PLANO, Texas - (06/21/05) -- Community CU members opposing thegiant credit union's conversion to mutual savings bank will proposea motion during Tuesday night's special meeting to preventexecutives and directors from profiting from the controversialcharter switch. "Based on the experience of managers and directorsof other former credit unions-turned banks, the directors andmanagers of both Community and OmniAmerican credit unions stand topotentially make millions if their plans to convert to a banksucceed," said Mark Arnold, leader of the self-styled Coalition forCU Members, of the two pending Texas-sized credit unionconversions. "We challenge the management and directors of thesecredit unions to commit in writing that they will not enrichthemselves at the expense of tens of thousands of credit unionmembers whose hard-earned money has helped build these financialinstitutions into what they are today." According to the group'sanalysis of previous credit union conversions, executives andmanagers at the two credit unions stand to earn millions of dollarsin stock grants, options and other benefits after they convert, asplanned, to stock form. Members of $1.4 billion Community CU--thebiggest credit union to seek conversion to a mutual savingsbank--will complete their vote on the charter switch at Tuesday'smeeting. Separately, CUNA said its board of directors last weekresolved to reign in the financial benefits earned by topexecutives and directors of credit unions after they convert tosavings banks.
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Synovus Financial demonstrated at an industry conference how it is using Microsoft's Copilot to help its staff address customers' concerns.
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The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
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Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
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Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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