RSS Feed
What is RSS?
News Now Archive
Filed on March 31, 2008, published the first business day after.
- Mica: Treasury’s perilous plan has long road
- Hill covered with CUNA's Treasury blueprint letters
- FTC-TJX settlement 'constructive,' says CUNA
- Go Direct offers new fin ed tools
- Power breakfast keeps CUs in Hill view
- Inside Washington
- National Financial Literacy Month begins today
- Youth Week just around the corner
- Breaches expose flaws in data privacy laws
- Arizona, Antigua CU leagues sign partnership pact
- Bill Sterner, chairman of CU Association of Colorado, dies
- Second teen arrested in Virginia interstate, CU shootings
- White papers focus on branch design and sales/service
- Minnesota network hosts international visitors
- Vermont CUs have busy day with state officials
- CU System briefs
- Market News
- News of the Competition
- Products and Services briefs
Mica: Treasury’s perilous plan has long road
WASHINGTON (4/1/08)--After reviewing details of the U.S. Treasury's long-term plan to overhaul the nation's financial institution regulatory structure, Credit Union National Association (CUNA) President/CEO Dan Mica remained convinced the plan is perilous for credit unions and consumers.
 |
| During yesterday's briefing on the Treasury's regulatory proposal, U.S. Treasury Secretary Henry Paulson listens to CUNA President/CEO Dan Mica, who asserted the proposal could put credit unions out of business. Paulson rejected that notion and said such an outcome was not Treasury's intent. (Photo source: Bloomberg.com) |
During Monday's briefing in Washington, Mica explained to Paulson that the Treasury proposal would result in the demise of credit unions as they function today.
Paulson rejected that assertion and said "If you read the executive summary, you'll see it is not our intent and that would not be the effect."
Mica said the report's language indicates otherwise:
- All institutions desiring federal deposit insurance--whether banks, thrifts, or credit unions; including state-chartered institutions--would be required to obtain the new "federal insured depository institution" (FIDI) charter (report p. 160);
- The recommendation would combine the five federal regulatory bodies into three--the National Credit Union Administration would cease to exist;
- Cooperative institutions could operate under the FIDI charter. However, to qualify for the tax-exemption, these institutions would be required to elect "community status" and meet a series of apparently stringent tests in terms of asset size, field of membership, and service to the underserved. It appears small banks also could meet such tests and claim the tax-exemption (report p. 161);
- A Presidential Executive Order may be issued to all federal regulators expanding an existing interagency working group and directing them to more closely coordinate during the current financial crisis. After the expansion, NCUA will still not be included;
- Finally, there is insufficient information about the new federal regulatory body that would oversee all payment systems.
Mica emphasized that the provisions of greatest concern to credit unions are long-term recommendations, which Paulson dubbed an "aspirational plan" that "requires thoughtful discussion"--as well as congressional action.
Lawmakers on Capitol Hill would not address them anytime in the foreseeable future and certainly not in this Congress, according to Mica.
Despite the lengthy timetable, the CUNA leader remained especially bothered by one aspect of the report.
"What may be most disturbing about the Treasury plan is its assumption that financial institutions can be compared solely on the basis of the services they offer, without regard to structural and cultural differences between different types of institutions," said Mica. "As a result, Treasury does not acknowledge any unique contribution from credit unions based on their not-for-profit, cooperative structure."
Use the resource link below to review Treasury's complete 212-page blueprint.
Hill covered with CUNA's Treasury blueprint letters
WASHINGTON (4/1/08)—As part of comprehensive actions to alert federal policy- and lawmakers of concerns about the U.S. Treasury's blueprint for regulatory restructuring, Credit Union National Association (CUNA) President Dan Mica Monday sent a letter to every member of Congress.
Mica expressed credit unions' grave concerns regarding the Treasury plan that ultimately would phase out the National Credit Union Administration (NCUA) and place banks and credit unions under one regulator's oversight, as well as merge various charters into a single charter type.
"The strategy regarding credit unions reveals Treasury's apparent total disregard for the uniquely democratic and consumer-owned structure of credit unions and the pocket book benefits from better rates and services their consumer/members are provided," Mica said in the letter sent to each House and Senate member.
He underscored the fact that credit unions have not contributed to the current housing and credit problems the nation is experiencing. Yet the Treasury proposal, he said, "would eliminate one of the few sectors of the financial services industry that has consistently acted in the best interest of consumers."
Mica urged the country's lawmakers to "make a strong statement regarding the important role that credit unions play in helping America's consumers through these difficult economic times by quickly enacting H.R. 1537." He was referring to the Credit Union Regulatory Improvements Act, know as CURIA.
