Credit Union Journal | Monday, July 23, 2012
It was once considered the most progressive of corporates, the only question being how big it might eventually grow. Today, WesCorp is gone. Credit Union Journal details what happened at WesCorp, the NCUA Board's struggle with the growing problem, why it wasn't recapitalized and more.
How one corporate came to grow fast, grow big, and grow into a problem that couldn't be resolved.
As its new name implied, Western Bridge Corporate FCU was designed to be a short-term bridge to something new ideally, a new corporate capitalized by member credit unions that was made up of something old: most of WesCorp's operations.
Some highlights from the history of WesCorp.
Not until Feb. 26, 2009, did discussion about real trouble at WesCorp begin in the NCUA boardroom. That's when it was brought to the board's attention that expected losses at WesCorp were well ahead of the corporate's $2-billion capital position.
Phil Perkins shouldered the task of guiding WesCorp FCU after NCUA conserved the former $32-billion corporate giant. He talked with Credit Union Journal about his experiences at WesCorp/Western Bridge.
NCUA board member Michael Fryzel describes the mood and the thinking at NCUA in the months leading up to the conservatorship of WesCorp and U.S. Central, and shares how quickly concerns over WesCorp turned to full-fledged recognition there were significant problems and conservatorship was the only option.