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News Now Archive
Filed on March 13, 2007, published the first business day after.
- Inside Washington
- CUNA urges caution on Wings merger bid
- GSE legislation reflects CU goals
- Analysis: Loan maturity, service to nonmembers final rule
- Amid conflict, Afghan CUs open
- CUs back Minnesota card security bill
- Career Transition Program demonstrates CU difference
- Small CU scholarships available for Development Education
- CU’s credit card helps cash-strapped police cadets
- St. Lucia farmers find new markets through CUs
- CU System briefs
- Market News
- News of the competition
- Small ways to save more
- GalaxyPlus introduces S.T.A.R.S member reward program
- Digital Insight offers two new online banking products
Inside Washington
- WASHINGTON (3/14/07)--The Michigan Credit Union League (MCUL) sent cards to members of Michigan's congressional delegation thanking them for meeting with the credit union representatives on Capitol Hill during the Credit Union National Association's Government Affairs Conference here. The cards bore messages that repeated the league's request that the lawmakers support and pass credit union regulatory improvement legislation this year. The Michigan credit union representatives met with their congressional delegation Feb. 27-29. A 2007 Credit Union Regulatory Improvements (CURIA) bill is likely to be introduced this spring, and is expected to contain such key provisions as: Prompt Corrective Action (PCA) reform, an increase in the member business lending (MBL) ceiling and, for the first time, field of membership changes that would allow more credit unions to add underserved areas to their membership...
- WASHINGTON (3/14/07)--Legislation that would prohibit commercial companies such as Wal-Mart Stores Inc. from owning industrial loan companies (ILCs) is expected to pass the Senate Banking Committee, according to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee. The bill faces strong opposition from Sen. Bob Bennett (D-Utah), but according to Frank, others are unlikely to back the popular senator on the issue (American Banker March 13). Frank introduced the bill Jan. 29 with Rep. Paul Gillmor (R-Ohio). Similar laws are being contemplated in Colorado, Alabama, Connecticut, Illinois, Texas, Kansas, Maine, Nebraska, Massachusetts, North Dakota, Tennessee, Washington and West Virginia. Iowa, Maryland, Virginia, Oklahoma, and Missouri enacted ILC laws last year ...
- WASHINGTON (3/14/07)--Industry experts continue to disagree on whether or not Fannie Mae and Freddie Mac should be allowed to buy high-priced loans in areas where the cost of living is greater. Mortgage Bankers Association (MBA) doesn't support such a provision because it does not believe that "jumbo loan borrowers" need government-sponsored enterprise (GSE) funding, according to John Robbins, chairman of MBA (American Banker March 13). Conversely, Scott Stern, chief executive of Lenders Once, believes that the provision would assist consumers living in high-cost areas. The National Association of Realtors also has shown support. The loans are a part of a provision in a GSE regulatory reform bill, which was introduced by Rep. Barney Frank (D-Mass.), House Financial Services Committee chairman, on Friday ...
CUNA urges caution on Wings merger bid
WASHINGTON (3/14/07)—The unfriendly merger bid of Wings Financial FCU to absorb Continental FCU raises questions not before addressed by federal regulators, according to the Credit Union National Association (CUNA), and the group urged caution in decisions regarding the unsolicited merger tender.
"This unsolicited merger bid presents the National Credit Union Administration (NCUA) with major challenges. The agency's rules and procedures have not been designed with unfriendly transactions in mind," said Pat Keefe Tuesday. Keefe is CUNA vice president of communications and media outreach.
"Dealing with the many issues of law, policy, and supervision in such transactions will require time and caution," Keefe added. "There is too much at stake for the members of these credit unions, and for the whole credit union system, to permit any snap judgments by the regulators."
NCUA Director of Public and Congressional Affairs John McKechnie said Tuesday that the agency "has received no proposal regarding a merger involving Continental."
He noted that the NCUA's regulation Part 708b "sets forth the merger procedures" and that "(u)nder those procedures a healthy credit union cannot be compelled to merge."
McKechnie added, "A credit union's elected board is the responsible party to determine if a proposal is in the interest of the credit union's membership."
Last week, the $177 million-asset Continental turned down a merger proposal submitted by Wings FCU, of Apple Valley, Minn., and the rejected $1.6 billion-asset credit union began contacting members of its target. Wings has passed out flyers, is advertising a new website, www.continentalwings.com, which has information on the issue, and offered to pay each member of Continental--as of Dec. 31, 2006--$200 if the credit union merges. (News Now March 13)
Continental has been approached a number of times in the past by Wings Financial and has never expressed interest in a merger, according to both credit unions.
