CFA Calls For More Disclosure
Stephen Brobeck, executive director of the Consumer Federation of America, has sent a letter to NCUA Chairman JoAnn Johnson urging the agency to "insist that the leaders of DFCU Financial fully inform its members about all relevant aspects of the proposal to convert this large credit union to a mutual savings bank." In his letter, Brobeck states, "This proposal and the way it is being advanced strongly smells of self-interest on the part of the institution's top managers and board members."
Brobeck cited reports such as those in The Credit Union Journal noting that opponents of the conversion have been barred from distributing material to members.
"We very much fear that most DFCU Financial members will first learn of the proposal when they receive a complex, legalistic description together with biased recommendations from the board." He added that DFCU Financial should be required to disclose potential financial rewards to the board and management.