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Filed on December 1, 2008, published the first business day after.
- CUNA, CUs raised record $4 million for CULAC
- Senate hearing signals bankruptcy interest
- inside Washington
- Media roundup: CUs have money to lend
- Self Help CU CEO Eakes injured in attack
- Tom Glatt to be CEO of new REALTORS FCU
- Indiana ignite initiative ready for CU adoption
- Cliff Rosenthal to receive national Gramlich award
- Maryland/DC safety ad campaign ends
- Massachusetts CUs grew through third quarter
- CUAO elects new board of directors
- CU System briefs
- Market News
- News of the Competition
- eDoc Innovations' year-end earnings up 33+%
CUNA, CUs raised record $4 million for CULAC
WASHINGTON (12/2/08)—Credit union political fundraising hit a significant milestone in the 2007-2008 election cycle, raising a record $4 million through the Credit Union National Association's (CUNA's) Credit Union Legislative Action Council (CULAC).
CUNA President/CEO Dan Mica said the achievement places credit unions in the "upper-tier, elite echelon of political action across the nation." He said the milestone should make credit unions "proud and confident for their future."
Mica noted that CULAC is among about 4,000 political action campaigns (PACs) nationally, and most of those target a small number of key congressional election races.
"But, because of the hard work and generosity of credit unions and the leagues, we have the capability to be involved in nearly all races, and still put to use important, proven tools such as independent expenditures (IE)," Mica said of CULAC's far-reaching effort.
He added that less than one percent of all PACs nationwide that have the ability to support a candidate with an IE.
"We are fortunate to be one of them," Mica said. Federal regulations dictate that IEs must be made independently, with no coordination between the contributor and a candidates' campaign camp. The money is used for such things as independent advertising and mailings in support of a candidate.
Mica identified the following key points as among those that led to the success of the last election cycle:
- Fundraising continues to be driven by growth in payroll deduction, a program in place only since 2005. As of Oct. 31, more than 2,800 employees at 113 credit unions, 22 state leagues, and CUNA were contributing to CULAC;
- CULAC distributed more than $2.9 million in contributions this cycle to federal candidates and committees, and participated in 8% of the 470 U.S. House and Senate races on the November ballot;
- CULAC spent a record $528,000 in IEs in three races, one of which resulted in the defeat of an anti-credit union incumbent by credit union friend and Kansas State Treasurer Lynn Jenkins;
- More than 92% of CULAC-supported House and Senate candidates won election in the November elections;
- CULAC ranked 14th among all federal PACs in direct candidate contributions, and 6th among trade association PACs. The partisan breakdown (52% to Democrats and 48% to Republicans) was tied with only one other organization as the most bipartisan among the nation's 20 largest PACs, based on figures provided by the Center for Responsive Politics).
Senate hearing signals bankruptcy interest
WASHINGTON (12/2/08)—The Senate Judiciary Committee has scheduled a field hearing Thursday on "Credit Cards and Bankruptcy: Opportunities for Reform."
The hearing will be conducted at Rhode Island College in Providence and will feature a panel of the following four witnesses:
- John Rao, an attorney with the National Consumer Law Center;
- U.S. Bankruptcy Court Judge Thomas Small, from the eastern district of North Carolina;
- Robert Lawless, a professor of law from the University of Illinois; and
- Associate Professor of Law John Chung, from Roger Williams University.
Ryan Donovan, vice president of legislative affairs for the Credit Union National Association, said the hearing can be viewed as a harbinger of things to come in the 111th U.S. Congress.
"We fully anticipate Congress will take a very close look at the bankruptcy code. While the focus of the bankruptcy discussion in Congress most recently has revolved around mortgage cramdown proposals, this hearing and others indicate there may be an appetite to go further in the new Congress," Donovan said.
