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Southwest Corporate forming advisory council
FARMERS BRANCH, Texas (10/6/10)--Texas-based Southwest Corporate FCU said Tuesday it will form an advisory council made up of credit union leaders to advise it on its future. More than 100 credit union representatives have already volunteered to serve on it, and members can still sign up, the corporate said. Nearly 450 credit union representatives attended the corporate's webinar, held Thursday, which introduced new CEO Dianne Addington and the corporate's new direction (eFacts Oct. 5). Recently retired as CEO at Michigan-based Genisys CU, Addington was appointed CEO of Southwest Corporate when it was placed into conservatorship--along with two other corporates--by the National Credit Union Administration (NCUA) on Sept. 24. Operationally, it's business as usual for Southwest Corporate. The same staff will continue to serve members, Addington told webinar participants. She also assured members that new capital will not be required during the bridge corporate status. She presented options for future business models that include:
* Purchase of corporate operations by an existing corporate; * A new corporate charter; and * Purchase of corporate operations by a credit union service organization (CUSO) or start of a new CUSO.
Addington noted it is wise to evaluate service alternatives, but she encouraged credit unions to stay with Southwest Corporate long enough to see the new plan emerge. She expressed confidence in the corporate's "efficient operations" and optimism for a viable, member-directed solution that would prevent interruption of services. "We are developing a process to receive input from everyone who wants to contribute," said Kathy Garner, executive vice president, member relations and business development, about the new council. "Much of the work already done on business models can be used by credit unions to help set the course for Southwest Corporate's future operations," she said. "We hope to provide members answers by year end." NCUA's Keith Morton urged the group to avoid fragmentation, but said that while credit unions need to start making plans for a transition, the best option is to work in a unified way, according to a report by the Texas Credit Union League (LoneStar Leaguer Oct. 4). The message was similar to that delivered by NCUA's Scott Hunt to members of Members United Corporate FCU, in another webinar last week (News Now Oct. 4). Members United was placed into conservatorship, along with Constitution Corporate FCU, on the same date as Southwest Corporate. Individuals can sign up for Southwest Corporate's advisory council until Thursday. To do so, contact Garner at garnerk@swcorp.org.
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