NCUA Wants Supervisory Committee Probe OfDFCU

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ALEXANDRIA, Va. - (03/03/06) – NCUA had good news and bad newsfor DFCU Financial on Thursday. The federal regulator gave the $1.8billion credit union the go-ahead on the voting for the biggestcredit union conversion to bank yet. But in a separatecorrespondence NCUA called on the credit union’s supervisorycommittee to investigate allegations of impropriety in theconversion process brought by one member, former chairman LindaMalec, and a group of members she represents called DFCU OwnersUnited. NCUA said it has no choice but to let the mail ballotingcommence but also suggested there was some evidence of allegationsby the group that the DFCU board failed in its due diligence inputting together the massive conversion project. Meantime, Congressis once again considering weighing in on the conversioncontroversy, as both sides have been lobbying important lawmakersover the past few weeks.

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