Washington League mulls seminars to help CUs acquire, merge or divest CUSOs

FEDERAL WAY, Wash. – The Washington Credit Union League Board will meet in the coming weeks to discuss, among other things, whether the league should hold merger and acquisition seminars for credit unions on acquiring, divesting and merging CUSOs. WCUL President/CEO John Annaloro said the league has been in the process of transferring out of the business of providing wholesale services to credit unions under the league’s service corporation. “Credit unions in Washington State need something besides fees to subsidize their rates. Besides, it’s a difficult scenario if the league competes with credit unions that are dues-paying members of the league,” said Annaloro. “Majority ownership by the league in a service corporation is no longer a necessity.” Annaloro said he wasn’t sure yet how the seminars would be conducted, but he observed that, “CUSOs are at a point where they’re acquiring and bringing businesses, such as insurance companies. There are other credit unions that may want to sell their CUSO in the future when it reaches a certain critical mass. We want to help provide them with information for when they make their business decision.”