CURIA would provide for a risk-based capital system, raise the ceiling on credit union loans to members for business purposes, and clarify that all federally insured credit unions are eligible to add underserved areas to their field of membership.
The Treasury's strategy regarding credit unions, Mica said, serves to reveal the department's "apparent total disregard for the uniquely democratic and consumer-owned structure of credit unions and the pocket book benefits from better rates and services their consumer/members are provided."
In a related story, NCUA Chairman JoAnn Johnson said in a statement that the Treasury's plan "raises important issues about the optimal structure for governmental oversight of U.S. financial markets.
She said that while the NCUA agrees with safety and soundness objectives, "we have significant concerns that the many consumer benefits of the credit union system would be threatened by any restructuring proposal that may blur the credit union charter and that eliminates the separate regulatory and insurance function for federally insured credit unions."
The NCUA will conduct a detailed review of the Treasury report, Johnson said.
FTC-TJX settlement 'constructive,' says CUNA
WASHINGTON (4/1/08)—A Federal Trade Commission (FTC) decision to require TJX Cos. to beef up security and submit audits--every other year for the next 20 years--by independent third-party security professionals appears to be a constructive settlement, according to the Credit Union National Association (CUNA).
The FTC last week announced its resolution with the company whose hacked information was the source in 2007 of in the largest reported breach of credit and debit card information in history. TJX is parent company to such discount retail stores as TJ Maxx, Marshalls and Homegoods.
CUNA General Counsel Eric Richard said Monday the FTC agreement with TJX appears to be comprehensive and should "send a message to merchants that they must take appropriate security measures to protect customer data."
"If all merchants were to take similar measures, credit unions would, I think, be exposed to less risk and have to consider reissuing large numbers of cards much less frequently," Richard said.
The FTC announcement noted that TJX, as well as data brokers Reed Elsevier and Seisint, have agreed to settle charges that each engaged in practices that, taken together, failed to provide reasonable and appropriate security for sensitive consumer information.
The settlements will require that the companies implement comprehensive information security programs and obtain the audits.
The breach event, coupled with a significant increase in sophisticated attempts to phish personal information from consumers, were integral to changes in the way credit unions and their members deal with security issues. More credit unions are taking precautions by offering credit monitoring identity theft services and security solutions.
Go Direct offers new fin ed tools
WASHINGTON (4/1/08)—Opportunities to offer consumers' a bit of financial education are blossoming all over this Spring, with April named Financial Literacy Month and May designated Older American Month.
The U.S. Treasury Department's "Go Direct" program to encourage direct deposit of government benefits checks is offering downloadable tools to inform seniors about the benefits of having checks deposited automatically into their accounts.
Those tools include:
- A Financial Literacy Month overview providing ways to incorporate Go Direct into existing financial literacy efforts;
- PowerPoint slides with key information about the benefits of direct deposit, which can be incorporated into existing presentations;
- A "Direct Deposit Myths and Facts" sheet for hand-out at presentations, workshops or meetings, a flyer that is intended to identify and dispel common misconceptions about direct deposit.
Below are additional items specifically for April Financial Literacy Month for you to download and include in your financial literacy efforts. Newsletter copy, poster, web banner – "take charge of your finances," web banner – "sign up for direct deposit," event flier, telephone hold message script, statement stuffer and statement message. The Credit Union National Association (CUNA) is a Go Direct national partner and supports the check-safety and cost-savings goals for the program.
Paper checks make up only 20% of the total number of Social Security payments, but they account for more than 90% of reported problems. In fiscal year 2007, for example, nearly 60,000 Treasury-issued checks were forged -- totaling an estimated $56 million. Direct deposit eliminates the risk of check fraud and helps protect people from identity theft.
Use the resource link below to access the Treasury materials.
Power breakfast keeps CUs in Hill view
WASHINGTON (4/1/08)—With three broadly known U.S. senators on the risers, the Credit Union National Association (CUNA) will continue to keep credit unions in the focus of Capitol Hill Wednesday with its seventh "Power Breakfast"
Organized by National Journal and MSNBC, co-sponsored by CUNA and various other enterprises, the power breakfast series has typically attracted close to 100 Capitol Hill staffers, lobbyists and reporters.
On April 2, the offering will feature a discussion on the upcoming presidential election, called "Super-Surrogates: The candidates biggest supporters state their case." The phrase "super surrogate" is meant to capture the speakers' positions as not only superdelegates, but also as official representatives of one of the campaigns.
