Credit union leaders Monday were voicing support for the NCUA takeover of two corporate credit unions.
"Of course, we're not happy with what has occurred, and I don't agree with the methodology, but I'm glad Fryzel took the decisive action he did to put a corral around the problem," said James Blaine, president/CEO of State Employees' CU of Raleigh, N.C. "We're more than willing to maintain federal deposit insurance for our members, and this is the cost we'll have to bear," adding that the issue is confidence and that is being restored.
A media already overwhelmed with bank takeovers and meltdowns appeared to be taking the corporate takeovers in stride, with mainly national publications covering the ramifications. "I think this is all pretty complicated for them and as long as it is not a CU closed down, they're not delving too deeply," said one veteran marketing executive.
In many parts of the country, CUs reported fielding questions from members, but it was mostly "business as usual," said a spokesman for the California /Nevada Credit Union Leagues.
A spokesman for Gary Oakland, president/CEO of BECU in Seattle, said it was still forecasting profitability in 2009 and that it did not look for any sharp impact. "We have our investments with Wescorp, but we don't use the corporate for check clearing or other services," said the spokesman.
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