First of all, I applaud the Credit Union Times for bringing theconversion debate into the forefront. In my opinion, if a creditunion decides to completely change its business model-converting toa bank, mutual or otherwise-the retained earnings accumulated underthe old business model should stay in the industry. This capital,and all of it, could be funneled as seed money to allow new creditunions to be formed and keep our industry growing. Callahan &Associates keeps reminding us all of the dearth of new creditunions. Without new growth, can we really survive even another 20years? If we kept all the money in credit unions, this wouldcertainly invigorate the movement. Can you imagine the level ofexcitement with the birth of each new credit union? Like many othercredit unions, I have worked too hard building capital to see itall taken away by opportunists. Quite simply, let the would-bebankers do their thing on their own dime.

Peter J. Sainato

President & CEO