Column is off base

When I read Mike Welch's column in the May 31 issue ("Allowing banks to join CU groups is a mistake") regarding the Colorado Credit Union System's recent bylaw amendment on membership, I was very disappointed in the lack of research he conducted to reach his opinion. Welch stated that some banks are more acceptable as Colorado League members than are some credit unions. That's absurd. I can assure Welch that the credit union movement in Colorado is strong and philosophically sound - and that his statement holds no merit. Any credit union that desires to be a part of the cooperative credit union movement may do so. Indeed all credit unions are strongly encouraged to join the cooperative credit union effort. The Colorado Credit Union League does not and will not encourage any credit union to convert to a mutual savings bank. It appears Welch believes the Colorado Credit Union League should take money from credit unions that convert to a mutual savings bank, but not let them be involved in the cooperative efforts of the league. If a conversion is completed solely to benefit the members through increased services, how does the conversion suddenly change the cooperative attitude of the organization? Throughout the U.S., there are non-affiliated credit unions that do not pay dues and that show no desire to be part of the cooperative credit union movement, which has proven so successful. If a former credit union expressed interest in continuing their cooperative involvement, they should be able to make that decision. The bylaw amendment Welch referred to was the end result of the true democratic process for which the credit union movement is known. This democratic process is sound in gaining input, fostering discussions, and putting recommendations to the test by a vote of members to address the issues brought up by credit unions. This amendment was the result of discussions by a league task force on membership. The task force, comprised of credit union presidents and managers, including myself, discussed numerous possibilities of future membership issues, with our intent being to give proper consideration to potential scenarios - and to be prepared in the event this issue should arise. The proposed amendment was approved by the league board of directors, was then provided to all credit unions to review, and was approved by credit unions at the league annual meeting. It is interesting to note that the provision was even amended on the floor of the annual meeting. The proposed bylaw amendment originally included a clause which read "no officer, director or other official of such mutual savings bank shall be eligible to hold office as a director or officer of the league." On the floor, a credit union proposed striking this clause, and preserving all rights of membership for a credit union which might convert. This amendment was approved. The true issue being addressed here is frustration with laws and regulations. If the laws and regulations of NCUA, or other government entities are so poor that credit union members are not served, perhaps conversion to a true mutual (one member, one vote) could be a viable solution to protect their needs. (There is a vast difference between a true mutual savings bank where each member has a vote, and banks owned by stockholders. Yes, and in Colorado, the relevant statute does allow for the mutual organizations to refer to its shareholders as members.) Hopefully, no credit union would be pushed by the government to make the decision to convert to a mutual savings bank and fortunately Colorado has a very strong dual chartering system. We trust that by working together, credit unions would be successful in getting the laws and regulations needed to serve their members. Welch also asserts that the deciding factor in this decision was money. That is absolutely false. This bylaw amendment has nothing to do with money. The Colorado Credit Union League could continue to serve the business needs of financial institutions without their membership in the league and without this bylaw amendment. Credit unions will continue to provide ample financial support for the needs of the Colorado Credit Union League I would recommend that in the future Welch research his facts before drawing conclusions and publishing inaccurate information. Michael A. Williams President, Johns Manville CU Board member, Colorado Credit Union League