WASHINGTON—NAFCU has joined with CUNA and NASCUS in saying it does not support NCUA’s proposal that calls for greater transparency and more member input in voluntary CU mergers.
In a letter to the agency, NAFCU EVP/General Counsel Carrie Hunt wrote that the trade group is not aware of any “problematic trends” in voluntary credit union mergers that “warrant such a heavy-handed approach.”
“While a few mergers may present challenging circumstances, whether because of confusion or misinterpretation of NCUA’s regulations, there is no compelling need to trade a well-functioning set of rules for a regime that scrutinizes non-material aspects of the merger transaction,” Hunt stated.
Hunt said the goals of the NCUA proposal, including making members aware of financial benefits that will go to senior executives and even board members in a merger, could be carried out through existing authorities.
“Given NCUA’s ability to apply special requirements in voluntary mergers, NAFCU does not see how the proposed rule constitutes anything less than regulatory burden,” Hunt said.