In October the Judiciary panel conducted a two-part field hearing titled "Keeping Families in Their Home: How to Prevent Foreclosures" in Pennsylvania. Part I was held in Pittsburgh, Part II in Philadelphia.
inside Washington
- WASHINGTON (12/2/08)—Credit Union National Association (CUNA)
President/CEO Dan Mica was among those that Fox Business Network tapped yesterday for reaction to Fed Chairman Ben Bernanke's comments on the economy. In a live interview Monday with Fox Business News right after Bernanke concluded his remarks and Q&A session, Mica said the Fed chairman's comments reinforced what the country already knows--that the economy is troubled. "I represent Main Street and you didn't have to wait until today for an official declaration of a recession. People out there have known for months...that we were having severe problems. People also know that it is going to be very tough next year. There isn't a small business on Main Street looking forward to the next year with any joy or glee." Mica also predicted a busy 2009 in the U.S. Congress as federal lawmakers parse the government's actions in response to the financial meltdown. "There will be hearings, there will be regulations, and there will be blame," the CUNA leader said...
CUNA President/CEO Dan Mica appeared live Monday on FOX Business TV. (Photo provided by CUNA) - WASHINGTON (12/2/08)—The Federal Deposit Insurance Corp. said last week it would begin to speed up the eligibility process to bid on assets of failed banks by using a less exhaustive review process. It may also start issuing conditional approval for deposit insurance so more interested parties can become eligible to offer bids for failing institutions .(American Banker Dec. 1)...
- WASHINGTON (12/2/08)—The Federal Deposit Insurance Corp. (FDIC) has started to force some banks to adopt its systemic loan modification program to the dismay of some bankers and relief of some consumer advocates. The FDIC stipulated recently that plans of Citigroup Inc. and U.S. Bancorp to buy assets of two failed California thrifts would get the government's backstop only if they agreed to adopt the FDIC's plan. (American Banker Dec. 1)...
Media roundup: CUs have money to lend
MADISON, Wis. (12/2/08)--From The Columbus (Ohio) Dispatch to the Los Angeles Times, from TheStreet.com to the Plattsburgh (N.Y.) Press Republic to the Seattle Post-Intelligencer, the word is that despite the economy, credit unions have money to lend.
The newspapers all published reports in the past week about credit unions offering loans at a time when credit has dried up elsewhere.
The Columbus Dispatch Sunday noted that "as many financial institutions have struggled, credit unions promote themselves as a safe alternative to 'regular' banks." In the article, Ohio Credit Union League President Paul Mercer said that despite what people read about other parts of the financial industry, "we're in a good position and have money to lend."
The article outlined the history, philosophy and expansion of credit unions, discussed their tax exemption and featured three Columbus area credit union executives: Brett Shearer, a board member of the State Transportation Employees CU; Gerald Guy, CEO of Kemba Financial CU; and James Riederer, CEO of CME FCU.
TheStreet.com Friday advised that "if you need a loan, consider skipping your local bank and checking out your neighborhood credit union." Author Peter McDougall learned from Credit Union National Association senior economist Mike Schenk that credit unions' loan growth is increasing. Loan growth during recessions in the '80s and '90s were around 3%. "We're more than double that today," Schenk says, adding there is "still a lot of lending going on.
McDougall wrote that credit unions may be the best bet because they have different management, offer the same loans but with better rates, have kept their standards relatively steady and avoided the subprime mortgage woes, and offer broader memberships today.
The Plattsburgh Press Republic Sunday noted that area credit unions and community banks "didn't listen to the siren's song" that produced problems for many financial institutions. "Credit unions and community banks still have liquidity and adequate money to lend," said the publication.
Last Thursday's Los Angeles Times discussed falling mortgage rates and how many borrowers still will have trouble qualifying for a mortgage loan in today's tighter underwriting standards because they bought homes during the real estate bubble and now owe more on their homes than the homes are worth.
The article quotes California Credit Union League economist Terrin Griffiths, who expects refinance activity to increase, but not dramatically. Many are trying to get out of adjustable-rate mortgages that are resetting to higher rates next year.
And the Seattle Post-Intelligencer (Nov. 25) featured BECU (formerly Boeing Employees CU), which is feeling the pinch of the economic downturn through declining earnings, rising delinquencies and higher provisions to reserve for future loan losses.
