Cheney Says External Review and New Committee Next Steps in Corporate Solution
CUNA President/CEO Bill Cheney announced today that his association is going to commission a quick external analysis of the industry's needs and create a committee to formulate additional proposals.
He told reporters the summit his association sponsored on Saturday in Chicago generated healthy discussions from the 80 attendees from throughout the credit union system. He declined to discuss specific proposals that were discussed but said there is consensus that solving the problems facing the corporate system with a cooperative model that is also a viable business solution aren't mutually exclusive.
Cheney said the assessment of what credit unions need from corporates, especially in the area of payment systems, will be done quickly. He added that the committee to discuss and make recommendations about solutions will be made up of representatives of a cross section of the industry.
"The consensus is that minus the problems with the investments, the corporate system has served us well," Cheney said. "But if we only let the market prevail it will be a slow and painful process.''
Cheney said that of the 26 corporates, about 20 had CEOs or directors at Saturday's meeting, including some from the bridge corporates.
Cheney also said his association will request that the NCUA give the industry more time beyond the Dec. 31 deadline to come up with new business models.
But in a subsequent news conference with reporters, NAFCU President/CEO Fred Becker, who attended the meeting on Saturday, said an extension isn't necessary.
"We've known about the deadline and need for a solution for some time. I am not sure what will be accomplished by kicking the can down the road,'' he said.
The NCUA has created four bridge corporates out of four corporate credit unions it placed into conservatorships. On Friday, the agency announced it had chartered bridge corporate credit unions to assume the operations of Members United Corporate CU of Warrenville, Ill., and Southwest Corporate CU of Plano, Texas.