Corporate Webinars Hit on Caution, Unity
Theindustry dilemma, now spread coast to coast of dealing with NCUA's corporate shakeout and what to do about alternative providers, had both a Texas and Midwest spotlight last week with separate webinars featuring calls for caution and unity during the "transition."
In Texas, the now NCUA-conserved Southwest Corporate FCU held a late Friday webinar in which Keith Morton, NCUA's Region IV director, suggested CUs "avoid fragmentation" but still make plans for operational changes.
That summary quoting Morton about CUs needing "to get together to determine how best to handle their future payment needs" was contained in bulletins issued Monday by the Texas Credit Union League.
According to the Texas League report, Southwest Corporate also is organizing an advisory council "made up of credit union leaders to advise on the future of the entity." Putting that together is Dianne Addington, the retired former head of Genisys CU of Michigan who was named Sept. 24 as the interim CEO of Southwest Corp.
"While the bridge corporate itself cannot be recapitalized, there are four different options in the future for Southwest Corporate: a new charter, a CUSO, a merger with an existing corporate, or to simply be shuttered," the Texas League said.
The Texas League did say that the webinar did send "a strong message--credit unions need to get together to determine" what route to follow.
The leadership of the Texas League in comments last week again urged against "knee jerk reactions" in grappling with the corporate crisis and any provider switch.
Pamela Stephens, TCUL chairman and president/CEO of Security One FCU, said: "We are willing to give this time to see what options will be available. My preference is for a movement based solution, one that is developed with what's best for credit unions in mind. Our trade association is researching options and in the meantime the bridge corporate can meet our needs for payment services."
She said her hope is "that credit unions will stand together to support our system."
Outside of Texas, the also conserved Members United Corporate FCU in Warrenville, Ill., held its own webinar last week in which the value of the Members "franchise" was stressed by NCUA officials.