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Filed on January 23, 2009–January 25, 2009, published the first business day after.
- CUNA urges new players' attention to CUs
- Delay likely on mortgage bankruptcy legislation
- FASB rejects fair value disclosure plan
- Software patch added to 5300 reports
- Inside Washington
- More CUs report Heartland breach impact
- International student loans yanked, CUs step in
- Coastal FCU to close four branches, add others
- Grant to charter first Latino CU in Ohio
- CUs rev engines on Invest in America
- Scam alerts flooding several states
- Jury awards $5 million on CU's insurance claim
- World CU Conference pre- and post-tours announced
- CU System briefs
- Market News
- News of the Competition
- This year, two no-cost options to file taxes
- New Financial Fitness Challenges: Life turning points
CUNA urges new players' attention to CUs
WASHINGTON (1/26/09)— The Credit Union National Association (CUNA) last week urged key lawmakers to remember credit unions when considering the pressing issues confronting the new administration and Congress. After the Presidential inauguration on Jan. 20—and on the cusp of Senate confirmation hearings--CUNA sent letters to the leadership of the Senate Banking Committee and the Senate Finance Committee.
Those panels are tasked with considering nominees for positions at the Securities and Exchange Commission, the Federal Reserve Board, and the Council of Economic Advisors, among others.
In the letter, CUNA President/CEO Dan Mica wrote that CUNA endorsed the Obama administration's choices and acknowledged that each face "unprecedented challenges."
"While the U.S. Treasury is the agency charged with implementing the Emergency Economic Stabilization Act (EESA), these nominees will have an important voice in key decisions regarding the use of TARP funds to mitigate the economic crisis," wrote Mica.
Mica reminded lawmakers that while EESA clearly includes credit unions among the institutions that should be eligible for TARP assistance, there has been no serious consideration at Treasury of credit unions' needs for TARP relief.
In general, Mica assured, credit unions are doing well and working hard to make funds for loans available to individuals and member businesses, to the extent statutory limitations permit. However, there are credit unions that have been seriously hurt by the impact of the problems in their markets.
In a related story, Rep. Jane Harman (D-Calif.) issued a press release last week that noted she voted against the release of the second $350 billion of the TARP funds.
She did so in part, she said, because of the way Treasury has handled the funds so far.
"What is clear is that little of the funds went to the small banks and credit unions that actually keep our communities growing," she said.
Delay likely on mortgage bankruptcy legislation
WASHINGTON (1/26/09)--The Obama administration and congressional Democrats have agreed not to include controversial mortgage bankruptcy provisions in an economic stimulus bill currently making its way through Congress, according to press reports.
Reuters late Friday reported a meeting between President Barack Obama and Democratic leaders during which they agreed to try to pass bankruptcy reforms as part of a major spending bill to be considered early in the year.
The Credit Union National Association (CUNA) mid-week had sent a letter to House committee leaders last week opposing inclusion of mortgage bankruptcy provisions in a stimulus bill. (See News Now, Jan. 23, "CUNA opposes current bankruptcy bills.)
CUNA also told the leaders of the House Judiciary Committee that unless changes are made to current legislative language to address mortgage bankruptcy, CUNA would actively oppose such legislation.
Among its concerns, CUNA opposes unlimited mortgage loan "cramdown" authority for bankruptcy judges.
CUNA urges Congress to limit such power specifically to loans determined to be "subprime," with large re-sets of interest rates; loans with negative amortization; or loans that a court reasonably determines were fraudulent or abusive when made with no reasonable underwriting standards and expectation the borrower could actually repay the loan.
CUNA has also voiced concern that a lender that made a mortgage loan using good underwriting standards should not bear the risk of a decline in the house's value.
CUNA also warned that imprudent legislative action could encourage financially fit borrowers to stop mortgage payments, triggering foreclosure, simply because they no longer want to make large mortgage payments on houses which have dropped notably in value.
The letter noted that CUNA has worked for more than a year with Hill staff to design a bankruptcy amendment that would allow courts to amend only certain mortgage loan agreements secured by the debtor's principal residence.
CUNA Vice President of Legislative Affairs Ryan Donovan said of the development, "Clearly we still have our work cut out for us. While the bankruptcy provision will not be a part of the stimulus, the supporters of this legislation will try again on future must-pass bills.
"But," he added, "We now have more time to continue to convey our message to Congress that the mortgage bankruptcy bill in its current form would have an adverse impact on credit unions."
FASB rejects fair value disclosure plan
WASHINGTON (1/26/09)—The Financial Accounting Standards Board (FASB) decided not to finalize a proposed FASB Staff Position (FSP) on FAS No. 107, regarding disclosures for financial instruments. The proposal would have required disclosures based on fair value and on "incurred loss amounts."
FASB stated, however, that it will issue a new proposed FSP that would require disclosures of fair value measurements for financial instruments within the scope of FAS 107, Disclosures about Fair Value of Financial Instruments.
