Bid Would Rein In NCUA On CharterConversions

WASHINGTON - (07/13/05) -- Legislation introduced in CongressTuesday would restrict NCUA's authority over credit unionconversions to mutual savings banks by, among other things,limiting the disclosures to members NCUA requires. "Our central aimwith this legislation is to protect the rights of our constituentsto choose a financial institution that fits our needs," said Rep.Patrick McHenry, R-N.C., the chief sponsor of the legislation."This legislation is not anti-credit union. It is pro-consumer, andonce passed will not alter in any way the services offered toconstituents or the day to day operations of any credit union." Thebill, which has four other co-sponsors, would prevent NCUA fromrequiring that converting credit unions disclose future plans thathave yet to be formalized, such as the potential conversion tostock form or the potential for stock grants and options awarded todirectors and officers, a major sticking point among the creditunion movement. McHenry, who labeled NCUA's actions in denying theballoting at Texas credit union giants Community CU andOmniAmerican CU 're-freaking-diculous,' is joined on the bill byReps. Sam Johnson, R-Texas, Ed Towns, D-N.Y., Paul Gilmore, R-Ohioand Peter King, R-N.Y.