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The Golden 1 CU, Sacramento, takes mega-banks to task with billboard ad campaign. Wed NN.
THe U.S. House Majority Leader has announced there are no votes expected in the House this week.
Vote for 2010 ICU Day Theme. http://www.cuna.org/icuday
The federal government is closed today due to continuing snow. CUNA's Washington office is closed. Its Madison, Wis., office remains open.
CUNA quoted in Wash. Post article on CU biz lending, "Credit unions seek larger share of business loans" http://tinyurl.com/yhtz33z
CU, CUMIS sue bank over check-kiting scheme
JANESVILLE, Wis. (3/5/02)--Blackhawk CU of Janesville, Wis., and CUNA Mutual Insurance Society (CUMIS) are suing State Financial Bank because of a check-kiting scheme that cost the credit union $1.5 million, the suit says, according to the Milwaukee Journal Sentinel (March 1).
The $189 million asset credit union and CUMIS allege that the $1.2 billion asset bank "wrongfully issued" cashier's checks to Michael Emerson, who was sentenced to 46 months in prison for running the scam (News Now Nov. 8).
The bank allegedly refused to honor those checks after they were cashed at the credit union. State Financial called the credit union the day after the checks were cashed and said it was stopping payment on four of the five checks because it suspected Emerson was involved in a check-kiting scam.
The suit says State Financial Bank didn't lose any money in the scheme, and holds $420,000 of Emerson's deposits. Blackhawk lost $1.5 million, but recovered $1 million through its insurer.
A spokeswoman for the bank says its actions were appropriate--that it took actions to protect itself from loss.
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