ABA Fights Court Ruling
The American Bankers Association has asked a federal appeals court to hear its lawsuit contending that regulators failed to enforce membership restrictions on credit unions.
In a lawsuit filed Thursday, the ABA said that the National Credit Union Administration allowed the AT&T Family Federal Credit Union, Winston-Salem, N.C., to expand its membership liberally, even though credit unions may legally accept only members who share a "common bond."
Basis for Dimissal
A federal district judge had dismissed the lawsuit Aug. 9, holding that the common-bond provisions of the Federal Credit Union Act were meant to protect credit unions, not banks.
Four North Carolina community banks joined the ABA in the lawsuit, which was filed in the U.S. Court of Appeals for the District of Columbia.