Jim
Gahanna,#2Author of original report
Mon, October 02, 2006
Lee raises several interesting points all of which are quite valid. What he misses is the fact that the members' ownership is worth more than $30 per $100 on deposit and Nationwide is paying only $15 per $100. That is less than half. That is what the rip-off is all about. The members have no real alternative, and Nationwide knows it. That is why they feel they can get away with the way below market offer. I don't like being forced to sell what I own for less than half of what it's worth! Unfortunately, the credit union members will never get together on this. It will probably be approved in the vote. But if it does, watch the class-action attorneys jump into the fight because clearly, there was no independent valuation process that proves that 15% is a fair price in a 30% market.
Lee
Columbus,#3UPDATE EX-employee responds
Sun, October 01, 2006
Thanks for the info Jim. I never saw it that way. I do know banks earn millions of dollars in fees from customers. With the credit union, membership was restricted. Now with Nationwide Bank, anyone can get an account. Nationwide is going to earn a lot of money. The CEO came from a bank. So has many other VP's, Officers, and Directors. This has been long in the making. We just didn't know about it. In my opinion, it's a great business decision. The CEO will be greatly recognized for its success. It's just unfortunate that employees are detached from 'membership' status and downgraded to 'customers' with the rest of the outsiders. My guess is Nationwide put a lot of time and money into this idea. With that in mind, the Nationwide Bank merger will be approved by the credit union members. There is no independent company counting ballots. I guess the event of Bush/Gore drama with 'butterflies' or 'hanging chads' will tilt toward approving the merger.