The president of the credit union industry's largest trade group last week harshly criticized former U.S. Central Credit Union president James R. Bell and his stormy resignation.
Ralph Swoboda, president of the Credit Union National Association, denied Mr. Bell's charges that links to trade groups were hurting U.S. Central. He also denied claims that he had called Mr. Bell a liar or the liquidity center's staff unethical.
"There is simply no basis for the accusations Jim made," Mr. Swoboda said in a March 20 letter to National Credit Union Administation Chairman Norman E. D'Amours.
U.S. Central is the industry's primary liquidity source, investing surplus funds of 42 corporate credit unions. CUNA dominates the institution's board. In a March 6 resignation letter, Mr. Bell said "political assaults" from CUNA were wearing down staff and hurting morale.
Mr. Swoboda said the tension within U.S. Central stems from varying demands among corporates, some of which put all their funds in the Overland Park, Kan., institution, and others that do much of their own investing.
Mr. Swoboda portrayed Mr. Bell as profoundly frustrated, tracing his dissatisfaction to early last year, when U.S. Central got into trouble over an investment in a Spanish bank that was seized.
"Since the Banesto affair unfolded last January, Jim has offered his resignation to the U.S. Central directors at least three times that I'm aware of, citing personal and family health problems as well as the pressures of the job," Mr. Swoboda said in the letter.
Mr. Swoboda included minutes from the Feb. 25 U.S. Central board meeting, where Mr. Bell claimed he was called a liar.
The word "liar" doesn't appear in the minutes, but Mr. Swoboda does admit he and Mr. Bell had a "misunderstanding" regarding the proposed sale of Corporate Network Brokerage Services, a U.S. Central subsidiary that acts as an investment adviser to credit unions.
