Lawmaker Would Trim NCUA's Role On CUConversions

Register now

WASHINGTON - (09/21/05) -- NCUA should limit its oversight ofcredit unions converting to mutual savings banks, and stop tryingto regulate subsequent shifts to publicly owned banks, one lawmakercritical of the agency's recent actions on credit union conversionsaid Tuesday. Rep. Patrick McHenry, R-N.C., sponsor of a bill tolimit NCUA's powers over credit union conversions, said the federalagency should restrict its oversight to the switch in charters fromcredit union to mutual savings bank, and leave the subsequentchange to publicly owned bank to the thrift regulators. "The Officeof Thrift Supervision governs conversions to stock," McHenry toldattendees to NAFCU's annual Congressional Caucus. "They haveregulations on their books that govern that part of the process."McHenry, who labeled NCUA's actions in the two Texas credit unionconversions 're-freaking-diculous,' said his bill would preventNCUA from requiring converting credit unions to speculate on theirfuture actions after switching to mutual savings banks. That wouldinclude future plans for raising capital in an initial publicoffering and for the remuneration of top managers and directors.McHenry said his bill would ensure that disclosures to members areclear and concise and not speculative.

For reprint and licensing requests for this article, click here.