Bankers Back Off UnderservedBattle
WASHINGTON - (07/21/06) -- The American Bankers Associationannounced Thursday it has agreed to dismiss its lawsuit in Utahfederal court challenging NCUA's underserved expansion program. Theaction comes eight months after NCUA agreed to rescind anunderserved expansion granted America First FCU, the main target ofthe bankers' lawsuit. The ABA claimed that the Federal CU Actprohibits community chartered credit unions, like America FirstFCU, from participating in the underserved program. Since then,NCUA has passed a new rule expressly barring community chartersfrom participating in the underserved program. About 200underserved expansions already approved for community charters wereallowed to stand. It is unclear whether the bankers will challengeany of those.