ALBANY, N.Y.–Trade groups representing New York’s banks are asking the New York Department of Financial Services to “pause” the first-ever acquisition of a bank by a credit union in the state.
As CUToday.info reported here, the $7-billion Hudson Valley Credit Union in January announced it planned to purchase the $593-million Kingston, N.Y.-based Catskill Hudson Bank and its parent company Catskill Hudson Bancorp, Inc.
But in a joint letter, the presidents/CEOs of the New York Bankers Association and the Independent Bankers of New York State have asked Adrienne Harris, superintendent of the New York Department of Financial Services, to delay the acquisition.
“We believe this acquisition warrants careful and transparent consideration and scrutiny due to the recent significant shifts within the credit union industry, particularly their unchecked expansion and continued exemption from most taxes and the Community Reinvestment Act,” Claire Cusack, head of the New York Bankers’ Association and John Witkowski, chief of the Independent Bankers of New York, wrote in their letter.
‘Strongly Object’
The two presidents/CEOs said they “strongly object” to the acquisition of a taxpaying bank by a largely non-tax-paying credit union, and further argued the fact the credit union is not subject to the CRA, it will lead to a reduction in assistance to low- and moderate-income communities.
As CUToday.info reports separately, the letter is similar to that published in a newspaper in Colorado that expresses similar opposition to the acquisition of banks by credit unions.
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