According to an informed source, the $200 inducement to Continental members is likely to be scrutinized by regulators.
Tom Glatt, who has been CEO of Continental since Aug. 1, told News Now Monday that he believes if the unwanted merger attempt is allowed, "(I)t'll be the end of the credit union movement. It will allow whoever has the most money to spend to take over--and a credit union--of any size--won't be safe. One could even approach Wings Financial for a takeover."
However, Wings executives argue that the merger would bring about "compelling benefits" for members.
Continental, whose membership base is Continental Airlines employees, has 25,000 members and five branches. Wings Financial serves 110,000 air transportation workers in 17 branches across the country.
GSE legislation reflects CU goals
WASHINGTON (3/14/07)—The Credit Union National Association (CUNA) noted Tuesday that a risk-based capital system proposed in legislation to reform the oversight of Fannie Mae and Freddie Mac is similar to what credit unions are seeking.
Dean Sagar, vice president of legislative affairs for CUNA, said his group is monitoring legislation geared toward regulatory reform for the government-sponsored enterprises (GSEs), in part, to see what develops regarding a more risk-based approach to capital.
"The legislation seeks to provide Freddie, Fannie and the Home Loan Banks with a regulatory structure that will encourage more effective use of capital and better facilitate capital compliance," Sagar said. "It is very similar to what credit unions are looking for in this year's Credit Union Regulatory Improvements Act (CURIA) legislation."
Reps. Paul Kanjorski (D-Pa.) and Ed Royce (R-Calif.) announced at the CUNA Governmental Affairs Conference here earlier this month that they expect to re-introduce regulatory reform legislation for credit unions sometime this spring, which would include prompt corrective action reform.
Regarding the GSE reform legislation, which was introduced Friday by House Financial Service Committee Chairman Barney Frank (D-Mass.), CUNA's Sagar said it is also of interest to the credit union movement because of the affordable-housing fund it proposes.
While modified from last year's legislative proposal that would have assigned 5% of Fannie and Freddie profits to investments in low-income and economically distressed communities—the 2007 bill would create an affordable housing fund based on 1.2 basis points of the GSEs' outstanding mortgages.
"Such a low-income housing fund could compliment such programs as CUNA's HLPR loans, and other initiatives that credit unions are coming up with to assist first-time homeowners and reach other underserved areas of their membership," Sagar said.
Analysis: Loan maturity, service to nonmembers final rule
WASHINGTON (3/14/07)—The Credit Union National Association (CUNA) Tuesday issued an analysis of a final rule which implements statutory changes increasing general loan maturity limits to 15 years for federal credit unions, as well as allows them to provide certain services to nonmembers.
The rule implements provisions of the 2006 Financial Institution Regulatory Relief Act. The CUNA analysis notes a single modification in the National Credit Union Administration's (NCUA's) final rule from an interim final, which has been in effect since Oct. 27.
The one tweak is a conforming change suggested by CUNA to the 12-year maturity limit regarding due-on-sale clauses, which cover contracts "involving a long-term (greater than twelve years), fixed rate first mortgage loan." The final rule was revised to reflect the modification in the general lending maturity limit to 15 years.
Effective March 27, the final rule also implements authority to provide certain limited financial services to nonmembers within their field of membership. Those services include:
- Selling negotiable checks including travelers' checks, money orders, and other similar money transfer instruments;
- Cashing checks and money orders; and
- Receiving international and domestic electronic fund transfers.
The CUNA analysis notes that the rule specifically permits federal credit unions to charge a fee for cashing negotiable or money transfer instruments.
It also contains a clarification sought by CUNA that states federal credit unions may also charge a fee for selling negotiable instruments, travelers' checks, money orders, and other similar money transfer instruments.
"The final rule also clarifies that wire transfers would not be excluded from the permitted services provided to nonmembers within a credit union's field of membership," the CUNA analysis notes.
To read more of the CUNA analysis of the implementing regulations, use the resource link below.
