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Washington Archive

Washington

CDFI Fund grants over 12M in funds to CUs

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WASHINGTON (8/20/10)--Twenty-one credit unions were awarded a combined $12 million in funds via the 2010 round of the U.S. Treasury’s Community Development Financial Institutions (CDFI) Fund. Nearly one-third of the credit unions received $750,000 in funding, the highest amount awarded to any financial institution during this round. The National Federation of Community Development Credit Unions was also awarded $750,000 in funds. In total, credit unions and related organizations from 12 states and the District of Columbia received CDFI funds. This round of grants, which was announced Thursday and totaled $104.9 million in funding for 180 CDFI Fund-eligible institutions, is the largest combined amount to be awarded since the CDFI Fund program began in 1994. The CDFI Fund received $467 million in requests from 408 financial institutions during this round. CDFI Fund Director Donna Gambrell said that the awards “will enable CDFIs to expand their impact and to provide the critically needed loans, capital, and support that have been instrumental in establishing and sustaining successful small businesses.” The CDFI Program is funded via congressional appropriations and has awarded over $926 million to eligible CDFIs since its inception. For the CDFI Fund release, use the resource link.

Kansas CUs to testify at Aug. 23 hearing

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WASHINGTON (8/20/10)--Representatives of the Kansas Credit Union Association and Kansas-based Mainstreet CU and Meritrust CU will be among those testifying during a pair of House finance subcommittee hearings set for Aug. 23 and 24. Kansas association President and Credit Union National Association board member Marla Marsh, as well as John Beverlin, CEO of Mainstreet Credit Union, will testify during the first hearing. The second hearing will feature testimony from Meritrust CU's community development liaison, Chris Wolgamott. The hearings, which will be chaired by House financial services oversight and investigations subcommittee leader Dennis Moore (D), are the second and third in an “End of Excess” series which is examining the causes of the financial crisis. The first hearing, which was held earlier this year in Washington, addressed debt and leverage issues. The Kansas association in a release said that testimony at the upcoming hearings will center on credit unions successful responses to the financial crisis and “examples of how Kansas credit unions’ financial literacy efforts can play a role in a more stable financial system.” The Aug. 23 hearing will take place at Johnson County Community College in Overland Park, Kansas, and the Aug. 24 hearing will be held at the University of Kansas in nearby Lawrence.

Federation CEO Closed CU should still have day in court

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WASHINGTON (8/20/10)--Following the recent liquidation of Kappa Alpha Psi FCU by the National Credit Union Administration (NCUA), National Federation of Community Development Credit Unions President/CEO Cliff Rosenthal said that the right to appeal NCUA-ordered liquidations appears “hollow.” In a release, Rosenthal said that the “logic of liquidation proceedings is puzzling at best” to the federation and credit unions. “It would be more transparent to inform credit unions that NCUA's actions are irrevocable,” he added. Rosenthal criticized the “extremely high bar” that credit unions are forced to meet during liquidation cases, adding that the NCUA “can always produce data and arguments to support its case.” However, Rosenthal added, “that does not mean that the credit union movement will perceive NCUA's actions against credit unions as appropriate, unavoidable, and fair.” Kappa Alpha Psi in early August legally challenged an NCUA liquidation order, but abandoned its injunction request on Wednesday. However, further hearings are planned in the near future. The NCUA had formally liquidated the troubled credit union last Friday, redistributing its assets to its former members. Rosenthal said that he hopes that the credit union decides to continue with the legal action.

Inside Washington (08/19/2010)

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* WASHINGTON (8/20/10)--The Federal Deposit Insurance Corp. (FDIC) announced relief measures to help banks affected by severe weather in Missouri. On Tuesday, a federal disaster was declared in certain parts of the state (American Banker Aug. 19). The agency said it would consider relief from certain filing and publishing requirements for affected institutions. The FDIC’s Kansas City office also will move forward with requests to create temporary banking facilities for banks whose offices have been damaged. Missouri Gov. Jay Nixon this week said federal officials granted his request for disaster assistance in 29 counties, which were affected by floods and severe storms occurring from June 12 to July 31 (Associated Press Aug. 17) ...