Callahan Calls For Legal Challenge To CUConversions

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LAS VEGAS - (05/10/05) – Former NCUA Chairman EdCallahan criticized credit union trade associations for theirstance on credit union conversions and urged members to ask thecourts to intervene in the ongoing controversy over the proposedconversion of Community CU to mutual savings bank, the largestcredit union conversion ever. “I think we ought to get someof the members to sue the board of directors, personally,”Callahan told more than 400 attendees to the annual NACUSOConvention Monday. “If we don’t stop this one,it’s Katie bar the door.” Callahan said he welcomes alegal challenge of directors of the $1.4 billion Plano, Texas,credit union based on their fiduciary duty to members. “Theseare volunteer directors who serve without any personalresponsibility,” said the well-known ex-NCUA Chairman, creditunion chairman and consultant. Callahan also took Dick Ensweiler,president of the Texas CU League, to task for what he called a lackof action on the conversion. “I, for the life of me, thoughtDick Ensweiler was more of a fighter,” said Callahan.“I think he’s more impressed with himself beingchairman of CUNA. (But) when he goes home to Texas they’ll benothing left, they’ll (the credit unions) all bebanks.”

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