The California Credit Union League and CUNA CEO Bill Cheney both expressed concern that Technology CU members be completely informed about the impacts of potential move to a mutual bank charter.
The $1.5 billion San Jose credit announced Monday on its website that it would be seeking to convert to bank, citing as a major reason the ability to go after more profitable commercial and small industrial lending business.
"Charter conversions should be approached from the viewpoint of the members-owners of the credit union," stated CCUL CEO Diana Dykstra. "While a credit union's management may experience the operational advantages of a bank charter, the benefit does not necessarily extend to the credit union's members. In the end, those members could be left with a financial institution that no longer strives to put their interests first."
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