What began as a court case by banks to stop credit unions fromadding multiple groups to their membership ranks became a definingmoment for the industry, and ignited a grassroots campaign thelikes of which financial institutions had never seen.

Bankers sued the NCUA in the early 90s for allowing the AT&T Family CreditUnion to expand its field of membership. The credit union, nownamed Truliant FCU, received permission from the regulator in theearly 80s for multiple segs. However, after years in the courts,the case ultimately came to rest at the U.S. Supreme Court, whichin February 1998 ruled in the banks’ favor.

Marcus Schaefer arrived at AT&T Family in 1995. As the newlyminted president/CEO, he was already familiar with the court casethanks to his close ties to Washington connections. Schaefer saidthat a July 1996 decision by the Appeals Court giving the banksstanding was the wake-up call for credit unions because it gavebanks the right to sue.