Tuesday, September 6, 2011

Association Bond Satisfies Field of Membership Issues Related to Rare CU Bank Merger

Credit Union Journal (paid subscription) is reporting that United FCU is using an associational common bond as a vehicle to allow all the depositors of Griffith Savings Bank to join the credit union.

The depositors of Griffith Savings Bank by joining the American Consumer Council become eligible for membership in United FCU, thereby satisfying the field of membership issues related to this rare transaction. The transaction is still awaiting regulatory approval.

This is just another example of how some credit unions have used an associational common bond to make a mockery out of the concept of a common bond and to allow them to serve the public at large.


  1. Oh, I see that Dr. Leggett, determiner of all things right and wrong, wants to deprive a group of consumers financial services because of the soon-to-be failure of a for-profit financial organization. A non-profit financial organization steps in to continue affordable financial services to that community and that is bad.

    Okay then. Where were the other for-profit banks willing to step in and bring those customers into their bank keeping the financial services going for those consumers? The silence is deafening!!!

    Well, Dr. Leggett, can't the all powerful ABA find a bank ready to assist those customers of a failing back?!?!?!

  2. Regulators probably like this one. The legality of these inclusions has been tested. Diversification of FOM lessens concentration risk, thereby benefiting the credit union insurance fund. Least cost resolution benefits FDIC. Making a banking problem go away without shifting liability to the taxpayers benefits everyone.

  3. Keith,
    Geniuses like the initial poster are one of the biggest reasons why you'll continue to enjoy iron-clad job security --- and why the credit union "movement" is headed for the ditch.



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.