Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Washington state regulators OK CUs to convert MasterCard stock
OLYMPIA, Wash. (12/13/07)--Washington state’s credit union regulators Monday gave the OK for state-chartered credit unions to convert their nonmarketable Class A shares in MasterCard Inc. to Class B shares. Class B shares can be sold on the open market. According to Linda Jekel, director of credit unions at the Washington Department of Financial Institutions (DFI), credit unions may continue to hold the stock, even though state law prohibits credit union from owning equity, because they obtained the shares in an unusual IPO. MasterCard requires financial institution shareholders who received Class B shares in its May 2006 initial public offering (IPO), to convert to Class A shares. Although they can convert shares already owned, credit unions may not buy or sell additional MasterCard shares on the market. Jekel said examiners may require a credit union to divest the shares if they decide the stock is not safe and sound. Washington state-chartered credit unions can be approved to hold MasterCard Inc. Class B shares by applying with DFI, Jekel told News Now. “DFI will approve Washington state-chartered credit unions to hold MasterCard stock because they have received it, not as a purchase, but rather from a business decision made by MasterCard,” she explained.
Other Resources

RSS print
News Now LiveWire
Of $1.3B in payments through mobile devices, 90% occurred at @Starbucks stores http://t.co/MN49JR1NXK
10 hours ago
.@LoveBethpage 1st to launch mobile debit/credit card control from @COOPFS http://t.co/kuq7onGuai
11 hours ago
A booming W Okla county gets its first #creditunion @TheHEFCU See #NewsNow http://t.co/svTyMnms0X
14 hours ago
Mortgage interest rates continue slide in September @FHFA http://t.co/agU9RJW5Kq
16 hours ago
Reimagined branches shift to member, not #creditunion, needs: @cunacouncils white paper http://t.co/lN2mu0IVar
17 hours ago