Nearly a week later, and I'm still thinking about the issue you raised here, Matt.
The issue of credit unions buying banks is clearly an emotional one. In our Q3 2021 survey, we asked bankers if they would refuse to sell to a CU even if it makes the best offer--and 53% said they would. It was one of those things that was surprising and not surprising at the same time. On the one hand, I totally get it, because credit unions and banks have some long-standing animosity. On the other, if it's the best offer, shouldn't a bank feel compelled to take that?
American Banker had a good story on this earlier this month: Credit unions continue to buy banks despite bank lobby, regulator pushback. Most of the time, you can read the headline of a story and stop right there, but the actual story was more interesting than that headline would suggest. It noted that six states have thrown up roadblocks to CUs buying banks. There's now a law in Mississippi that states that only FDIC-insured banks can acquire or merge with Mississippi-chartered state banks.
And I keep wondering if that's the right public policy outcome. Is a CU buying a bank worse than a fintech doing so? The answer might be yes because the fintech isn't tax exempt. But there's a thorny issue here as to whether banks should at least have the right to sell to a CU if it wants to.
Curious if others have thoughts on this.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi Network
Arlington, VA
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Original Message:
Sent: 04-22-2022 12:39
From: Matt Johnson
Subject: Nebraska Blocking Bank's Rights to Sell to a Credit Union
Premier Bank's application to be acquired by GreenState Credit Union was denied by the Nebraska Department of Banking and Finance (NDBF). This is bad for the Omaha community since GreenState's operating structure serves lower income families. GreenState gives back to its members and communities served instead of hoarding shareholder profits.
Kelly Lammers, Director of the NDBF, chose to not follow clear Nebraska law and sided with political pressures to protect the wealthy at the expense of the Omaha community by denying Premier Bank's application. The Nebraska Bankers' Association (NBA) was the primary force opposing the sale. Wealthy, elite bank owners make substantial contributions for the NBA to lobby policies favoring the wealthy at the cost of our society. This example of the NDBF, NBA, and politicians acting to protect their wealthy contributors instead of acting in the interest of the broader society clearly illustrates how our systems are rigged to prevent equality, hindering social class mobility in our societies.
More information is in the article below with our CEO Chris Maher.
https://www.cutoday.info/THE-feature/Fighting-the-Trade-Group-Party-Line
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Matt Johnson
CFO
Premier Bank
Omaha, NE
Posts reflect my personal opinion and do not represent any organization in which I am affiliated.
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