HIGHTSTOWN, N.J. (2/19/10)--It is a critical time for credit unions to support corporates because of the liquidity services they provide, according to Jay Murray, president/CEO of Mid-Atlantic Corporate FCU. Murray spoke Tuesday at the Shore/South Jersey Chapter Meeting about corporate credit unions. He focused his discussion on the concept of rethinking the future of the corporate network, said the New Jersey Credit Union League (The Daily Exchange Feb. 17). Communication and collaboration between credit unions and corporates also is key, Murray said. Corporates have maintained “too much of a vendor status” with their credit unions, and it is critical now more than ever that they work together, Murray added. He also discussed the National Credit Union Administration’s proposed Regulation Part 704. Comments for the proposal are due March 9. The regulation could be a turning point that could set the course for the industry’s future, Murray said. The proposal requires that corporate directors be made up of individuals who currently hold the position of CEO, chief financial officer, or chief operating officer at their credit union. This makes it almost impossible for corporates whose smaller members do not have these titles and it limits some other very qualified people, Murray said. He cited the example of a current Mid-Atlantic board member--a former credit union CEO--who is also a CPA and attorney. Under the new regulation, the board member would not be eligible to serve. Murray also discussed board governance, criticizing the regulation’s six-year turnover for those serving on the board. Six years is too short for a board member to make any progress. A balance between the proposed limitations and current freedoms so corporates can keep daily operations efficient and effective also is important, he added. Regulation 704 has good intentions, but is attempting to put a stop to what has already happened, “closing the barn door after the horse has ran out,” Murray said. To solve this economic and credit crisis, he said, capital needs to be restored and preserved now. “We’re not where we need to be, but we’re getting there,” Murray concluded.