Scheduled participants in the discussion are:
- Sen. Evan Bayh (D-Ind.), who has backed Sen. Hillary Clinton (D-N.Y.) in her bid for the presidency;
- Sen. Richard Durbin (D-Ill.), a supporter for the Democratic contender from his state, Sen. Barak Obama; and
- Sen. Lindsey Graham (R-S.C.), who has cast his support behind Sen. John McCaiin (R-Ariz.).
According to CUNA Political Director Trey Hawkins, by participating in the power breakfast series, CUNA assures that "insiders from Capitol Hill and in the Washington lobbying community are seeing credit unions in the thick of the political process."
Inside Washington
- WASHINGTON (4/1/08)--The Federal Reserve Banks Monday announced changes to the schedule for previously announced check processing infrastructure changes as consumers and businesses continue the shift from paper checks to electronic payments. The revised schedule takes effect immediately. Seven sites will change this year, compared with the five sites originally scheduled. The announcement marks the banks' sixth annual review of their check infrastructure ...
- WASHINGTON (4/1/08)--Secretary of the Department of Housing and Urban Development Alphonso Jackson announced that he will step down from his position. His resignation is effective April 18. Jackson said he resigned to spend more time with his family. His resignation coincides with the Bush administration's pressure on the department to help solve the foreclosure crisis (The New York Times March 31) ...
National Financial Literacy Month begins today
MADISON, Wis. (4/1/08)--April Fool's Day may start out National Financial Literacy Month but financial literacy is no joke.
The national average financial literacy skills score for 12th graders in 305 high schools nationwide was 52.4%, with only 6.9% of students receiving a "C" grade or better, according to a 2006 survey by the national Jump$tart Coalition for Personal Financial Education
These aren't the latest statistics. The results of the coalition's 2008 Survey of Personal Financial Literacy Among High School Students--conducted this past fall and winter--will be released at a press conference on April 9 as part of National Financial Literacy Month.
As governors and legislatures polish their proclamations and resolutions, credit unions and other organizations already are working on the front lines to improve financial literacy skills.
According to the Credit Union National Association's (CUNA) Financial Literacy Task Force, nearly 80% of credit unions with assets of $10 million or more offer financial education to adults or youth, while more than half provide financial education to both. Credit unions with $50 million or more in assets are more likely to offer financial literacy programs than they were in 2005.
Credit unions in several states are working for state laws requiring a financial literacy component in state schools. For example, the North Carolina General Assembly has required personal financial literacy be provided all public high school students beginning next fall for 10th graders' civics and economics curriculum.
In many states, credit unions are an integral part of the education programs in local schools, either providing materials for the curriculum through the National Endowment for Financial Education or training the teachers.
Elsewhere, credit unions are partnering with lawmakers to hone financial skills of students of all ages. The Michigan Credit Union League's Sixth Annual Financial Literacy Legislative Challenge partners Michigan lawmakers with credit unions and schools to co-present the curriculum (Michigan Monitor March 31).
Credit unions also will highlight financial literacy during National Credit Union Youth Week April 20-26. See "Youth Week just around the corner" in News Now's System News section.
Meanwhile, credit unions will see a number of proclamations to raise awareness. California Gov. Arnold Schwarzenegger proclaimed April as "Financial Aid and Literacy Month" last week. North Carolina Gov. Michael Easley proclaimed the month as "Financial Literacy for Youth Month." Washington State Gov. Chris Gregoire also proclaimed the month "Financial Literacy Month."
Youth Week just around the corner
MADISON, Wis. (4/1/08)--National Credit Union Youth Week is soon approaching, and credit unions who haven't already registered for the National Youth Saving Challenge can do so on the Credit Union National Association (CUNA) website.
This year's Youth Week, with the theme of "Got Green? Grow it at Your Credit Union," will take place April 20-26.
"Each year National Credit Union Youth Week gives the movement the opportunity to get young members excited about saving money to reach personal financial goals," said Phil Heckman, CUNA director of youth programs. "It's the perfect opportunity to kick start the next generation's savings habit."
Credit unions also can sign up for the National Youth Saving Challenge, which is an opportunity for credit unions to invite youth to open new accounts and deposit money. CUNA also will award 10 credit unions $100 each for their youth.
Four hundred credit unions have registered, and the credit unions said they expect to see about 74,000 youth deposit $7.4 million during the event.
"If kids and teenagers at participating credit unions can break last year's Saving Challenge record of $10 million during the week--well, that wouldn't hurt our argument that credit unions are different, would it?" Heckman added.
Credit unions also can sign up for e-News, which will be sent throughout April. The messages provide tips for celebrating Youth Week and setting goals for the saving challenge, and share suggestions from credit unions.
