WASHINGTON – As of press time, the May 11 hearing before the Financial Services Committee's subcommittee on financial institutions and consumer credit to consider H.R. 3206, the Credit Union Charter Choice Act, started out tense and produced little in the way of anything new.
Interestingly, both sides of the hearing's second panel, which included representatives from the banking and credit union associations, agreed that large numbers of future credit union-to-bank conversions would be rare, though the credit union representatives said the slow down would be because more CU members would likely vote them down and the bank representatives said it would be because NCUA's regulations would prevent it.
Representative Patrick McHenry (R-N.C.) drafted the bill in response to the regulatory and legal fight NCUA had with two Texas credit unions, the then $1.4 billion Community Credit Union and the then $1.2 billion OmniAmerican Credit Union, and in many ways that fight, which the NCUA lost in court, haunted this hearing.
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