Board Ouster Bid Advances at Failed CU-Convert Lafayette FCU

WASHINGTON – Members of Lafayette FCU proceeded yesterday with their initiative to recall the board of the $330 million credit union for trying to convert the institution to a mutual savings bank. “We think the board hasn’t represented the fiduciary interest of the members,” said Amber Brooks, one of the members, of the petition containing 821 member names presented to the the manager of the credit union’s Ronald Reagan Federal Building branch. The petition asks the credit union to call a special meeting where members would vote the recall of seven of the nine members remaining who voted for the ill-fated conversion (two directors have resigned since then). The vote to convert to a mutual savings bank won by a narrow margin, but credit union officials withdraw their petition to convert charters after improprieties in the 90-day ballot were discovered. The voting process is currently being investigated by NCUA. Credit union officials would not return phone calls seeks comment.