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Second Largest MA Credit Union Announces Bank Conversion Plan

Monday, February 20, 2012 - 6:48 AMHarborOne Bank
Last week the second largest Massachusetts credit union announced to members that its board of directors is considering a conversion to a mutual co-operative bank. The reasons for the conversion that the credit union mentioned include the elimination of geographic restrictions, increased lending authority and access to additional capital.

For credit union-to-bank conversions, it appears typical for a credit union convert into a mutual co-operative bank. A mutual co-operative bank is owned by and operated for the benefit of its depositors in a manner similar to the way a credit union is owned by and operated for the benefit of its members. This often is just a temporary state. Banks will then often convert into a stock-issuing bank. It would be interesting to see how much the top management profit from these conversions.

There's more on this conversion announcement at the Credit Union Times.
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
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