On the eve of an unusual state hearing dealing with “bank”language in credit union ads, Vermont's top regulator said Tuesdayhe remains open to any kind of settlement or compromise regarding aproposed cease-and-desist order against the $600 millionVermont State Employees Credit Union.

• UPDATE, Oct. 8, 2012, Vermont Credit Union, Regulator Settle 'B' WordDispute

Steve Kimbell, the commissioner and head of the VermontDepartment of Financial Regulation, stressed that Wednesday'spre-hearing conference in Montpelier is one devoted to scheduling,witness lists and legal issues but that “in any kind of proceedinglike this we always welcome settlement offers should theyarise.”

Kimbell said he has no direct knowledge that one might be comingfrom any of the parties. Apart from his office and VSECU, on aninformal basis interested parties have included the Association of VermontCredit Unions, the Vermont Bankers Association and OccupyBurlington which plans to send representatives to Wednesday'shearing.

The VBA has acknowledged its active role in pushing forward theclampdown on VSECU for using “banking cooperative” in its TV andonline ads and for what it said is abusing the practice ofincluding “bank” and “banking” in marketing campaigns.

The VBA contends such marketing methods violate Vermont law.VSECU and industry leaders, meanwhile, call the complaint“ludicrous” and a backdoor attack on the credit union tax exemptionby the banking lobby.

Kimbell said that “in a case like this, settlement discussionscan come up and it's always preferable to get an agreement beforewe waste the public's time with a lot of unnecessarylitigation.”

Formal comment from VSECU management on the proceedings andKimbell's latest remarks were not immediately available.

Serving as hearing officer for Wednesday's pre-hearing sessionis Robert Simpson, a retired Chittenden County State's Attorney whowas appointed by Kimbell.

Following the pre-hearing, DFR officials have said a fullhearing on the cease-and-desist order could come a week laterdepending on scheduling agreements.

Officials of Occupy Burlington said a contingent would be at thehearing, video-taping the session and would include Eric Davis, anewly elected director of Vermont FCU, and Matt Cropp, anunsuccessful director candidate also at Vermont Federal.

Also present will be Donald Kreis, University of Vermontassociate professor of law, who has written blog articles criticalof the Kimbell C&D intent order as an over-reach.

Kimbell told Credit Union Times given the housekeepingnature of the Wednesday proceedings it was unclear how muchaudience dialogue might take place. As for settlement talks, theymight be handled in private, he said, as the various groups “puttheir cards on the table.”