Some credit unions, such as Hawaii Community FCU, Kealakekua, have added Youth Week information to their home pages. 1st Financial FCU, St. Charles, Mo., is celebrating Youth Week with coloring and essay contests for youth club members 12 years and younger. The coloring contest winner will receive a $50 savings bond. The essay winner will receive a hand-held game system and have the essay published in the youth club newsletter (CourierNet March 19).
Electro Savings CU, St. Louis, is partnering with the Maryland Heights Department of Parks and Recreation during Youth Week to encourage recycling. The credit union will add one cent to youth's accounts for every two plastic grocery bags brought in.
Postal Federal Community CU, Springfield, Mo., also is donating $1 for each youth deposit made during the week to Ozark Greenways, a nonprofit organization that works to preserve the Ozark Mountains.
Youth Week promotional materials, such as posters, statement stuffers, clothing and drive-up envelopes, are available.
For more information or to register, use the link.
Breaches expose flaws in data privacy laws
BOSTON (4/1/08)--Credit unions backing state privacy and data breach bills might want to check the bills they're supporting for loopholes such as one exposed in Massachusetts' new data privacy law when grocer chain Hannaford Bros. disclosed a sophisticated first-of-its-kind data breach.
The Massachusetts statute, like many other similar statutes, requires companies to notify state officials and residents when they lose control of records that could lead to the theft of personal information such as a person's name and credit card number. State officials say the law applied in the case of the Hannaford breach, according to the Boston Globe (March 30).
Even though it disclosed the breach, Hannaford says it was not required to make such a disclosure, even after it learned the information from the cards was sent overseas.
Hannaford's General Counsel Emily D. Dickinson wrote in a letter to Massachusetts Attorney General Martha Coakley and the state Office of Consumer Affairs and Business Regulation that the loss of card numbers alone does not amount to loss of personal information, as defined by Massachusetts law. She added that Hannaford's notice to regulators was a form of voluntary cooperation. The company did not believe that notice of the breach was required.
Thirty nine states have laws requiring some form of disclosure following a breach. Most say the companies involved must file reports when they lose card data with customers' names and other personal details.
They don't address what happens when a company experiences the loss of just numbers, without the customers' names, as happened in the Hannaford breach.
Most laws include names and data because together they constitute potential identity theft, said Chris Hoofnagle, a specialist in privacy law at the University of California. Hoofnagle told the Globe that losing only numbers is considered less threatening because there's less chance of abuse and because card issuers often forgive many fraudulent charges.
Hannaford revealed on March 17 that 300 stores in its system were compromised by a first-of-its-kind data breach that illicitly placed software on the stores' servers and lifted credit and card numbers and expiration dates of 4.2 million customers. The breach was discovered on Feb. 27. It disclosed the details in stages, through a press release, a statement on its website, and the letter to the Massachusetts regulators.
Arizona, Antigua CU leagues sign partnership pact
PHOENIX (4/1/08)--The Arizona Credit Union System (ACUS) signed a partnership agreement this week with the Antigua & Barbuda Cooperative Credit Union League to help the Caribbean island nation better serve its affiliated credit unions.
| ||
|
The partnership agreement was arranged through the World Council of Credit Unions (WOCCU) International Partnership program.
Representatives from ACUS visited Antigua in June as the first step toward the agreement.
Last week, ACUS hosted a delegation of five representatives from the Antigua league. Ellis Southwell, president of the Antigua League, and Scott Earl, president/CEO of ACUS, signed the agreement during the visit.
"Credit unions, no matter where they are, are not that different," Earl said. "The bottom line is that it is all about the member. Our goal is to work with the Antigua & Barbuda Credit Union League to institutionalize the organization and allow it to serve its member credit unions more efficiently."
The partnership will focus on strengthening the Antigua league through the development of new revenue streams and new products and services to be offered to its affiliated credit unions. Currently, the league relies on its volunteer board of directors, its volunteer supervisory committee and a dues-based structure to operate and serve affiliates.
The league said it also would like to incorporate more training programs--especially for compliance issues--into its member service program.
"The Antigua league is a small league with potential, and we believe that this partnership with the ACUS will help us unleash the possibilities and help us to develop ourselves so that we can assist our affiliates," Southwell said.
Bill Sterner, chairman of CU Association of Colorado, dies
ARVADA, Colo. (4/1/08)—Bill Sterner, president/CEO of Elevations CU in Boulder, Colo., died Monday following a heart attack on Friday.
Sterner, 66, was board chairman of the Credit Union Association of Colorado (CUAC) and of Credit Union Strategic Partners, the service corporation for CUAC.
He was attending CUAC's annual Legislative Forum at the State Capitol in Denver when he was stricken.
