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Washington Archive

Washington

Two added to power-packed GAC lineup

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WASHINGTON (2/22/11)--Two new names have been added to the power-packed Credit Union National Association (CUNA) 2011 Governmental Affairs Conference (GAC) lineup--House credit union champion Rep. Ed Perlmutter (D-Colo) and Treasury Domestic Finance Undersecretary Jeffrey Goldstein. Perlmutter is a member of the House Financial Services Committee and has previously spoken at the GAC. He has publicly backed lifting the cap on credit union member business lending, and was one of several legislators that maintained their seat for the 112th Congress with the help of credit union-backed mailing campaigns. Treasury Domestic Finance Undersecretary Jeffrey Goldstein has also been added to the GAC lineup. Goldstein’s department addresses several vital credit union issues. House Speaker Rep. John Boehner (R-Ohio), House Majority Whip Kevin McCarthy (R-Calif.), House Financial Services Committee Chairman Rep. Spencer Bachus (R-Ala.), finance committee member Rep. Ed Royce (R-Calif.) and Senate Banking Committee member Sen. Jon Tester (D-Mont.) are also among the long list of legislative luminaries on the GAC lineup. Rep. Shelley Moore Capito (R-W.Va.), Sen. Roy Blunt (R-Mo.), Sen. Mike Crapo (R-Idaho), and Reps. Barney Frank (D-Mass.), Debbie Wasserman Schultz (D-Fla.), Sen. Mark Udall (D-Colo.) and Steve Stivers (R-Ohio) are also set to speak at the GAC. Consumer Financial Protection Bureau architect Elizabeth Warren and co-authors of The New York Times No. 1 best-seller "Game Change" Mark Halperin and John Heilemann are also scheduled to address GAC attendees. The GAC will also feature keynote speeches from actor and Children's Miracle Network Hospitals co-founder John Schneider and "Miracle on the Hudson" pilot Captain Chesley B. "Sully" Sullenberger III. The GAC will take place in Washington, D.C. from Feb. 28 until March 3. To register for the 2011 GAC, use the resource link.

Two added to power-packed GAC lineup (02/21/2011)

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WASHINGTON (2/22/11)--Two new names have been added to the power-packed Credit Union National Association (CUNA) 2011 Governmental Affairs Conference (GAC) lineup--House credit union champion Rep. Ed Perlmutter (D-Colo) and Treasury Domestic Finance Undersecretary Jeffrey Goldstein. Perlmutter is a member of the House Financial Services Committee and has previously spoken at the GAC. He has publicly backed lifting the cap on credit union member business lending, and was one of several legislators that maintained their seat for the 112th Congress with the help of credit union-backed mailing campaigns. Treasury Domestic Finance Undersecretary Jeffrey Goldstein has also been added to the GAC lineup. Goldstein’s department addresses several vital credit union issues. House Speaker Rep. John Boehner (R-Ohio), House Majority Whip Kevin McCarthy (R-Calif.), House Financial Services Committee Chairman Rep. Spencer Bachus (R-Ala.), finance committee member Rep. Ed Royce (R-Calif.) and Senate Banking Committee member Sen. Jon Tester (D-Mont.) are also among the long list of legislative luminaries on the GAC lineup. Rep. Shelley Moore Capito (R-W.Va.), Sen. Roy Blunt (R-Mo.), Sen. Mike Crapo (R-Idaho), and Reps. Barney Frank (D-Mass.), Debbie Wasserman Schultz (D-Fla.), Sen. Mark Udall (D-Colo.) and Steve Stivers (R-Ohio) are also set to speak at the GAC. Consumer Financial Protection Bureau architect Elizabeth Warren and co-authors of The New York Times No. 1 best-seller "Game Change" Mark Halperin and John Heilemann are also scheduled to address GAC attendees. The GAC will also feature keynote speeches from actor and Children's Miracle Network Hospitals co-founder John Schneider and "Miracle on the Hudson" pilot Captain Chesley B. "Sully" Sullenberger III. The GAC will take place in Washington, D.C. from Feb. 28 until March 3. To register for the 2011 GAC, use the resource link.

2011 NCUSIF premium not a definite

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ALEXANDRIA, Va. (2/22/11)—The National Credit Union Administration said it may not need to assess a National Credit Union Share Insurance Fund (NCUSIF) premium on credit unions in 2011. Credit Union National Association (CUNA) Chief Economist Bill Hampel has predicted that the 2011 NCUSIF premium would total between 5 and 10 basis points (bp). The NCUA’s Office of Examination and Insurance Director Melinda Love during a Thursday NCUA virtual town hall said that although the agency must ensure that it can still handle its cash management needs, it is delaying the NCUSIF assessment for as long as it possibly can. The NCUSIF premium, if assessed, will be released in the fall, she added. The NCUA last week reported that the NCUSIF’s reserve balance stood at over $1.26 billion. (See related story: The agency transferred $54.8 million from the NCUSIF to its reserves as an insurance loss expense late last year. The NCUA will assess a Temporary Corporate Credit Union Stabilization Fund (TCCUSF) premium this summer, Love said. Hampel said that credit unions would be charged around 9 bp in assessments to cover the cost of corporate stabilization. The NCUA has predicted a 2011 TCCUSF assessment of 20 to 25 bp. NCUA Deputy Executive Director Larry Fazio during the town hall added that the agency would need to charge between $7 billion and $9 billion in future assessments to stabilize the corporates. Fazio said that he could not predict how long the NCUA would need to continue charging TCCUSF assessments. The NCUA late last year proposed implementing "voluntary" TCCUSF assessments to privately insured credit unions and non-credit unions, such as credit union leagues, that are members of a corporate. CUNA urged the NCUA to further consider this proposal before it moves forward. The NCUA was recently given the authority to make TCCUSF payments without borrowing from the U.S. Treasury.

2011 NCUSIF premium not a definite (02/21/2011)

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ALEXANDRIA, Va. (2/22/11)—The National Credit Union Administration said it may not need to assess a National Credit Union Share Insurance Fund (NCUSIF) premium on credit unions in 2011. Credit Union National Association (CUNA) Chief Economist Bill Hampel has predicted that the 2011 NCUSIF premium would total between 5 and 10 basis points (bp). The NCUA’s Office of Examination and Insurance Director Melinda Love during a Thursday NCUA virtual town hall said that although the agency must ensure that it can still handle its cash management needs, it is delaying the NCUSIF assessment for as long as it possibly can. The NCUSIF premium, if assessed, will be released in the fall, she added. The NCUA last week reported that the NCUSIF’s reserve balance stood at over $1.26 billion. (See related story: The agency transferred $54.8 million from the NCUSIF to its reserves as an insurance loss expense late last year. The NCUA will assess a Temporary Corporate Credit Union Stabilization Fund (TCCUSF) premium this summer, Love said. Hampel said that credit unions would be charged around 9 bp in assessments to cover the cost of corporate stabilization. The NCUA has predicted a 2011 TCCUSF assessment of 20 to 25 bp. NCUA Deputy Executive Director Larry Fazio during the town hall added that the agency would need to charge between $7 billion and $9 billion in future assessments to stabilize the corporates. Fazio said that he could not predict how long the NCUA would need to continue charging TCCUSF assessments. The NCUA late last year proposed implementing "voluntary" TCCUSF assessments to privately insured credit unions and non-credit unions, such as credit union leagues, that are members of a corporate. CUNA urged the NCUA to further consider this proposal before it moves forward. The NCUA was recently given the authority to make TCCUSF payments without borrowing from the U.S. Treasury.

