DEARBORN, Mich. - (06/27/06) DFCU Financial asked a federalcourt Monday that a lawsuit filed last month against the $1.8billion credit union and two board members be dismissed on thegrounds that it lacks any evidence for federal cause of action. Indocuments filed with the U.S. District Court, Eastern District ofMichigan Southern Division, the credit unions lawyers statedthat any court action in favor of the members request for apreliminary injunction requiring a special meeting for the purposeof recalling nine board members would be illegal,unsafe and unsound. Longtime members Richard Sly andRaymond Ward filed a lawsuit on May 24 against DFCU Financial andboard members, alleging personal damages as a result of the creditunions alleged breach of bylaws to defend their failedconversion to bank, misuse of credit union funds and employees andfailure to provide members access to records related to theproposed conversion attempt. The credit union also stated that themembers suit failed to show that they would suffer anyimmediate, irreparable harm should their motion for a preliminaryinjunction be denied. The credit unions attorneys blame theinfluence of outsiders, namely a recentlyformed non-profit, National Center for Member Trust, for theconflict.DFCU unfortunately has become a pawn in a largerbattle being waged throughout the country and in Congress: How easy(or difficult) should it be for credit unions to convert to otherdepository institution charters?
-
As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3