Team size:  17 
Major legal advisers:: Venable, LLP (Washington, DC) 

What are the most significant cases and transactions that your legal team has recently been involved in?

CU1 has successfully completed a series of mergers over the past 12 months, with a total of 8 mergers expected to be completed by year-end. This activity reflects a broader trend of consolidation within the credit union market, driven by multiple factors that are reshaping the financial services landscape. The historic sharp rise in interest rates, combined with escalating costs of ever-evolving technology and increasingly complex regulatory compliance requirements (which are increasing costs while at the same time directly reducing revenue), has placed significant strain on smaller financial institutions. Many are finding it difficult to sustain profitability and remain competitive in this challenging environment. As a result, these institutions are increasingly seeking to merge with larger, more established entities like CU1, which can offer greater resources and economies of scale. Looking ahead, we expect this consolidation trend to continue and possibly accelerate, as regulatory initiatives and market pressures further limit the ability of institutions to compete. 

Which recent political, economic or regulatory changes have impacted your work the most in the past year?

The campaign against so-called “junk fees” has put significant pressure on financial institutions, particularly those with fewer diverse revenue streams, pushing many toward consolidation as a means of survival. This regulatory shift, combined with an increasingly hostile political climate toward financial institutions, has intensified the challenges for smaller players in the market. Smaller institutions are especially impacted by the focus on eliminating fees labeled as unfair or excessive, as these fees constitute a substantial portion of their revenue. Adding to the strain, pending legislation may require financial institutions to cover the costs associated with fraudulent activities.

Without the ability to absorb these regulatory changes, many smaller institutions are struggling to remain profitable and competitive, which ultimately reduces the level of competition that benefits all consumers. These challenges are compounded by evolving cybersecurity risks and fraudulent activities targeting institutions of all sizes. As a result, these pressures are reinforcing the dominance of larger financial institutions, leaving smaller ones fighting to survive in an increasingly difficult regulatory and economic landscape.

How does your legal team collaborate with other departments within the company?

Our legal team plays a critical role in supporting our business units by providing comprehensive legal guidance to ensure compliance with evolving regulations and by managing litigation risks from multiple sources. We work closely with the business units to navigate complex legal frameworks, manage risk, and develop strategies that align with both state and federal laws. Whether advising on licensing, regulatory compliance, contracts, or risk mitigation, our legal team is integral to helping our business initiatives and units thrive in a rapidly changing legal and economic environment.

DISCLAIMER: The views and opinions expressed here are my own and do not necessarily reflect the official policy or position of my employer or any affiliated entities.