Office of the Chairman

Statement by the NCUA Chairman

Alexandria, VA, July 15, 2003 – National Credit Union Administration Chairman Dennis Dollar issued the following statement regarding the suit filed today by the American Bankers Association, Utah Bankers Association, Bank of Utah, Liberty Bank, First Utah Bank, and Frontier Bank, FSB vs. National Credit Union Administration.

" As always, we are disappointed when our critics choose to pursue the lengthy and costly approach of litigation; however, we have never allowed the fear of a lawsuit to prevent us from taking an action we feel is appropriate for the credit unions we are charged by Congress with the responsibility of regulating. We are confident that NCUA's actions in these Utah conversion applications were consistent with the letter and spirit of the Credit Union Membership Access Act, all applicable NCUA regulations, and the principles of diversification necessary for long term credit union safety and soundness. We will vigorously defend the agency's position and are extremely confident that the courts will affirm NCUA's actions in this matter."

-Dennis Dollar
NCUA Chairman

The National Credit Union Administration, governed by a three-member board appointed by the President and confirmed by the Senate, is the independent federal agency that regulates, charters, and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of over 80 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.