Former League Head Urges Merger of Three Corporates
The merger rhetoric on corporates brought a fresh call last week from the retired head of the California-Nevada Credit Union Leagues, David Chatfield, that three already conserved corporates be consolidated.
Speaking out in connection with his new role as the voluntary head of a special league-based corporate task force encompassing 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, named two weeks ago chairman of the corporate realignment task force.
Late last month the task force issued its own set of recommendations, noting that a review of projected services, transaction volumes, costs and finances of the bridge corporates demonstrates merger viability and should be "encouraged."
However, said the report, "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 ," said the report.
In another development on the corporate scene, Paul Gentile, president/CEO of the New Jersey Credit Union League, urged the NCUA to "adhere to its original intention of not dictating how the corporate credit union system consolidates."
"NCUA has said all along that it was not going to dictate corporate consolidation or play any other role than safety and soundness in the new makeup of the corporate system. We must now watch NCUA and make sure they live up to their words," wrote Gentile in his online "Weekly Exchange" column.