Convert Prospect To Tell Congress OfRiches Spurned
WASHINGTON - (05/04/06) -- Suncoast Schools FCU President TomDorety is expected to tell lawmakers next week that he could haveearned as much as $35 million in stock and other benefits if he hadagreed to convert his $4 billion Tampa, Fla., credit union to amutual savings bank, then stock corporation. Dorety's testimonywill focus on the riches being offered to managers and directors toget them to convert their credit unions. The head of Florida'slargest credit union was told during deliberations that he and histop executives and board members could reap millions of dollars inriches if they converted their credit union, but they spurned theopportunity. Dorety, Truliant FCU President Marcus Schaefer andNCUA Chairman JoAnn Johnson will square off during congressionalhearings on credit union conversions with representatives fromAmerica's Community Bankers, the Office of Thrift Supervision, andthe American Bankers Association's Chairman Harris Simmons. Thepresence of Simmons, CEO of Zions Bancorp and a longtime creditunion critic will add some theater to next weeks hearing.The industry representatives are scheduled to testify next Thursdaybefore the House Financial Services Subcommittee on FinancialInstitutions, which is considering a bill that would ease NCUA'spowers over conversions.