Additionally, the proposed FSP would reiterate qualitative disclosure requirements in Statement No. 107 and FASB Statement No. 157, Fair Value Measurements, according to the Board.
The Board indicated that the new proposed FSP would not require disclosures for "incurred loss" amounts.
The proposed FSP is expected to be released sometime this week and will be open for a 30-day comment period. The proposal would apply for interim and annual periods ending after March 15, 2009.
Software patch added to 5300 reports
ALEXANDRIA, Va. (1/26/09)—The National Credit Union Administration posted a notice on its 5300 Call Report webpage stating that a software patch was required to fix an error.
"An error was discovered which effects the December 2008, 5300 Call Report Uninsured Shares accounts on page 5. A software patch was created to correct the problem," the notice says.
It goes on to guide installation instructions and patch downloading.
Use the resource link below to read more.
Inside Washington
- WASHINGTON (1/26/09)--The Credit Union Association of New York's Michael Lanotte, senior vice president and general counsel, and Amy Kramer, vice president of governmental affairs, met five freshman members of New York's congressional delegation in Washington, D.C.
recently. Kramer and Lanotte discussed the credit union difference while meeting with Reps. Chris Lee (R-Buffalo/Rochester); Daniel B. Maffei (D-Central New York); Eric J.J. Massa (D-Finger Lakes/Jamestown); Michael E. McMahon (D-Metropolitan); and Paul D. Tonko (D-Capital/Southern Adirondack). Lanotte and Kramer also advocated for credit union access to Troubled Asset Relief Program funds, lifting the member business lending cap, and modernizing credit union's capital requirements, and emphasized the importance of maintaining a separate credit union regulator. From left are: Kramer; Maffei; Tom Gannon, Credit Union National Association senior legislative representative; and Lanotte. (Photo provided by the Credit Union Association of New York) ...
- WASHINGTON (1/26/09)--The Federal Deposit Insurance Corp. (FDIC) will meet Tuesday to discuss a proposal regarding interest rate restrictions for institutions that are less than well-capitalized. The agency also will discuss a final rule on processing deposit accounts in case of an insured depository institution fails. The meeting will be Webcast via the Internet and made available on-demand after the event ...
- WASHINGTON (1/26/09)--The U.S. financial regulatory system is outdated and significant reforms are critically and urgently needed, according to a Government Accountability Office (GAO) report released Thursday. "The current regulatory approach has significant weaknesses that if not addressed will continue to expose the U.S. financial system to serious risks," said the 99-page report. Determining how to create and implement a regulatory system that reflects new market realities is key to reducing the chance that the U.S. will experience another financial crisis, the GAO said ...
- WASHINGTON (1/26/09)--The House Financial Services Committee will meet Tuesday at 10:15 a.m. to appoint majority and minority members to subcomittees, committee Chairman Barney Frank (D-Mass.) announced Friday. The committee also will consider a resolution adopting the rules for the 111th Congress ...
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WASHINGTON (1/26/09)--New York Gov. David Paterson announced that Rep. Kristin Gillibrand (D-N.Y.) will succeed Hillary Clinton in the U.S. Senate. The appointment lasts until 2010. Gillibrand is a second-term representative. She has represented New York's 20th Congressional District. A special election will be held to fill Gillibrand's vacant seat. The Credit Union Association of New York (CUANY)'s governmental affairs staff participated in a credit card hearing with Gillibrand in 2007 and established a solid relationship with her regarding the credit union difference and issues that concern New York's credit unions, CUANY said. "On behalf of New York's credit union community we congratulate Rep. Gillibrand on her appointment," said CUANY President/CEO William J. Mellin. "We look forward to growing our relationship with her and advancing credit unions' legislative agenda in the Senate." ...
More CUs report Heartland breach impact
MADISON, Wis. (1/26/09)--Throughout the day Friday, media were reporting about credit unions whose members were among those whose accounts are impacted by the far-reaching data breach at Heartland Payment Systems.
The Association of Vermont Credit Unions (AVCU) said that the breach has already affected 6,000 cards at credit unions on the association's ATM/debit card program, as well as thousands more at other Vermont credit unions (Newslines Express Jan. 23).
AVCU said it learned of the developing breach from its processor on Jan. 9, more than a week before Heartland issued its press release on Inauguration Day. AVCU "immediately began passing along what we learned of the developing situation to credit unions. We also began working with CU CheckCard credit unions, our processor Fifth/Third Processing Solutions, and MasterCard to deactivate and reissue compromised cards. To date, the number of compromised CU CheckCards already stands at approximately 6,000," AVCU said.
That compares with 6,500 CU CheckCards that were cancelled or reissued last year in the wake of a data breach at Hannaford Bros. groceries.
In Dayton, Ohio, Wright-Patt CU was contacted Thursday by Heartland with names of affected cardholders at the $1.380 billion asset credit union. About 15% of the credit union's cardholders were affected, Wright-Patt Vice President Jeff Carpenter told Dayton Daily News (Jan. 23).
