Should CUs Buy Discover?

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The CU movement is overcapitalized, and should invest its $20 billion in excess capital collaboratively, according to Steve Williams of Cornerstone Advisors.

Individual credit unions do not have the resources or the risk appetite to make strategic moves alone, he acknowledged, but they should follow the example of Visa-which began not as a company, but as a group of banks in the 1960s.

One suggestion: CUs should collectively buy Discover Card, he said, which parent Sears has put on the block.

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