Evolving Credit Unions Demand What Congress Intended: Option To Change Charters

Credit Union Journal, The, June, 2008 by Peter Duffy

Consider the irony that charter choice has become all but extinct in the credit union movement, and then along comes the Treasury’s proposed Blueprint to consolidate banks and CUs with its requirement of a common federal charter for national banks and federally chartered thrifts and CUs.

Evolving CUs (community and select employee group charters) now realize how difficult adding members and generating earnings can be without regulatory relief. A recent survey speaks to this realization.

According to the Aite Group, 33 of 101 CEOs of CUs with $100 million-plus in assets indicated their CU credit union would consider a conversion twas planning to convert to a mutual savings bank (MSB) charter. Such a charter change would bring the regulatory relief found in the...

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