Letter: CUNA Mutual Prompts Some Caution
Please read the CUNA Mutual Group’s reorganization material closely.
I am a firm believer in the benefits of the cooperative structure. I am always suspect of the motives of credit unions seeking to convert to a bank. Reading the materials CUNA Mutual sent regarding its plan to reorganize from a mutual life insurance company to a stock life insurance company within a mutual insurance holding company, I can't help but have similar concerns.
I find it interesting that the directors of the proposed stock company are current officers of CUNA Mutual. There will be no outside directors. Further, based on the material, at some point the stock company could issue additional stock without the approval of policyholders, which could then personally benefit these officers. This, of course, would be a sweet deal for them while potentially diluting policyholder value.
CoVantage Credit Union