Corporate CU Consolidation: What's Your View? Posted by AVCU on 9:50 AM

When U.S. Central and a few other large corporate credit showed signs of failure following the Wall Street meltdown, among other actions, NCUA and others advocated for a smaller different corporate network that would result from much consolidation among corporates and the services they provide. Subsequently, the regulator put new financial demands and time lines on surviving corporates in pursuit of safety and soundness. Some of the survivors, however, have merged in recent months in order to meet financial requirements and survive in the new corporate world. America's credit unions are now being solicited to re-capitalize fewer corporates, some of whom are working together to replace the services formerly provided to them by U.S. Central. Last week, the federal regulator issued a letter to credit unions cautioning against too much consolidation among corporate credit unions and to be careful of where they place their funds and from whom they acquire corporate services.


So, the industry has two sides to the corporate consolidation issue: 1) some continue to advocate for fewer, larger more efficient corporates while 2) others (like NCUA) now caution against too much consolidation of corporate services and credit unions. Even the ABA's Keith Leggett picked up on NCUA's letter to credit unions in his anti-credit union blog.


What do you think? Click on this post's title, then on "Post Comments" to leave your thoughts.