CU system sees major victory as SCOTUS denies ABA appeal on FOM rule
The U.S. Supreme Court today denied an appeal from the American Bankers Association (ABA) to void NCUA field of membership (FOM) rule, a decision that marks the end of bankers’ nearly four-year battle to undo NCUA’s FOM rule finalized in October 2016. CUNA has long supported the rule and NCUA’s authority to provide oversight for the credit union industry.
“Today is a great day for anyone hoping to access the financial well-being afforded by credit unions,” said CUNA President/CEO Jim Nussle. “In denying the bankers’ lawsuit, the Court has established credit unions’ mission and structure as part the fabric of America. In recognizing the NCUA’s right to oversee our system, the Court has also established a much-needed firewall from spurious attacks by the bankers. CUNA looks forward to working with the NCUA and credit unions to find new opportunities to expand people-over-profit financial services to communities across the country, and thanks the Court for today’s decision.”
The ABA filed suit against NCUA two months after the rule was finalized in 2016. The U.S. District Court for the District of Columbia overturned several parts of the rule in a March 2018 ruling, but nearly all portions of the rule were upheld in an August 2019 decision by the D.C. Circuit Court of Appeals.
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