Newsroom
Berger letter to lawmakers pushes back against community bankers
In response to a letter from the Independent Community Bankers of America and persistent attacks by bankers, NAFCU President and CEO Dan Berger wrote to lawmakers in the House and Senate to set the record straight on credit union-bank mergers. Berger, sent the letter to members of the Senate Banking and House Financial Services Committees, the House and Senate Committees on Ways and Means, and the Senate Committee on Finance.
"First and foremost, it is important to recognize that bank-credit union mergers are voluntary, market-based transactions that require a community banks’ board of directors to vote on selling to a credit union," said Berger. "These are not “hostile” takeovers."
In the letter sent Friday, Berger uses facts to discredit the erroneous claims made by bankers, including:
- the NCUA Board's recently proposed rule relating to these types of transactions;
- credit union characteristics and the strict prohibitions and limits on powers set out in the Federal Credit Union Act; and
- the bank-level taxes that are paid when a credit union uses a purchase and assumption transaction to acquire a bank.
Berger also highlighted the benefits that these transactions can have for local communities that are at risk of becoming underserved.
"Bank and credit union mergers are typically a win-win for a local community that may lose its community-focused financial services, or even local employees and branches, if a national bank buys the local community bank," wrote Berger. "Credit union-community bank mergers often mean employees retain jobs and branches remain open with a focus on the members in the community."
Late last week, NCUA Board Chairman Rodney Hood touched on the upsides of bank sales to credit unions and indicated that the agency is "taking steps to add clarity to the purchase and assumption process" in a new Credit Union Journal op-ed.
Additionally, Berger, in an American Banker op-ed, previously rebuked bank lobbyists for misleading the public with their criticisms of credit union-bank mergers.
NAFCU has been leading efforts to educate lawmakers, administration officials, and the public on the facts of these mergers and will continue its advocacy efforts to ensure that there is an environment in which credit unions can grow and thrive. See credit unions' benefits for yourself.
Share This
Related Resources
Add to Calendar 2024-05-06 14:00:00 2024-05-06 14:00:00 Overview of Regulation CC Join us for this webinar, Overview of Regulation CC, and you’ll delve into the intricacies of the Expedited Funds Availability Act and Regulation CC. This includes gaining invaluable insights on effectively implementing funds availability requirements, navigating the process of placing holds on deposited items and crafting comprehensive disclosures for your members. Don't miss this opportunity to enhance your understanding of regulatory compliance in the financial landscape. Key Takeaways Know the funds availability requirements Learn what must be included in disclosures Comprehend extended holds Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 18, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Overview of Regulation CC
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.