* WASHINGTON (9/8/08)--Freedom CU Supervisory Committee Chairman Crystal Barnett was chosen as a delegate to represent Delaware at
the Democratic National Convention in Denver Aug. 25-28. Barnett (far right) represents the Philadelphia Federation of Teachers Local #3, which is a part of the American Federation of Teachers. “I was humbled by the experience,” she said. “The final night, when [Barack] Obama spoke, between the quantity of people there and the look of hope on people’s faces--it was amazing.” Freedom CU, Warminster, Pa., has $35 million in assets. (Photo provided by Freedom CU) ... * WASHINGTON (9/8/08)--The Federal Deposit Insurance Corp. (FDIC) can handle bank failures without needing other government sources of liquidity, FDIC Chairman Sheila Bair said Thursday (American Banker
Sept. 5). Recent failures such as IndyMac Bank drained the fund’s reserves by 14% last quarter, which means the industry will have higher premiums next year. The agency can use a $30 billion line of credit from the Treasury, but Bair said the higher premiums would be enough to restore reserves. However, the Treasury guarantee helps maintain depositor confidence, she said ... * WASHINGTON (9/8/08)--The Federal Deposit Insurance Corp. (FDIC) released guidance
Thursday on best practices from the agency’s forum on mortgage lending for low- and moderate-income households. The forum explored a framework for low-to-moderate income mortgage lending in the future regarding current problems in the mortgage market. It also examined ways to encourage responsible mortgage lending to lower-income households to rejuvenate the secondary market for mortgage loans, the agency said ... * WASHINGTON (9/8/08)--The Federal Housing Finance Agency (FHFA) is looking at a plan that would require the 12 Federal Home Loan Banks to raise capital by keeping more of their earnings (American Banker
Sept. 5). Some banks may be forced to keep three times the amount of earnings they do now. However, a proposal on the plan has not been sent to James Lockhart, FHFA’s new director, according to an agency spokesman. In March 2006, the Federal Housing Finance Board, which regulated the Home Loan banks before the FHFA, tried to pass a rule that would have forced the banks to cut their dividends in half. The proposal received criticism from the industry and community banks ...