Credit Unions
Washington state credit unions buying banks face new tax
The Washington State Department of Revenue announced last week that any state-chartered credit union merging with or acquiring a state-chartered bank will no longer be exempt from the business and occupation (B&O) tax. The tax rate is 1.2% and applies to the total gross income of transactions submitted for regulatory approval after January 1, 2026, with no deduction allowed for labor or material costs. Out-of-state credit unions and transactions previously submitted for approval are not affected. This is the first tax law in the United States targeting credit union acquisitions of banks, eliciting mixed reactions from the banking and credit union industries.
Florida credit union sues Fiserv, alleging lax cybersecurity
FiCare Federal Credit Union alleges that Fiserv's Virtual Branch Next platform lacked basic security controls, leading to account takeover incidents in 2024 that resulted in customer losses of hundreds of thousands of dollars. Fiserv denies the allegations and says it will vigorously defend itself.