BIRMINGHAM, Ala. — Former board members and the ousted chief executive at Mutual Savings Credit Union here evidently disagree with the Alabama Credit Union Administration's decision to place the $194-million credit union into conservatorship as they filed an injunction in local court to halt the process. ACUA Administrator T. Glenn Latham said a hearing could take place in late October.
Mutual Savings CU will remain in conservatorship unless the court rules otherwise. "I anticipate the state will prevail in this situation. We were justified doing what we did," Latham said. "That's as simple as I can put it now."
The litigation filed by expelled CEO Dale Dalbey, Chair Barbara Luckett and the rest of the board is also aimed at reinstating those individuals to their former posts.
Latham would not comment on why the administration took over Mutual Savings CU. While the credit union reported $1.19 million loss in its March 5300 report, and a tiny $105,000 profit in June, its net worth was still over 8%-well capitalized according to NCUA's standards. But the ACUA chief hinted that the reasoning would make itself apparent once the legal issue is settled. After seizing the institution, ACUA appointed executives and staffers "discovered a great many things that were not right" he said.
