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Article: U.S. Court's 'common bond' ruling could break up 2,000 credit unions. (US Court of Appeals, DC; common bond requirement for credit union membership)
- Article from:
- American Banker
- Article date:
- August 1, 1996
- Author:
CopyrightCOPYRIGHT 1996 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A federal court decision this week could force regulators to dismantle about 2,000 credit unions for illegally broadening their membership policies.
The ruling, handed down Tuesday by the U.S. Court of Appeals for the District of Columbia, would require federal credit unions to adhere to a single "common bond."
If the decision holds up, it could affect credit unions that have a majority of the industry's $306 billion of assets. More than 65% of credit union members belong to these institutions that accept workers from more than one company.
The National Credit Union Administration will appeal the outcome. The regulatory agency's general counsel, Bob ...