FOR IMMEDIATE RELEASE
ICBA Supports Private Right of Action For Mutual Institutions
Washington, D.C. (May 17, 2007)—The Independent Community Bankers of America (ICBA) filed a position paper with the U.S. District Court for the District of New Jersey in support of a lawsuit filed by Spencer Savings Bank, a mutual bank in Elmwood Park, N.J., against Lawrence Seidman, a shareholder activist who is seeking control of the bank.
"As a matter of policy, the court should recognize an implied private right of action in the Savings and Loan Holding Company Act," said ICBA. Noting that the bank's depositors and the local community may be harmed by the defendant's attempts to wrest control over a mutual bank, ICBA said that Spencer Savings Bank is in the best position to ensure that the rights of depositors and the local community are protected.
Spencer Savings Bank alleges that Seidman and his associates have unlawfully attempted to influence Spencer's board of directors and secure a position on the board in violation of the Savings and Loan Holding Company Act. ICBA represents mutual institutions in over 35 states and is committed to maintaining mutuality and the right of mutual institutions to retain their charters.
ICBA's position paper in the case of Spencer Bank SLA v. Lawrence Seidman, et al can be found at: www.icba.org.