Pa. League Warns of Legal Steps on Conservatorships
The Pennsylvania Credit Union Association's board has adopted a formal resolution warning it would take "appropriate" legal steps to mitigate the impact of the NCUA's conservatorships of U.S. Central and WesCorp.
Following up on CUNA threats last week that it has been looking at suing the agency over its actions, the Pennsylvania trade group said "together with CUNA" it is prepared to "engage in direct advocacy" with the NCUA as well as legislative pursuits to diminish the impact of the costly assessments borne by CUs across the U.S.
The PCUA resolution did say any step it might take, which it did not spell out, would be "only if necessary."
"In taking this action, your association's board of directors is making a strong statement on behalf of Pennsylvania's credit unions that we deserve clear and transparent information from the NCUA if we are expected to shoulder the cost of its actions," said Diana Roberts, PCUA chair and president/CEO of Hershey FCU.
"Our board simply felt it wanted to show support to CUNA," said Rick Wargo, executive vice president/general counsel, adding that he was unfamiliar with any coordinated effort among other leagues or trade groups. "This was on our own."