METAIRE, La.-Consolidation won't cure the ills corporate credit unions or restore confidence at natural-person institutions according to one corporate CEO.

David Savoie, president/CEO Louisiana Corporate CU told Credit Union Journal that the existing corporate regulations encouraged consolidation under the theory that institutions without expanded investment authorities would merge with larger and more risk-adverse corporates. But that scenario never played out and instead the bigger institutions engaged in an arms race for yield that also resulted in increased risk.

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