Credit Unions: The Godfather Mergers - Part XII

  .... or do they?

The SAFE CU Board of Directors has voted to merge with BECU, in effect giving away the Sacramento-based, member-owned credit union worth between $400 to $800 million [link] [link] .

✅ The California credit union regulator (DFPI) must approve the merger on behalf of 244,000 SAFE members, who primarily live in the State. Here's how the state regulator views its responsibility to SAFE members and the State of California:
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"We believe that the combination of access, low fees, favorable state laws, and expertise and experience of the Department’s staff, make the state charter the charter of choice for California financial institutions 

Consumer protection is the foundation of DFPI’s mission, vision and purpose. In addition to regulation and rule enforcement, DFPI helps Californians by providing the tools and information to help them improve their financial outlook. This includes,..

• A dedicated Consumers page, including resources to help people better understand their rights and make well-informed financial decisions, submit a complaint, verify licensed service providers, search enforcement records, and more. [link to more] "  

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 ✔ If the California DFPI endorses the merger, California will lose 1) a local, home-grown financial institution - owned by Californians, 2) export control of $400+ million in locally-owned capital - and the locally-focused economic development that capital supports - out  of state, 3) cede control of over $4+ billion in California consumer deposits to Washington State, and 4) essentially acknowledge that California DFPI does not, as it claims, offer "the state charter of choice for California credit unions". 

😎 Is encouraging and supporting the future expropriation of member-owned, credit union reserves for all California credit unions the definition of "consumer protection," - really?

 

  Do California Governor Newsome and his economic development folks agree with this downsizing of Sacramento?