With the adoption of new regulations, a $1.6 billion Grand Rapids, Mich., credit union could soon buy an ailing bank.
The prospects follow enactment of new language in state law pursued bay the Michigan Office of Financial and Insurance Regulation at the request of Lake Michigan CU.
"We were approached by a bank last year and so we asked our regulator to seek a change 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."
Final regulations, she said, were adopted last month at the request of OFIR 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 have been enacted.
–[email protected]