He had been CEO of Elevations CU since 2000 after joining the credit union as vice president of marketing in 1997. Under his leadership, Elevations grew from $340 million to more than $790 million in assets, with more than 75,000 members.
During his 46-year career, Sterner held management positions with the Credit Union National Association, the California Credit Union League, the Kansas Credit Union Association, and the World Council of Credit Unions.
John Dill, president/CEO of CUAC, said Sterner "embodies the credit union philosophy of ‘People Helping People' in his chairmanship of CUAC, his service to our entire credit union movement in Colorado, and the national stature he brought to our state association." He noted that "all of us at the association are saddened by his loss and will miss his friendship and leadership."
Doug Ferraro, president/CEO of Bellco CU and vice chairman of the CUAC Board, has been named acting CUAC chairman for the remainder of Sterner's term.
Sterner also served on the board of directors of SunCorp CU and the Credit Union Service Network.
Elevations CU has named an acting CEO. The credit union's board will meet Thursday to appoint an interim CEO.
Second teen arrested in Virginia interstate, CU shootings
CROZET, Va. (4/1/08)--A second teenager was arrested Friday in the police search for shooters who fired gunshots at passing cars on Interstate 64 between Waynesboro and Charlottesville, Va., and into a credit union while it was closed Thursday morning.
Authorities arrested the 16-year-old teen whose name was not released, after storming a central Virginia farm (The Knoxville News Sentinel March 29).
Earlier, another man, Slade A. Woodson, 19, of Afton, Va., was arrested, announced Virginia State Police Friday. He was charged with shooting at a residence in Waynesboro and at the DuPont Community CU, Waynesboro (News Now March 31).
Because investigators said the shooters slightly injured two drivers, Woodson and the other teen were charged with two felony counts of malicious wounding, one count of attempted malicious wounding, two counts of the use of a firearm in felony, and five counts of a malicious shooting at an occupied vehicle.
The credit union in Waynesboro, reported the vandalism at its Lucy Lane office Thursday morning. "During the night, while the office was closed, random shots were fired at the building and a vehicle on the premises," Jackie L. Cason, vice president of human resources, told News Now Friday.
The incident was discovered Thursday morning when the credit union opened for business. Because it occurred overnight and not during business hours, DCCU conducted "business as usual" on Thursday. "No credit union employees or members were involved or affected by this event," Cason said.
She said at least four bullets struck the building, a sign and an unoccupied van in the parking lot. One went through an exterior window into an office, she told News Now.
White papers focus on branch design and sales/service
MADISON, Wis. (4/1/08)--Atypical approaches to designing a credit union branch and strategies for building a sales and service culture are the topics of two new white papers from the CUNA Councils.
"Rethinking Branch Design: Strategies for Non-Traditional Approaches to Branch Design and Operations" from the CUNA Operations, Sales, and Service Council offers a look into how and why credit unions are developing experimental approaches to designing their "right" branch.
The paper identifies trends and marketplace pressures that lead to new approaches. It also explores why credit unions have created non-traditional designs--to improve member relations, to create a service culture, to improve operating efficiency, or to meet other strategic objectives--and offers case studies and photos.
"Building a Sales and Service Culture," sponsored by the CUNA Marketing and Business Development Council, identifies different approaches and considerations to implementing a sales and service environment. The paper addresses staffing, incentive plans, operations support, technology, and measuring success. It also offers advice from six credit unions on their approaches.
Minnesota network hosts international visitors
ST. PAUL, Minn. (4/1/08)--The Minnesota Credit Union Network (MnCUN) hosted participants of the International Visitor Leadership Program (IVLP) Thursday as part of the group's three-week visit to the U.S.
 |
| International Visitor Leadership Program participants from Bosnia, Costa Rica, South Africa, Taiwan, Tanzania, Turkey and Zimbabwe met with the Minnesota Credit Union Network Thursday. (Photo provided by the Minnesota Credit Union Network) |
Seven international professionals visited the Minnesota MnCUN in St. Paul to discuss the difference between cooperative financial institutions and for-profit financial institutions in the U.S. and to learn about credit unions' involvement in their communities.
IVLP participants were from Bosnia, Costa Rica, South Africa, Taiwan, Tanzania, Turkey and Zimbabwe. This is the third year MnCUN has participated in an IVLP visit.
MnCUN staff provided an overview of the network, the history of the credit union movement, core characteristics of credit unions, and the main operational and philosophical ways credit unions differ from banks.
Hiway FCU President Jeff Schwalen also spoke to the group about how credit unions are involved in their communities. He shared various ways the St. Paul-based, $705.2 million asset credit union serves the underserved areas in its field of membership.
