Bank Bid Reversal May Not Save Lafayette Brass
KENSINGTON, Md. – Last week’s withdrawal of an application to convert to bank may not be enough to save directors and management of Lafayette FCU who are the target of a recall initiative by angry members. Scott Stiens, one of the members opposed to the bank bid, said his group will continue a petition drive to force a vote on the recall of the board, and afterwards, they hope a new board will oust the management for their pursuit of the conversion. “Absolutely. We have nearly 670 people who have signed this petition and we owe it to them to pursue this,” Stiens told The Credit Union Journal. “These people don’t deserve to remain at the head of a credit union if they’re not interested in running a credit union, if they depart from the credit union values and philosophy.” Lafayette bylaws require the board to call a special meeting by a petition of 750 members. Stiens said his group is approaching the necessary petition signatures. Faced with a federal investigation over alleged irregularities during the close member ballot, Lafayette said last Friday it is withdrawing its petition to convert to a mutual savings bank. The conversion was approved by the narrowest margin–just 18 votes out of almost 5,100 cast. The $330 million credit union had planned to convert to a mutual savings bank, then sell stock to the public in an initial public offering.