NCUA Stands Up For Conversion Rules

ALEXANDRIA, Va. – NCUA asked a federal court Friday to throw out a legal challenge to its rules governing credit union conversions to banks, arguing the shadowy Coalition for Credit Union Charter Choice lacks standing to bring the suit. The group, NCUA told the court, has failed to show that any of its purported credit union sponsors have any immediate plans to convert to a mutual savings bank. The five-year-old group, which is headed by the former CEO of a credit union-convert and is represented in court by a well-known banking lobbyist, has claimed it represents credit unions in opposing NCUA’s conversion rules, but has yet to disclose any credit union supporters. NCUA also argued the group’s case is moot because it challenges old rules that have been amended and are no longer in effect. The U.S. District Court for the Eastern District of Virginia has scheduled a hearing on the case for Oct. 19.