The Credit Union National Association's decision to support a bill extending the federal government's reach over state-chartered institutions has split the organization.

On one side is the leadership of the industry's largest trade group, which backed the bill in a May 19 letter as the lesser of two evils. On the other are leaders of some state associations, who say the bill introduced by Sen. Alfonse D'Amato, R-N.Y., and Sen. Paul Sarbanes, D-Md., tramples states' rights.

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