KENSINGTON — Even if the $319 million Lafayette Federal Credit Union had prevailed in the controversy over its balloting in its 2006 attempt to change its charter to a mutual bank, there are reasons to doubt whether the credit union would have ever become a mutual bank without significantly changing its operations.
According to Lawrence Hart, the credit union's recently resigned Chief Compliance Officer, staff from the Office of Thrift Supervision's Atlanta Office told the credit union's leadership, in Hart's presence, in a meeting that was held in mid-August of 2006 that if the credit union had already been a thrift it would have been given a cease and desist order due to its Bank Secrecy Act violations.
Hart said OTS also advised the leaders to withdraw the CU's charter change application, fix its BSA problems, and then reapply.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
