DES MOINES, Iowa – The Iowa Credit Union League has withdrawn its application to purchase the $16-million, Tucson, Ariz.-based CreditCard National Bank.
"In late September, the Iowa Credit Union League filed the necessary regulatory applications with the Federal Reserve and Office of the Comptroller of the Currency to purchase a national bank,” said Patrick Jury, president/CEO of the league. “This action was part of an extensive due-diligence process by both ICUL and Iowa Corporate Central Credit Union to meet the future needs of our members, and to find a suitable alternative for Iowa credit unions as Iowa Corporate evaluates its future direction.
“Since filing the applications, we have learned that in response to the current economic environment, regulatory requirements would be imposed upon our business model which would not allow us to effectively serve our members. Therefore, we have decided to withdraw our applications and explore other resolutions to our member needs. Iowa Corporate will continue to operate as usual throughout this timeframe. Our commitment at ICUL and Iowa Corporate has been to partner with Iowa credit unions to bring this process to a positive resolution for the benefit of our members."
As Credit Union Journal was first to report, at the time of the application, the league said the acquisition of CreditCard National Bank would have facilitated the league's expansion into credit card processing through its The Members Group affiliate and would have provided a broader scope of investment and lending opportunities than a corporate credit union. In its application, the Iowa League said it expected corporate credit union reform to include consolidation of the corporates, including Iowa Corporate Central CU, one of the healthiest but also smallest corporates.
