Missouri CU Escapes Bankers' FOM Trap

ALEXANDRIA, Va. -- The NCUA Board Thursday began the process of rescuing state chartered credit unions in Missouri from a field of membership trap set by the state's bankers. The federal regulators approved an application from Aerospace CU, one of the 10 largest state charters in the 'Show Me' state left in limbo by a court order striking down community chartering rules, to convert to a federal charter encompassing almost two million people surrounding its St. Charles base, including the city of St. Louis. The conversion to federal charter will enable the $150 million credit union to escape the uncertainty rendered it and the other state charters by the recent court decision, which is being appealed to a higher court. The flight from the bankers challenge is reminiscent of a similar wave of conversions from state charters in Utah in 2003 which enabled those credit unions to escape the Utah bankers' efforts to impose a tax on state chartered charters.