WASHINGTON — America's Community Bankers fired back after CUNA reported on its memorandum filed in a federal district court in New Jersey aiding Spencer Savings Bank in fending off a hostile takeover to force the mutual to go public.
"ACB likes to compare its community banks' structure to that of credit unions, but if the mutual savings organization had a true member democracy of one member one vote, a few wealthy members couldn't force a change to public ownership," CUNA General Counsel Eric Richard said in CUNA's online News Now. ACB has spoken out for a credit union's right to charter choice if it wants to convert to a bank and accused CUNA, NCUA and others of thwarting such conversions.
Lawrence Seidman, who is reportedly known for using his influence as a shareholder to force banks to sell out, has won a ruling from a local court judge that Spencer Savings' management breached its fiduciary duty in changing board nomination requirements to keep him out after he criticized management.
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