The head of the Texas Credit Union League renewed his appeal Friday for industry calm and caution in dealing with the corporate restructuring, suggesting CUs "keep their powder dry" before acting hastily on changing providers.
In an e-mail bulletin, President/CEO Richard Ensweiler declared that "at the end of the day we must avoid being fragmented." He noted that CUs, "which are undoubtedly getting pressure from boards to make a decision are best served by keeping their powder dry and not missing options designed to serve their needs."
The league's top manager was referring to NCUA's "bridge" corporates and unstated steps or "options" being considered by CUs following NCUA's Sept. 24 takeover of the conserved Southwest Corporate FCU of Plano, Tex.
During a league-produced statewide CEO call yesterday, Ensweiler said, "The key to moving forward stems largely from what the interests are of credit unions themselves." Those interests will be gauged, he forecast, from "an advisory council being formed by Southwest Bridge Corporate."
A week ago at a Southwest Corporate webinar, Keith Morton, NCUA's Region IV director, also urged CUs to "avoid fragmentation," suggesting that they "get together to determine how best to handle their future payment needs."
To that end, the SW Corporate is organizing an advisory council "made up of credit union leaders to advise on the future of the entity." Apparently putting that group together is Dianne Addington, the retired former head of Genisys CU of Auburn Hills, Mich., who was named Sept. 24 as interim CEO of Southwest Corp.
In today's bulletin, the Texas League noted again that "while the bridge corporate itself cannot be recapitalized, there are four different options: a new charter, a CUSO, a merger with an existing corporate, or simply be shuttered. Volunteers for the advisory council are being actively recruited through today."
The bulletin also quoted Ensweiler outlining the "timeline" that allows CUs to fully consider their choices. "Some of those choices are not fully realized until the eventual disposition of Southwest Corporate is completed," the league said.
