ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release December 14, 2005 #05-91
E-mail: [email protected]

ACB ASKS FOR GAO STUDY OF NCUA’S TREATMENT OF CONVERSION APPLICATIONS

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WASHINGTON, D.C. — Citing “unwarranted interference” by the National Credit Union Administration in processing credit unions applications to convert to mutual savings bank charters, America’s Community Bankers today asked for a Government Accountability Office study.

“Because of unwarranted interference by the NCUA, we believe that some credit unions have been hindered in their ability to make business decisions that are best for their institution and its members,” Diane Casey-Landry, ACB president and CEO, said in a letter to Rep. Jeb Hensarling (R-Texas).

Casey-Landry cited the Credit Union Membership Access Act of 1998 as giving credit unions the right to convert to a bank charter if their members vote to do so, and defining the limits of the NCUA’s oversight of the voting and conversion process.

“Since it remains unclear how NCUA will treat credit union conversion applications in a consistent and fair basis, we urge you to formally request a GAO study on the NCUA treatment of these applications, both current and past, as well as going forward,” Casey-Landry said.

At a hearing in June, Hensarling was critical of the NCUA for holding up credit union conversions in Texas.

The letter is attached.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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