NCUA Will Shutter U.S. Central Ahead of Schedule
The wind down of U.S. Central Bridge Federal Credit Union’s payment services “has progressed more smoothly than originally anticipated”, the NCUA said in a recent Letter to credit unions.
As a result, all U.S. Central ACH services will be transitioned to other providers no later than Sept. 30, three months ahead of the regulator’s previously announced Dec. 31 goal, the agency said.
Because all other U.S. Central correspondent services have already been wound down, the NCUA said in the letter it plans to close the Olathe, Kan.-based corporate on or about Oct. 31, 2012. The early shutter will result in lower resolution costs, the NCUA said.
David Shelter, deputy director of the NCUA’s Office of Corporate Credit Unions, spoke about the U.S. Central wind down and other corporate issues during the regulator’s June video economic update, posted on its YouTube account.
Shelter said Western Bridge Corporate Federal Credit Union is expected to close its doors for good by the end of June, following a successful transition of members to the $2.2 billion Catalyst Corporate Federal Credit Union.
He also said he expects the number of corporates to drop to 15 or 16 by the end of 2012, due to mergers. He also said aggregate corporate assets have dropped to $30 billion, approximately one-third of pre-corporate crisis levels.