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 June 22, 2006 #06-36
E-mail: [email protected]

ACB EXPRESSES DISMAY AT NCUA’S PROPOSAL TO MODIFY ITS CONVERSION RULES

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WASHINGTON, D.C. — America’s Community Bankers today expressed dismay that the National Credit Union Administration has proposed increasing the burden on credit unions that choose to convert to a mutual savings bank charter. ACB also said that the final field-of-membership rule adopted by the NCUA allows credit unions to expand without first serving persons of modest means.

“The proposed conversion rule would make the disclosures when a credit union chooses to convert more cumbersome and anti-conversion,” said Diane Casey-Landry, ACB president and CEO. “Other proposed changes to the process appear to be designed to empower conversion opponents at the expense of a true dialogue.”

The field-of-membership final rule now conforms to what was always the law by limiting credit union expansion into underserved areas to multiple-common-bond credit unions. “The rule, however, does not require those credit unions to demonstrate how they serve their own underserved populations before expanding into other territory,” said Casey-Landry.

“ACB will continue to work with Congress to stop the NCUA from blocking credit union conversions and from expanding credit union fields of membership beyond what was intended by Congress,” said Casey-Landry.

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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