Save TCU, the organization of Technology Credit Union members formed to oppose its conversion to a bank, is surveying members about a proposed letter that, among other things, calls for the resignation of the CEO and board chairman.
Roughly 25% of the 69,000-member, $1.6 billion credit union, headquartered in San Jose, Calif., voted 77% to 23% not to convert last month.
In the proposed letter, the members group said it was bewildered by what happened at the credit union.
“Instead of acting in the best interest of the members, the board heeded the advice of high-priced consultants and a management team with little credit union experience, isolated directors from the membership, convinced each other that you were doing the right thing, and marched down the path of institutional suicide,” the group wrote. “By ignoring the members, you almost destroyed the very institution which you were elected to represent.”
The group pointed to its members as a contrast to the board, arguing that the members had the best interest of the credit union at heart:
“We are the 77%. We are the ones who stood up for democracy with the shared belief that our credit union was worth saving. Some called us dissidents, others treated us with contempt, but we pressed on at great personal expense to demonstrate that being a member of Technology Credit Union matters,” the letter said, “and to remind you that as our elected representatives, you have duties that you cannot simply set aside, forget, or subordinate to enhance your own personal interests.”
The proposed letter includes 10 points of change upon which the group is asking members to voice opinions.
They include the resignations of Technology CEO Barbara Kamm as CEO and from the credit union's board, as well the resignation of Mical Brenzel as board chairman; the convening of a special meeting at which other board members may be recalled and replaced; and the passage of a resolution blocking another attempt at mutual bank conversion for three years.
The group also sought the introduction of an amendment into the credit union's bylaws that would require any future proposed mutual bank conversion or “change in business unit” to require an affirmative vote from 50% of the membership.
Technology's leadership has not replied to a request for comment on the aftermath of the charter change vote.