It's official: U.S. Central FCU and Western Corporate FCU have been split into "good corporates" and "bad corporates."
The NCUA today announced it has chartered two bridge corporates to assume the operations of U.S. Central and WesCorp, which were both seized by NCUA back in March 2009. The newly created institutions will be known as U.S. Central Bridge Corporate FCU and Western Bridge Corporate FCU.
The new bridge institutions will be highly liquid and operated to ensure stability and minimize disruption of service to members. They will not introduce new services, except in instances where there is a need to enhance the security and functionality of existing services, and will not accept new members. 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. New loans will be provided for settlement purposes only, although existing loans will continue to be serviced. Only assets and liabilities needed to sustain operational activities will be kept on the balance sheet.
Bridge corporate leadership, along with members, will develop long-term plans to transfer the operations to a newly chartered corporate, or sell operations to another entity.