I sat through umpteen meetings where I was told by the folks at WesCorp... "Don't go to the Fed, gloom and doom are sure to follow". Scare tactic after scare tactic. "Watch out for the Fed-man". Ok.... so a few folks didn't drink the Kool-aid and went to the Fed.... GUESS WHAT? No SWEAT!
I asked a real live Fed user to tell everyone about the experience.... This is what I received:
We are a federal credit union located in the County of Los Angeles. We went Check-21 direct to the Federal Reserve over 5 years ago. Yes, we moved to the Federal Reserve before WesCorp went Bankrupt (Bankrupt is a technical term for Conservatorship). The Federal Reserve is a branch of the U.S. Federal Government. Unlike the NCUA, the Federal Reserve provides products and services that are of great benefit to financial institutions. Imagine a branch of the Federal Government that is competent. It could happen. We are pleased with the level of service at the L.A. Branch of the Federal Reserve. Contact Manuel Ramirez the Account Executive for Business Development at the Federal Reserve. Manuel can be reached at (213) 683-2885. Ask Manuel for credit union references. We have had no counterfeit checks, no forgery, and no complaints. We get immediate settlement credit. Returns are prompt. We balance daily to the Federal Reserve and it takes all of 15 minutes per day. Going direct with the Federal Reserve is less expensive & more efficient than going through WesCorp FCU. We would do it again. We have no regrets. Don't take my word for it. Give Manuel Ramirez a call at the Federal Reserve and get credit union references.
There it is... from the mouth of a real end-user. So, now who are you going to believe? Someone begging for your future monies, or a fellow CU that has nothing to gain?
There are options.... REAL live and functioning options.
You'da thunk the CEO's of Western Bridge, the League, the board of Western Bridge, and the "Nifty Fifty" in Newport would have clued us in.... NOPE... we play politics... we don't cooperate or assist our fellow cu's.... unless we need them to serve our purposes!
Thank you GUEST POSTER.... one honest voice!
Don't fear the Fed.... Don't drink the Kool-aid.... Take the options available.
It grinds this blogger that all of a sudden Corporates have become sacred cows.... we put them in place back in the 70's to serve a need... Is it just possible that the need has passed, and others can do the job better? AND for less?
Just because they will soon be turning out the lights in San Dimas, doesn't mean you will be left in a lurch.
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Wow. You really need to relax, man. Wescorp is dead. Gone. Kaput. They ain't coming back and it's unnecessary to dance on their grave. If some credit union officials don't get it by now.....it's going to be their major problem. You shouldn't stress about it.
ReplyDeleteWhat you should be looking at, what all credit unions should be looking at, is the ongoing criminal behavior by the bad boys in Warrenville. They're organizing a new corporate credit union and telling potential investors that the accumulated earnings from the current "Bridge" corporate will be transferred to the new organization upon commencement of operations.
Huh? The Bridge has received massive subsidies from the Corporate Credit Union Stabilization Fund courtesy of the assessments made on all federally-insured credit unions. It seems to me that if the Bridge has positive earnings from its recent operations, those earnings should be returned to the Fund so that future assessments can be reduced. The earnings should not be gifted to the new corporate credit union for the exclusive benefit of a few hundred members.
Someone should look into this planned heist, and prevent it. Someone should look at the investor offering documents for the assertions I am referring to. Smells like securities fraud to me.
Enough with the Wescorp bashing. Turn your attention to robbery in the Midwest, which is going on under everyone's nose!
Tim - great post. Now you need to understand all of the credit unions are in the same pool. The good, the bad, the fugly. It does not matter. So yes we are all paying these NCUA Corporate CU Assessments. Why? Because we are all in the same pool. So you have a Midwest Corporate getting a huge capital infusion from over 7,000 federally insured credit unions. Now they are making a profit and they are keeping it. Welcome to the NCUA. The NCUA taketh away. The NCUA does not give back. Because of the fugly in the pool it is sometimes known as a toxic waste dump. Others call it a cesspool. But we are all in it together. It is not relevant that some 6,500 credit union's don't belong to the Midwest Corporate. You see this is a credit union movement. Not to be confused with another kind of movement. Skip the visual.
ReplyDeleteWe must continue to pay these NCUA Assessments. If the NCUA permits these corporates in conservatorship to go TU the unemployment numbers will get even worse. Paying the Assessments allows for the government to play some small part in keeping the unemployment numbers from increasing. Let's face it - exactly what is the skill set for these corporate credit union employees? They have directly or indirectly participated in the demise of their employer. Play that one on your resume and see where it gets you. Maybe they can work for the state credit union league. Or better yet, go national, and follow the leader and get a cush CUNA CHENEY job.
ReplyDeleteThe criminals from Warrenville must be getting nervous by now. With a little more than a week to go, they have commitments for less than 60% of their stated goal. Of course, they're spinning things differently in the Land of Lincoln. There is indeed a lower floor, which has become the de facto goal in their public statements lately. Indeed a close check of their business plan shows that they contemplated this minimum level of support in one of several projected scenarios, i.e. the worst case scenario. The result....massive infrastructure and staff reductions, fee increases, and barely adequate earnings for compliance with the new corporate credit union regulation. Nevertheless, the criminals get to keep working.
ReplyDeleteThe spinmeisters in Plano have been cranking up the pub too. Their merger with Georgia Corporate led to $91 million recapitalization by approximately 800 credit unions. Of course, the combined Southwest Bridge and Georgia Corporates had approximately 1,600 members between them, so do the math. More than half of the members sat out the resurrection. The goal was $130 million, so guess what. That's right....a 16% reduction in staff, which will affect their Portland and Plano offices. It's all smiles at the new corporate, unless of course you happen to be one of the 16% who won't be joining the party.
Sheesh. When are these people going to just go away already????
Other than removing the CEOs and the CIO at Wescorp, NCUA let the Bridge corporates retain the management teams that drove them over the cliff in the first place. I think that many member credit unions are repudiating that move (or non-move) by NCUA, and telling these management teams that they don't trust a word they say. Their spin is unbelievable. They are dishonest people at their core.
ReplyDeleteThe 2 WesCorp Bob's are gone. That is both Siravo & Burrell are history. As for the rest - the status quo continues to live on to see yet another day. The Kool-Aid continues to flow. Surprisingly, the credit unions now having sustained a loss of over $2 Billion in capital & even more in continuing Corporate Assessments have finally sobered up enough to just say NO. No more wasting of uninsured capital to a lawless group at WesCorp. They own a business plan that has never been exposed to the light of day. They have a brand spanking new CEO that has a Corporate Conservatorship FCU work history. WesCorp has more operating labor expense than any other corporate credit union and they have the ongoing operating losses to prove it. Now it gets really quite funny. These dumb bastards are both shocked and amazed more credit unions have not signed up get ripped off one more time. WesCorp is depleted. WesCorp members are exhausted. WesCorp was once on fire. Now the fire is out and they are extinguished. Let the Obit read: WESCORP - NEVER AGAIN! The Directors and paid management with the help of the Supervisory Committee ran WesCorp into the ground. They make no apology about their decision making and certainly take no responsibility and heaven forbid they can't be held accountable. It makes perfect sense. You can't fix dumb. Where is the NCUA prohibition work orders for this fine group of elected talent?
ReplyDeleteAnd keeping with the Peter Principle we have one leading the charge at CUNA and his side kick is leading the charge at the CCUL. We have the best management team money can buy. Yes both of these folks are former WesCorp FCU Directors. How pathetic is that?