Bank-Credit Union Tussle Emerges Again

Abstract

The Independent Community Bankers of America, by letters to the Senate Finance and House Ways and Means Committees, dated March 23, called attention to an “emerging trend and abuse of the tax code,” in the form of a “surge” in purchases of community banks by tax-exempt credit unions. The ICBA portrayed these transactions as a leveraging of tax exemption to “gain an advantage in the acquisitions marketplace” and a “flout[ing] of the original purpose of the tax exemption.”