BALTIMORE — The reeling controversy created in the industry when Wings Financial Federal Credit Union attempted to merge with Continental Federal Credit Union most likely will force credit unions to rethink any plans of going that route.
That was the consensus of some of the attendees at the African-American Credit Union Coalition's annual meeting last week. Despite Continental FCU turning down a merger proposal from Wings Financial FCU three separate times, the latest turndown was tied to a campaign targeted at Continental members that included a $200 inducement to get Continental board's to enter into "good faith" discussions.
"I don't think there will be a proliferation of these [types of mergers], said Darren Williams, president/CEO of $3.9 billion Wescom CU who was also installed a new member of AACUC last week. "I'm sure that there are plenty of non-credit unions that would love to come in and make an offer to members. The [Wings campaign] demonstrates that credit unions don't take too well to hostile mergers."
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