In particular, Schwalen discussed how the credit union has focused on reaching out to the Hmong community to earn their trust. "The unique thing about our credit union is that we are locally owned and chartered," he said. "As a result, we are able to personalize our service and modify our services so that they meet the unique characteristics of our members."
Mark D. Cummins, MnCUN president/CEO, said: "I was impressed by their inquisitive nature and their desire to learn about credit unions. It was a privilege to hear about the financial institutions in their home countries and to aid in their understanding of the credit union movement in the U.S."
Vermont CUs have busy day with state officials
MONTPELIER, Vt. (4/1/08)--More than 20 credit union employees and volunteers "hiked" into the Vermont statehouse in Montpelier Tuesday, drawing the attention of dozens of legislators and three prominent leaders of Vermont state government.
 |
| More than 20 credit union employees and volunteers "hiked" into the Vermont statehouse in Montpelier Tuesday, drawing the attention of dozens of legislators and three prominent leaders of Vermont state government. (Photo provided by the Credit Union Association of Vermont) |
Although the legislators appreciation reception drew the most attention, a private, closed-door meeting of credit union leaders were addressed, in succession, by Republican Gov. Jim Douglas, Democratic Senate President Pro Tempore Peter Shumlin, and Democratic Speaker of the House Gaye Symington (Newslines Express March 28).
The day began with testimony by Credit Union Association of Vermont President Joe Bergeron in the Vermont Senate Finance Committee. Bergeron provided the committee with information on the state of Vermont's credit unions and touched on the costs that credit unions must bear as a result of the Hannaford card breach, the Maine-based grocery chain data breach announced March 17.
He also provided testimony on two bills that the association was asked to testify on in the House Commerce Committee: H. 563 seeks to modernize a part of the Uniform Commercial Code, and H. 458 relate to digital corporate transactions.
Bergeron also spoke before the House Commerce Committee, regarding the Hannaford breach.
"Bottom line ... no matter how [the Hannaford breach] is being handled, it's unpleasant and unacceptable for consumers, and very costly for card-issuing institutions," Bergeron said. "In all cases, cardholders are protected if fraudulent activity does occur, if they inform their financial institution ... but it's a huge inconvenience, creates distrust in cardholders' minds, and costs all of us money directly or indirectly."
CU System briefs
- NORTHVILLE TOWNSHIP, Mich. (4/1/08)--Eight lawmakers and 70 credit
union people turned out for a legislative breakfast hosted by the Mid-Michigan chapter of credit unions, according to the Michigan Credit Union League (Michigan Monitor March 31). Attending were State Sens. Roger Kahn (R-Saginaw Township) and Tony Stamas (R-Midland) and state Reps. Terry Brown (D-Pigeon), Bill Caul (R-Mt. Pleasant), Ken Horn (shown here) (R-Frankenmuth), Jeff Mayes (D-Bay City), John Moolenaar (R-Midland), and Tim Moore (R-Farwell). Stamas told the group he appreciated "your activism, legislatively and in the community" and "your commitment to financial literacy, which is something we need to do more of." Rep. Caul, a long-time supporter of credit unions and regular participant in the league's Financial Literacy Legislative Challenge, noted, "My family and I have been members of Isabella Community CU for over 40 years. I know firsthand what you do--thank you for being responsible lenders and friends to your local community." (Photo provided by the Michigan Credit Union League) ...
-
KANSAS CITY, Mo. (4/1/08)--Mazuma CU President Rob Givens met recently with U.S. Rep. Emanuel Cleaver (D-District 5) in Kansas City during the congressional recess, according to the Missouri Credit Union Association (Legislative Updates March 28). He also met with Cleaver's legislative staff, including his new Chief of Staff Leslie Woolley, based in Washington, D.C., at a reception and luncheon sponsored by the Kansas City Chamber of Commerce. Givens said he emphasized the importance of the Credit Union Regulatory Improvements Act (CURIA) and encouraged Cleaver's support. Cleaver is one of two Missouri congressmen serving on the House Financial Services Committee, which recently held a hearing on credit union regulatory relief ...
- MINNEAPOLIS (4/1/08)--Twin City Co-ops FCU, Minnesota's fifth-largest credit union, has changed its name to Spire FCU. The name was chosen because it means the top point or summit of something. "We chose a name that speaks to where we are going, not where we have been," said President/CEO John Gisler. "We wanted a name that was strong, had meaning behind it and did not narrowly define us geographically." Spire FCU has more than $574.8 million in assets ...
- KOKOMO, Ind. (4/1/08)--Transmission Builders FCU has changed its name to Financial Builders FCU, effective today. The change reflects the credit union's community charter and county-wide open membership eligibility. According to Judy Drinkard, Financial Builders vice president of marketing, a new ad campaign next week will focus "on reminding members and potential members that Financial Builders wants to be a financial partner, through thick and thin, and at every stage of life." Financial Builders FCU has more than $66.8 million in assets ...
