A credit union which applied for a federal mutual bank charterand then withdrew its application saw its net worth ratio fall to1.21% in June.
A majority of voting members of Salt Lake City based BeehiveCredit Union approved the charter change in 2008, but the creditannounced early in 2009 that it was withdrawing the applicationbefore the Office of Thrift Supervision. Credit union leaders cited"turmoil" in the economy and "extreme reluctance" on the parts offederal regulators to approve the credit union's charterapplications.
The OTS has a policy of not commenting on charter applications,but its generally understood that FDCI approval is necessary forOTS approval and sources close to the process have reported theFDIC has been responsible for blocking credit union charter changeapplications in the past.
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