Federal Credit Union Regulator Not the Only One to Review Conversion Disclosures

HARFORD, Conn. — The Connecticut Department of Banking is taking a look into disclosures of mutual savings bank conversions to stock-owned institutions.

The Connecticut regulator is looking at adding new provisions to its regulations clarifying definitions and a pre-conversion meeting with the state commissioner. It would also require the converting institution to come up with a business plan projecting three years out “the converting institution’s intended plans for deployment of the proposed conversion proceeds.” Additionally, the institution’s projected operations and activities as well as plans for deploying the conversion “proceeds to meet credit and lending needs in the proposed market areas.”