Letter to editor questions CU/bank merger
AUGUSTA, Maine (8/11/09)--A letter to the editor appearing in the Saturday Kennebec Journal questioned Kennebec Valley FCU's proposed merger with Kennebec Savings Bank.
Kennebec Valley FCU, Augusta, Maine, proposed converting to a bank and then merging with Kennebec Savings in September. The credit union's board has since voted in favor of it. The conversion and merger is awaiting a vote from Kennebec Valley's membership.
When the merger proposal was announced, the credit union noted that the conversion and merger would significantly expand its capacity to meet the current and future needs of members (News Now Sept. 10).
In the letter to the editor, Lucille Cloutier questioned what the advantage would be for members if the credit union converted to a bank.
"A huge point has been grossly overlooked: What do the members get in return for turning over all of the credit union's assets in this merger?" she wrote.
"With all of the credit unions in the area who, like Kennebec Valley, manage to survive financially in this economy, why are we being asked to give it all away? Exactly what is the advantage?" she continued. To read the letter, use the link.
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