Other Items of Interest to Mutuals

United Nations Declares 2012 International Year of Cooperatives

On December 21, 2009, The United Nations General Assembly declared 2012 as the International Year of Cooperatives, highlighting the contribution of cooperatives to socio-economic development.  In adopting the resolution, the Assembly noted that cooperatives impact poverty reduction, employment generation and social integration.


For a copy of the full press release, click here.


Massachusetts Mutual Savings Bank Commits to Mutuality

On April 17, 2011, Salem Five Cents Savings Bank, Salem, Massachusetts released a press release regarding recent action of its board of trustees.  Salem Five Cents Savings Bank, is a state chartered savings bank held by Salem Five Bancorp, a mutual holding company with no public stockholders.  The Salem Five Board of Trustees approved changes to the Bank's By-Laws, deepening Salem Five's commitment to its mutual bank status, preserving this status for the bank's future and preventing any Salem Five employee or Board member from benefiting financially should a future change in structure occur.


For a copy of the full press release, click here.


Institution for Savings Reports Record Earnings and Amends Bylaws to Protect its Mutual Savings Bank Charter

On July 14, 2011, The corporators of Newburyport, Mass.-based Institution for Savings amended its bylaws for the preservation of its mutual savings bank charter. The Company’s corporators amended two bylaw Articles. Recently appointed president Michael Jones stated that ” It is now official that the Institution for Savings will forever remain as a mutual savings bank.”


The legal efficacy of this approach which has been described as the “vow of mutuality” may differ with the wording of each bylaw and the type of institution adopting it. In Mass a corporator action is more difficult to overturn since the number of corporators can run in the hundreds but typically approximates 50. In the case of state and federally chartered savings and loan bylaws a simple Board vote can repeal any anti-conversion bylaws. We will continue to weigh the efficacy of this approach and any pitfalls it may involve. Whether it assures mutuality forever may be in the eyes of the beholder and the faithfulness of future Boards and corporators.


For a copy of the full press release, click here.


Credit Unions Quietly Prowling for Bank Acquisitions

On March 19, 2012, Doug Faucette is quoted in the following article in the American Banker newspaper on the increase of activity in credit unions acquiring banks and whether they should be taxed.


For more information, read the full article on their subscription site.