Ensweiler Expects More

SAN DIEGO - Dick Ensweiler, president of the Texas league, told a group of credit unions gathered here that he supports the position taken by NCUA in opposing the attempt by Wings Financial FCU to go straight to members of Continental FCU with a merger bid that included a $200 payment from CFCU's capital.

In remarks before the CUNA HR/Training and Development Council Summit here, Ensweiler cautioned that the credit union community will likely see other such merger bids, which Continental FCU has called a "hostile takeover."

Separately, Ensweiler also addressed the issue of charter conversions to banks. Ensweiler noted that his own state, Texas, has seen two large credit unions convert to bank charters (OmniAmerican and Community CU), and warned a third is "a prospect" for conversion. He dismissed arguments from conversion proponents that a switch to a bank charter is in the best interests of those CUs are supposed to serve-the members.

"I've heard all the reasons, and I'm not buying into the fact those credit unions are converting for the reasons they say. Those boards are making a lot of money," he declared.