- VINELAND, N.J. (4/1/08)--John E. Lisi, treasurer of Bay Atlantic FCU, died recently, according to the New Jersey Credit Union League (The Weekly Exchange March 28). He was 64. Lisi began volunteering with BAFCU in March 1975 as a member of its supervisory committee. He joined the board in 1976 and served as treasurer for several terms. He was employed for 37 years at Kimble Glass Co. More recently, he was a teacher and tax preparer for H&R Block. He is survived by his wife, Ellen; three children; and four grandchildren ...
Market News
MADISON, Wis. (4/1/08)
- The number of Americans receiving food stamps will jump to 28 million in the 2009 fiscal year, as job losses mount, and food and energy prices soar, according to the Congressional Budget Office. That's up from 27.8 million in 2008 and 26.5 million in 2007, and the highest total since the food-stamp program was launched in the 1960s. Federal benefit costs are forecast to increase to $36 billion in the 2009 fiscal year, from $34 billion in the 2008 fiscal year. Fourteen sates saw their food-stamp rolls hit record levels by last December, noted Stacy Dean, director of food stamp policy at the Center on Budget and Policy Priorities. One in eight residents in Michigan now receives food stamps. That state has seen a steady decline in factory jobs, as have Ohio and Illinois (The New York Times March 31) ...
- Assets in U.S. retirement plans have almost doubled in value over the past 10 years despite recent market downturns, according to a report by Watson Wyatt Worldwide. Assets in U.S. pension funds, 401(k)s, individual retirement accounts, and other retirement vehicles jumped to $15 trillion in 2007--from $7.9 trillion in 1997. "Retirement plans have built up strong reserves over the last 10 years, benefiting employers, employees and retirees," said Carl Hess, director of investment consulting in North America at Watson Wyatt. The study also found that the distribution of retirement assets has shifted dramatically over the past 10 years. The percentage of assets in defined contribution plans jumped to 56% from 47%, while defined-benefit assets declined accordingly (/PRNewswire-FirstCall/ via Yahoo! News March 31) ...
- A regional report released Monday continued to show contraction and inflationary pressures. The National Association of Purchasing Management-Chicago said its business index increased to 48.2 in March, from 44.5 in February but still below the 50 level that indicates contraction. The prices-paid index jumped to 83.9 from 79.4, suggesting that inflationary pressures have increased. There were some bright spots in the report. Supplier deliveries jumped to 54.9 from 39.6, while employment rose to 44.6 from 33.5 (Dow Jones Newswires March 31) ...
- U.S. business confidence fell to a new record low during the last week of March--consistent with a recession, according to Moody's Economy.com Survey of Business Confidence. Assessments of current conditions plunged following the recent collapse of Bear Stearns. Real-estate firms, financial institutions, and business-service companies are the most pessimistic. However, pricing pressures remain moderate despite soaring oil prices. The survey suggests that the economy will remain weak at least through the summer ...
- KB Home, one of the largest residential homebuilders in the U.S., reported a loss of $268 million for the first quarter, as the housing slump prompted big writedowns. "Until prices stabilize and consumer confidence returns, we believe inventory levels will remain significantly out of balance with demand," said KB Home President/CEO Jeffrey Mezger. The first quarter included a charge of $223.9 million in writedowns related to declining home prices. The average sales price of KB's homes fell 7% to $248,200 during the quarter (Associated Press via Yahoo! News March 28) ...
- Consumers could be facing higher grocery bills this year as farmers plant less corn. The Department of Agriculture predicts that farmers will plant 86 million acres of corn in 2008--down 8% from 2007. The decline is expected, as the price to grow corn increases. The slowdown in corn planting will boost corn prices, which have soared in recent years, as more corn was used in the ethanol industry (Associated Press via Yahoo! News March 31) ...
News of the Competition
MADISON, Wis. (4/1/08)
- Another state official has launched an investigation of the auction-rate bond market. Massachusetts Secretary of State William Galvin announced Friday that he is investigating New York-based Merrill Lynch, Charlotte, N.C.-based Bank of America, and Zurich-based UBS AG about how they marketed auction-rate bonds to investors. Since Feb.13, more than 60% of the auctions for the securities have failed after dealers that previously supported the market stopped bidding for bonds investors didn't want. "My office has received calls from people who thought they were investing in safe, liquid investments only to find that they had, in fact, purchased auction-market securities that are now frozen, and they cannot get their money out," said Galvin (Bloomberg.com March 31) ...
