Monday, June 22, 2009

Why Would They Do That?

NCUA announced on Friday, June 19 that Alaska USA FCU would acquire failed High Desert FCU in Apple Valley, California in a purchase and assumption agreement. NCUA has been overseeing the operations of High Desert since October, 16, 2008, when the NCUA Board placed the credit union into conservatorship.

Alaska USA FCU with $3.9 billion in assets has 52 branches in Alaska and Washington. High Desert FCU serves the residents of San Bernardino County, California and has assets of $102 million.

How does this transaction benefit the members of Alaska USA FCU?

As Kate Golden of the Juneau Empire wrote, “[e]verybody wants to diversify, but why would Alaska's biggest credit union buy a tanking Southern California credit union?”
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