ST. PAUL, Minn. — The Minnesota Credit Union Network has taken a stance on "hostile" credit union takeovers outlining several protections.
The network said it supports NCUA's rules governing mergers of federally-insured CUs that require the approval of the boards of directors of both CUs and the regulator before a merger can occur. It also supports the right of a CU's board of directors to decline any merger proposal that it deems is not in the best interest of its members.
"MnCUN strongly believes that any hostile takeover attempt of a credit union poses a serious and imminent threat to the future of our credit union movement," the network said in its position statement. "We believe that such actions warrant strong countermeasures on the part of the Network."
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The MnCUN said it will not only "vigorously defend credit unions from hostile takeovers and react strongly to admonish such actions", but also "vigorously defend the credit union charter and support credit unions to the fullest extent possible."
"Wings Financial is a well-managed and very well-respected credit union," said Mark Cummins, president/CEO of MnCUN. "However, we felt that when the board of Continental made a decision not to merge, we felt that decision needed to be respected."
MnCUN said it will work closely with CUNA to encourage NCUA's board to adopt procedures and/or regulations that will provide appropriate guidance on this issue.
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