ICBA’s campaign opposing credit union acquisitions of tax-paying community banks continued generating headlines with a new Bloomberg report on the FDIC’s recent policy update on bank mergers.
Report Details: The Bloomberg article:
Spotlights the FDIC’s ICBA-advocated new statement of policy on bank mergers that for the first time explicitly states that additional scrutiny may be needed for deals involving tax-exempt credit unions.
Cites credit unions’ Community Reinvestment Act exemption.
Notes the record pace of acquisitions of community banks, which Michael Bell—a consultant who has represented credit unions in 70 such deals—said is “outrageous.”
ICBA Input: Quoting ICBA AVP and Regulatory Counsel Mickey Marshall, Bloomberg also reported on the role of the credit union tax exemption in these deals and ICBA’s calls for Congress to pass an “exit fee” to capture tax revenue lost when bank assets are acquired by credit unions.
Media Groundswell: Media outlets are increasingly taking notice of ICBA’s opposition to credit union acquisitions of community banks, with recent CNBC, Axios, and CNN coverage raising questions about credit union practices.
ICBA View: In a June comment letter, ICBA called on the FDIC to expand the scope of its bank merger reviews to include credit unions because their diluted field-of-membership restrictions no longer limit the ability of credit unions to attract customers, especially given their tax-exempt status.
Latest Polling: ICBA recently released polling showing U.S. adults increasingly support a congressional review of credit union policy and equal consumer protections for credit union customers.
Grassroots Resources: Community bankers can use ICBA’s Be Heard grassroots action center to call on members of Congress to hold a hearing on credit union policy. Additional resources are available on the ICBA website.
