FOREST GROVE, Ore.-At Merger Solutions Group, which helps manage the merger process for credit unions and monitors the state of mergers within the industry, President David Bartoo suggested the current system is not broken.
"I do not agree that NCUA needs to put together a standardization process for merging out ailing and distressed credit unions," Bartoo commented. "Every merger, including distressed situations, is unique as to the risk, needs, and timeline, and should not be boxed up in a like manner."
Moreover, the agency has shown restraint before jumping into the merger fray, he added. "The NCUA does a very good job of allowing poor-performing credit unions a significant amount of latitude to attempt to find their own merger partners before the NCUA steps into a controlling position," Bartoo offered.
But that's not to say there couldn't be a little more transparency in the process, he said, suggesting that NCUA should consider sharing the terms and arrangements so credit unions could understand the possible conditions in which a distressed credit union can be merged out and the impact the terms have on the insurance fund.
