Rep. Asks GAO To Investigate NCUAAttitude Toward Conversion
WASHINGTON - (12/15/05) Texas Rep. Jeb Hensarling (R) has askedthe Government Accountability Office to investigate whether NCUA isobstructing the conversion of credit unions to mutual savingsbanks. The request by Hensarling follows a similar appeal by thebanking trade group Americas Community Bankers for a GAOstudy. ACB suggested that unwarranted interference" by NCUAis preventing some credit unions from converting to mutual savingsbanks. In his own letter, Hensarling said recent news reports had"given the impression that a bias against credit union conversionsmay exist at the NCUA and could lead the administration tointentionally or unintentionally obstruct the ability of creditunion members to decide freely and fairly the future of theircredit union." Two Texas credit unions are in the process ofconverting to mutual savings banks. In both cases, NCUA challengedthe process before being turned back in the courts.