NCUA Makes Desperation Bid In UtahSuit
SALT LAKE CITY - (02/03/06) NCUA retreated further in itsdefense of the Utah undeserved case Thursday, even as it was askingthe court to dismiss the bankers challenge. In a new motionto dismiss, the credit union regulator told U.S. Judge Dale KimballThursday since they have retracted underserved expansions grantedAmerica First FCU that the American Bankers Associationscourt challenge for those expansions is now moot. In addition, NCUAinsisted to the Judgewho ruled a year ago that NCUA violatedfederal law in a related casethat the agency is certain notto approve any more underserved expansions for community charteredcredit unions because it plans to enact a new rule restrictingunderserved expansions to multiple group charters. In its suit thebankers claim NCUA in the America First case violated the FederalCU Act which expressly restricts underserved expansions to multiplegroup charters. The bankers charge NCUA has used its underservedprogram to allow broad expansions for as many as 200 communitychartered credit unions, some of which have encompassed major U.S.cities, like Philadelphia, Baltimore, Houston and Washington,D.C.