Members Rejected Tech CU Bank Bid
In September, members of Technology Credit Union voted resoundingly to reject a proposal to convert their institution to a mutual bank.
According to a member of the San Jose, Calif., $1.6 billion credit union, nearly 18,000 members voted in the balloting, with approximately 4,000 voting in favor of the proposal to become a mutual bank and 14,000 voting against. The credit union has about 70,000 total members.
Kamm also noted the frustration many members faced with the credit union’s proposal to change charters and appeared to blame NCUA regulations for not being able to explain the CU’s reasons for conversion more clearly.
“Members at the special meeting voiced frustration, saying we did not make a compelling case for charter change. We, too, are frustrated that we were unable to communicate our views effectively and in the open manner we would have preferred because of the regulatory process and the related rules that govern how credit unions can communicate about charter change with their members,” said Kamm.