NCUA: Constitution Corporate Fully Operational
The NCUA clarified Constitution Corporate Federal Credit Union's regulatory status to the Credit Union Times late yesterday, saying the $1.3 billion corporate is not under conservatorship, nor has it received a capital infusion or any other new financial support.
But like WesCorp, which depleted all member capital in March 2009 and reported a nearly $5 billion Prior Undivided Earnings Deficit as of Dec. 31, Constitution Corp's $25 million PUED is guaranteed by the National Credit Union Share Insurance Fund.
NCUA spokesman John McKechnie said his federal agency is aware of Constitution Corporate's capital status and has been working with its management.
"We have pursued a course of action that is least costly to the NCUSIF," McKechnie said. "The credit union remains fully operational and continues to serve its members."
Although most of U.S. Central Federal Credit Union's members have already full extinguished the wholesale corporate's member capital shares on their own books, U.S. Central reported a little more than 11% of MCS left as of Sept. 30. The Lenexa, Kan.-based corporate has not yet released Dec. 31 numbers.