Members who receive a new card will have two weeks to activate it before the old card is deactivated. Two weeks allows the credit union to balance reducing the financial risk to the credit union with giving cardholders who are out of town a chance to activate their cards, he said.
Several Maine credit unions, who were hit hard by both the Hannaford Bros. and TJX Cos. breaches the past two years, were told by Visa and MasterCard that fraudulent charges were placed on members' cards between mid-May and mid-August last year, Jon Paradise, spokesman for the Maine Credit Union League, told Seacoastonline.com (Jan. 22).
About 500 Visa credit and debit cards issued by PeoplesChoice CU, Saco, Maine, might have been compromised, said Luke Labbe, president/CEO, in the same article. He estimated that 50 to 60 members had fraudulent charges on their cards. The credit union had noticed a pattern of small charges at gas stations in the South followed by a larger charge of about $500 at a nearby Wal-Mart. Labbe said the credit union had been experiencing losses since October but didn't know where they were coming from.
CU Community CU, Springfield, Mo., told local media the breach may have affected 350 members. So far, thieves have charged $11,000 through 16 cards, but the credit union prefers to play it safe and cancel and reissue new cards to avoid fraud risks (KY3.com Jan. 22).
In Washington State, Boeing Employees' CU (BECU) had no spike in suspicious activity and it doesn't know yet if members are affected. However, another credit union, Washington State Employees CU confirmed some of its members are affected, but it doesn't know yet the extent and how many (Seattle Post-Intelligencer Jan. 23).
And in Olympia, Wash., Thursday, lawmakers were discussing a bill to protect financial institutions from bearing the cost of such breaches. If a security breach involves 5,000 or more accounts, the third-party company that was breached would be required to reimburse the organization whose customers are affected. The bill also proposes that businesses not retain credit/debit card information on customers once the transaction is authorization.
International student loans yanked, CUs step in
NEW YORK (1/26/09)--A loan program that many international students depended on to finance their education in the U.S. has been pulled, with business schools scrambling to fill the void. So far only two schools have found replacement lenders--and both are credit unions, reports BusinessWeek.com (Jan. 23).
The CitiAssist and Sallie Mae programs typically allowed international applicants studying in the U.S. to obtain up to $150,000 without a U.S. co-signer. The programs were pulled because of the credit crisis, leaving not only students in the lurch, but also business schools and graduate programs trying to attract top students.
Among those who haven't found lenders yet, although some are in negotiations, are the Harvard Business School, the Wharton School, University of Michigan's Ross School of Business, the Chicago Booth School of Business, Columbia Business School and others. Credit unions are filling the void at two schools. One is a new program, the other is a continuation of a long-running program. MIT's Sloan School of Management announced its replacement lender will be MIT FCU, located in Cambridge, Mass., and Stanford Business School has run a similar program with Stanford FCU, Palo Alto, Calif., for decades.
MIT FCU signed an agreement with the Sloan school in December. MIT FCU's program was developed with Credit Union Student Choice, a credit-union-owned organization that offers turnkey, school-certified, private student lending solutions to credit unions across the nation.
The agreement doesn't require students to have a domestic co-signer, offers a competitive interest rate and allows students to take out a line of credit with the $235 million asset credit union. It also features zero origination or pre-payment fees, low interest rates, and can provide financing for the full cost of attendance.
MIT Sloan Director of Student Financial Aid Daniel Barkowitz told BusinessWeek.com that the most attractive aspect of the loan is that students don't have to reapply for the loan program every academic year.
"While we may not have the brand name or asset size of mega bank lenders, we have a business model that makes us perfectly suited to meet the private loan needs of MIT students," said Brian Ducharme, MIT FCU's president/CEO, in a press release (PRNewswire Jan. 23).
"We've always maintained a singular focus on serving our community with cost-effective products and services. This clarity of purpose has allowed us to grow and thrive at a time when many publicly traded lenders are struggling for mere survival," Ducharme added.
Stanford FCU's program will continue to be available to international students without a U.S. co-signer, said Jack Edwards, director of financial aid at Stanford University.
For the full story, use the link.
Coastal FCU to close four branches, add others
GREENSBORO, N.C. (1/26/09)--Coastal FCU announced Thursday that it will close four underperforming branches in the first quarter, reducing its branch count to 18, said the North Carolina Credit Union League.
However, the credit union plans to open up to five new branches early next year (Weekly Update Jan. 22). The branches could go in Brier Creek, Eastern Wake, Chapel Hill, Holly Springs or downtown Raleigh and Durham.
"The majority of our newest locations are doing well, and overall, we're coming off of a successful year," said Coastal President/CEO Larry Wilson. "We added 18,000 members and grew our assets by $261 million, or 14%, in 2008."
The branches closing are located in Sanford, Southern Pines, Clayton and the North Pointe Shopping Center in Durham.
Employees at closing locations can apply for other open positions within the credit union.
"We have a number of positions available, particularly in branch operations and in our growing business services department," Wilson said. "Also, as we look to open new branches within the Triangle, we'll need experienced employees to staff them."
