Corporates Joining to Try to Buy ISI Broker-Dealer Out of U.S. Central
A group of up to 16 corporate credit union members of U.S. Central Bridge have joined together to attempt to purchase CU Investment Solutions Inc.
CU Investment Solutions is a standalone CUSO wholly owned by U.S. Central and based in Lenexa, Kan., that provides back office brokerage services as well as ALM reporting, said Larry Eisenhauer, CEO of Kansas Corporate Credit Union and a leader in this effort.
“The infrastructure is in place with ISI. We believe it is worthwhile to retain ISI for corporates who are presently using it,” said Eisenhauer.
As for the takeover effort, the corporates presently have the blessing of NCUA to circulate a plan for buying ISI.
In another effort, a group of U.S. Central corporate members are attempting to put together an effort to buy a range of payments services out of the bridge that in turn will be used as the basis for forming a new payments-focused corporate.
In an email, David Small, an NCUA spokesperson, indicated that the regulator expects this process of selling off portions of U.S. Central to reach a conclusion by October.
“NCUA's expectations are that the transition from bridge to new entities will occur by October 2011,” Small wrote.
Small continued: “Both actions are in concert with the agency's preference for a member driven solution to preserve core services. At this time, the agency has only permitted the plans to be shared with members. NCUA has not granted final approval.”
Eisenhauer said, “Over the next couple months we will see movement forward - or we won’t.”