LAS VEGAS — There have been 33 credit union-to -bank conversions in the industry and powerhouse law firm Venable, LLP has never been a part of any of them, said Bruce Jolly, a partner with the Washington-practice.
Jolly spoke last week at NACUSO's annual conference in Las Vegas on Venable's role in helping Nationwide Federal Credit Union's merger negotiations with Nationwide Bank. Jolly emphasized that the transaction was a merger and not a conversion.
"No conversion should ever occur from a credit union to a thrift without full consideration given to the members' equity," Jolly said.
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On the likelihood that Venable will offer counsel to credit unions wanting to convert to banks, Jolly said, "It's not likely we will do any but charter issues keep rising."
Meanwhile, the $79 million member distribution negotiations between Nationwide FCU and Nationwide Bank almost broke down when Jolly said he had a "Jim Blaine moment," referring to the vocal CEO of $13 billion State Employees' Credit Union, who had been critical of the amount.
"We went after everything we could. [Robert] Oakley [chairman of Nationwide FCU] simply said 'not enough' when [Nationwide Bank] made a low ball offer. Forty-five minutes later, they came back with $79 million," recalled Jolly, adding it was the exact amount he had in mind based on research done.
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