Coastal plans to keep full-service ATMs at each of its branch locations.
The credit union will dedicate more resources to develop its Express Branch format by converting existing branches and opening new ones with Express Teller technology. The Express Teller system, which debuted at two branches at the end of last year, will allow Coastal to increase branches and hours of operation. Up to eight locations could have the technology in place by the end of the year, the credit union said.
Coastal FCU has $2.019 billion in assets.
Grant to charter first Latino CU in Ohio
SOUTH TOLEDO, Ohio (1/26/09)--The Ohio Credit Union Foundation (OCUF) is leveraging a $69,500 Innovation Grant from the National Credit Union Foundation (NCUF) to charter a community development credit union for Latinos in northwest Ohio.
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| With its startup partially funded by an Innovation Grant from the National Credit Union Foundation (NCUF), Nueva Esperanza (New Hope) Community CU plans to open for business in this building in June. (Photo provided by Ohio Credit Union Foundation) |
Nueva Esperanza would reach a Latino population that has more than doubled since the 2000 Census. More than 50% of area households are classified as "low-income" or "extremely low-income," which points out the need within the community for basic financial services and affordable credit, said OCUF Executive Director Becky Hart.
This is the 12th of 14 NCUF Innovation Grants implemented this year. Innovation Grants are supported by NCUF and members of corporate credit unions who invest in the Community Investment Fund (CIF). Nueva Esperanza will focus on financial education, budgeting, basic savings, simple lending, credit counseling and money transfers. It would open with two bilingual employees, then staff up to four bilingual employees the next year.
"The Latino community is currently using a branch bank that offers no specific programs for small depositors and charges fees for basic services such as money orders," according to Barry Shaner, CEO of Directions CU. Based in nearby Sylvania, Ohio, Directions CU is helping organizers of the new credit union. "It is our understanding that area residents do not trust a financial institution that they don't perceive to be an integral participant in the community."
Nueva Esperanza's mission will be "empowering the Latino community by promoting savings, increasing financial literacy among low-wealth and often unbanked Latino households, making loan capital available, and promoting community resources."
OCUF is partnering with Toledo-area credit unions and community representatives who have laid the building blocks for the new credit union during the past several years.
They include:
- Viva South Toledo Community Development Corp., which purchased the building where the new credit union will operate. Viva South Toledo will relocate its headquarters into the same facility. It will provide members with housing assistance and other social services to complement the new credit union's financial services;
- Directions CU, which will provide operational staff and all data processing services, terminals, software, recordkeeping and accounting support;
- Area Financial Services, a technology credit union service organization owned by five Toledo-area credit unions, will oversee Nueva Esperanza's back-office operations; and
- Latino Alliance of Greater Toledo, which will help grow and sustain membership in the new credit union.
The Ohio Credit Union League and its Northwest Chapter will continue to serve as planning advisors and provide additional resources including education and training for the new credit union's board and staff.
"Access to basic financial services is a necessity in every community," said Jennifer Ferguson, president of the Northwest Chapter and CEO of Bay Area CU in Oregon, Ohio. "The credit union presence in South Toledo will help residents achieve financial literacy, establish credit, grow savings, and possibly even realize the dream of homeownership. All of this will go a long way toward stabilizing families and building community pride. We know from working together on this project that the strengthening of South Toledo and its residents must come from within."
CUs rev engines on Invest in America
LANSING, Mich. (1/26/09)--Although the hard numbers won't be available until February, the Michigan Credit Union League reports "a ton of action" on the lovemycreditunion.org website created for "Invest in America," credit unions' auto loan discount program with auto manufacturers General Motors Corp. and Chrysler Corp.
"There are two ways to look at it," said Michael Bridges, director of public affairs. "Since the program went national, we have seen more than 350,000 unique page views. Another way to look at it is the website has seen 2.2 million hits in the first two weeks of the program, or 3.6 million since the program was rolled out in December."
CUDL is reporting that 8,000 GM and Chrysler vehicles have been sold to credit union members. And GM reports it is seeing a 30% conversion rate on the number of people asking for a "Credit Union Member Discount" certificate to those actually buying a car, Bridges told News Now.
To generate further interest in the program, two 15-second ads ran last week on the Jumbotron at the North American International Auto Show in Detroit.
"We are in the process of putting a tracking component together" to monitor the progress in sales, Bridges said. "We hope to have some hard numbers in February."
Meanwhile, in Indiana, one of the four original Midwestern states in the program's pilot with GM, about 2,500 individuals registered for the program during the first week, said Kay Neidlinger, spokeswoman for the Indiana Credit Union League in fwdailynews.com Jan. 23). Of that number, about 1,500 obtained a discount code certificate and more than 150 bought vehicles.
The discounts are so attractive, they could end up increasing credit union membership, but the purpose of credit union participation is to offer existing members a good deal on one of credit unions' cornerstone products, auto loans, said Neidlinger.
The Louisiana Credit Union League reported it's receiving "positive feedback from members" regarding the Invest in America program and a "high volume of calls from credit unions concerning participation in the program," reported its newsletter, eNews (Jan. 14).
