ARLINGTON, Va. -
Suggesting that NCUA has the authority to act in this matter, NAFCU's Fred Becker said, "[The agency's] silence would, in fact, be a decision. No action from NCUA is a decision."
Becker said NAFCU has reached out to all three of the NCUA board members to discuss the situation.
"There are a number of serious questions that we are confident that NCUA will carefully consider and examine in this first hostile takeover of a credit union," said Becker. "This merger proposal is clearly unlike any previous ones, and it raises questions about the future, cooperative nature of credit unions as well as the soundness of individual institutions and the share insurance fund."
Industry insiders have suggested it is imperative for the regulator to consider the precedent that Wings' actions could set, and what it could mean, not only for the cooperative spirit of the movement but even the ultimate safety and soundness of the NCUSIF.
"The NCUSIF is, in fact, dependent on the cooperative nature of credit unions, and this strikes at the heart of that cooperative spirit," one CU advocate suggested.
Both NAFCU and CUNA indicated their boards are studying this situation to determine what, if any, action they should take in this matter. So far, the onus falls on NCUA, they suggested.
"This unsolicited merger bid presents NCUA with major challenges. The agency's rules and procedures have not been designed with unfriendly transactions in mind," said CUNA Spokesman Pat Keefe. "Dealing with the many issues of law, policy, and supervision in such transactions will require time and caution. There is too much at stake for the members of these credit unions, and for the whole credit union system, to permit any snap judgments by the regulators."
CUNA issued no other statements and urged trade press not to seek additional comment from officials.
