NCUA Throws In The Towel On TexasConversions

WASHINGTON/DALLAS - (08/31/05) -- NCUA agreed Tuesday night to a dealthat would have it drop its objections to the Community CU andOmniAmerican CU charter switches and clear the way for the biggestcredit union conversions to banks ever. The deal will allow NCUA toavoid further embarrassment in the case by having a U.S. court goas far as to strike down its whole rule on conversions, which afederal magistrate had threatened to do, sources involved in thenegotiations told The Credit Union Journal. The deal would alsohelp NCUA minimize any further tensions with members of Congress,who have criticized the agency on its handling of the two giantcredit union conversions. NCUA officials would not comment on theproposed deal. The two Texas credit unions, Community CU at morethan $1.4 billion, and OmniAmerican CU at $1.2 billion, are eachmore than twice as big as the largest previous conversion..