CDs OK in Constitution Transfer
The head of the Credit Union League of Connecticut Monday called "good news" that term deposits held in the pending liquidation of Constitution Corporate Federal Credit Union will be held secure at fixed rate and maturity.
"I think that is extremely good news since now in essence we're under the same 24-month proposition as the other corporates," said Tony Emerson, president/CEO of the league referring to the two-year window on capital/servicing for the four remaining conserved corporates.
As announced Friday, NCUA is transferring all of Constitution Corp.'s CU operations to the also conserved Members United Corp. FCU of Warrenville, Ill.
Connecticut CUs, said Emerson, are now doing due diligence and "in a wait and see mode" about switching to Members United or to other providers and other corporates which he said continue to aggressively peddle their services across the state.
In a formal statement and in a series of Q&A communications on its website, the league noted that it has "already received questions from several of you regarding further guidance on potential options."
"We want to assure you that we have been told by NCUA that the transition to Members United Bridge will have minimal operational impact," said the league. The trade group said it continues "to accomplish due diligence on several other providers, as a way of giving viable options to Connecticut credit unions."
Emerson also lauded NCUA for "handling a very tough job and performing well" in the current environment. "I think they are doing the best with what they have."