Salem Five Bucks Banking Trend, Changes Bylaws
(SALEM) CBS - Salem Five Cents Savings Bank has made a dramatic move to keep the institution a mutual bank, owned by its depositors. The vote by the Board of Directors will prevent any director or officer from profiting from converting the bank for future sale.
WBZ NewsRadio 1030's Anthony Silva reports
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The Salem Five board voted to change its bylaws, making it much more difficult to change its ownership structure to a publicly-traded company.
President and CEO Joe Gibbons says, "It's all about history…and what has been happening all over the state."
In recent years, major mutual banks, such as Danvers Bank, have been converted and then sold, allowing bank officials to walk away with millions of dollars in cash.
