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Conference 7.286::dcu

Title:	DCU
Notice:	1996 BoD Election results in 1004
Moderator:	CPEEDY::BRADLEY

Created:	Sat Feb 07 1987
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1041
Total number of notes:	18759

285.0. "One to avoid when shopping around!" by GUFFAW::GRANSEWICZ (Someday, DCU will be a credit union.) Mon Sep 16 1991 10:05

    
    [Reprinted without permission from the Sunday Worcester Telegram dated
     Sept. 15, 1991.  Section A, page 12.]
    
    =======================================================================
    
    			"Shareholders get bank suit hearing"
    			------------------------------------
    
    Concord, N.H. (AP) - A federal judge says a stockholders' suit alleging
    New Hampshire Savings Bank Corp. officials hid losses from investors
    merits a court hearing.
    
       The bank had asked Judge Shane Devine to dismiss the civil suit,
    which claims the bank and its officers misled investors about its
    financial condition.  The suit alleges they had incentive to conceal
    losses to keep New Hampshire Savings stock price from falling.
    
       Devine refused to dismiss the entire suit, and said stockholders
    offered specific enough claims in suggesting the bank violated federal
    securities laws for the case to be heard in court.
    
       The bank argued the information it provided stockholders was
    forthright and timely, and that the collapse of the real estate market
    was to blame for the erosion of the stock price.
    
    =======================================================================
    
    
    Interesting article, in many ways.  Does anybody in the N.H. have any
    more information concerning this case?

T.R	Title	User	Personal Name	Date	Lines
285.1	I give up.	GLDOA::REITER		`Tue Sep 17 1991 09:05`	6
	I read it over twice and then did a "show conference"... and I still don't get it. What does the preceding note have to do with Digital Equipment Corporation Credit Union (DCU)? \Gary
285.2	Thought it was pretty clear	GUFFAW::GRANSEWICZ	Someday, DCU will be a credit union.	`Tue Sep 17 1991 09:14`	5
	If people are 'shopping around' as DCU has instructed, then there are things besides rates, fees and services they should be looking out for. The institution in the article is in the area being shopped by DCU members and is probably best avoided for obvious reasons.
285.3	Ayuh, it's relevant to New Hampsha...	SMURF::COOLIDGE	Bayard, ULTRIX CSSE 381-0503 ZKO3	`Tue Sep 17 1991 12:18`	16
	...Not to mention that it might set an interesting precedent for other financial institutions, including DCU. Commercial banks are owned by stockholders, Credit Unions by members. Lying and/or concealing information to either stockholders or members may prove to be very unwise in the future, if this case goes forward. The outcome of the case could also impose some reporting requirements on financial institutions in New Hampshire in the future. Based on all of the other discussion about the Mangone case, and the informal discussions with the BoD['s lawyer], does this topic seem more relevant? It does to me, as I live and work in New Hampshire!
285.4	Very well.	GLDOA::REITER		`Wed Sep 18 1991 11:58`	9
	re: .2 Then I take it that whenever I log into this conference I will be treated to the latest misdeeds and misadventures of any and every financial institution in which DCU does business on the pretext that some member somewhere needs to be advised of this....? (rhetorical question - do whatever you think is right) \Gary
285.5		GUFFAW::GRANSEWICZ	Someday, DCU will be a credit union.	`Wed Sep 18 1991 12:38`	6
	RE: .4 Better safe than sorry. Especially these days. As always, NEXT UNSEEN will aid you if you're not interested.