- Mergers and acquisitions bankers saw a 35% plunge in fees during the first quarter. Advisory fees declined to $8.7 billion from $13.4 billion during the fourth quarter, according to Freeman & Co. data. The value of announced mergers and acquisitions dropped to $656.2 billion in the first quarter, from $971 billion in the same period last year, according to Bloomberg News data. Weaker earnings have prompted financial firms to cut more than 34,000 employees during the past nine months. Layoffs may total more than 100,000 during the next several years, according to Jo Bennett, a partner at Battalia Winston International, a New York-based executive search firm (Bloomberg.com March 31) ...
- Assets under management by sovereign wealth funds surged 18% to $3.3 trillion at year-end 2007, according to a report by International Financial Services London. The surge reflected rising oil revenues and an increase in foreign exchange reserves in some Asian nations. Assets are expected to hit $5 trillion in 2010 and $10 trillion in 2015 (Dow Jones Newswires March 31) ...
- Citigroup is planning to split its consumer-banking unit from its credit-card business, as part of a wider reorganization plan to lower costs. Citi named Teresa Dial as global head of consumer strategy and chief executive of consumer banking in North America. Steven Freiberg will head its U.S. credit-card business. Citi also said it will create geographical regions headed by regional chief executives, as the firm shifts its focus to faster-growing regions outside the U.S. (Associated Press via The New York Times March 31) ...
Products and Services briefs
- RANCHO CUCAMONGA, Calif. (4/1/08)--Mary Lou Retton, the first female American gymnast to win an Olympic gold medal, will speak at CO-OP Financial Services' "Think 2008" April 14-16 in Rancho Mirage, Calif. Retton, a 15-year ambassador to Children's Miracle Network, is the organization's national chairperson. "We're thrilled to welcome someone like Mary Lou who shares our admiration and commitment to Children's Miracle Network," said CO-OP CEO Stan Hollen. CO-OP donates $2 million annually to the network. redit unions are a major contributor. CO-OP is a credit union service organization that offers ATM network access, processing, debit and credit card services and shared branching ...
- SAN DIMAS, Calif. (4/1/08)--Financial Service Centers Cooperative Inc. (FSCC) announced speakers for the 2008 Credit Union Retail Delivery Convention June 11-13 at the Renaissance Hotel in Chicago. Speakers include: Jason Boles, president, Jason Boles Consulting; Sarah Canepa Bang, president/CEO, FSCC; Mark Condon, senior vice president of research and advice, Credit Union National Association; John Dyer, vice president, Advanced Products, Cardtronics; Chip Filson, president, Callahan and Associates; Tom Glatt, president/CEO, Continental FCU, El Segundo, Calif.; Gigi Hyland, board member, National Credit Union Administration; Tim Lerew, president, Tim Lerew Associates; Gregory Martin, chief operating officer, Metafos; Scott Post, senior vice president, strategy and delivery, Hanscom FCU, Boston; Ann Rhoades, founder and former executive vice president of JetBlue Airways, and president of People Ink; Ray Springsteen, senior vice president, business development, Callahan and Associates; Joe Sullivan, founder/president, Market Insights; and Josh Sundquist, paralympic ski racer ...
- LAKE FOREST, Calif. (4/1/08)--"One More Member," a song that is a salute to the credit union marketer, was introduced by The Marketing SuperSource at the CUNA Council's Annual Marketing and Business Development Conference in Nashville, Tenn., March 16-19. The song is available for free download on www.psbonline.com/psbeat ...
- KINGWOOD, Texas (4/1/08)--The New Jersey Credit Union League added Strunk and Associates to its V.I.P. Solutions preferred vendors' resource list. The list contains companies and organizations that provide professional services and cost-saving opportunities to credit unions statewide. Strunk was added as the league's overdraft privilege provider because it is responsive, explains its program thoroughly and is knowledgeable about regulatory issues, according to Jeanne Chichelo, Pinnacle FCU, Edison, N.J. ...
- LATHAM, N.Y. (4/1/08)--Access FCU, Clinton, N.Y.; Achieve Financial CU, Berlin, Conn.; and Tonawanda Valley FCU, Batavia, N.Y., have added CO-OP Network access to their card programs, according to Covera Card Solutions. Through the agreement, the network will add 15 ATMs--seven from Access and eight from Achieve, Covera Card Solutions said last month. Covera provides credit unions in New York, New Jersey and Connecticut with card programs, including credit, debit and ATM. Covera is a partner of the CO-OP Network, which offers access to more than 25,000 surcharge-free ATMs in the U.S. ...
Copyright © 2010 - Credit Union National Association, Inc.