Even with the downturn, BECU is "decently profitable." Loan delinquencies, while double year-ago delinquencies, are still less than 1% of the credit union's total portfolio. BECU is still providing loans, with 2008 mortgage originations already topping $1 billion for the year.
Its CEO, Gary Oakland, advocated the Credit Union Homeowners Affordability Relief Program to help stabilize housing markets and provide confidence. The credit union has a debt relief program for members and could assist more under the program.
For the full articles, use the resource links.
Self Help CU CEO Eakes injured in attack
DURHAM, N.C. (12/2/08)--Martin Eakes, the CEO of Self-Help CU and the Center for Responsible Lending, was robbed and severely beaten by four men in a parking garage as he left his Durham, N.C., office Nov 24.
He suffered multiple bruises to the head and face, a gash to his forehead that required 15 stitches and a torn bicep that likely will require surgery (The Herald-Sun Nov. 30).
The incident occurred at about 8 p.m. as he was about to enter the parking garage used by employees of Self-Help. The men delivered between 20 and 30 blows, targeting Eakes' head and face. They took his wallet and cell phone.
Eakes told the publication he did not know the men or whether they were waiting for him in particular. The city-owned parking garage, located in Durham's center city, has generated several complaints about safety.
Eakes and the Center for Responsible Lending are strong advocates in the fight against predatory payday lending tactics in North Carolina. The center helped pass the nation's first anti-predatory mortgage lending law in 1999.
Eakes has received national attention from a variety of media, including Forbes.com and The Wall Street Journal about the center's lending philosophy.
Tom Glatt to be CEO of new REALTORS FCU
WASHINGTON (12/2/08)--Thomas Glatt Sr. has been named the first CEO of the new REALTORS FCU (RFCU), effective Dec. 15, the credit union's board of directors announced Monday.
A 20-year veteran of the credit union movement, Glatt is currently CEO of Continental FCU, Tempe, Ariz., which serves airline industry employees.
He also served in executive positions with OnPoint Community CU (formerly Portland Teachers CU), Portland, Ore.; First Financial FCU, West Covina, Calif; and 66 FCU of Philips Petroleum, Bartlesville, Okla. For 16 years, he headed a credit union consultancy that advised some of the nation's largest credit unions.
He also has been a member of the boards at USA FCU, San Diego, and Kaiperm FCU, Oakland, Calif.
The National Association of Realtors (NAR) is providing the credit union as a member benefit, said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokers in Dallas-Ft. Worth. He noted the new credit union is tailored to the work habits and lifestyles of realtors, most of whom are independent contractors compensated by commissions.
According to NAR CEO Dale Stinton, the new credit union will be open 24/7 and is Internet-based.
RFCU is scheduled to open for business in mid-2009. Those eligible to become members of the credit union include: realtors and their families; NAR's institutes, societies and councils; NAR staff; and the staffs of state and local boards and associations. NAR clients, such as home buyers and home sellers, are not eligible.
Indiana ignite initiative ready for CU adoption
INDIANAPOLIS (12/2/08)--Indiana Credit Union League's ignite initiative is making progress, and innovations begun at the start of the year by the ignite working group are ready to be implemented in credit unions, says the league.
Several Indiana credit unions have committed to offering the innovations, and working-group members are seeking additional credit unions to adopt them, the league said.
"To stay in touch with all that is happening with ignite, we have established a website, www.ignitecu.org," said Doug True, league director and leadership team member, and senior vice president technovation at FORUM CU and president of FORUM Solutions.
The site serves as an information center for ignite projects and as a social networking site. The credit union community nationwide can join the network to keep up with the developments, True said.
One credit union that has adopted an ignite innovation is Lafayette-based Purdue Employees FCU, whose CEO Bob Falk, is a member of the ignite leadership team. Purdue is implementing DriveUp Savings, which allows borrowers to open a matching-rate savings account at the same time they close on their auto loan.
"This product has merit not just for our members, but for credit union members everywhere who need a little extra incentive to save money," Falk said.
