Technology Credit Union Flirts With a Bank Charter
The board of directors of $1.5 billion Technology Credit Union has written the CU's 74,000 members that they may be better served by converting the credit union to a bank.
In a letter posted Oct. 3 on the CU's website, the board of the San Jose, Calif.-based credit union laid out its reasons for considering the option and invited member comments before making a final decision at a meeting slated for Nov. 2. Under current NCUA regulations, the letter and the invitation for member comment are considered the first step in the agency's charter change process.
Reaction to the announcement has been swift and, compared to previous charter changes and charter change attempts, more vigorous.
The California Credit Union League and CUNA CEO Bill Cheney both expressed concern that Technology CU members be completely informed about the effects of a move to a mutual bank charter.