Several credit unions in New Jersey are participating in the program, according to Paul Gentile, CEO of the New Jersey Credit Union League in an article in TradingMarkets.com (Jan. 16). ADP FCU in Roseland, Riegal FCU in Milford, and Paragon FCU in Montvale will soon offer the program's incentives.
Richard Rays, CEO at Paragon FCU plans to promote the program in the February edition of its member newsletter. "We have our staff calling dealers to let them know we are participating," he said. "The trick is to make those loans to people who will have the income to repay those loans." Paragon plans to cut its interest rate to as low as 4.99% , from its current rate of as low as 6.5% for qualified borrowers. The national credit union loan average is 5.4% , according to Datatrac, a firm that tracks auto loan rates. The average bank rate is 6.9%.
In New Jersey, many credit unions already have marketing alliances with auto dealers through Credit Union Auto Group, which includes 50 dealers.
Kensington Valley Community CU (KVCCU), Highland, Mich., has tied the program to its 50-year-anniversary celebration. "In addition to our already great rates, our members could qualify for up to 2.75% discount on a 24- to 50-month auto loan," Linda McCoy, KVCCU lending manager, told Hometownlife.com (Jan. 15).
According to Mike Long, vice president of lending at UW CU in Madison, Wis., the credit union is participating in the program because is "presents a great opportunity for our members. Not only do they have a chance to save money on most GM and Chrysler vehicles, but they can also feel the satisfaction of helping support the U.S. auto industry."
For Northeast CU, Portsmouth, N.H., the program is a no-brainer. "The new program comes during a challenged economy and that is why NECU is pleased to extend this to our members," said Peter Kavalauskas, president/CEO.
Giving back to members while helping the domestic auto industry also is the reason Citadel FCU, Thorndale, Pa., is encouraging its members to use the loan deals. Citadel has no trouble generating auto loans. During the last few months of 2008, it originated more than $100 million in auto loans to the local community.
Scam alerts flooding several states
MADISON, Wis. (1/26/09)--Credit unions nationwide are reporting that their members have been targeted by scams--including scams that have origins overseas.
Achieve FCU, Berlin, Conn. said that two dozen of its members lost money after sending debit card passwords to scammers that requested personal financial information (The Hartford Courant Jan. 23). The scammers had contacted members saying their accounts had been frozen.
One member lost $2.76--all she had in her account--while others lost $400, which is the maximum amount a member can withdraw in one day, Mary Budnick, Achieve vice president of operations, told the newspaper.
The scammers that targeted Achieve members were located in Romania and in Spain (Journal Register News Service Jan. 22).
The Federal Deposit Insurance Corp. (FDIC) warned its consumers, businesses and financial institutions Jan. 15 about fraudulent e-mails purporting to be from the Federal Reserve Bank. The e-mails state that a phishing attack has hit the Fedwire system and recipients are asked to click on links for more information.
The links redirect recipients to Web pages that attempt to load malware, the FDIC said. The agency urged e-mail recipients to delete the messages.
Other scams:
- Duke University FCU, Durham, N.C., was targeted by a phishing scam. E-mails purporting to be from the credit union asked recipients to submit their personal financial information. The e-mail included links to a website with a replica of the credit union's logo (Targeted News Service Jan. 15);
- Langley FCU, Hampton, Va., reported that texts were sent to members' cell phones in Hampton roads asking for personal information (DailyPress.com Jan. 21);
- Empower FCU, Syracuse, N.Y., said fraudulent text messages were sent to members asking for personal financial information to reactivate their ATM cards (The Post-Standard/Herald Journal Jan. 14); and
- The Michigan Credit Union League's Michigan Monitor noted Dec. 22 that the latest fraud trends it has seen include fraudulent charges made at gas stations and discount stores nationwide.
Jury awards $5 million on CU's insurance claim
SOUTHFIELD, Mich., and MADISON, Wis. (1/26/09)--A jury has awarded a Michigan credit union more than $5 million against its insurance company in a claim that involved losses stemming from hundreds of defaulted indirect auto loans.
The jury awarded to Michigan First CU--a $490.7 million asset credit union based in Lathrup Village, Mich.,--the $5 million in damages against CUNA Mutual Insurance Society (CUMIS).
The jury decided the company breached its insurance bond with the credit union when it refused to pay for losses resulting from the defaulted loans, which had been granted under the supervision of Michigan First's former vice president of lending.
"We respect the jury's decision, but still believe the losses incurred by the credit union are not covered under the terms of our Bond policy," Phil Tschudy, media relations manager, CUNA Mutual Group, told News Now Friday.
"We are also gratified the court issued a ruling agreeing with our interpretation of our Faithful Performance coverage as requiring intentional misconduct," he added.
CUMIS maintained that the credit union's losses were the result of its own reckless behavior and lack of oversight. The company had denied the insurance claim under a faithful performance provision of the bond, saying the loans resulted from intentional violations of the credit union's lending policies. However, the jury unanimously determined the insurance claim was wrongfully denied.
