WASHINGTON — Federal regulation of the merger activities of state-chartered credit unions would be an "overly broad," application of NCUA's regulatory authority, said the National Association of State Credit Union Supervisors.
"There is no apparent basis for the NCUA approach, which obliterates nearly a century of state originated financial institution law and two centuries of law deferring to the states on such important matters of corporate governance,"
in a letter signed by officials from 28 states.
These matters are "better left to state law and regulation for case-by-case determination," they added.
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The letter was a response to NCUA's request for input on possible rules about mergers that the agency believes may negatively affect credit union members. In January, the NCUA board issued a notice requesting input on possible regulations. Once agency officials review the comments, if they decide to issue rules they could do so at any time.
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