Regulators Probe Community CU BankBid

Register now

AUSTIN, Texas - (05/19/05) -- The Texas CU Department saidWednesday it is investigating a complaint filed by a dissidentgroup of Community CU members claiming the credit union giant hasviolated state law in its bid to convert to a mutual savings bank.The group, calling itself, the Texas Coalition for CU Members,alleges the $1.4 billion credit union violated state requirementson disclosures it sent out to 225,000 members on the impending voteto convert charters. Kerri Galvin, general counsel for the statecredit union regulator, told The Credit Union Journal they willattempt to expedite a review of the complaint in response to thegroup's request that a decision be rendered by May 27, as the finalvote on the conversion is slated for June 21.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER