NAFCU President and CEO Dan Berger, on Friday, rebuked the American Bankers Association’s latest attempt to mislead congressional leaders and regulators on bank-credit union mergers in a letter to lawmakers.
“The ABA continues to misrepresent the facts on these types of transactions. 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,” wrote Berger in response to the ABA. “These are not ‘hostile’ takeovers.”
“The bank is the one that ultimately makes the decision to sell to, and merge with, a credit union,” added Berger. “Perhaps, ABA’s concerns would be better addressed by sending a letter to their members asking why they are choosing credit unions over banks.”
Berger continued to note that these mergers are “a win-win” for communities that are in danger of losing essential financial services in the event a mega-bank were to buy a community bank. Additionally, NAFCU estimates that over $100 million in taxes have been paid in the past several years due to these transactions. This is in addition to the local and state income taxes, sales tax and payroll taxes credit unions pay.
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