporates will assume existing business of Members United and Southwest Corporate

 

November 12, 2010, -- The National Credit Union Administration today announced the creation of two new bridge corporate credit unions assuming the operations of Members United Corporate Federal Credit Union  (formerly Mid-States Corporate) of Warrenville, Illinois, and Southwest Corporate Federal Credit Union of Plano, Texas.

 

These actions, which were originally announced in conjunction with the unveiling of NCUA’s Corporate System Resolution Plan on September 24, comprise the next phase in transition of corporate credit unions currently under NCUA conservatorship.

 

The newly created institutions will be known as Members United Bridge Corporate Federal Credit Union and Southwest Bridge Corporate Federal Credit Union. The first two bridge corporates created by NCUA were U.S. Central Bridge Corporate Federal Credit Union and Western Bridge Corporate Federal Credit Union.

 

"Creation of the four bridge corporates ensures that 4,600 member credit unions continue to have access to essential liquidity and payment services," said NCUA Chairman Debbie Matz.

 

NCUA has implemented a "Good Bank/Bad Bank" model to facilitate the corporate resolution process. Bridge corporate credit unions ("good banks") are chartered by the NCUA Board to purchase and assume "good" assets and member share deposits from the conserved corporate credit unions ("bad banks"). Bridge corporate credit unions will be highly liquid and operated to ensure stability and minimize disruption of service to member credit unions.

 

Other bridge corporate operational highlights include:

 

  • No new service offerings, except in instances where there is a need to enhance the security and functionality of existing services;
  • Fields of membership will be identical to those of the conserved credit unions they replace;
  • New loans will be provided primarily for settlement purposes, and existing loans will continue to be serviced;
  • Bridge corporate balance sheets will consist of assets and liabilities sufficient to sustain operational activities of the bridge corporate;
  • Payments and settlement activities will be the focus of the bridge corporates. Funding will not be secured to build an asset portfolio above this stated purpose;
  • Bridge corporates will not accept new members; and
  • In the interest of continuity of service at bridge corporates, critical staff are retained.

 

NCUA is committed to operating bridge corporates in a way that minimizes disruption of services provided to members. However, the bridge corporate cannot operate indefinitely. Bridge leadership will consult with members to develop a viable long-term plan that would enable the delivery of services transferring the bridge corporate's operations to a newly chartered corporate credit union, or selling operations to another entity capable of providing uninterrupted services.

 

Should a bridge corporate’s members decide not to support the plan or another entity not be identified, NCUA is committed to operating the bridge corporate for sufficient time so that members can find individual solutions.

 

Find a credit union by city, state, or name:

Find Local Credit Unions

Find a credit union

 


Order your credit report online

Special offer to credit union members. See your instant credit report.


Sponsored Sites

 

MERit Credit Engine for credit unions provides automated Internet credit report retrieval for scoring, system integration, three bureau merged and Open Standard XML reports.

 

Free credit report UK and Canada
Monitor your credit and protect against identity theft! Who checked your credit report recently, and what did they see?