Given the services they provide and their structure, credit unions should presumably adhere to stringent regulatory requirements — like banks do — and public disclosure requirements — like nonprofits do — but neither is the case. These substantial regulatory and disclosure gaps shield the credit union industry from proper scrutiny, which is a disservice to all Americans. This is especially problematic for those who support traditional, mission-driven credit unions facing competitive pressures from modern ones pursuing profits.
Federal Reserve Governor Michelle Bowman called on federal policymakers to analyze the impact of credit unions and non-bank lenders in local markets before approving bank combinations, during the Conference of State Bank Supervisors’ Community Bank Research Conference on September 28.
Ultra-large GreenState Credit Union – based in Iowa with nearly $11 billion in assets – has scrapped its plan to buy Omaha-based Premier Bank.
PenFed has wasted no time in aggressive use of this prized open charter — a giant loophole hiding in plain sight —and has eclipsed the credit union industry’s overall growth rate in the first half of 2022 by a whopping seven percent. We’re here to ask – why haven’t policymakers taken action to crack down on this brazen misuse of credit union advantages?
Four Minnesota credit unions are banding together to create a credit union service organization (CUSO) that would allow the multibillion-dollar financial institutions to make commercial business loans up to $50 million – ten times more than what they’re currently able to do on their own.
The relentless push by credit unions to evade meaningful regulation under the Federal Credit Union Act has reached new heights of absurdity with the latest proposed rule before the National Credit Union Administration.
Credit Union Service Organizations (CUSOs) – the companies that exist to provide operational services for credit unions – last week eked out a victory from the NCUA Board that could have long-lasting, negative, systemic impact for the safety and soundness of the industry.
The $5.2-billion Lake Michigan Credit Union agreed to acquire $400-million Encore Bank, headquartered in Naples, Florida. The combined entity will have over $9 billion in serviced mortgages, with ten branches in Florida and over 40 in Michigan.
GreenState Credit Union, an Iowa-based industry giant with 270,000 members and nearly $7.5 billion in assets, announced in May 2017 its plan to buy not one but two out-of-state banks in Nebraska and Illinois in an effort to expand its geographic footprint and fuel membership growth.
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