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 August 8, 2002 #02-36
E-mail: [email protected]

ACB STRONGLY SUPPORTS OTS CONVERSION REGULATION

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Statement by Diane M. Casey, president and CEO, America’s Community Bankers, on the mutual-to-stock conversion regulation issued by the Office of Thrift Supervision today:

America’s Community Bankers, which represents the nation’s mutual savings institutions, strongly supports the comprehensive rewrite of the Office of Thrift Supervision’s regulations on mutual-to-stock and mutual holding company conversions.

The final rule incorporates key recommendations ACB made when the rule was originally proposed in 2000 and reproposed this year. These include streamlining the conversion pre-filing, meeting and business plan requirements and clarifying other common conversion issues, including a procedure for creating and funding charitable organizations. We were pleased to see that the regulation does not include any requirements or guidance on special distributions by mutuals.

OTS also included an ACB recommendation to allow mutual holding companies to extend a prohibition against takeovers to mid-tier subsidiaries.

ACB strongly believes that all depository institutions should retain the freedom to choose the form of organization that best meets their strategic and market objectives. ACB supports OTS’s efforts to make the mutual charter more attractive, but also supports the right of institutions to convert to stock or mutual holding company forms.

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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