Michigan First's claim was first made in May 2004. If the ruling stands, the credit union could recover 12% penalty interest on the claim. That, added to the prejudgment interest, which would bring the total recovery closer to $9 million.
CUNA Mutual is considering an appeal. "Our legal team will be reviewing information from the trial and assessing our appellate options," Tschudy said.
World CU Conference pre- and post-tours announced
MADISON, Wis. (1/26/09)--The World Council of Credit Unions (WOCCU) has selected Lisbon, Portugal, and France's Bordeaux wine region as the locations for its pre- and post-conference tours for attendees of the 2009 World Credit Union Conference.
The conference takes place July 26-29 in Barcelona, Spain. The pre-conference tour will be in Lisbon July 22-25 and the Bordeaux post-tour is slated for July 30-Aug. 2.
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Lisbon, Portugal. Click for larger view. |
Lisbon is Portugal's capital and largest city. The pre-tour itinerary includes a sightseeing tour, dinner and a Fado performance of traditional Portuguese music at a local restaurant plus day trips to nearby towns including Sintra, Óbidos and the beach villages of Cascais and Estoril.
Post-tour participants will stay at the Hôtel du Médoc Golf & Spa, a resort just outside of Bordeaux, and can sample some of the region's best wines on two winery tours. Bordeaux's historic city center is a UNESCO World Heritage site in recognition of the municipality's architecture. The tour itinerary also includes visits to the nearby medieval city St. Émilion and local villages.
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Bordeaux, France. Click for larger view.
(Photos provided by the World Council of Credit Unions) |
Attendees also can participate in two tours outside of Barcelona, including a trip to Montserrat Mountain, located in one of Spain's national parks less than an hour from Barcelona, and a tour of Tarragon, a seaside town known for its Roman Amphitheatre.
For more information, use the links.
CU System briefs
- DECATUR, Ala. (1/26/09)--A U.S. District Court judge has dismissed bank fraud and conspiracy to commit bank fraud charges in the case of a former credit union manager and former businessman accused of stealing more than $6 million over three years. Judge U.W. Clemon Thursday granted acquittal in the case of Timothy David Shelton, 53, and Melissa Killeen, 39, a former manager of Lauderdale County Teachers CU. "There's no reasonable doubt that a jury could conclude that she participated in any conspiracy," said Clemon (TimesDaily.com Jan. 22). Shelton's trial will continue on four counts of making false statements to a federally insured institution. He had a number of loans at the credit union, which he used for his business. Shelton was accused of avoiding loan limits by recruiting friends and relatives to apply for loans at the credit union ...
- HARRISBURG, Pa. (1/26/09)--Hidden River CU, Pottsville, Pa., hosted separate interviews Thursday with candidates for the State Senate District 29 special election, reported the Pennsylvania Credit Union Association (PCUA) (Life is a Highway Jan. 23).
The candidates, State Rep. Dave Argall (R) and County Clerk of Courts Steve Lukach (D), answered questions from Hidden River CEO John Murga and Board Chairman Charles Lantz. Both Argall and Lukach said they were opposed to implementing heavy regulations and supported credit unions' tax-exempt status. Also interviewing were: Eric Kratz, Pennsylvania Business Council; Gwenn Dando, NFIB; John Callahan, Pennsylvania Chamber of Commerce; Judy Eschelberger, Novak Strategies; and Christine Seitz, PCUA government affairs specialist. Pictured here are Argall, right, and Murga, fourth from right. (Photo provided by the Pennsylvania Credit Union Association) ...
- HARRISBURG, Pa.(1/26/09)--Pennsylvania Office of Financial Education Director Hilary Hunt has resigned, effective at the end of January (Life is a Highway Jan. 23). Hunt worked with Gov. Edward Rendell and the state Department of Banking to develop a financial education program recognized throughout the nation. Pennsylvania is one of two states with such a program. Mary Rosenkrans, financial education specialist, will assume the duties of acting director, announced Secretary of Banking Steve Kaplan. Pennsylvania Credit Union Association President/CEO Jim McCormack said PCUA has worked with Hunt on several occasions and is looking forward to working with Rosenkrans and her colleagues "as credit unions continue their community outreach to improve the financial health for Pennsylvanians." ...
- MADISON, Wis. (1/26/09)--Shannon Griswold has joined Summit CU as president of STAR CU, the nation's only youth-chartered credit union, which is located in the Boys & Girls Club in Madison. Griswold's background is in banking and social work. She previously was a social worker at Central Wisconsin Center and a program assistant at Girl Power, both based in Madison. She also has served as a teller and personal banker at a local bank. STAR (Saving to Achieve Results) CU is open to members of the Boys & Girls Club of Dane County and is supported by Madison-based Summit CU, a $1 billion asset credit union (wisbusiness.com Jan. 23) ...