"All the ignite innovations are open source, meaning that there is no cost to a credit union wanting to use the ideas," said Nan Morrow, vice president of corporate development at Centra CU, Columbus, Ind., and a member of the ignite leadership team.
"Any of the ideas an be adapted or modified to fit the needs of any credit union wanting to use them, so while the working groups have provided templates for implementation, the specific implementation plans can be as individual as the credit unions using them," Morrow said.
"The leadership team and the working groups have done a remarkable amount of work in the year since ignite was introduced," said league President John McKenzie. "In addition to the efforts of the leadership team to make ignite so successful from the very beginning, the recent addition of the new website developed by Doug True is a tremendous enhancement."
The working groups made presentations at the league's convention in September. They summarized two sets of projects: Connect U and CU Through Life, and DriveUp savings and FYI Savings--For Young Individuals.
Connect U and CU Through Life are Web-based approaches that allow current and potential members to network, exchange information, seek advice and make the credit union's website an information hub and peer-to-peer resource.
Connect U is a social networking site credit unions can use to communicate with and engage 18- to 34-year-old members and prospective members so they can share ideas and learn from each other.
CU Through Life is a modern-day, Internet version of the "party line," where multiple conversations can occur on common situations affecting different stages of members' lives.
DriveUp Savings and FYI Savings are savings-focused, with one tied to a vehicle loan/savings product combination that offers the same rate, and the other set up similar to a 401(k) plan for young people, with funds used for major life events after age 18.
In the DriveUp Savings product, members open a savings account, such as a certificate, at the same time they close their auto loan. The loan officer and member agree on a monthly contribution amount and through automated electronic transfers, the DriveUp Savings is funded at the same time the auto loan payment is made. More information can be found at the link.
FYI Savings is designed for credit unions to help their youngest members learn the basics of saving money. For more information, use the link.
The ignite initiative is a joint venture between the Indiana league and three Indiana credit union representatives associated with the Filene Research Institutes i3 program. The three representatives are True, Falk and Morrow.
Cliff Rosenthal to receive national Gramlich award
NEW YORK (12/2/08)--Cliff Rosenthal, CEO of the National Federation of Community Development Credit Unions, will be presented the second annual Ned Gramlich Lifetime Achievement Award for Responsible Lending by the Opportunity Finance Network (OFN).
He will be presented with the industry's highest award, named for the late Federal Reserve Board Gov. Edward "Ned" Gramlich, on Dec. 10th at the OFN Conference in Albuquerque, N.M.
Federal Reserve Board Chairman Ben Bernanke, in congratulating Rosenthal, said, "Cliff has dedicated an illustrious career to expanding economic opportunities for lower-income households and communities. His considerable contributions toward this end exemplify Ned's legacy as an advocate for policies and practices that help families at the lower levels of the income scale improve their financial well-being."
OFN President/CEO Mark Pinsky said Rosenthal "is a leader among leaders in a critical segment of the financial services industry.
The award honors one person each year who achieves remarkable susscess in promoting and implementing responsible financial services for low-income and low-wealth people.
Rosenthal's achievements include:
- Growing the community development credit union (CDCU) sector to more than 200 institutions in 46 states managing more than $4 billion and serving more than one million people;
- Inspiring the federal CDFI Fund in the U.S. Treasury Department, which has made almost $1 billion in equity and debt investments into CDCUs and other types of community development financial institutions (CDFI);
- Creating and leading the New York State CDFI Coalition to a major victory--the creation of a New York State CDFI Fund;
- Building the successful Community Development Investment Program at the federation, which provided more than $60 million in financing to more than 150 CDCUs nationwide; and
- Founding the CDCU Institute, a professional development program for staff and officials at CDCUs.
Maryland/DC safety ad campaign ends
COLUMBIA, Md. (12/2/08)--The fall 2008 Safety and Soundness media campaign for Baltimore, Washington, D.C., and Western Maryland credit unions ended Nov. 23, according to the Maryland and District of Columbia Credit Union Association (I>Focus Newsletter Dec. 1).
