Wisconsin Gov. Scott Walker (R) on Sunday signed the state budget bill that includes a provision intended to make it easier for credit unions to convert to banks.
The provision will require that a majority of a credit union’s voting members approve a conversion to a bank -- instead of a majority of all the credit union’s members. The measure also will allow credit unions to convert directly to stock-owned banks, bypassing the current intermediate step of converting to mutual savings banks.
The provision had been included in a previous state budget bill; but former Gov. James Doyle (D) vetoed it.
To read the legislative language, click here and go to page 410.
Now, the interesting thing will be whether or not the FDIC would approve a CU to stock-owned bank conversion.
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