CU Conversionists Refute Profit Motive

WASHINGTON – Some of the key players responsible for the growing conversions of credit unions to mutual savings banks denied yesterday that top managers and directors were motivated by greed. Reporting of multi-million dollar windfalls by executives of credit union-converts are “greatly exaggerated by the press,” insisted Alan Theriault, chief executive of CU Financial Services, the firm that engineered almost every one of the 39 conversions to date. “The decision is made not to enrich managers and directors,” Theriault said during a conference at conservative think tank American Enterprise Institute, “but because it makes good business sense.” Peter Duffy, an executive with Sandler, O’Neil, another consultant helping to convert credit union, insisted he has never tried to convince a board by suggesting they could reap financial rewards. “I’ve never sold it on the money they can earn,” said Duffy. But Kirk Cuevas, partner in Dollar Associates, suggested the two consultants were being untruthful with their denials. “I actually think it is a component in the decision,” said Cuevas, partner with former NCUA Chairman Dennis Dollar. “I think it’s disingenuous to say otherwise.” Duffy told the group that the credit union model is under heavy pressure from the current economy, claiming that more than 4,200 credit unions lost member this year.