WASHINGTON — The American Bankers Association told a judge that the three Harrisburg, Pa.-area credit unions whose field of membership expansions were invalidated should be allowed to keep their new members but not recruit new ones from the illegal FOMs.

Forcing those members to leave Americhoice Federal Credit Union, Members 1st Federal Credit Union and New Cumberland Federal Credit Union would be "unnecessarily disruptive," the bankers' lobby said in its brief, filed with U.S. District Judge Yvette Kane.

"(T)he proposed order will not interfere with the lawful operation of the branch offices of the credit unions, i.e. those serving properly admitted members. Similarly, the banks have no desire to punish depositors and, consequently, have not asked for injunctive relief that might force depositors to switch financial institutions," the ABA wrote.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
  • Educational webcasts, white papers, and ebooks from industry thought leaders.
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.