Credit Unions Sue NCUA Over MSB Conversions Rule

ALEXANDRIA, Va. – A group of purported credit union representatives filed suit against NCUA in federal court here today asking the court to overturn the agency’s latest round of amendments to its rules governing conversions to mutual savings banks. The group, calling itself the Coalition for Credit Union Charter Options, asserts that NCUA overstepped its authority last year in passing the new rules, the third time NCUA changed the rules over a two-year period. The court filing purports to be on behalf of a number of credit unions and their members but does not say who those credit unions or members are. But the coalition has been financed in the past by America’s Community Bankers and various credit unions that had converted to mutual savings banks. The lawyers representing the group are Washington-based Butera and Andrews, the lobbyists for ACB and for several converted credit unions.