I believe that NCUA should require credit unions that want to convert to banks to reveal the potential compensation for management and directors in the disclosures provided to members prior to a vote on a conversion. I know that these credit unions are first converting to mutual banks, and not stock-owned, but as past conversions have shown us, there is a likelihood that once a credit union converts to a mutual savings bank, the next step is stock-owned. These conversions allow the officials to gain windfall profits from the equity the members have built. Maybe this further disclosure would help members to stop and think about what they are giving up. Dave Osborn CEO Anheuser-Busch ECU St. Louis, Mo.
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From the June-22, 2005 issue of Credit Union Times Magazine • Subscribe!
Disclosures Need to go Further
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