“Like many business men of genius, Don Corleone learned that free competition was wasteful, monopoly efficient.”
In case you came in late, the Godfather series [for whole series click "Godfather" button above] has looked at the issue of mergers among credit unions. BECU/SAFE are featured; but are by no means the exception, nor meant to be singled out.
In this merger, the SAFE Board of Directors is giving away the credit union and $400 million in cash to BECU. Several better "deals" have been suggested [link]; it is hard to imagine "a deal" which is worse.
If the SAFE Board of Directors reconsidered "the deal", paid out the $400 million to SAFE members, and avoided the potential class action lawsuit; would BECU still take the merger? Guess we should ask Jefferies, LLC [link] - BECU's merger advisor. But, even after rightfully returning the $400 million in cash to SAFE shareholders...
✅ We can state without argument that BECU would still receive a thriving $4 billion asset business, 244,000 additional members, 21 branches in 13 cities, a knowledgeable, experienced, local staff, with a strong reputation for service. Not to mention all those highly-heated vapors promised in the press release [link]!
✔ If you wanted "to create" a similar $4 billion credit union in California: 1) What would it cost you? and 2) How long would it take?
😎 Where could you go "to acquire" such a powerful business entity for free?
** For the entire Godfather series click the "Godfather" button at top.
