Chip Filson contemplates the old Morris Plan Bank model, its history, its eventual downfall, and why credit unions purchasing banks might be following in its flawed footsteps.
In a follow-up to his article on bank acquisitions, Chip Filson dissects four recent bank purchases made by credit unions and ponders the lack of transparency which he believes may suggest an unsettling trend.
A hearing on consolidation in the financial services industry will feature the perspective of the American Bankers Association, which has warned about the impact of credit unions purchasing banks, reports David Baumann of the Washington Credit Union Daily.
Morris Plan banks, which began the same time as credit unions, were the original consumer bank lending success. Their growth far surpassed credit unions. There are none left today. Is there a message for credit unions seeking scale by buying whole banks in this example? Chip Filson looks into the now extinct banks.