U.S. Central Could Be Wound Down By October: NCUA
In a letter to credit unions (12-CU-06) released on Friday, the NCUA said the corporate credit union transition process "has progressed more smoothly than originally anticipated." The agency expects all of U.S. Central's ACH services to be unwound, and transitioned to other providers, three months ahead of the scheduled Dec. 31, 2012 deadline.
The NCUA said all other correspondent services offered by US Central Bridge have already been wound down, so the failed corporate could be completely wound down by the end of October. This move would help reduce corporate resolution costs for credit unions, the agency said.
According to the agency, the following corporates are transitioning to other ACH providers, or have already moved on to other providers: Alloya Corporate FCU; Catalyst Corporate FCU; Central Corporate CU; Corporate America CU; Corporate One Federal CU; First Carolina Corporate CU; First Corporate CU; Kansas Corporate CU; Kentucky Corporate FCU; Louisiana Corporate CU; Missouri Corporate CU; Southeast Corporate FCU; SunCorp FCU; Treasure State Corporate CU (merged into Kansas Corporate CU); TriCorp FCU; Volunteer Corporate CU; and Western Bridge Corporate FCU.
The NCUA has said that ensuring uninterrupted service for natural person credit unions is a top priority during the corporate credit union transition process.
U.S. Central Bridge Corporate was chartered by the NCUA in late 2010 to provide the payment and settlement services of the failed U.S. Central Corporate FCU while the agency worked on a long-term corporate credit union resolution plan, and member credit unions found new service providers.