Amid conflict, Afghan CUs open
MADISON, Wis. (3/14/07)--World Council of Credit Unions (WOCCU) and the U.S. Agency for International Development (USAID) joined Afghan
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 A member of Samangan IFC (credit union) makes his mark to receive his first loan. (Photos provided by the World Council of Credit Unions) |
The IFCs opened Feb. 26-March 5, in Ayback, Puli-Khumri and Jalalabad, Afghanistan. Jalalabad's opening took place one day after an unrelated improvised explosive device (IED) detonated four miles down the road.
Despite the tense situation in Jalalabad, WOCCU staff and an Afghan government representative joined 50 proud Afghans at Nangarhar IFC to celebrate the opening of their first community-owned financial institution.
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 The assistant governor or Baghlan and Baghlan IFC's chairwoman officially open the IFC in Puli-Khumri.
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A week earlier and farther north, nearly 80 Samangan IFC members celebrated its opening in Ayback, and 100 members at neighboring Baghlan IFC celebrated its grand opening in Puli-Khumri.
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 Nangarhar IFC staff pose for a photo at the grand opening of their IFC in Jalalabad.
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The four-member interim boards of directors from each IFC attended the openings. Women are represented on all boards, and Baghlan IFC's board chair is a woman. The new IFCs will hold general assemblies in April to elect their boards.
Since IFCs in Afghanistan were established three years ago, membership in the five institutions has grown to more than 5,500. WOCCU is working with staff at Afghanistan's first two IFCs--Balk IFC and Jawzjan IFC--to open three branches in the north. Plans are also underway to establish a national association.
For more information use the resource link.
CUs back Minnesota card security bill
ST. PAUL, Minn. (3/14/07)--A bill introduced into the Minnesota State House of Representatives would require that merchants do not retain customers' personal information from their credit card magnetic stripes, after they make a transaction.
"This law would codify into statute what is in the merchant's contract with credit card companies, such as MasterCard and Visa," Dana Hofmann-Geye, executive vice president/general counsel for the Minnesota Credit Union Network (MCUN), told News Now Tuesday.
Hofmann-Geye adds that an additional provision of the proposed law would allow credit unions to recoup the losses from the merchant when they have to reissue credit cards, even if no fraud has been detected.
The first hearing on this bill will begin Monday in the Minnesota House of Representatives. The MCUN will present testimony at the hearing, Hofmann-Geye says. Also, some Minnesota credit unions affected by the breaches will be there to testify, she adds.
"Every credit union in Minnesota has been affected by the some sort of security breach, we've found," Hofmann-Geye says.
There are 167 credit unions in Minnesota, according to Hofmann-Geye.
Security of credit cards received national attention in January when TJX, which owns TJ Maxx, Marshall's and Bob's Stores, announced a breach of credit card data for customers in the U.S., Canada and Puerto Rico.
Card data was comprised at its U.S., Canadian and Puerto Rican stores from January 2003 through June 2004, although some data were masked at the time of the transactions and unavailable to the intruder.
The company found that additional drivers' license numbers, with related names and addresses, were compromised.
Career Transition Program demonstrates CU difference
NORTHVILLE TOWNSHIP, Mich. (3/14/07)--More favorable media attention has highlighted the Career Transition Program (CTP), Michigan credit unions' program to assist members and their families displaced by the state's growing loss of manufacturing jobs, according to the Michigan Credit Union League (MCUL).
The program, which has nearly $40 million pledged by nearly 40 credit unions, was the topic of an extensive segment on WXYZ-TV (Channel 7) in Detroit. The segment, which featured the program at Cornerstone Community Financial FCU, Auburn Hills, told about a woman who lost her job as a designer with a Metro Detroit automotive supplier.
Cornerstone President/CEO Heidi Kassab, noting the devastating effects a job loss can have on families, said, "We want to empower our members to take the necessary steps to begin a new career path" (Michigan Monitor March 13).
Other media have picked up the story, including Macomb Daily, Battle Creek Enquirer, Lansing State Journal, Kalamazoo Gazette and Marshall Chronicle. An extensive radio interview on the Rick Bloom Show on Detroit's WDTK-AM (1400) featured MCUL President/CEO David Adams and DFCU Financial President/CEO Mark Shobe.
DFCU Financial, Michigan's largest credit union and the originator of the program, anchored the program with a $10 million commitment to help eligible members. The Michigan Department of Labor and Economic Growth has also earmarked an additional $1.5 million to assist CTP participants with textbook costs and $200,000 for career counseling and placement services.
