Chatfield Urges Three Corporates Be Merged
The merger rhetoric on bridge corporates continued to percolate Monday with David Chatfield, the new head of a West Coast task force on the subject, suggesting three already conserved corporates be consolidated.
Speaking out in connection with recommendations from the special California/Nevada Credit Union League corporate task force which now encompasses eight states, Chatfield identified the conserved trio as U.S. Central, WesCorp and Southwest Corporate FCU.
"To ensure a permanent, lasting system we will need aggregation and if these three got together that would clearly create the desired volume," said Chatfield, the former president/CEO of the league and now chairman of the Corporate Realignment Task Force.
Late Friday the task force issued its own set of recommendations, maintaining that a review of projected services, transaction volumes, costs and finances of the bridge corporates demonstrates merger viability. Such a step should be "encouraged," the panel said.
However, the report said, "any merged entity must assure the safeguards are in place to protect corporate system functions" and CU interests. In addition, consolidation must also ensure "the option of a competitively priced" system owned by CUs.
"The Corporate Realignment Task Force pledges its support and influence to help achieve such consolidation," the report said, with Chatfield stressing that the panel remains unwavering in backing a systemic solution that takes advantage of volume and provides CUs of all sizes and types "with a universal solution."
Chatfield, who just weeks ago gave up the temporary CEO league helm, agreed to serve as chairman of the task force.He replaces Jeff York, president/CEO of Coasthills FCU of Lompoc, Calif.