Some Irony in Fed's OK of Plan

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Zion's Bancorp, whose chairman also chairs the American Bankers Association, has received approval from the Federal Reserve to acquire Texas-based Amegy Bancorporation, Houston.

Both CUNA and the Texas league have filed comment letters with the Federal Reserve opposing the deal, arguing the acquisition would not benefit either of the banks' markets.

But in a somewhat ironic twist, the Federal Reserve OKd the deal noting that it would not have any negative effect on Texas' credit unions, as credit unions in the Houston market don't necessarily compete with banks.

"We do not believe the Federal Reserve extended adequate attention to our comments," said CUNA General Counsel Eric Richard in a statement. "However, we are gratified by the Fed's apparent holding that credit unions do not compete with banks in Texas."

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