The Iowa Division of Banking's ICBA-supported decision denying the sale of a tax-paying community bank to a tax-exempt credit union is making news. CU Today and Credit Union Journal covered the decision by the Iowa regulator, which said the transaction would violate state law requiring that banks be sold to other banks.
It was the second such decision this year. ICBA in January commended a similar decision by the Colorado State Banking Board and called on other state agencies to examine their laws on credit union purchases of state-chartered bank assets.
Through its Credit Union Task Force and "Wake Up" campaign, ICBA has raised the profile of the disturbing trend of credit union-bank acquisitions, which has led to increased pressure from policymakers.