The campaign statistics indicate:
- 632 ads were broadcast on 12 top-rated radio stations in the Baltimore, Washington metro and Western Maryland media markets. About 3.5 million consumers heard the ads a minimum of 14 times;
- 65 metro bus ads reached 2.6 million consumers in the Baltimore and Washington metro markets and were seen a minimum of eight times;
- With the radio and transit ads, 95% of the target audience (3.85 million consumers) heard and/or saw the ads a minimum of 16 times; and
- A Google ad words and search engine optimization plan was implemented to drive consumers to the WhatsInItForMe.org website. On the site, consumers can learn more about the safety of credit unions and locate one to join. The final report is being prepared, the association said.
Many credit unions participated in the campaign by using the metro bus ad artwork and safety and soundness articles on their websites and in newsletters, statement stuffers and emails. The association encouraged credit unions to continue to feature the messages on communications to their members.
Forty-four credit unions contributed to the Community Outreach Fund that made the campaign possible.
Massachusetts CUs grew through third quarter
MARLBOROUGH, Mass. (12/2/08)--Massachusetts' credit unions saw growth in assets, deposits, loans, and membership during third quarter, according to data compiled from reports released last week by the National Credit Union Administration (NCUA).
The 226 credit unions in the state hold roughly $26 billion in assets.
The Massachusetts Credit Union League's newsletter (E-Weekly Nov. 26) said NCUA reported that the state's credit unions had 5.95% aggregate growth in assets--to $26 billion from $24.6 billion at the first of the year. The national growth rate was 5.7%.
Savings for the state's credit unions are up by 3% since January, compared with a national savings growth of 5%.
Some of the funds may have been deposited by new credit union members. Massachusetts credit unions added roughly 54,000 new members in 2008, a 2.2% increase to date.
Loans outstanding at Massachusetts credit unions grew by more than 6%, or $1.1 billion, since January. That is more than the national overall loan growth of 5.6%.
CUAO elects new board of directors
BEAVERTON, Ore. (12/2/08)--The Credit Union Association of Oregon (CUAO) seated its new board of directors at its recent Annual Business Meeting.
Gene Pelham, president/CEO of Rogue FCU, Medford, was elected to serve as board chairman, representing District 2. Shirley Cate, president/CEO of Providence Health System FCU, Portland, and the previous board chair, will remain on the board representing District 3.
Also returning are:
- Bill Anderson, president, Mid Oregon FCU, Bend, District 2, serving as treasurer;
- Cameron Dickey, vice president of retail sales and service, Advantis CU, Milwaukie, District 3, vice chair;
- Kevin Cole, COO, MaPS CU, Salem, District 5, secretary; and
- Bob Newcomb, president, SELCO Community CU, Eugene, District 4.
Newly elected to the CUAO board are:
- Stan Baron, president/CEO, Chetco FCU, Harbor, District 4;
- Steve Canfield, executive vice president, NW Preferred FCU, Tigard, District 1;
- Rob Stuart, president/CEO, OnPoint Community CU, Portland, District 1, and
- Jean Wheat-Palm, president/CEO, Valley Health and Postal Employees CU, Salem, District 5.
CU System briefs
- BARRE, Vt. (12/2/08)--Vermont Gov. Jim Douglas (center) and other local and state dignitaries were on hand Nov. 10 for the ribbon
cutting ceremony of Granite Hills CU's new 4,800 square foot facility in Barre. Douglas spoke for a few minutes about the state of the economy and how encouraging it is that Granite Hills CU is successfully providing a viable financial resource to the community, said the Association of Vermont Credit Unions (Newslines Express Dec. 1). The facility has two drive-up lanes, a 24-hour drive-up ATM and a night depository. The $29 million asset credit union continues to have a branch in a National Life Building in Barre. (Photo provided by the Association of Vermont Credit Unions) ...
