Emily Claus discusses the merger of Xceed Financial Credit Union and Kinecta Federal Credit Union going into effect next month and debates the reasons behind low member participation.
Are credit unions really democratic institutions when less than ten percent of the membership can vote away that institution’s existence? Chip Filson wonders whether credit union cooperative design has eroded of the years.
Are credit unions staying situationally close-minded by using mergers as the only way out of a “bad” situation? NACUSO’s Denise Wymore thinks so, and suggests that the industry needs to look up from the blinking lights to find alternative means of succeeding.
Mergers may seem like a sound strategy for the individual institution, but are they a sound strategy for the industry and the member-owners who make them possible? Chip Filson doesn’t think so, and goes even further to say the process is broken against the member.
Chip Filson wonders whether members’ interests are protected in both credit union-bank acquisitions and mergers, or only the former.
I have never heard the expression of a “black swan event” before this year, so of course I had to Google the meaning. A Black Swan Event refers to a highly improbable occurrence with three characteristics: It is impossible to predict, It carries a massive impact, and Its shock value...
When voluntary mergers are proposed, do members of the absorbed credit union deserve more say in where their members’ equity should go? Vic Pantea thinks so. He looks at the potential merger of Xceed Financial Credit Union and Kinecta FCU and wonders what should happen to $95M in equity.
Saying a credit union “merged with” instead of “acquired” a bank may seem trivial, but Chip Filson doesn’t think so. He says it blurs the lines between the two different financial institutions and weakens the cooperative nature of credit unions.
Merger, acquisition, are they really that different? Chip Filson thinks so, and says bank acquisitions are not in the interest of existing members.