ST. PETERSBURG, Fla. -- PSCU Financial Services member credit unions will see a blacker bottom line in May as PSCU passes back all the cash it received from Visa's initial public offering of stock.
The No. 1 card brand raised over $19 billion in its mid-March stock offering with much of the proceeds going to settle various legal claims. PSCU said it received $20.5 million as its share of the stock sale proceeds.
"We are under no legal obligation to return these funds, but the directors agreed that distributing these monies to the Visa-issuing credit unions under our principal umbrella will help these credit unions further invest in new products and services that can drive long-term growth," said PSCU Board Chairman Craig Esrael, president of the First South Credit Union headquartered in Bartlett, Tenn. "To our knowledge, we are the only CUSO or processor that has elected to distribute the monies it received from the Visa IPO to its members."
TNB Card Services, the card processing arm of credit union owned Town North Bank, has declined to comment on how much money it received from the IPO or how it plans to distribute it. Card Services for Credit Unions, the association of credit unions that use the Fidelity National Information Systems card platform, has not yet commented on the Visa IPO.
--dmorrison@cutimes.com
