Partner Lawrence Remmel Interviewed About Credit Unions and Banks
Partner Lawrence Remmel, Chair of Pryor Cashman’s Banking and Finance Group, was interviewed by the Credit Union Times for its March 2, 2011 article “Time for CUs to Trust Bankers?” The article asks whether it’s time to extinguish corporate credit unions entirely and turn the correspondent service work over to banks and, if that time has arrived, can banks be trusted to handle the work?
One reason why the question is not easily answered is, according to Remmel, because banks have gotten highly efficient at providing correspondent services. “The big correspondent banks have scale and efficiency. It is very hard to compete with them. And it is very hard for a corporate credit union to maintain the infrastructure required to stay competitive.
Remmel also told Credit Union Times that “it would benefit credit unions to outsource correspondent services to the banks that specialize in this. I really don’t think credit unions can compete with them. Doing this [contracting with banks for settlement services] would reduce the costs to credit unions.”
To read the article, please click here.
