Credit union-to-bank conversions Since 1995, over 30 US credit unions have converted from credit union charters to bank charters. These conversions are generally initiated by a credit union's leadership team, rather than from the rank-and-file membership, and have created sharp controversy within the credit union industry. Some have questioned whether these conversions are in the best interests of the credit union members, and have compared them to the mutual savings bank conversion raids of the 1980s. Like the mutual savings raids, credit union conversions have been very lucrative for executives and directors of converting credit unions. CU Financial, a consulting firm that helps credit union management execute these conversions, has explained in marketing materials that if a credit union with $50 million in capital converts to a stock bank, under certain conditions a payoff in the "$1.2 million range for each director is not out of the question," while executives might also expect additional stock compensation that "could lead to a $10 million-plus ownership stake for a capable CEO". Members of at least six credit unions have organized to oppose their management's conversion proposals, objecting that this insider enrichment comes at the detriment of credit union members. They point out that while insiders have made windfall profits, most members have lost their ownership stake without compensation, and face worse rates and fees after the conversion. Comparisons of interest rates show that credit unions that have converted to banks now charge their members more for loans, and pay less for savings. Member groups have included Save Columbia Credit Union, Save First Basin Credit Union, Save Tech CU, and DFCU Owners United. The National Center for Member Trust is a consumer protection non-profit organization "formed to support the member-owners of credit unions that are trying to convert to banks." The Coalition for Credit Union Charter Options is an advocacy group for converting credit unions. UC Berkeley Professor of Financial Institutions James Wilcox is an expert who has released a number of studies on the issue. His findings are summarized in "Credit Union Conversions: Ripe for Abuse... and Reforms", published in the Credit Union Times in July 2006. See also American Credit Union Mortgage Association Credit unions in Canada Credit unions in the United Kingdom History of credit unions List of credit unions in the United States References Further reading Ian MacPherson. Hands Around the Globe: A History of the International Credit Union