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NCUA Steps In, Finds $200 Payment Offer From Wings to Continental's Members 'Impermissible'

True to its word of not taking a passive role in the oversight of mergers, NCUA said after reviewing the offer by Wings Federal Credit Union to pay members of Continental Federal Credit Union $200 apiece if Continental merges with Wings, the regulator has found that the payment is "impermissible"...

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ALEXANDRIA, Va. — True to its word of not taking a passive role in the oversight of mergers, NCUA said after reviewing the offer by Wings Federal Credit Union to pay members of Continental Federal Credit Union $200 apiece if Continental merges with Wings, the regulator has found that the payment is “impermissible” under the provisions of the Federal Credit Union Act. In a statement released April 17, NCUA said it has advised Wings Financial that its proposal, made in connection with a campaign to encourage members of Continental to support a merger of Continental into Wings, would constitute the equivalent of a pre-merger dividend to Continental’s members to accomplish a partial equalization of shares.

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