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Troublesome Trend Distinctions With Tax Implications Obscured as Credit Unions Swoop in on Smaller Banks

When 3Rivers Federal Credit Union completed its purchase of West End Bank last month, the transaction became part of a growing trend of large, billion-dollar credit unions buying small community banks.

While there's no question that the vast majority of credit unions follow the rules of serving well-defined, underserved communities, evidence is mounting that a subset of the industry wants to operate more like traditional banks. If Congress does not properly delineate the differences between banks and credits unions, it's only a matter of time before yet another local bank gets taken over by a bank-like credit union.

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