DFCU Financial Federal Credit Union in Dearborn, Mich., said it has withdrawn its application to become a mutual savings bank.
The $1.8 billion-asset credit union, which serves Ford Motor Co. employees, said Monday that member feedback and regulatory limits on communications led to the decision to withdraw the application, which had been filed in December.
If the application had succeeded, DFCU would have been the largest credit union ever to convert to a savings bank.
In February the National Credit Union Administration, DFCU's federal regulator, said its member disclosure documents were faulty and needed to be revised and refiled. Early last month DFCU filed a lawsuit accusing the Michigan Credit Union League of providing financial backing to DFCU Members United, a group of members opposed to the conversion. Last week that group launched a petition drive to recall the credit union's nine directors before a June vote on the conversion plan.