Market News
MADISON, Wis. (1/26/09)
- The 30-year, fixed-rate mortgage (FRM) climbed back above 5% last week, Freddie Mac reported Thursday. The average 30-year FRM rose 16 basis points to 5.12%, following 11 consecutive weeks of decline. It was the first increase in the rate since the Federal Reserve decided to buy mortgage-backed securities in November. "Fixed-rate mortgages followed bond yields and edged up this holiday week," said Freddie Mac Vice President and Chief Economist Frank Nothaft. "However, over the first three weeks of 2009, the 30-year, fixed-rate mortgage was an average 0.25 percentage points below its monthly average for December 2008. As a result, the number of mortgage applications for refinancing was roughly about 86% of all conventional loans over the same time period." Freddie also reported that the 15-year FRM rose 15 basis points to 4.8%, while the one-year, adjustable-rate mortgage edged up 3 basis points to 4.92%. For CUNA's Daily Financial Rates, use the link. ...
- Rising unemployment and high food prices are pushing food pantries to the limit. Food banks reported a 30% jump in the number of people seeking assistance—double the increase reported only six months ago, according to Feeding America, a national network of food banks. "Millions of Americans simply don't have enough money to buy food," said spokesman Ross Fraser. The organization estimates that food banks only serve 25 million of the 35 million people who need services. Mounting job losses and high food costs are adding to the problem. Food costs increased 5.9% last year—the largest gain of any category tracked by the Labor Department. The weak economy also has eroded charitable contributions to food banks, which depend on private donations (CNNMoney.com Jan. 22) ...
- One in seven Americans under the age of 65 skipped prescribed medicines in 2007 as pharmaceutical costs soared, according to a report by the Washington-based Center for Studying Health System Change. That's up from one in 10 people in 2003. Ten percent of working-age people with employer-sponsored coverage went without a prescription in 2007, up from 8.7% in 2003. "Insurance coverage offers less financial protection against out-of-pocket costs than it did in the past," noted Laurie E. Felland, lead author of the study and a senior health researcher at the center. She said the figures probably are even higher because of the current recession (The New York Times Jan. 23) ...
- Almost two of every three households said their home price declined last year—more than two times higher than in 2007 and up five times from 2006, according to a Reuters/University of Michigan survey released Friday. Homeowners anticipate an annual average 2.2% decline this year. The results show that the drop in home prices isn't nearing an end, said survey director Richard Curtin. The housing market probably won't rebound until 2010 (Reuters via CNNMoney.com Jan. 23) ...
- Toyota Motor is considering laying off more than 1,000 full-time workers in North America and the United Kingdom, according to Japan's Nikkei newspaper. Toyota spokesman Yuta Kaga declined to confirm the report. Toyota employs 36,000 full-time workers at seven plants in North America. The firm has 5,000 full-time workers in the U.K. The company expects to see its first operating loss in 70 years during 2009 as global demand continues to collapse (Associated Press via The New York Times Jan. 23) ...
- The United Kingdom has officially entered a recession, the Office for National Statistics reported Friday. The U.K. economy contracted by 1.5% during the fourth quarter following a 0.6% decline in the third quarter. The back-to-back declines are the first since 1991. The fourth-quarter contraction was the largest since the second quarter of 1980. Total services output fell 1% in the fourth quarter, while total production plunged 3.9%. Both declines were the biggest since the 1970s. For all of 2008, the U.K. economy expanded by just 0.7%, the weakest annual growth since 1992. The weak data suggest the Bank of England will continue to lower interest rates. In early January, policymakers cut the benchmark rate by 50 basis points to 1.5%--the lowest in the central bank's 300-year history (The Wall Street Journal Online Jan. 23) ...
News of the Competition
MADISON, Wis. (1/26/09)
- Troubled financial institutions and automakers continued to spend millions of dollars on lobbying even as they accepted billions of dollars in government money, according to Congressional reports. Bank of America spent $4.1 million on lobbying in 2008, up almost $1 million from the previous year. The bank is receiving a total $45 billion from the federal government. General Motors spent $3.3 million on lobbying during the fourth quarter, even as it received $13.4 billion from the federal government. The firm spent $13.1 million in lobbying for all of 2008, only slightly less than the combined spending by Ford Motor and Chrysler. The government committed $4 billion in loans to Chrysler in December. GM's GMAC LLC lending unit spent $4.6 billion on lobbying last year, more than three times higher than in the previous year. GMAC has received $6 billion in bailout money. Fannie Mae and Freddie Mac were required to halt federal lobbying after they were placed into conservatorship. However, Congress hasn't placed similar restrictions on other recipients of taxpayer funds (The Wall Street Journal Online Jan. 23) ...
- After seeing its sales plunge 30% last year, Chrysler has announced a new incentive program called "Employee Pricing Plus." The program offers prices similar to those its employees pay on all 2008 and 2009 Chrysler, Dodge, and Jeep vehicles. The price breaks are thousands of dollars less than sticker price. Buyers will receive additional discounts of $3,500 on 2009 vehicles and $6,000 on last year's models. An added $1,000 rebate is available on vehicles financed through the automaker's Chrysler Financial lending arm or through a customer's credit union. The firm also is offering a 0% financing program (CNNMoney.com Jan. 23) ...
