Missouri CU Escapes Bankers' FOMTrap

ALEXANDRIA, Va. - (07/21/06) -- The NCUA Board Thursday began theprocess of rescuing state chartered credit unions in Missouri froma field of membership trap set by the state's bankers. The federalregulators approved an application from Aerospace CU, one of the 10largest state charters in the 'Show Me' state left in limbo by acourt order striking down community chartering rules, to convert toa federal charter encompassing almost two million peoplesurrounding its St. Charles base, including the city of St. Louis.The conversion to federal charter will enable the $150 millioncredit union to escape the uncertainty rendered it and the otherstate charters by the recent court decision, which is beingappealed to a higher court. The flight from the bankers challengeis reminiscent of a similar wave of conversions from state chartersin Utah in 2003 which enabled those credit unions to escape theUtah bankers' efforts to impose a tax on state charteredcharters.