Chairman's Group Opposes Conversions

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Credit union chairmen attending the Chairmen's Roundtable Forum here cast their votes solidly against converting to a mutual savings bank.

During roundtable discussions, 15 tables of approximately 10 chairmen each were presented with the following scenario: "An attorney specializing in charter conversions has just spoken to your credit union's board about converting from a credit union to a mutual savings bank. You need to discuss and vote whether or not to recommend the conversion to your membership."

According to The Chairmen's Group, the background information for each discussion was left to what each roundtable participant knew about this type of conversion based on personal experience, conversations, news coverage, etc.

Each of the 15 roundtables voted against the idea of the conversion, although several of the roundtables acknowledged having a minimal knowledge of the conversion process and the differences between charters. But all felt that such a conversion would mean abandoning the credit union philosophy with no real benefit for the membership.

Such a conversion would mean "loss of integrity as a volunteer by looking for personal gain for a select few," noted one group.

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