Seem to be hearing that same old "charter conversion chit-chatter", arising once again in some segments of the credit union community.
The financial logic supporting a credit union-to-bank charter conversion never has passed "the sniff test" in the past - and still doesn't! But, there are always a few snake oil peddlers willing to "Pssst!" you up a blind alley with claims of a "magic cure" for all that ails your credit union. Most of those "cures" are best suited only for the washing of hogs. Usually just raw greed papered over with a thin veneer of "wink-wink, nod-nod", "please pass the cash".
The goals of a credit union-to-bank charter conversion are always suspect and the results most often turn out to be "pretty ugly" - kind of like trying to crossbreed Lassie with a pit bull! Just not a good idea! Always creates a puppy which will "bite the hand that breeds you"....
So, if you have run out of ideas for your credit union, have loss your energy to lead, and are simply marking time in life...
Why don't you just step aside and let a "fresh face" take over?
2 comments:
There should be a mandatory disgorgement of excess capital above what is necessary to be considered well capitalized BONK to members of record on the date of the decision to seek conversion approval. This would remove temptation and assure that no unjust self enrichment is at the bottom of the decision to covert.
The accusation of unjust enrichment alone seems to be a breach of fiduciary duty. What is most alarming to me is that NCUA had to write a regulation several years ago codifying the fiduciary duty of the board members in their decision to recommend a conversion.
C'mon Mr. Blaine, quit spreading the myth of pit bulls as a dangerous breed. All dogs are capable of biting people, including your beloved Lassie. Punish the deed, not the breed!
Post a Comment