NCUA Announces Next Steps for Western Bridge
The NCUA on Friday circulated a document signed by Scott Hunt, who heads the agency’s corporates office, that outlines the next steps for Western Bridge along with a timeline.
The lead bullet point is that in the week of Oct. 3 NCUA will hold a meeting for potential bidders for Western Bridge.
One key: NCUA declares its preference for an acquirer “that can absorb the operations in whole.”
NCUA also stressed its commitment to a solution that “minimizes disruption” to current Western Bridge members.
NCUA also announced it planned to redeem all fixed rate certificates of deposit held in association with Western Bridge as of Oct. 3.
In announcing this, NCUA noted that “the largest cost associated with operating Western Bridge” are the dividends payable on these share certificates. NCUA estimated the annualized cost savings due to this step at $31.6 million.
Lastly: the NCUA noted that any capital subscriptions that had been pledged to United Resources – the failed corporate that some had hoped would rise from Western Bridge – were returned to credit unions on Sept. 15, well in advance of the Oct. 20 date that had been promised. NCUA said that this step “best served” members.
The letter concluded with a promise by Hunt to “keep you apprised” of “progress in seeking an acquirer to maintain service for your credit union.”