DFCU Members Want Proof Of ‘DueDiligence’ In Conversion Bid

Register now

DEARBORN, Mich. - (03/16/06) – Members opposed to theconversions to mutual savings bank of DFCU Financial called onmanagement and the board to prove their case for the $1.8 billioncharter change. In dual letters sent Friday to DFCU President MarkShobe and Chairman Harold Lowman, DFCU Owners United asked for afull accounting, including minutes of board discussions, of thecontroversial conversion initiative. “The purpose of ourinspection is to determine what information was sought, provided,and analyzed by the directors and officials of the Credit Union inperforming due diligence in pursuing the proposedconversion,” the members state. The group, which claimsfederal credit union regulations entitle them to the information,is taking the same approach as NCUA, which wondered in a March 1letter to DFCU officials whether a review of the benefits ofconversion was undertaken with due diligence. The group says ithopes to use the minutes of meetings by board and management todetermine whether the credit union shift, the biggest in history,was influenced by the potential for insider enrichment.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER