Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

Washington Archive

Washington

CUNA To Offer Broad List Of Relief Items At Reg Hearing

 Permanent link
WASHINGTON (4/2/13)--Ryan Donovan, senior vice president of legislative affairs for the Credit Union National Association, said Monday that he thinks it is positive development that a House Financial Services subcommittee is billing its upcoming hearings as studies into "regulatory relief," and not of "regulatory burden."

"CUNA testified at 12 regulatory burden hearings in the last Congress.  We testified at zero regulatory relief hearings.  I think it is a signal that (lawmakers) have heard the pleas of credit unions and other community-based financial institutions and are preparing to put a solution on the table," Donovan said.

As a CUNA witness will detail at the upcoming April 10 hearing by the House Financial Services subcommittee on financial institutions and consumer credit, CUNA has a comprehensive package of regulatory relief proposals that it has been sharing on Capitol Hill as reg relief talks grow.

Pamela Stephens, president/CEO of $52-million asset, community-chartered Security One FCU, Arlington, Texas, and a former Texas Credit Union League board chairman,  will urge lawmakers to allow credit unions to have supplemental sources of capital beyond retained earnings, and to increase the cap on credit union member business lending.

The CUNA witness also will recommend other statutory changes that will:

  • Address other means to help credit union meet the needs of their small business members;
  • Improve restrictive Federal Credit Union Act provisions;
  • Improve other provisions of law that affect credit unions; and more.
CUNA also will propose a series of studies, such as a comprehensive look at the credit union examination appeals process.

The House and Senate are on Spring District Work breaks this week and will return to session in Washington, D.C. next week.

TCCUSF, FASB And More Highlighted In CUNA Regulatory Advocacy Report

 Permanent link
WASHINGTON (4/2/13)--This week's Regulatory Advocacy Report takes readers on a fresh tour of the hottest regulatory developments to affect credit unions.

Topics include the National Credit Union Administration's release of improved information regarding the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), the Financial Accounting Standards Board's extension of a comment period on its credit loss proposal, and the Consumer Financial Protection Bureau's request for information on initiatives to promote student loan affordability, to name a few.

The Credit Union National Association's weekly members-only publication on regulatory developments shared the NCUA's questions and answers regarding the costs of the resolution of the five failed corporate credit unions through TCCUSF, as well as the agency's chart intended to explain financial projections for the fund.

CUNA has been urging the agency to provide much more information and clearer information to the credit union system on the handling of the corporate stabilization fund and CUNA senior staff Bill Hampel and Mary Dunn met with key agency officials on this again just weeks before the new information's release.

The NCUA chart shared in the RAR helps to explain the NCUA's projections for the fund.

As reported by CUNA's News Now last week, the top of the range of projected assessments has declined $900 million and total future remaining assessments are now projected to range between $1.6 billion and $3.9 billion, according to the agency. As recently as October 2012, the total range was $1.9 billion to $4.8 billion.

To read the full report, employees or volunteers of CUNA and state credit union league member credit unions can sign up below to receive the Regulatory Advocacy Report.

The Regulatory Advocacy Report is archived on cuna.org.

NEW: Bank of America Settles With NCUA, Bringing Total Securities Suit Gains To $335M

 Permanent link
ALEXANDRIA, Va. (UPDATED: 4/3/13, 10:20 a.m. ET)--Bank of America has agreed to pay $165 million to the National Credit Union Administration to settle an outstanding NCUA securities lawsuit. This settlement will bring the total amount of funds recovered from agency securities lawsuits to more than $335 million, according to the NCUA.

Bank of America is one of several Wall Street Firms the NCUA has pursued legal action against. Bank of America, J.P. Morgan Securities, RBS Securities, Goldman Sachs and Wachovia are among the firms the agency alleges violated federal and state securities laws when they sold billions in residential mortgage-backed securities that later failed to now-defunct corporate credit unions.

Bank of America did not admit fault under the terms of the settlement.

"As a result of the Bank of America settlement, NCUA has now successfully recovered more than a third of a billion dollars on behalf of credit unions," NCUA Board Chairman Debbie Matz said in a release. "These settlements and our ongoing lawsuits further NCUA's goal of minimizing the losses of the corporate crisis and cutting future costs to credit unions," she added.

Funds recovered through these legal actions will be used to help reduce the amount of future corporate stabilization assessments on credit unions, according to the NCUA.

The agency has settled with Citigroup, Deutsche Bank Securities, and HSBC, avoiding the cost of litigation and bringing in more than $170 million in funds that were lost due to the corporate credit union investments.

Matz said the NCUA has "a statutory obligation to secure recoveries for credit unions and ensure that consumers remain protected. The NCUA "will continue to expend every possible effort to fulfill that important responsibility," she added.

Curry To Succeed Matz For Two-Year FFIEC Term

 Permanent link
WASHINGTON (4/2/13)--As National Credit Union Administration Chairman Debbie Matz winds up her two-year term as head of the Federal Financial Institutions Examination Council (FFIEC), Comptroller of the Currency Thomas Curry was named to succeed her.

Curry said, "It's truly an honor to be named to the chair of the FFIEC. I want to express my appreciation to Chairwoman Matz for her service to the FFIEC over the last two extraordinary years in our industry.

"As the FFIEC looks to the future, I will continue to work with my colleagues to help ensure uniform examinations and standards that balance the financing needs of families, communities, and businesses while preserving the safety and soundness of the banking system."

Matz was named to her term on March 4, 2011, and at that time became the first credit union representative to lead the group in more than 20 years.

The FFIEC was formed in 1978 to promote uniformity in financial institution regulation. It is comprised of the heads of the NCUA, OCC, Federal Deposit Insurance Corp., Consumer Financial Protection Bureau, Council's State Liaison Committee, (SLC) and a member of the Federal Reserve Board.

The SLC consists of five representatives of state banking agencies that supervise financial institutions and the members are designated from the Conference of State Bank Supervisors, the American Council of State Savings Supervisors, the National Association of State Credit Union Supervisors, and the Council for two two-year terms.

President Proclaims April Financial Capability Month

 Permanent link
WASHINGTON (4/2/13)--Just before the calendar page flicked to April, President Barack Obama issued a presidential proclamation declaring it National Financial Capability Month in 2013.

"All Americans deserve the chance to turn their hard work into a decent living for their families and a bright future for their children. Seizing that opportunity takes more than drive and initiative -- it also requires smart financial planning.

"During National Financial Capability Month, we recommit to empowering individuals and families with the knowledge and tools they need to get ahead in today's economy," the president said in the proclamation. He cited www.MyMoney.gov and ConsumerFinance.gov as government resources for consumers' financial education.

As reported in News Now (April 1), credit unions are taking this week's kickoff of National Financial Literacy Month seriously, with activities aimed at educating about finances and reemphasizing the value of credit unions. For instance,   the National Credit Union Foundation's Financially Fit Day will occur Wednesday, when credit unions can raise funds to support financial education.

Credit unions also will be participating in two annual national efforts sponsored by the Credit Union National Association:  National Credit Union Youth Week, April 21-27,  and the National Youth Saving Challenge.

And while Financial Literacy Month gives credit unions a good chance to shine a spotlight on their financial education efforts, many are dedicated to helping their members achieve financial fitness 12 months a year, with organizational commitments to financial education.

Use the resource links below to read related News Now stories.