CUNA Opposes 'Unjust Enrichment of Insiders'
The CUNA board has approved an updated policy on credit union-to-bank conversions, that opposes what it calls "unjust enrichment of insiders" and which calls for enhancements to the credit union charter.
The board has directed the trade association to pursue a number of specific actions related to conversions, including:
*Establishment of a public comment period prior to distribution of conversion ballots to members.
*Enhancement of disclosures to members so they fully understand the impact of the conversion's impact on them as members;
*Assurance of the integrity of the conversion voting process, including disclosure around the use of credit union funds.
*Pursue federal and state charter enhancements for credit unions.
*Seek ways to eliminate unjust enrichment in conversions.
CUNA Chairman Dick Ensweiler, who is also president of the Texas Credit Union League, where two billion-dollar-plus CUs are attempting to convert charters, issued a statement saying, "The CUNA board has put forward a set of principles that make it abundantly clear conversion is a decision that must be driven by a credit union's members, based on what is best for the members. The CUNA board intends the principles to serve not only as CUNA policy, but as a guide for credit unions at a time when recent high-profile conversions have garnered the movement's attention."