Credit union officials slammed a proposal requiring stricter oversight of their securities portfolios, calling it an overreaction to a past scandal.

The proposal by the National Credit Union Administration calls for an institution's board of directors to more actively oversee investments in risky items such as collateralized mortgage obligations. It came out last November, 10 months after huge losses on mortgage-backed securities caused the failure of Capital Corporate Federal Credit Union, based in Lanham, Md. Comments were due Wednesday.

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