Utah League Issues Conversion Statement, Mum On Beehive Plans

SALT LAKE CITY–Both the Utah League of CUs and its CEO, Scott Simpson, on Wednesday issued media advisories regarding conversions. While neither advisory named Beehive CU, they were made public just four days after the credit union’s annual meeting where management said it would “explore” conversion to a federal mutual savings bank. The Utah League said it has adopted a “position” on credit union-to-bank conversions. Among the statements the ULCU made on this topic: “the issue of credit union charter conversions should be approached from the point of view of the members of the credit union, since they are the owners of the institution.” and “[W]e cannot conceive of any circumstance under current law and regulation that members would be better off after a conversion to either form of bank charter.” Simpson’s statement declared it was “not specific to any credit union,” and emphasized the ULCU’s primary concern is education. “What makes this process unique, however, is that ultimately credit union members are the ones that will decide their own fate,” Simpson said. “It is our ongoing hope that credit union members will understand fully the many consequences of a conversion vote.” A vote of Beehive’s membership on the proposed conversion will be scheduled for later this year, the CU said.