Under fire for the July 31 conservatorship of the $193 million Mutual Savings Credit Union, Alabama's top credit union regulator has apologized for published claims and "misunderstandings" about board actions in the collapse and state takeover of the Birmingham credit union.
In a Sept. 30 letter to attorneys representing the ousted Mutual Savings board, Alabama Credit Union Administrator Glenn T. Latham said he offers "his sincere apology for what was written" about the board filing inaccurate 5300 reports to the NCUA on the credit union's financial condition in connection with the state's seizure.
However, he said he had no memory of making a 5300 reference to the press since he understands fully that as a regulator he knows that a credit union board "has nothing to do with filing" such reports.
Latham, who for months been vocal in accusing the fired Mutual Savings CEO Dale Dalbey and directors for "bad management" practices and misrepresenting loan data, which were all denied by the parties, told Credit Union Times he would not comment on his apology letter. However, Latham again insisted he is being made a scapegoat for "just trying to do my job and save this credit union."
The Alabama regulator maintained that he has absorbed "a lot of unfair pot shots," but the facts in the case will emerge before a state court judge in Columbiana, Ala., hearing a suit brought by Dalbey and the directors challenging the conservatorship. The Shelby County Circuit Court hearing is set to start Oct. 26.
That suit seeks an injunction to overturn the conservatorship and re-establish the prior management.
In a letter to Latham demanding an apology or face libel action, Victor L. Hayslip, a partner in Burr & Forman of Birmingham, accused Latham of making "defamatory and false statements without foundation" by claiming that directors had a role in preparing 5300 reports.
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