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Judge Blocks Tenn. Credit Union-Bank Acquisition Pending State Regulator's Appeal

Delaying the deal’s closing is running up costs and uncertainty for both financial institutions, court documents show.

Tennessee state law, legal system and justice concept with a 3d render of a gavel on a wooden desktop and the Tennessean flag on background. Source: AdobeStock.

A Tennessee judge placed a stay on her previous ruling, which allows a regulator to ask the state’s appeal court to stop the $1 billion Orion Federal Credit Union from purchasing the $818 million Financial Federal Bank.

Davidson County Chancery Court Judge Patricia Moskal ordered the stay Monday on her previous ruling, which rescinded her temporary injunction to allow the Memphis-based credit union to buy the bank. She initially blocked the purchase with a temporary injunction last November after the Tennessee Department of Financial Institutions (TDFI) said the acquisition agreement is prohibited under state law.

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Peter Strozniak

 

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