Matz encourages CU participation in America Saves

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WASHINGTON (2/22/11)--National Credit Union Administration (NCUA) Chairman Debbie Matz came out ahead of America Saves and Military Saves Week and encouraged credit unions to participate in this week’s ongoing national savings campaign. America Saves/Military Saves Week began on Sunday and will run through Feb. 27. The motto for the 2011 program is simple: "Start Small, Think Big." Matz said that the week gives credit unions the perfect opportunity to highlight the importance of financial education, access to affordable financial services, and saving. More than 1,800 organizations in 47 states are participating in the 2011 program, which will emphasize the benefits of saving automatically through automated contributions to employer-sponsored retirement plans, signing up for regular transfers from checking to savings accounts and taking advantage of new rules that allow tax refunds to directly purchase U.S. savings bonds. The NCUA said that credit unions can partner with local America Saves campaigns to offer a number of resources, including motivational workshops, posters, and brochures. Participating credit unions can set their own goals for increasing the number of new accounts and deposits and can work to increase member participation in automatic savings, IRA share, certificate share, and other savings and investment accounts, the NCUA added. America Saves Week is coordinated by the nonprofit Consumer Federation of America (CFA) in partnership with the American Savings Education Council. The CFA also coordinates Military Saves Week, which lists 33 credit unions, including a number of defense credit unions, among its participants. Military saves week aims to “persuade, motivate, and encourage military families to save money every month, and to convince leaders and organizations to be aggressive in promoting automatic savings,” the CFA said. For the NCUA release and more information on the America Saves and the Military Saves programs, use the resource links.

Matz encourages CU participation in America Saves (02/21/2011)

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WASHINGTON (2/22/11)--National Credit Union Administration (NCUA) Chairman Debbie Matz came out ahead of America Saves and Military Saves Week and encouraged credit unions to participate in this week’s ongoing national savings campaign. America Saves/Military Saves Week began on Sunday and will run through Feb. 27. The motto for the 2011 program is simple: "Start Small, Think Big." Matz said that the week gives credit unions the perfect opportunity to highlight the importance of financial education, access to affordable financial services, and saving. More than 1,800 organizations in 47 states are participating in the 2011 program, which will emphasize the benefits of saving automatically through automated contributions to employer-sponsored retirement plans, signing up for regular transfers from checking to savings accounts and taking advantage of new rules that allow tax refunds to directly purchase U.S. savings bonds. The NCUA said that credit unions can partner with local America Saves campaigns to offer a number of resources, including motivational workshops, posters, and brochures. Participating credit unions can set their own goals for increasing the number of new accounts and deposits and can work to increase member participation in automatic savings, IRA share, certificate share, and other savings and investment accounts, the NCUA added. America Saves Week is coordinated by the nonprofit Consumer Federation of America (CFA) in partnership with the American Savings Education Council. The CFA also coordinates Military Saves Week, which lists 33 credit unions, including a number of defense credit unions, among its participants. Military saves week aims to “persuade, motivate, and encourage military families to save money every month, and to convince leaders and organizations to be aggressive in promoting automatic savings,” the CFA said. For the NCUA release and more information on the America Saves and the Military Saves programs, use the resource links.

Jan. insurance losses well below 54M estimate(1)

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ALEXANDRIA, Va. (2/22/11)--The National Credit Union Administration (NCUA) last week reported that it did not write off any of the National Credit Union Share Insurance Fund’s (NCUSIF) assets as insurance loss expenses in January. The NCUA had budgeted for as much as $54.2 million in insurance fund losses. Overall, the NCUSIF gained $11.4 million during the month due to $19.4 million in investment income. The NCUSIF was budgeted to lose $46.7 million during January, but only lost $8 million in operating expenses during that month. NCUA Chief Financial Officer Mary Ann Woodson during her monthly report on the status of NCUA insurance funds said that the NCUSIF’s equity ratio stood at 1.28% as of January 31, 2010. NCUSIF reserves stood at $1.2 billion, and only $181.4 million of these reserves were allocated for expected losses related to specific, troubled natural-person credit unions. (See related story: 2011 NCUSIF premium not a definite) Woodson said that there are currently 369 CAMEL 4 and 5 credit unions, which represent 5.0% of insured shares, or $38.2 billion. She also noted that there are 1,819 CAMEL 3 credit unions, which represent 17.8% of insured shares, or $136.5 billion. Combined, insured shares in CAMEL 3, 4, and 5 credit unions represent approximately 23% of total insured shares, Woodson added. The Temporary Corporate Credit Union Stabilization Fund (TCCUSF) total liabilities and net position stood at $377.1 million as of January 31, Woodson added.

Jan. insurance losses well below 54M estimate

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ALEXANDRIA, Va. (2/22/11)--The National Credit Union Administration (NCUA) last week reported that it did not write off any of the National Credit Union Share Insurance Fund’s (NCUSIF) assets as insurance loss expenses in January. The NCUA had budgeted for as much as $54.2 million in insurance fund losses. Overall, the NCUSIF gained $11.4 million during the month due to $19.4 million in investment income. The NCUSIF was budgeted to lose $46.7 million during January, but only lost $8 million in operating expenses during that month. NCUA Chief Financial Officer Mary Ann Woodson during her monthly report on the status of NCUA insurance funds said that the NCUSIF’s equity ratio stood at 1.28% as of January 31, 2010. NCUSIF reserves stood at $1.2 billion, and only $181.4 million of these reserves were allocated for expected losses related to specific, troubled natural-person credit unions. (See related story: 2011 NCUSIF premium not a definite) Woodson said that there are currently 369 CAMEL 4 and 5 credit unions, which represent 5.0% of insured shares, or $38.2 billion. She also noted that there are 1,819 CAMEL 3 credit unions, which represent 17.8% of insured shares, or $136.5 billion. Combined, insured shares in CAMEL 3, 4, and 5 credit unions represent approximately 23% of total insured shares, Woodson added. The Temporary Corporate Credit Union Stabilization Fund (TCCUSF) total liabilities and net position stood at $377.1 million as of January 31, Woodson added.

Inside Washington (02/21/2011)

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* WASHINGTON (2/22/11)--The U.S. Department of the Treasury announced the hiring of senior leadership for the Consumer Financial Protection Bureau (CFPB) implementation team. Elizabeth Vale will serve as assistant director for community banks and credit unions. Previously, Vale served as the White House business liaison and executive director of the White House business council. Prior to her career in public service, Vale was a managing director at Morgan Stanley. Also, Raj Date has been named associate director for research, markets and regulations. Patricia McCoy will head the mortgage and home equity markets team and Corey Stone will lead the credit information markets team. Zixta Martinez will serve as assistant director for community affairs.

Inside Washington (02/21/2011)

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* WASHINGTON (2/22/11)--The U.S. Department of the Treasury announced the hiring of senior leadership for the Consumer Financial Protection Bureau (CFPB) implementation team. Elizabeth Vale will serve as assistant director for community banks and credit unions. Previously, Vale served as the White House business liaison and executive director of the White House business council. Prior to her career in public service, Vale was a managing director at Morgan Stanley. Also, Raj Date has been named associate director for research, markets and regulations. Patricia McCoy will head the mortgage and home equity markets team and Corey Stone will lead the credit information markets team. Zixta Martinez will serve as assistant director for community affairs.

Dodd-Frank among House Fin. Services March hearing topics(1)

