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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As ACB has welcomed credit unions into the tax-paying thrift fold, Richard chided, "Perhaps more thrifts should consider a CU charter."
ACB Senior Vice President of Corporate Communications Bob Schmermund commented, "I think its outrageous, misguided, and na??ve. It's na??ve on their part to think there aren't 'Larry Seidmans' going around trying to do this to a credit union."
He emphasized that ACB had only supported the right for self-determination of charters for financial institutions and is not part of any 'contain and convert' strategy. Schmermund even went a step further and said ACB would do the same for a credit union if someone were trying to take it over against its will.
The Independent Community Bankers of America also has filed a position paper in support of Spencer Savings Bank though it has not caught the
ire of CUNA.
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