For the time being, credit union concerns in Virginia and elsewhere over companion bills in the state Senate and House enabling banks to buy and merge credit unions have eased following committee action leading to likely passage.
As expected, a bill, once crafted to permit Virginia banks to buy credit unions that has since been altered to a mutual conversion measure, has passed the state Senate, 39-0.
The legislative scrap brewing in Virginia over bills to permit banks to buy credit unions was capturing national attention this month from both industries, regulators and the media.
On a 15-0 vote of the Virginia Senate Commerce and Labor Committee, the now recast bankers' bill enabling state chartered credit unions to convert to mutual status cleared another hurdle this week as it appears headed for passage.
In a victory for the Virginia Credit Union League, a House panel voted 20-0 Thursday to pare down a banker-backed bill allowing banks to buy credit unions into a measure enabling state CUs to convert to mutual charter.
CUNA said Tuesday it is "watching very closely" a legislative battle brewing in Virginia over banker-backed proposals for banks to buy credit unions.
The Virginia Credit Union League said it is working on a compromise bill in the state legislature dealing with CU-to-mutual conversions.
Rallying to defeat "anti-credit union" bills allowing banks to purchase CUs, the Virginia Credit Union League said today it expects a crowd of 350 to show up in Richmond to meet with lawmakers.
The Virginia Credit Union League was galvanizing its membership Friday for what it called a full court press to oppose state legislation permitting banks to merge with credit unions and vice versa.
The Virginia Bankers Association moved ahead this week to formally introduce bills in the state legislature permitting banks to "consolidate or merge" with credit unions and vice versa.