- BALTIMORE (12/2/08)--MECU of Baltimore has signed a partnership agreement with Capital CU of Edinburgh, Scotland, to work together
for the betterment of their memberships. Capital CU Board President John Cormack and CEO Marlene Shiels have visited Maryland credit unions twice in the past several years, spending time with MECU leaders and staff each time. Both credit unions started out serving municipal workers and have strong commitments to their communities. Through the partnership, they will share ideas and initiatives; identify mutual ways for each to grow and better serve members; enhance the knowledge base of their boards and staff; and increase international brotherhood among credit unions, they said. From left are: Bert J. Hash Jr., president/CEO of MECU; Herman Williams Jr., MECU board chairman; Shiels; and Cormack. (Photo provided by MECU) ...
Market News
MADISON, Wis. (12/2/08)
- Big discounts enticed shoppers, resulting in a strong kickoff to the holiday shopping season. Promotions such as "buy one, get one free" resulted in Thanksgiving weekend sales that exceeded retailers expectations, analysts said. The National Retail Federation conducted a survey of 3,370 shoppers that estimated shoppers spent an average of $372.57 over the weekend, up 7.2% compared with last year's $347.55. However, sales momentum noticeably slowed on Saturday and into Sunday, indicating that many consumers had purchased only deeply discounted merchandise Friday, according to a poll of 700 shoppers by Charleston, S.C.-based America Research Group. Also, the bargains that got shoppers to part with their money were so drastic that retailers--already experiencing double-digit declines the past two months--may see their profits fall even more, analysts said. Retailers consider Thanksgiving a barometer of overall holiday sales, which account for 25% to 40% of annual sales, analysts said (The Wall Street Journal and The New York Times Dec. 1) ...
- The Institute for Supply Management's (ISM) manufacturing index fell a larger than anticipated 2.7 points to 36.2 for November--its lowest level since the early 1980s and well below its third-quarter average of 47.8. The ISM index is consistent with an economy in a severe recession and indicates the need for additional monetary and fiscal stimulus measures, analysts said. Manufacturing has contracted for four consecutive months, and weakness is broad-based, they add (Moody's Economy.com Dec. 1) ...
- U.S. construction spending in October tallied $1.073 billion--a 1.2% decline from the revised September total of $1.086 billion, and down by 4.6% compared with a year ago, according to the Bureau of Census. The decline was in private residential and nonresidential construction spending--which was not completely offset by a moderate increase in public construction spending. The decline in overall construction spending matches expectations and highlights the continuing tight credit and the decline in developer confidence as the U.S. recession unfolds, analysts said. The construction industry will be facing significant challenges until an economic recovery is firmly in place--likely not until the second half of 2009, economists said (Moody's Economy.com and The New York Times Dec. 1) ...
- Global business confidence fell to a record low last week, according to the Moody's Economy.com Survey of Business Confidence. Responses to questions concerning equipment investment, hiring, inventory, sales strength and expectations regarding the outlook during the next six months are the weakest they've been. The survey indicates pessimism is prevalent worldwide, with the only caveat being that Asian businesses are somewhat less downbeat than elsewhere. The global economy is experiencing a severe recession, according to the business confidence survey results, analysts said (Moody's Economy.com Dec. 1) ...
- The Organization of Petroleum Exporting Countries (OPEC) did not reach any agreement to reduce production and push prices higher at a weekend meeting in Cairo. OPEC accounts for 40% of the world's oil exports. The meeting did not do much to indicate in which direction oil markets will move, analysts said. After reaching in excess of $145 a barrel in July, oil pries have dropped more than $90 a barrel because of diminished global growth, analysts said. Next year, prices may continue to fall, analysts said, with some predicting new lows in the neighborhood of $30 per barrel (The New York Times Dec. 1) ...
- The rural economy is faltering and there is little confidence that conditions will improve in the next six months, according to the Rural Mainstreet index, compiled from a survey of bank chief executives in 11 states. The index hit its fourth record low in a row, according to a report issued Friday. November's figure was 22.1, following record lows of 34.4 in October, 38.5 in September, and 38.9 in August. The index was at 54.1 a year ago--above the growth-neutral figure of 50. The rural economy has been negatively impacted by the national recession and the global economic slowdown, said Ernie Goss, Creighton University economics professor and overseer of the survey (Forbes.com and Montana's News Station.com Nov. 21) ...
