* WASHINGTON (5/20/08)--The Federal Deposit Insurance Corp. (FDIC) is closely monitoring financial institutions that rely mostly on deposits for growth, FDIC Chairman Sheila Bair said after a speech Friday at the Brookings Institution (American Banker
May 19). Brokered deposits can help institutions that perhaps shouldn’t be growing fast, grow quickly, she said. Earlier this month, ANB Financial of Bentonville, Ark., failed after losing money on a number of development and construction loans. It had backed the loans with $1.6 billion in brokered deposits, which equaled roughly 86% of its total deposits. The bank was closed by the Office of the Comptroller of the Currency ... * WASHINGTON (5/20/08)--National Credit Union Administration (NCUA) Vice Chairman Rodney Hood Thursday visited with more than 65 New Jersey credit union leaders to discuss current issues at NCUA and trends in the credit
union movement. During the interactive session, Hood acknowledged the safety and soundness of New Jersey’s credit unions, noting that they have the highest capital level in the country at 12.3%. He said he is hopeful for the passage of the Credit Union Regulatory Relief Act and also acknowledged the burden of the Bank Secrecy Act (BSA). “If I could wave a wand on BSA I would,” he said. He also addressed several projects including, “Blueprint for 2020: A Plan to Strengthen the Future of Credit Unions.” The program aims to increase student membership, employment and participation in the credit union industry through credit union internships and mentoring opportunities for college students. “It is refreshing to see a regulator be so open about very important issues facing New Jersey credit unions and all credit unions,” said Paul Gentile, New Jersey Credit Union League president/CEO. Pictured are: (from left) Steve Schlundt, chairman of the New Jersey Credit Union League, Hood, and Gentile. (Photo provided by the New Jersey Credit Union League) … * WASHINGTON (5/20/08)--President Bush Monday said he will not support legislation to bail out lenders. Laws shouldn’t bail out lenders; rather, the government should help people stay in their homes, he said (The New York Times
May 19). Senate leaders are working on a bipartisan bill that would help troubled borrowers receive government-backed mortgages. Bush also noted that it’s too early to tell if a second economic stimulus is needed. Stimulus checks began arriving for Americans earlier this month ...