Southeast Corporate Federal Credit Union is among the luckywholesale credit unions that don't face an immediate need torecapitalize.

In his first interview as president/CEO of the $3.3 billioninstitution, Brad Miller told Credit Union Times that atleast initially, he will only ask members to convert member capitalshares to tier-one capital.

"As part of the new business model and value proposition we'reworking on, obviously we have to look at our long term capitalstructure," Miller said. "But we can manage our balance sheet downto the capital that's there to support it."

Because the Tallahassee, Fla.-based cooperative already has aseparate investment business and broker/dealer, it has a place totransfer assets off its balance sheet, allowing it to meet capitalrequirements while still holding on to member relationships.

Though he said there's no detailed plan in place yet, SoutheastCorporate is leading discussions with other corporates,particularly on a regional basis, to "evolve the corporate businessmodel." Proposed changes include cooperative back office andoperational solutions and the sharing of "best of breed" productsand services, while maintaining local member service support.

Such consolidation may involve mergers, but Miller said hethinks corporates could also find ways to collaborate whileretaining their corporate identities.