The nation's biggest thrift trade association may be a step closer to merging with a bank trade group.
A press release issued Wednesday by America's Community Bankers said the thrift group and the Independent Bankers Association of America agreed to "establish a mechanism to promote their common interests."
Numerous industry sources pointed to the press release as a prelude to a merger between the groups.
"The fact that they would go that far in a press release is extremely significant," said one thrift lobbyist. "I really do think this is a step toward a merger of the groups."
However, IBAA president Richard Mount said he did not think a trade group merger is imminent.
"Somewhere down the road it would probably make sense, but it's not on the table at this point," said Mr. Mount, who is also president of Saratoga National Bank, Saratoga, Calif.
So, are they or aren't they? Conventional wisdom in Washington says "yes, eventually."
With the differences between banks and thrifts rapidly disappearing, and legislation pending in Congress to combine the two industry charters, a merger of the two groups simply makes sense, said Bert Ely, president of the consulting firm Ely & Co.
"It would be the most logical combination," Mr. Ely said. By issuing the press release, the two groups "have sent a very strong signal, but it's one that shouldn't surprise anyone who has been observing these trade groups."
The thrift group shifted its image toward commercial banks when it dropped its old moniker, the Savings and Community Bankers of America, Mr. Ely added. And a handful of state thrift trade groups already have merged with state independent bank associations.
C. William Landefeld, chairman-elect of America's Community Bankers, said Tuesday's talks focused on creating a consensus on legislative issues, such as modernizing the Federal Home Loan Bank System, taxing credit unions, and recapitalizing the Savings Association Insurance Fund.
However, Mr. Landefeld did not rule out a merger of the two groups.
"Who's to say what happens down the road," said Mr. Landefeld, who is also president of Citizens Savings Bank, Normal, Ill. "As thrifts become more banklike, we have more and more in common with the banker groups."
Robert Schmermund, spokesman for America's Community Bankers, said Wednesday's release was issued as an "attempt to preclude people from speculating" that trade group officials were meeting to discuss a merger. "There's no subterfuge here, and no need for a decoder ring," he added.
