A $1.6 billion Grand Rapids, Mich. credit union could soon be buying an ailing bank following enactment of new enabling regulations pushed by the Michigan Office of Financial and Insurance Regulation.
"We were approached by a bank last year and so we asked our regulator to seek language in state law patterned after those affecting federal credit unions," explained Julie Blitchok, senior vice president of operations and marketing for Lake Michigan CU.
She declined to identify the bank, its location or status of the negotiations but said the bank's management apparently "saw us as a good option to affiliate with a strong, healthy institution."
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Final regulations, she said, were adopted last month at the request of MOFIR regarding CUs "acquiring the assets and assuming liabilities, including deposits, of ailing banks and thrifts."
Blitchok said she did not know when talks with the unidentified bank might resume now that regulations are adopted. Lake Michigan has 140,000 members and 24 branches throughout western Michigan. The request to the state for regs comparable to FCUs was submitted last December, she said.
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