WASHINGTON – Several Hedge Funds are apparently scouting out credit union conversions and attempting to obtain membership in the converting credit union in order to get in on the ground floor of a future stock offering. In a phone conversation with The Credit Union Journal on Friday one Hedge Fund representative said his fund had made deposits in at least two converting credit unions and was seeking to establish membership in Lafayette FCU as it was switching to a mutual thrift. The inquiry came as an NCUA review of the Lafayette balloting uncovered as many as a dozen professional investors, speculators, who were able to establish membership in Lafayette through one of its select groups that have liberal membership standards. The speculators reportedly include a former president of one of the Federal Home Loan Banks, sources told The Credit Union Journal. Credit unions that convert to a mutual savings bank, then sell stock to the public usually give their former credit union members first crack at the stock before selling to the public at large, giving the former members the initial chance at any profits from a run-up in the stock price.
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Lake Shore Bancorp in Western New York has reached a "standstill agreement" with the Stilwell Group, which has promised not to force a merger or sale in the next three years.
March 20 -
Swiss banking giant UBS Group received federal approval from the Office of the Comptroller of the Currency to convert its $1.6 trillion-asset UBS Bank USA from a Utah-chartered industrial bank to a national charter.
March 20 -
Early industry reaction to the Federal Reserve's Basel III proposals points to potential capital relief for banks, though stakeholders say the complexity of the changes makes their overall impact unclear.
March 20 -
Financial institutions that delay or fail to take this leap risk losing customers and revenue, said speakers at the inaugural On-Chain Executive Summit.
March 20 -
CISA and Microsoft urge organizations to secure endpoint management systems as threat actors increasingly seek to disrupt operations with wiper malware.
March 20 -
Piermont Bank hired Dennis Day for a new executive role focused on payments; the American Bankers Association announced the global expansion of its widely used Fraud Contact Directory; MC Bankshares moved one step closer to finalizing its sale to an investor group; and more in this week's banking news roundup.
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