Bankers ask for congressional probe of PenFed-Progressive merger

“Does the merger benefit PenFed members or only PenFed executive officers who are likely to see significant salary and benefit increases?”

Accusing the NCUA of “flouting” its emergency merger authority, community bankers are asking for a congressional investigation into the agency’s approval of the merger between PenFed and Progressive Credit Union.

“If you ask me, the only thing ‘emergency’ about this acquisition is the giant alarm it should set off about the latest credit union power grab,” Rebeca Romero Rainey CEO/president of the Independent Community Bankers of America said in a blog post explaining the trade group’s opposition to the merger.

Rainey pointed out that Progressive was grandfathered when the common bond requirement was established in 1934. As a result, the credit union had no restriction on who it could serve.


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