Emerson: Constitution Corp Recapitalization Not a Priority
Credit Union League of Connecticut President/CEO Tony Emerson didn't have much to say about NCUA's decision to not grant Constitution Corporate FCU a bridge charter. The regulator's move eliminated the possibility members of the state's $1 billion corporate could recapitalize their cooperative.
When meeting with league members this year, Emerson said he "didn't hear one single person volunteering to recapitalize Constitution."
Instead, the league will focus on ensuring uninterrupted access to corporate products and services for members, and communicating to Connecticut consumers their credit union deposits are safe.
Western Corporate FCU and U.S. Central FCU members have received uninterrupted service since their corporates were seized in March 2009, which should be reassuring, he said.
"It's not just the microcosm of Constitution Corporate, it's dealing with what has happened to the entire industry. I think [NCUA] is doing the best they can with the tools they have, so it will have the least effect on people in Connecticut and across the country."
Emerson said his league executive team is in the first phase of analysis of corporate services and alternate service providers, and will form a transition task force if necessary.
"Here in the Northeast there are a lot of corporate credit unions--we have Eastern, TriCorp and Mid-Atlantic in the area, plus we have the FHLB Boston nearby, so there are a lot of options," he said. "We're good to go.Nobody will suffer."