Through the program, members can obtain a 10-year unsecured loan for career retraining and education at significant discounts over an ordinary unsecured loan or even Stafford Loan rates.
"Certainly, this program is an effective way to demonstrate the credit union difference and how committed credit unions are to serving the needs of their members," said Judy Gardi, MCUL Community Reinvestment Initiative coordinator.
Small CU scholarships available for Development Education
MADISON, Wis. (3/14/07)--Staff and volunteers from small credit unions can apply for scholarships from the National Credit Union Foundation (NCUF) this week to attend Credit Union Development Education (DE) training April 12-17 at the University of Wisconsin in Madison, Wis.
Credit unions interested in a scholarship are invited to e-mail cude@ncuf.coop or call NCUF's Christopher Morris at 800-356-9655, ext. 4979. The registration deadline is March 16.
The scholarships are available through NCUF's DE Fund for credit unions that could not otherwise afford the registration fee of $1,350 (double room) or $1,450 (single room). The registration fee includes all training materials, meals and lodging.
Many state credit union foundations and leagues have scholarships available for credit unions of all asset sizes.
DE training is open to everyone from new employees who need a credit union orientation to seasoned executives who need to recharge. Each six-day class focuses on cooperative principles, credit union uniqueness and social responsibility.
NCUF Chairman Mary Cunningham, who graduated from DE training in 1997, outlined some of the benefits:
- Graduates acquire skills in public presentations, credit union outreach initiatives, problem solving and technical assistance;
- Graduates earn certification as Credit Union Development Educators (CUDEs), a networking group of more than 350 volunteers from U.S. credit unions, leagues and 10 other countries; and
- Graduates return to their jobs with new understanding that local issues may indeed be global, and that credit unions have the unique ability to improve the lives of people everywhere by working cooperatively.
NCUF is the primary sponsor of the DE program with support from the World Council of Credit Unions, the Credit Union National Association, CUNA Mutual Group, and state leagues.
CU’s credit card helps cash-strapped police cadets
NEW YORK, N.Y. (3/14/07)--Municipal CU, a $1.24 million asset New York City credit union, is offering cash-strapped New York Police Department police academy recruits a $500-limit Visa card.
The card helps them through their low-paid training tenure and enable them to buy items necessary for their job.
Over the past two years, the credit union provided more than $3 million in 36-month loans to police recruits at a 10.45% interest rate, according to Municipal CU Chief Marketing Officer Ralph Pagan (New York Daily News March 12).
When recruits came back to the credit union, asking for second loans to alleviate financial problems, Pagan said the idea of providing them a credit card came to light. Although he would not reveal the card's annual interest rate, Pagan described it as low.
A young recruit who has both a loan and the credit card from the credit union, characterized them as a mixed bag, saying that the loan payment totals $70 per paycheck, which he says is significant on a meager training salary.
Recruits earn a $25,100 salary during their six months of academy training, which translates to about $600 of take-home pay for every two-week paycheck.
St. Lucia farmers find new markets through CUs
MADISON, Wis. (3/14/07)--Due to the eastern Caribbean collapse of the banana trade, many St. Lucia farmers have lost their livelihoods.
In response, World Council of Credit Unions (WOCCU), the organization of American States' (OAS) Inter-American Institute for Cooperation on Agriculture (IICA) and OAS FCU, Washington, D.C., are collaborating on an initiative to strengthen Laborie CU on St. Lucia island to increase small farmers' access to financial services.
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| (From left) Carlos Calderon, OAS FCU president/CEO; Laborie CU members, Mr. Felicien and his daughter Olivia; and Felix Chicot, St. Lucia Department of Agriculture. |
Many hotels continue to buy foodstuffs offshore, but as hotels began to fill for the region's Cricket World Cup games this month, suppliers have found an insufficient supply to meet the increased demand.
Farmers have found Laborie CU ready to lend a hand in financing new endeavors that enable them to support their families, but say it difficult to maintain a livelihood supplying the hotel industry.
"Hotels are difficult to sell to," farmer Olivia Felicien points out. "They receive the produce and give us a receipt, but we cannot collect cash until 60 or 90 days have passed."
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| (From left) Lucius Ellevic, Laborie CU manager; Carlos Calderon, OAS FCU president/CEO; and Brian Branch, WOCCU chief operating officer (Photos provided by the World Council of Credit Unions). |
Through the credit union, farmers will receive immediate cash advances with a receipt of delivery from the hotels. The credit union will then collect on the receivable from the hotel within 90 days, depositing the remaining cash directly to the members' savings account.
