Members of the $252 million Midwest Corporate FCU haven't yet voted to liquidate their cooperative. However, Board Chair Eric Musland, CEO of the $16.4 million LaMoure Credit Union, said liquidation "will probably happen." Members are expected to reject efforts to recapitalize the corporate and instead transfer services to its CUSO ProDraft Services or other providers, he said.
"Recapitalization would be a spendy venture," Musland said. "It seems like every other day we have more troubles with the corporate system, and nobody knows what the final dollar amount will be to get the corporate network going again."
Musland confirmed what former Midwest Corporate FCU CEO Doug Wolf had earlier told Credit Union Times, that corporate leaders presented three basic options to members during their April annual meeting: recapitalize, merge with other corporates or transition correspondent services to a CUSO and liquidate once investments mature.
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