Cache Bank & Trust, with branches in Fort Collins, Greeley and Denver, had agreed to sell its $121.7 million in assets to Elevations Credit Union, a $2 billion credit union based out of Boulder (formerly the University of Colorado Credit Union), but it was denied by state regulators.
The regulators cited a statute that prevent Coloradans’ deposits or loans from being transferred to institutions with fewer consumer protections.
The mini-trend of credit unions purchasing tax-paying banks and removing those dollars from state and federal coffers is concerning. Not only do credit unions not pay taxes and take money from taxpayers’ hands when they buy a bank, but they also do not have the same level of restriction, regulation and transparency, which makes them susceptible to risky debt.
