Texas Eyes Reforms To CU ConversionRules

AUSTIN, Texas - (06/03/05) -- Prompted by the growing controversyover two giant credit union conversions, the Texas CU Departmentwill be revisiting the state's rules and regulations surroundingconversions of credit unions to bank charters later this summer."The commission's legislative advisory committee has asked me togather information on the conversion rules to determine if anychanges are necessary," Harold Feeney, director of the state CUDepartment, told The Credit Union Journal. "So, I will gather thatinformation and get it to them, and I expect it will be discussedlater this summer." The state regulator is in the middle of theexpanding controversy over the ongoing conversions of $1.4 billionCommunity CU and $1.2 billion OmniAmerican CU, to mutual savingsbank, the first state chartered credit unions in Texas to try thecharter switch.