The alternately comic and sad episode over credit unionmarketing ended in early October with a whimper rather than a bang.And, reliable sources said no custard pies were thrown duringnegotiations.

The verdict arising out of the showdown between the $600 millionVermontState Employees Credit Union and its state regulator over useof the word “bank” in advertising was reached Oct. 5.

According to a joint release from the two parties, theMontpelier-based credit union cannot describe itself as a bank, butmay use the word “banking” and similar words when advertising itsservices, as long as it discloses that it is a credit union.

That meant that VSECU's tag line, “Redefining Banking,”wouldremain.

“This is not a matter of who won or lost a dispute,” said VSECUCEO Steve Post, “but an example of the state's regulators andindustry working together to solve a problem.”

A bulletin posted earlier this year on the state's Department ofFinancial Regulation website said state-chartered credit unions maynot use the work bank to describe itself in marketing oradvertising materials. The bulletin specifically said that includesa credit union referring to itself as a “banking cooperative,” asVSECU did.

Steve Kimbell, DFR commissioner, said VSECU's request for ahearing on the regulator's enforcement of a statute “teed up amatter that's been in discussion for a number of years.”

“I want to thank the VSECU for its help in finding a way toreasonably apply a decades-old statute in a rapidly changingenvironment for financial services,” he said.

In March, the Vermont Bankers Association complained about thecredit union's use of the word banking in its ads.