OTS Plan Would Let Mutual Thrifts Use Voting Structure of Credit Unions

Federal mutual thrifts would be given the option to adopt a one-depositor, one-vote governing structure under a proposal issued Tuesday by the Office of Thrift Supervision.

The plan follows recent OTS waivers that allowed two credit unions to maintain their credit union-style voting framework after converting to federal mutual thrifts. Three other credit unions have applications pending with the OTS to convert to mutual thrifts.

Typically, members of mutual thrifts are assigned voting power based on total deposits-one vote for every $100 deposited.

Mutual thrifts currently are permitted to cap an individual's voting power anywhere from 50 to 1,000 votes. Under the new plan, the cap could be anywhere from one to 1,000 votes.

To change its voting structure, a mutual thrift must get approval from its board of directors and depositors. The institution must also notify the OTS.

Comments are due June 15.

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