* WASHINGTON (9/18/09)--The Federal Deposit Insurance Corp. (FDIC) has reached an agreement with Residential Credit Solutions (RCS), the winning bidder in a pilot sale of receivership assets that the FDIC is conducting to test the funding mechanism for the Legacy Loans Program. RCS will pay $64 million in cash for a 50% equity stake in a limited liability company (LLC), and the LLC will issue a note of $727 million to the FDIC as receiver. The value of the bid is 70.63% of the outstanding principal balance of the portfolio. The closing is expected to take place later this month. RCS will manage the portfolio and service the loans under Home Affordable Modification Program guidelines ... * WASHINGTON (9/18/09)--Financial observers say the findings of the Financial Crisis Inquiry Commission could be more relevant because financial regulatory reform appears to be put on hold (American Banker
Sept. 17). The commission was scheduled to hold its first meeting Thursday. Robert Litan, senior fellow at the Brookings Institution, said the panel could have a stronger impact as financial reform slows down. The commission was mandated by Congress in a mortgage fraud law in May. The panel is expected to study the roots of the nation’s financial crisis. Phil Angelides, former California state treasurer, is commission chairman ... * WASHINGTON (9/18/09)--Senior staff from the Credit Union Association of New York joined credit union leaders to meet with members of New York’s congressional delegation, including Sen. Charles Schumer (D-N.Y.)
The credit union representatives urged delegates to lift or eliminate the cap on member business lending, and oppose interchange fee legislation and expansion of the Community Reinvestment Act to credit unions. The group hand-delivered letters from New York small-business owners to Schumer, urging him to continue to take action or lift the lending cap. From left are William J. Mellin, president/CEO of the Credit Union Association of New York, and Schumer. (Photo provided by the Credit Union Association of New York) ... * WASHINGTON (9/18/09)--Banks and insurers are battling for health savings accounts (HSAs) to remain an option for healthcare reform. Money in HSAs is used toward healthcare expenses and future medical expenses. If Congress passes a healthcare reform bill, health plans would have to fulfill certain standards to qualify as “adequate coverage” (The Wall Street Journal
Sept. 17). Not all HSAs would make the cut, according to some financial industry experts. Rodney Hood, former National Credit Union Administration vice chair, said credit unions that provide HSAs offer an “exceptional advantage.” Credit unions offering HSAs help businesses with HSA plans, education and employee satisfaction, and provide employees and individuals increased membership to offer more products and services (News Now
March 23). As more credit unions begin to offer HSAs, they will be better positioned to be a full-service provider for businesses, Hood added ...