Statement from Dick Ensweiler, President and CEO, Texas Credit Union League on the NCUA Conservatorship of Southwest Corporate Credit Union (a Wholesale Credit Union)
DALLAS, Sept. 24 /PRNewswire-USNewswire/ -- Today the NCUA announced the conservatorship of Southwest Corporate, the wholesale credit union that serves as a central payment processing and investment facility for many Texas credit unions. While this news is disheartening, it wasn't wholly unexpected. The lasting legacy of toxic assets reached far and wide and has impacted many, many seasoned investment professionals ("corporate" or wholesale credit unions, in addition to providing services like check processing, use investment vehicles to provide for a return to their member organizations).
Fortunately the NCUA's action does not directly impact the day to day operations of natural person credit unions (which serve 7.2 million Texans). NCUA will operate Southwest Corporate for the time being, to ensure no loss in services to credit unions and their credit union members. Credit union members' deposits continue to be fully insured to at least $250,000 and credit unions in Texas remain on the whole well capitalized. Average delinquency and charge-off rates are falling as the economy has strengthened, and are still much better than those of banks.
The main thing for credit union members and consumers to know is their money is safe in their credit union and not affected.
About Texas Credit Union League
The Texas Credit Union League is the official trade association for credit unions within the State of Texas. The League represents, on a state and federal level, nearly 600 credit unions state-wide, which are owned by over 7 million members (about one-third of the state's population). Organized in 1934, the Texas Credit Union League protects credit unions and promotes their growth, strength and unity. Credit unions are not-for-profit, member-owned, volunteer-directed cooperatives that promote the financial and economic well being of all people, including those of modest means.
For more information, visit www.tcul.coop.
SOURCE Texas Credit Union League