Conversions Need to Rethink How Equity Is Handled

Charter conversions to thrifts or banks transfer credit union equity to a new institution, often to the benefit of the persons who engineered the conversion. But conversions should dissolve the credit union charter, thus making the equity vest in the members, who could then do with their share of the equity as they see fit. Otherwise benefit can accrue in the wrong people, and a distinction between credit union cooperatives and banks begins to diminish.

 
 
 

 

 

June 1, 2004


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