Frustrated CU Convert Abandons Bid ForBank Charter

BOSTON - (02/11/05) -- Postal Community CU, rejected byregulators in its bid to convert to a mutual savings bank, said itwill settle instead for a broad community charter. But the state'sDivision of Banks refused the $120 million credit union's requestto serve two-thirds of the state's 6.5 million residents in fivecounties and instead approved a community charter covering 1.5million people in Essex and Suffolk counties. Postal Community CUhad sued the state over its refusal to allow it to convert to abank charter under state law, but that suit was rejected by thecourts, leaving the credit union with few options in its bid toremain independent.