NAFCU Encourages 'Voluntary Mergers'
ARLINGTON, Va. -- NAFCU said it still is concerned about future "hostile" merger attempts nearly two months after the dust has supposedly settled over the Wings Financial Federal Credit Union merger campaign.
The trade association said while it has issue with the lack of credit union regulations addressing such mergers, it does not want to send the wrong message to those credit unions that want to come together in "voluntary mergers."
"NAFCU remains concerned about hostile merger attempts, and we have continued to encourage [NCUA] to carefully examine this issue," said Fred Becker, president/CEO of NAFCU. "We believe some "rules of the road" are needed, although at the same time we do not want to impede in any way those credit unions that for valid business purposes desire to engage in voluntary mergers."
On April 20, NCUA put a stop to the $1.6 billion Wings Financial's month and a half-long merger campaign towards $182 million Continental Federal Credit Union when the agency found that the $200 payments Wings Financial was offering to Continental's members should a merger go through were impermissible under the Federal Credit Union Act.