FOR IMMEDIATE RELEASE
ICBA Criticizes NCUA Conversion Rules
Washington, D.C. (Feb. 20, 2004) - The Independent Community Bankers of America criticized the National Credit Union Administration for approving rules that now make it more difficult for credit unions to convert to mutual savings banks.
"The NCUA is trying to create obstacles for credit unions that are trying to convert to mutual savings banks," said Camden R. Fine, president/CEO-elect of ICBA. "These new disclosure requirements are nothing more than legal hurdles that credit unions must meet prior to converting. ICBA is opposed to any attempt by the NCUA to obstruct the right of a credit union to convert to a mutual savings bank."
Over the objection of many credit unions, the NCUA adopted rules this week requiring a converting credit union to make certain disclosures about its future plans to convert to a stock institution. "These disclosure requirements duplicate what other agencies, such as the SEC, FDIC or OTS, would require if a mutual savings bank subsequently converted to a stock institution and would force converting credit unions to speculate about future events," said Fine. "They are unnecessary legal impediments to the right of a financial institution to choose its own charter."