First Carolina Adds Share Guarantee

The $2 billion First Carolina Corporate Credit Union joined all other corporates except the $100 million Iowa Central Corporate CU in participating in the Temporary Corporate Credit Union Share Guarantee Program. The board of the Greensboro, N.C.-based corporate signed the revised Letter of Understanding and Agreement earlier this month.“Frankly, the revised Share Guarantee Program is a better deal and addressed many of the issues that we had concerns with in the prior program,” said David Brehmer, president/CEO of First Carolina. “We appreciate the time NCUA’s staff and board took to take another look and make certain changes and we support their efforts to stabilize liquidity within the corporate system to minimize future losses to credit unions.”Like other original holdout corporates, First Carolina’s board originally turned down the program over concerns about protecting member credit unions’ capital, as well as protecting the membership’s ability to have a voice in determining its corporate’s own future. Program improvements, as well as liquidity considerations, the current recapitalization effort, member feedback and the changing corporate network landscape were all listed as reasons behind the change of heart.The guarantee program covers uninsured shares, excluding capital accounts, through at least Sept. 30, 2011, with quarterly extensions available through Dec. 31, 2014.–[email protected]

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