- Bank and credit-card issuer Capital One Financial Corp. reported a net loss of $1.4 billion for the fourth quarter, compared with net income of $226.6 million a year earlier. Expecting further deterioration in its loan portfolio as unemployment continues to rise, the McLean, Va.-based firm set aside another $1 billion for loan losses in the fourth quarter. Standard & Poor's lowered Capital One's outlook to negative following the report. "We believe higher credit costs will drive earnings lower in 2009," said S&P. U.S. card business chargeoffs jumped to 7.08% in the final quarter of last year, from 6.13% in the previous quarter. Capital One predicts that loan losses from U.S. cards will rise to 8.1% during the first quarter. The company forecasts that the nation's unemployment rate will jump to 8.7% by year end, from 7.2% in December. Home prices are expected to decline by another 10% (Reuters via The New York Times Jan. 23) ...
- The Federal Reserve's balance sheet declined for a third consecutive week as banks lowered their use of several lending programs. The central bank's balance sheet totaled $2.04 trillion as of January 21, down from $2.06 trillion the previous week. Commercial banks' borrowing through the discount window declined by $3.6 billion to $62.9 billion, while borrowing by investment banks via the Fed's primary dealer credit facility was essentially unchanged at $33.29 billion. The Fed's holding of commercial paper in a program designed to help corporations finance short-term notes rose to $350.3 billion from $334.6 billion. Still, the commercial-paper market fell by $30.3 billion last week, the second consecutive weekly decline, suggesting that strains remain in that market (Dow Jones Newswires and Bloomberg.com Jan. 23) ...
- The cost of three-monthly dollar loans between banks continued to increase Friday, as investors remained worried about the financial sector despite generous bailout programs. The London Interbank Offered Rate (Libor) edged up 0.01 percentage points to 1.17%. Interbank rates, which affect the cost of loans for firms and individuals in the wider economy, have remained high during the financial crisis as banks continue to hoard cash (Associated Press via The New York Times Jan. 23) ...
This year, two no-cost options to file taxes
McLEAN, Va. (1/26/09)--The fastest way to get your tax refund is still with electronic filing, but this year--for the first time--you have two options to file free, and one of them does not have an income constraint (USA Today Jan. 20).
Nearly 90 million taxpayers--58% of all returns--used e-file for their 2007 returns, according to the Internal Revenue Service (IRS) (irs.gov). By e-filing and using direct deposit, you could have your money in eight to 10 days, as opposed to four to six weeks when filing a paper return.
While some software can cost more than $80, there are ways to file electronically for free, if you know where to look:
- IRS Free File. This free federal tax preparation and electronic filing option is for taxpayers with adjusted gross income of $56,000 or less in 2008. There are varying Free File options, each carrying its own eligibility requirements: Some have age restrictions, apply only to certain states, or have an income cap lower than $56,000. Free File at irs.gov helps you choose a program. Note that some include free state tax preparation, while others carry a fee. If you don't qualify for one of the Free File programs that include a free state return, 26 states offer their own free e-file option. Check your state's offerings at taxadmin.org/fta/edi/etalinks.html.
- IRS Free File Fillable forms. New this year, this option opens up Free File to all taxpayers--even those with incomes exceeding $56,000. In contrast to the full-service Free File option, Free File Fillable Forms is more of a "self-service" option. Taxpayers self-prepare and file IRS forms electronically, similar to paper filing, but the program performs the basic calculations. For example, the program won't tell you whether to itemize or take the standard deduction, but it will crunch the numbers once you enter them. Fillable Forms does not support state forms or State e-file.
For tax information, including how to use Fillable-forms and all available Free File offerings, visit irs.gov.
For more information, read "Year-End Tax Planning With Some Twists" and "Don't Miss Out on Tax Breaks" in Home & Family Finance Resource Center.
New Financial Fitness Challenges: Life turning points
MADISON, Wis. (1/26/09)--The Home and Family Finance Resource Center's newest Financial Fitness Challenge will focus on a series of major life points--such as a wedding, first house, job loss, and death of a spouse--to help credit unions assist their members' financial needs.
Each month, the resource center will examine a pivotal life event, using a frequently asked questions format and list of resources.
"The goal is to help members think ahead to how they'd manage a turning point, and have the information available in the archive should they need it later," said Susan Tiffany, director of the Credit Union National Association's personal financial information for adults. "Each turning point highlights appropriate credit union products and services."
The turning points will be weaved into the center's three-year Financial Fitness Challenge and for a monthly column that includes interviews with experts and individuals who have experienced major life events.
Each monthly challenge and turning point also will be highlighted on Home and Family Finance Radio, which airs Sundays at 3 p.m. EST on the Radio America network.
The January turning point is "Starting a Business." February's will address what happens when individuals lose a job.
The center also will give away five $50 Visa cards each month through a random computer draw. Anyone can register to win.
For more information, use the link.
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