AUSTIN, Texas – The Texas CU Commission has proposed a new rule which would effectively ban all hostile credit union takeovers. The proposal issued for public comment, would prohobit a credit union from offering a merger inducement to another credit union’s members as a means of promoting a merger of the two credit unions. The ban was recommended by the Texas CU League, which was opposed to the recent hostile takeover attempt by Wings Financial FCU of Continental FCU in which Wings offered Continental’s members $200 each if the takeover was successful. Wings eventually withdraw the offer after NCUA ruled that federal rules prohibit such pre-merger inducements.
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