"Financing agriculture is always risky," Laborie CU Manager Lucius Ellevic explains. "But if we can help our members buy land, put in irrigation systems, build greenhouses or construct piggeries, we help them reduce those risks and grant them greater security."
CU System briefs
- ANCHORAGE (3/14/07)--Alaska USA FCU's wholly owned subsidiary, Alaska USA Insurance Brokers is sponsoring the Iditarod Trail Sled Dog Race, announced the credit union. The brokerage is the largest independent insurance brokerage firm in the state. In addition to sponsoring the 35-year-old "The Last Great Race on Earth," the company also arranges for insurance for Iditarod operations throughout the year, including covering a fleet of 25 volunteer aircraft and the 2,000 volunteers who work the course. "Our role is to provide the necessary coverage so that race organizers can concentrate on other tasks with peace of mind," said the Alaska USA Insurance Brokers President Randy Pugh ...
- ALBANY, N.Y. (3/14/07)--Students from Irondequoit High School, Rochester, N.Y., captured the 2007 New York State LifeSmarts title, besting 10 teams from around the state on questions in personal finance, health and safety, environment, technology, and consumer rights and responsibilities.
The state event is coordinated by the New York Credit Union Foundation. The final competition took place March 6 at the New York State Museum in Albany. The team will travel to Orlando, Fla., next month to vie for the National LifeSmarts title. The foundation covers transportation and lodging costs for students and coaches. Sponsors assisting the teams with transportation to Albany and other state competition expenses, included: Capital Communications FCU, Churchville-Chili FCU; Columbia-Greene FCU; First Source FCU; LeRoy FCU; New York State Credit Union League's Long Island chapter; Pittsford FCU; Suffolk FCU; Teachers FCU; The Summit FCU; and UFirst FCU. Pictured are, from left, Louis DiCesare, Jonathan Yioulos, foundation Chair James Mack, Mike Calabro, team captain Maggie Baum, foundation Executive Director Diane LaVigna-Wixted, Bill Finan and Rachel Nolan (Photo provided by the New York Credit Union Foundation) ...
- RIVERSIDE, Calif. (3/13/07)--Altura CU executives cut the ribbon at its new central location for its credit union service organization
(CUSO) companies--Auto Expert, Amerit Escrow Inc., Patrion Insurance Inc. and Patrion Mortage LLC. Previously, their offices were scattered in Riverside County, Riverside and Temecula. Satellite offices are still in place for Patrion Mortgage, but the new building houses administration and operations for all four companies. From left are: Altura Board Chairman Bob Gray; Amerit Escrow executive vice president Helen Durniok; Patrion Insurnace President Mari Rezinas; Altura CEO Mark Hawkins; Patrion Mortgage President David Constantino and Auto Expert President Jennifer Binkley. (Photo provided by Altura CU) ...
Market News
MADISON, Wis. (3/14/07)
- Mortgage delinquencies rose to a 3˝-year high and foreclosures surged to a record high during the fourth quarter, according to a report by the Mortgage Bankers Association (MBA). The percentage of mortgage payments overdue by 30 days or more jumped to 4.95%--from 4.67% in the third quarter, and the highest level since the spring of 2003. The percentage of mortgages entering the foreclosure process surged to a record-high 0.54% last quarter, topping the previous record high of 0.50% set in the second quarter of 2002, following the last recession. The increase in delinquencies and foreclosures was led by subprime mortgages. The delinquency rate for subprime mortgages rose to 13.33% in the fourth quarter--from 12.56% in the third quarter, and the highest rate in four years. The delinquency rate for subprime borrowers with adjustable-rate mortgages (ARMs) was an even-higher 14.44% during the final quarter of last year. The percentage of subprime mortgages entering the foreclosure process was 2%, while the share of subprime ARMs entering foreclosure was 2.70%. The surge in delinquencies was expected because of the housing-market slump and decelerating home-price gains, said MBA Chief Economist Doug Duncan. He predicts that the shakeup in the subprime market will soon restore balance to the market (Associated Press via Yahoo! News and MarketWatch March 13) ...
