Connecticut CUs Ask: Where Are NCUA Town Halls?
Connecticut credit unions, considering service options in the wake of the Constitution Corporate conservatorship, are patiently waiting for their turn with NCUA town hall meetings.
While dozens of the NCUA discussion forums with CEOs have been held in states impacted by the Sept. 24 corporate seizures, none have been held in Connecticut, which is the home of Constitution Corporate, the one entity now being readied by the agency for a purchase/assumption merger.
"I plan to ask NCUA to schedule some as part of their outreach," said Howard Pitkin, the state's banking commissioner, who stressed that the agency except for the CU dialogue "has been pretty cooperative" as it shops for merger partners for the $1.4 billion Constitution Corporate.
Pitkin met with leaders of the Credit Union League of Connecticut Nov. 3-4 for a Roundtable session and said the Constitution dilemma was on the front burner at the session as CUs were asking who would take it over. Pitkin said he sympathized with the plight of Connecticut CUs which "have had to pay for the mistakes of others."
The president/CEO of the $1.5 billion Connecticut State Employees CU, Daniel Daigle, said Constitution Corporate "is at a disadvantage and is being penalized" compared to the other bridge corporates which have time to reorganize and prepare new models.
"Frankly, I'd be happy if this drags out six months or more so there is time to weigh additional options," said Daigle, who heads the state's largest CU and took part in the Roundtable meetings.
If the NCUA acts too quickly in finding a merger partner, he said, optimum solutions developed by trade organizations might be missed. "I think there is a danger in resolving this too quickly," he added.
A spokesman for NCUA acknowledged that no town hall meetings have been scheduled, but said that once a resolution is determined for Constitution, then NCUA would meet with its members to discuss an approved service plan.