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.
-
Following a $60 million credit hit, the Salt Lake City bank said that it hasn't found any other related problem loans.
1h ago -
The parent company of Heartland Bank and Trust plans to acquire a smaller bank based in Carlinville, Illinois. The acquisition would give the buyer added heft in Central Illinois, as well as the Chicago and St. Louis metro areas.
4h ago -
Six trade groups warned the administration layoffs and funding freezes could dampen lending, threatening the administration's goal of economic growth.
5h ago -
The Boston-based bank is the second bank in three months to face pressure to sell by the activist investor group HoldCo Asset Management.
6h ago -
Comptroller of the Currency Jonathan Gould said in an interview with American Banker that his agency is looking at whether its own internal guidance may have contributed to a climate where banks feel the need to "cite everything" to avoid supervisory penalties.
6h ago -
AlumniFi, the digital banking arm of Michigan State University's official credit union, is now an official bank partner for the NCAA's Big East conference.
6h ago