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WASHINGTON (2/22/11)--A March 2 subcommittee hearing on the impact of the Dodd-Frank Act on smaller financial institutions is among the items on a just-released, tentative House Financial Services Committee hearing schedule for March. The financial institutions subcommittee hearing will follow by two weeks a Senate Banking Committee hearing that also had Dodd-Frank as its subject. That panel looked at regulators’ implementation progress at the half-year mark, and substantial concern was expressed by lawmakers regarding the Federal Reserve Board’s proposed implementation of a Dodd-Frank cap on interchange fees. Concurrently, CUNA testified at a House Financial Services Committee hearing on implications of the Fed plan and urged Congress to stop, study, and start over on the interchange issues. At both the House and Senate hearings, bi-partisan concern was expressed over the Fed plan in two key areas of credit union concerns: One is potential costs to consumers if card issuer costs are driven up by the government cap on fees merchants pay for using the card system; the other is whether a small-issuer exemption contained in the law will truly protect small-issuers in practice. Also, on the House Financial Services tentative March hearing schedule (times noted are Eastern Time):
* March 1: Full committee hearing on government-sponsored enterprise reform at 10 a.m. (ET); full committee hearing on the fiscal year U.S> Housing and Urban Development budget at 2 p.m. ; * March 2: Full committee hearing to receive the Federal Reserve Board’s semi-annual monetary policy report to the U.S. Congress, as required under the Humphrey-Hawkins Act, at 10 a.m. ; Financial Institutions Subcommittee hearing on Dodd-Frank Act impact at 2 p.m.; * March 3: Full committee mark up of bills to be determined, at 10 a.m.; * March 9: International Monetary Policy Subcommittee hearing on the Export-Import Bank at 10 a.m.; Insurance, Housing and Community Opportunity Subcommittee hearing on reauthorization of the National Flood Insurance Program at 2 p.m.; * March 10: Capital Markets Subcommittee hearing on the SEC’s budget at 10 a.m.; * March 11: Capital Markets Subcommittee hearing on covered bonds at 10 a.m.; * March 15: Full committee mark up of budget views and estimates at 10 a.m.; * March 16: Capital Markets Subcommittee hearing on the Risk Retention Securitization Rule at 10 a.m.; Financial Institutions Subcommittee hearing on oversight of the Consumer Financial Protection Bureau at 2 p.m.; and * March 17: Domestic Monetary Policy Subcommittee hearing on monetary policy and rising prices at 10 a.m..

Dodd-Frank among House Fin. Services March hearing topics

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WASHINGTON (2/22/11)--A March 2 subcommittee hearing on the impact of the Dodd-Frank Act on smaller financial institutions is among the items on a just-released, tentative House Financial Services Committee hearing schedule for March. The financial institutions subcommittee hearing will follow by two weeks a Senate Banking Committee hearing that also had Dodd-Frank as its subject. That panel looked at regulators’ implementation progress at the half-year mark, and substantial concern was expressed by lawmakers regarding the Federal Reserve Board’s proposed implementation of a Dodd-Frank cap on interchange fees. Concurrently, CUNA testified at a House Financial Services Committee hearing on implications of the Fed plan and urged Congress to stop, study, and start over on the interchange issues. At both the House and Senate hearings, bi-partisan concern was expressed over the Fed plan in two key areas of credit union concerns: One is potential costs to consumers if card issuer costs are driven up by the government cap on fees merchants pay for using the card system; the other is whether a small-issuer exemption contained in the law will truly protect small-issuers in practice. Also, on the House Financial Services tentative March hearing schedule (times noted are Eastern Time):
* March 1: Full committee hearing on government-sponsored enterprise reform at 10 a.m. (ET); full committee hearing on the fiscal year U.S> Housing and Urban Development budget at 2 p.m. ; * March 2: Full committee hearing to receive the Federal Reserve Board’s semi-annual monetary policy report to the U.S. Congress, as required under the Humphrey-Hawkins Act, at 10 a.m. ; Financial Institutions Subcommittee hearing on Dodd-Frank Act impact at 2 p.m.; * March 3: Full committee mark up of bills to be determined, at 10 a.m.; * March 9: International Monetary Policy Subcommittee hearing on the Export-Import Bank at 10 a.m.; Insurance, Housing and Community Opportunity Subcommittee hearing on reauthorization of the National Flood Insurance Program at 2 p.m.; * March 10: Capital Markets Subcommittee hearing on the SEC’s budget at 10 a.m.; * March 11: Capital Markets Subcommittee hearing on covered bonds at 10 a.m.; * March 15: Full committee mark up of budget views and estimates at 10 a.m.; * March 16: Capital Markets Subcommittee hearing on the Risk Retention Securitization Rule at 10 a.m.; Financial Institutions Subcommittee hearing on oversight of the Consumer Financial Protection Bureau at 2 p.m.; and * March 17: Domestic Monetary Policy Subcommittee hearing on monetary policy and rising prices at 10 a.m..