|
|
|
EDITORIAL:NHSB Directors Must Step Up
|
Business New Haven
8/4/2003
By:
|
Today in this case however, in what truly is a 'once in a corporate lifetime' choice - we all have a responsibility - to put our affections, associations and direct commercial interests aside and to ask the tough questions and demand the straight answers.
Is New Haven Savings Bank's decision to convert from mutual to public stock ownership a good deal for New Haven, for the bank's employees and its 'owners' - the depositors?
Hard to say.
We don't pretend to know the answer yet, because frankly the bank's directors haven't given us or anyone else outside of 195 Church Street enough information to hazard an educated guess about the merits.
And that plainly said - is unacceptable.
New Haven Savings Bank is an institution that was founded in 1838 by Roger Sherman, New Haven's first mayor and a signer of the Declaration of Independence.
The bank has been nurtured through the decades, as an indispensable public trust, by a long line of community minded stewards. Following the mission and mode of the bank's founders, they have guided it through more than a handful of recessions and at least two depressions, in its 165-year history.
They did so by sticking to the original mission as outlined in the incorporation papers. A mission that is clear about stewardship and the role it should play in managing the bank's affairs.
They organized to address, "the need of persons with irregular or small incomes of a safe place of deposit and the advice of persons informed as to the best securities for small investments."
In more recent and historically trying economic times, New Haven Savings Bank answered that call as it emerged from New England's early 90's banking collapse among the healthiest banks in Connecticut.
It was a time that saw the total destruction of a great many community banking institutions with traditions as long and deep as New Haven Savings Bank.
Today some claim that while still successful, the bank is suffering a slow decline and the needed change is public ownership. In choosing Peyton R. Patterson, a New York banking executive as CEO to replace Charles Terrell after his untimely death, the bank's board was seeking a more aggressive management.
Who could not argue that what has worked for so many years may now just be failing? It is certainly the responsibility of today's stewards to chart a course of positive action, when such action has the greatest hope for success.
If that indeed is the board's position they need to clearly state and support that case.
The NHSB Board must state that case because stewardship or not - neither the management nor the board own this bank and indeed do not legally fully represent its owners either.
The NHSB is owned by its depositors - a cross section of the greater New Haven region. A group deemed by Connecticut law, their representatives will ultimately make the decision as to the direction the bank should take.
The law requires a two-thirds vote of the bank's (31) Corporators, only eleven are Board members (see page 10 for a list of Board members and Corporators).
Members of the NHSB Board and its group of Corporators are among the most dedicated citizens of the greater New Haven community. Most have stressed the values and special commitment of the people and leadership of this region. We like many of you are often in awe of the intelligence, integrity and commitment of many of these extraordinary citizens.
Today in this case however, in what truly is a 'once in a corporate lifetime' choice - we all have a responsibility - to put our affections, associations and direct commercial interests aside and to ask the tough questions and demand the straight answers.
Among the most prominent critics, are two that have tried and have already been turned away; New Haven Mayor John DeStefano and Senator Martin Looney have both criticized or raised questions about the bank's change in status. Neither has received publicly more than a curt acknowledgement.
As our readers know full well - we only seldom find ourselves agreeing with either of these two gentlemen. Their positions as broadly elected public representatives in the New Haven community however, demand respect and pubic acknowledgement in this matter.
Some board members have cited legal concerns for their reluctance to share their views. This silence was unfortunately extended to questions by the region's daily newspaper The New Haven Register about potential direct financial gain on the part of board members. This lack of response to so central a question puts in jeopardy the personal credibility of each board member and corporator.
One corporator has already been compromised, the new publisher of The New Haven Register, Kevin Walsh. We are confident that when Mr. Walsh signed on as a corporator he didn't expect he might be forced to compromise his own organization's journalistic credibility.
We urge Mr. Walsh to withdraw immediately as a corporator.
Mr. Walsh's withdrawal is a necessary action to assure his editorial staff at the Register that they are free to pursue the story as they find appropriate.
We believe this community can afford the conversion of the New Haven Savings Bank to branch location status, if as critics contend it should eventually come to pass. This community cannot however function without a leadership imbued with moral authority.
What is the correct course for this bank? We acknowledge again we don't know.
The loss of local control in countless communities and the recent experience of numerous financial institutions should give anyone pause before passing along as valuable an asset as the New Haven Savings Bank.
Over the next sixty days we will help our readers explore the proper course through a review of the history of the region, the bank, the current board and the bank's future prospects. We invite and urge your help and participation. BNH
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
