Connecticut CUs Besieged By Vendors
Like others elsewhere where the corporate situation hits hardest, Connecticut credit unions are being wooed for their business by would-be providers "like birds swooping out of the sky."
The barrage of calls, e-mails and personal visits from processing vendors and out of state corporates has been heavy for days, said the Credit Union League of Connecticut following NCUA's Sept. 24 seizure of its lead corporate, the $1.4 billion Constitution Corporate FCU of Wallingford.
NCUA which took over Constitution in a purchase/assumption deal has said that while normal business can continue it will merge the entity into another corporate with a most recent timetable mention of "four to 12 weeks."
Because of its deteriorating condition, Constitution was the only one of the three conserved corporates slated for a merger with the other two, Members United and Southwest Corporate on a two year "bridge corporate" cycle.
"Let me tell you that one of our credit unions told me he has had 10 separate contacts from vendors or corporates seeking his business," said Tony Emerson, president/CEO of the league which like others has strived to guide member CUs on the next "system solution" cautioning against hasty moves.