- The 30-year fixed-rate mortgage fell below 6% on average last week--a seven-week low, according to a weekly survey released Nov. 26 by Freddie Mac. For the week ending Nov. 26, the mortgage averaged 5.97%--down from the previous week's 6.04% average and the lowest since Oct. 9 when it averaged 5.94%. A year ago, the 30-year fixed-rate mortgage averaged 6.10%. The 15-year fixed rate mortgage averaged 5.74%--up from the previous week's 5.73% average. A year ago, the mortgage also averaged 5.73% (MarketWatch Nov. 26) ...
News of the Competition
MADISON, Wis. (12/2/08)
- American International Group Inc. (AIG) will sell its private-banking business to Aabar Investments PJSC, an Abu Dhabi oil-and-gas firm. AIG is divesting assets as a condition of its $150 billion federal government bailout. The deal--terms of which are undisclosed--will create a new name for AIG Private Bank Ltd., based in Switzerland, with branches in Dubai, Hong Kong, Shanghai and Singapore. The new entity will continue to provide wealth-management services to well-to-do clients in Asia, Europe and the Middle East. Investors from the Middle East have been trying to leverage their petro-dollars, but recent investments in the U.S. financial sector haven't paid off, analysts said (The Wall Street Journal Dec. 1) ...
- Ford Motor Co. is contemplating the sale of its Volvo unit as it considers its options amid the financial problems afflicting Detroit auto makers. Ford's financial turnaround strategy is based on cutting its size to focus its resources on the Ford brand, analysts said. The automaker already has sold its Land Rover and Jaguar lines. Ford is reportedly already shopping around Volvo, which it purchased in 1999 from AB Volvo--a Swedish truck maker. Although Volvo has been posting losses and losing market share, and despite Ford's moves to rapidly unload its other European luxury brands, Ford CEO Alan Mulally decided in 2007 to keep the company and attempt to restore its image (The Wall Street Journal Dec. 1) ...
- Bank analyst Meredith Whitney made two predictions this week about financial firms and banks. Large financial firms will have to reduce the amount of credit they make available to consumers, Whitney said, adding that the contraction will likely be $2 trillion or roughly 45% of the borrowing pool that is currently available to credit card customers. She also predicts that U.S. banks will post another $44 billion in the fourth quarter in write-downs and credit-loss provisions. This will cause banks to use capital injections from the federal government to bolster their balance sheets instead of lending money to consumers, Whitney added (24/7 Wall St. and American Banker Dec. 1) ...
- Moody's Investors Service has downgraded Discover Financial Services' ratings outlook to negative from stable, although it affirmed the company's ratings. The ratings affirmation is indicative of the company's strong market position in the U.S. general purpose credit card market, including the strong Discover cash-back rewards program, analysts said. The downgrade in the company's ratings outlook is a result of its exposure to troubled U.S. economic conditions, given Discover's heavy reliance on its core U.S. card franchise, analysts added (Schaeffers research.com Nov. 25) ...
eDoc Innovations' year-end earnings up 33+%
MIDWAY, Utah and GRAND RAPIDS, Mich. (12/2/08)--eDOC Innovations (EDI), a credit union service organization (CUSO) for e-document strategies, announced it has exceeded performance expectations for its 2008 fiscal year by 33%.
EDI is owned by eDOC innovations, CU*Answers and Corporate One FCU. The ownership brings both equity and services together to represent more than 1,200 credit unions served.
EDI services more than 400 credit unions through its e-document strategies software, DocLogic, a "Go Paperless" platform that includes both in-house and on-line deliverables making paperless solutions available to credit unions of all sizes.
"Our financial performance is a clear indicator that credit unions recognize how important having an e-document strategy is, as well as the value of an expert to assist in effectively creating and executing that strategy," said Bret Weekes, president/CEO of eDOC Innovations.
He said that during the past year, eDOC Innovations has welcomed more than 100 credit union peers into its platforms. The CUSO also is working with CUSO peers to build awareness of e-document strategies.
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