- The shakeout in the subprime-mortgage market will lead to a sharp decline in home sales and construction this year as lenders tighten credit and speculators exit the market, according to a report by Credit Suisse Analyst Ivy Zelman. She predicts that new-home sales will plunge about 20% to 890,000 units in 2007, while housing starts will tumble 35% to 45% this year and into next year, compared with their annual peak rate of 1.8 million units set in January 2006. Zelman says a jump in foreclosures in coming months will add as much as 20% to the nation's existing housing inventory (The Wall Street Journal Online March 13) ...
- Retail sales eked out only a small gain in February, as higher gasoline prices discouraged spending on other items (Bloomberg.com March 13). Retail sales, which account for about half of all consumer spending in the U.S., rose just 0.1% last month after stalling in January, the Commerce Department reported Tuesday. Harsh weather in the Midwest and Northeast also helped dampen sales last month. Sales at clothing stores plunged by 1.8%, while sales of electronics and appliances fell 0.3%, and furniture sales tumbled 1.7%--reflecting the housing-market slump. Gasoline-station sales rose 1.2%, due to higher prices. Auto dealers and parts stores saw a 0.9% sales gain. Excluding auto and gasoline, core retail sales declined 0.3% in February. Weakness in the housing market and high energy prices will remain drags on consumer spending this year, said Moody's Economy.com (March 13). Employment in housing-related sectors also is declining, lowering total growth in both employment and income ...
- Employers' hiring plans remain constrained, with 59% anticipating no change in hiring during the second quarter, according to a report by Manpower Inc. Just 18% plan to hire more employees--down from 19% for the first quarter and 20% for the fourth quarter. "A look at the last three quarters of survey data suggests that employers are shifting into neutral when it comes to hiring," said Manpower chairman and CEO Jeffrey A. Joerres. Employers in the construction, mining, trade, and service sectors were less confident about hiring in the latest survey. Regionally, employers in the Northeast and South expected to continue hiring, while those in the Midwest and West anticipated weaker hiring (CNNMoney.com and MarketWatch March 13) ...
- Business spending on computer technology yields increases in worker productivity that are three to five times greater than those of other investments, according to a study by the Information Technology and Innovation Foundation, a nonprofit think tank. The report said the information-technology (IT) industry contributes $2 trillion to the national economy each year. But the report noted that growth in IT jobs is limited. "Going forward, it is unlikely that the IT industry will be producing jobs gains out of line with its size. In part this is because productivity in the IT industry itself has been strong, allowing it to produce more output with fewer workers." The report predicts that the service sector, which already employs about 80% of the U.S. workforce, will generate most new job growth going forward (The New York Times and BizJournals via Yahoo! News March 13) ...
News of the competition
MADISON, Wis. (3/14/07)
- In the wake of a decision by the Tokyo Stock Exchange not to revoke Nikko Cordial Corp.'s listing, Citigroup raised its offer by 26% to $13.4 billion on Tuesday (Reuters via The New York Times March 13). Citigroup's offer came one day after the surprise ruling by the exchange had weakened the U.S. bank's leverage against a group of large shareholders from North America, who had dismissed the Citigroup's original offer as too low. The fact that it is eager to pay more for Nikko highlights Citigroup's determination to expand its foreign business and lay a pipeline into Japan's expanding asset management market. In a recent statement, Citigroup said it would launch a tender offer at 1,700 yen a share, up from its original 1,350 yen announced last week. However, this new offer still falls short of the 2,000 yen-a-share mark that most funds require, which suggests that the pressure may remain on Citigroup to come up with more cash for the pending purchase ...
- In a March 12 securities filing, New Century Financial stated that its credit lines had been frozen by all of its lenders, who were demanding it buy back the $8.4 billion it previously had issued, using money it had borrowed from these banks. New Century now says it does not have this money. Several lenders have had discussions with New Century in the last few days, concerning the option of providing debtor-in-possession financing with a bankruptcy filing, according to one source familiar with the situation. The source adds that New Century would then pursue a sale of itself or its assets through the process of a bankruptcy filing. New Century saw a 90% decline in its stock price this year, before trading was halted on Monday (The New York Times March 13) ...
- Although some banking companies have announced layoffs in recent weeks due to concerns about credit quality in the subprime market, many financial services executives remained optimistic in January about trends as they looked forward to the second quarter of 2007. Executives surveyed in the last two weeks of January were more optimistic about hiring expectations for the second quarter than they had been for the fourth or first quarters, according to a Manpower Inc. survey just released (American Banker March 13) ...
