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Lawsuits allege little neighborhood bank has large problems
By adamg on Mon, 03/16/2015 - 8:37pm
The Globe reports on federal whistleblower lawsuits by two former employees of the Cooperative Bank, based in Roslindale, alleging malfeasance by bank officials - in particular, hiring a dentist with no banking experience as president and then, when that didn't work out, hiring a new president who used employee checking accounts for cashing large numbers of personal checks.
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Robert Becotte's complaint | 81.93 KB |
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What concerns
me about all this is who is still serving on the Board of Directors that may have appointed these previous bad actors. I went to the bank today and asked the teller what was going on. She got uncomfortable and said "That's all in the past. Everything is fine now. If you have any questions, you can go to the current president, Philip Bryan." I get that the current guy may have had nothing to do with this previous malfeasance, but how do we know the board knows what they are doing? Thinking of closing a couple of accounts. They really need to do some communicating with their customers fast.
Cooperative means depositor-owned and -governed
Why isn't that working here? It should produce a much more responsible institution than one run by big wealthy stockholders.
Fallacy of Division
That's an example of the (very common and easy to make) Fallacy of Division - assuming that something true for the whole must also be true of all of its parts.
Cooperative banks, taken as a whole, may indeed be more responsible and less prone to fraud than big corporate banks. But that doesn't mean one never finds examples of such failure in cooperative banks.
"should" and "does" are two
"should" and "does" are two different things.
Any instance of neglectful apathy by shareholders is going to result in bad things happening.
Why do you think that?
I have been banking with a cooperative bank for years and years. I love my bank. Yet I have no say in what goes on beyond the door of the Board room and have no influence (other than pulling my accounts) if the bank's officials are corrupt.
cooperative bank governance
Don't the depositors vote for the board of directors every year?
That relies on the depositors
That relies on the depositors knowing just who it is they are voting for and having competent candidates to vote for in the first place.
Doesn't look good
Anyone seen Uncle Billy?
Eight, I say, eight thousan'
Eight, I say, eight thousan' dolluhs ain't nuthin' but chicken feed, son!
Oh, ah see...uh, yeah, that movie wuz in 1947. So, uh, in tahday's dolluhs, that's uh...that's uh...well now, thatsa WHOLE LOT, ain't it?
Well, anyone
Sir Desmond Glazebrook - Yes Minister
ROSLINDALECOOP
Was this Bank taken over by the state during the Dukakis administration
I remember visiting the uncooperative "Cooperative" bank
about a year ago. I asked for change for a dollar for Corinth St. parking meters. The teller asked me if I had an account with the bank. I informed her that I did not, and she informed me that the service of making change was reserved for account holders. This occurred while two tellers sat at the window with no customers in the bank, both who just looked at me.