New Judge Named In Utah NCUA Suit

SALT LAKE CITY – A new federal judge is taking over the American Bankers Association field of membership lawsuit against NCUA as agency lawyers last week began preparing briefs countering ABA claims NCUA had overstepped its authority in authorizing FOM applications for three Utah credit unions. Judge Dale A. Kimball, a former Salt Lake City attorney before taking the bench, was assigned the case after J. Thomas Greene, excused himself apparently because of Greene’s former ties to another Salt Lake law firm which does work for Zions Bancorp. A spokesman for the U.S. District Court clerk confirmed the change in judges but said Judge Greene’s recusal “did not state a reason.” Judge Greene, it was learned, was formerly associated with Collister, Nebeker and McCullough, which currently represents Zions, which has long waged an anti-CU crusade in Utah. Meanwhile, NCUA filed its formal response Sept. 17 to the ABA suit which seeks to nullify agency approval of FOM multi-county expansions for Tooele FCU and America First FCU and Goldenwest FCU, both of Ogden. Briefs from the ABA and NCUA along with intervenors CUNA, the National Association of Federal Credit Unions, the Utah League of Credit Unions and the three CUs are not expected before Judge Kimball for at least a month. The Utah FOM case is being watched closely nationally as a key test of NCUA’s FOM authority and the banking industry’s to thwart CU expansion.