Deal Set In OmniAmericanCase
ALEXANDRIA, Va./Fort Worth, Texas - (08/30/05) -- NCUA was expected to drop itsobjections to the conversion of OmniAmerican CU and allow the $1.4billion charter switch to go forward under a deal that could beconsummated as early as today, one source close to the negotiationstold The Credit Union Journal. The settlement would avoid thefuture wrath of U.S. Magistrate Don Bush, who ruled against theagency in the Community CU conversion, and allow NCUA and itsJustice Department lawyers to focus on their defense against theMagistrate's ruling, which must now be certified by the U.S.District Court. The OmniAmerican settlement will allow the creditunion regulator to avoid a rematch in front of Magistrate Bush, whosharply criticized the federal agency's treatment of Community CUduring a hearing two weeks ago. NCUA has rejected OmniAmerican'sconversion vote on the same grounds as it rejected the Community CUvote, which the Magistrate has recommended the court find illegal.NCUA, though it must wait to see what the court decides beforelaunching an appeal, is also weighing the political consequences ofa drawn-out legal battle after members of Congress criticized itsactions over the conversion of the two billion-dollar credit unionsto banks.