- The Calabasas, Calif.-based Countrywide Financial Corp., has moved ahead of Wells Fargo, as the largest U.S. home retailer, against the backdrop of turmoil in the subprime lending sector. Countrywide led all three production channels--overall mortgage lender, correspondent and wholesale--according to data from National Mortgage News. Countrywide's Executive Managing Director of Residential Lending Drew Gissinger said he believes his company has benefited from the problems in the subprime and alternative-A sectors. He said that Countrywide can become a stabilizing influence in the troubled areas, even though it has not been immune from the lessened credit quality and tightening product standards that have hit its competitors (American Banker March 13) ...
- Discover credit card holders who pay their bills on time for six consecutive months will now see refunds of a month's interest with a newly introduced rewards program by Discover Financial Services LLC. The new program, the Discover Motiva Card, was slated to be announced on Tuesday. The product is geared to customers who may carry a balance, but are not considered to be the company's biggest spenders. The driving force behind the Motiva card is to simplify financial matters for consumers, so they know clearly and simply that they will get a refund of their seventh month's interest, if they make their six monthly payments in a row. One analyst noted that the interest rebate could have an incentive effect in getting people to not only pay their bills on time, but also to use their cards more often (American Banker March 13) ...
Small ways to save more
WASHINGTON (3/14/07)--No matter how little or how much money you make, it pays to save. If finding money in your budget to sock away seems difficult, it's not impossible if you learn a few tricks (Kiplinger's March 1).
Saving as little as $1,000 a year--$83 a month--can pay big dividends in the long run. The younger you start saving, the greater your rewards will be (MSNMoney.com).
Find easy ways to boost your savings:
- Bring your lunch to work instead of eating out each day.
- Buy soda at the grocery store and bring it to work instead of plugging change into a vending machine. Better yet, drink water, which is healthier than soft drinks.
- Visit the library and check out free music, movies, and books.
- Regularly check your tire pressure to help make sure you're getting decent gas mileage.
- Stop smoking. If a pack-a-day habit costs $3.50, that's nearly $1,300 a year.
- Use cold water to do your laundry. Research shows clothes get just as clean, and you save money on heating costs.
- Air-dry as much laundry as you can to save money on your electric bill.
- Invest in a programmable thermostat.
- Buy pasta, canned goods, cereals, rice, and other nonperishables in bulk, as prices generally are lower in bigger quantities.
- Let your hobbies save you money. Learn how to cook, garden, sew, or make cards and gifts. You'll save money and have fun at the same time--so long as you don't go overboard on those tempting supplies.
If nothing else works, dig under your couch cushions for some spare change and feed your hungry piggy bank. Every little bit is worth saving.
GalaxyPlus introduces S.T.A.R.S member reward program
TROY, Mich. (3/14/07)--Galaxy Plus Credit Union Systems will offer an online reward system, Special Thanks and Recognition (S.T.A.R.S), to its members.
Credit union members can earn S.T.A.R.S by using its services and products, and employees can earn S.T.A.R.S for high performance. The S.T.A.R.S can then be redeemed for rewards, such as digital cameras or gift cards.
Thanks to the flexibility of S.T.A.R.S, each individual credit union can decide which products and services (from online banking to electronic statements) it can reward in addition to the amount of points one can earn. Credit unions also can decide which prizes to award members.
To date, GalaxyPlus has paired up with 10 credit unions for the S.T.A.R. program, including AEA FCU, Yuma, Ariz. The incentives will be integrated into numerous promotions throughout the year, according to Yanna Kruse, marketing director.
Digital Insight offers two new online banking products
MOUNTAIN VIEW, Calif. (3/14/07)--Digital Insight will release two new online banking tools, Personal FinanceWorks and Small Business FinanceWorks, that are expected to change the way consumers and small business owners handle their finances.
Personal FinanceWorks and Small Business FinanceWorks will not only allow credit unions and other financial institutions a more efficient and integrated way for their consumers and small business members to handle their finances online (BusinessWire March 13).
The products will also close the gap that typically remains between small business owners or consumers and their respective financial institutions.
Personal FinanceWorks will let consumers manage bills, see their balances and watch their spending. Small Business FinanceWorks will help its users manage administrative tasks more easily by allowing them to understand cash flow, create invoices, and manage payments and payroll.
Digital Insight, which was acquired by Intuit Inc. in February, serves more than 5,000 financial intuitions, 25 million consumers, and seven million small businesses.
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