SOUTH BERLINGTON, Vt. — The Association of Vermont Credit Unions has made the state's banking regulator aware of unsolicited mergers within the credit union industry.
Joseph Bergeron, president/CEO of AVCU, said he has met with officials at the State of Vermont Department of Banking, Insurance, Securities & Health Care Administration to make them aware of "forced mergers." In April, the association's board adopted a resolution that states a credit union's board, taking into consideration the "best interests" of members, has the right to approve or disapprove a merger proposal. The resolution also states that third parties have no right to interfere in the business operations of a credit union or provide "inaccurate or misleading" communications to members of another credit union.
"I've had some casual conversations with the regulator about [unsolicited mergers] and they are aware of it," Bergeron said, adding formal discussions have not been initiated on any legal ramifications.
Recommended For You
Bergeron said the association's resolution was more of a "philosophical stance."
Meanwhile, the Texas Credit Union Commission, at the urging of the Texas Credit Union League, is moving forward with a proposed rule that would prohibit a credit union from offering a merger inducement to another credit union's members as a means of promoting a merger of the two credit unions. The commission, scheduled to meet again Oct. 19, is currently seeking feedback on the proposed amendment to 7 TAC 91.1003 concerning mergers and consolidations.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
