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Wings Reviewing NCUA Position, Plans to Continue Courting Continental's Members

Without stating whether it plans to comply with NCUA's request to discontinue its offer of $200 payments to Continental Federal Credit Union's members, Wings Financial FCU said it is evaluating the regulator's position.

By Staff Writer | Updated on April 18, 2007

APPLE VALLEY, Minn. — Without stating whether it plans to comply with NCUA’s request to discontinue its offer of $200 payments to Continental Federal Credit Union’s members, Wings Financial FCU said it is evaluating the regulator’s position.

NCUA said yesterday that the payments $1.6 billion Wings Financial has said it will pay to Continental’s more than 25,000 members should a merger between the two occur is “impermissible” under the provisions of the Federal Credit Union Act on the grounds that per capita dividend payments are not allowed and that no other legal authority exists for a FCU to make this kind of payment. The promise of a dividend by the continuing CU in a proposed merger, without the approval of the merging CU, is also not permitted, NCUA said it told Wings Financial.

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