The National Credit Union Administration can expect a fight with some state credit union leagues if it bans shared management between trade groups and corporate credit unions.
"If there is a regulation on interlocks, we'll certainly respond," said Carroll D. Beach, president of the Colorado Credit Union League. "It'd be premature to say what action would be taken. It depends on what the regulation says."
Mr. Beach said "regulatory remedies and legislative remedies can be sought" if an undesirable regulation comes down. Sources said Mr. Beach and other industry officials are prepared to challenge the agency in court and already have hired Howrey & Simon, a Washington-based law firm, to represent them.
Opposition Letter Filed
The law firm filed a 28-page letter opposing an agency proposal to sever ties between trade groups and corporate credit unions.
Mr. Beach denied hiring the law firm which is still on retainer was the prelude to a lawsuit.
Besides the Colorado league, the other organizations that hired the law firm are: the Arizona Credit Union System, Georgia Credit Union Affiliates, Kansas Credit Union Association, Louisiana Credit Union League, Minnesota League of Credit Unions, Missouri League Corporate Credit Union, Oregon Credit Union League, Carolina Corporate Credit Union, and Virginia League Corporate Federal Credit Union.
