Tuesday, July 31, 2018

Seven Michigan CUs Apply to Form Bank Offering Trust Services

Crain's Detroit Business is reporting that seven Michigan credit unions have applied to thier state regulator to form a new limited-purpose bank to provide trust services.

Operating a trust bank will allow these credit unions to offer wealth and asset management services to members. Credit unions are not allowed to directly offer wealth and asset management.

The organizers of the new bank, Credit Union Trust, are: Farmington Hills-based Community Choice Credit Union; Alpena Alcona Area Credit Union; Burton-based ELGA Credit Union; Frankenmuth Credit Union; Berrien Springs-based Honor Credit Union; Midland-based Members First Credit Union; and Saginaw-based Team One Credit Union.

The credit union group will supply $5.5 million in capital to launch the new bank, which is expected to open following regulatory approval in the first quarter of 2019.

Read the story.



Posted by at
Labels:

2 comments:

  1. AnonymousJuly 31, 2018 at 3:10 PM

    Will the new bank pay federal taxes? What kind of leverage can it support on 5.5 million of capital?

    ReplyDelete
    Replies
    1. Keith LeggettAugust 1, 2018 at 1:54 PM

      It should. But it will depend on how it is organized for tax purposes.

      Delete

Subscribe to: Post Comments (Atom)
 

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.