The Colorado Bankers Association (CBA) on January 13 wrote State Bank Commissioner Ken Boldt objecting to Elevations Credit Union (Boulder, CO) proposed acquisition of Cache Bank & Trust (Greeley, CO).
This is the first announced acquisition of a bank by a credit union in Colorado.
The CBA cited existing statutes, which prohibit the acquisition as state laws hold that banks can only sell a substantial portion of their assets to other banks, with a similar prohibition in place for credit unions.
The CBA contended that the state banking board may be using the state's wildcard statute to authorize this transaction, which states that the banking board may allow a state chartered bank to conduct any banking activity a national bank is permitted to, so long as that activity is not legally prohibited.
However, the CBA wrote that the wildcard statute is not permissible, because liquidation is not a banking activity and the bank won't be engaging in it.
CBA stated that the proper forum for this change in policy is the Legislature, not by regulatory interpretation.
A hearing regarding this transaction is scheduled for January 16.
Read the letter.
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