Banking Wire articles from April 2007

Banking Wire archives from April 2007

New Online Threat Jeopardizes Credit Union Accounts.
April 2, 2007... WASHINGTON -- Authorities are investigating a new computer virus, traced to Russia, that has stolen PINs, passwords and identifying information and other personal data from thousands of credit union and bank accounts. In a scenario...

State Stat-Shot.
April 2, 2007... Throughout 2007, the Credit Union Journal, in conjunction with ENCORE Card Services, are profiling the credit unions of each U.S. state and D.C. Rather than appear in alphabetical order, the states are being featured in the order they became...

Now in the Market: CO-OP Signs Utah League.
April 2, 2007... ONTARIO, CALIF. -- The Utah League of Credit Unions (ULCU) said it has entered into a Business Partner Agreement with CO-OP Financial Services to solely market and promote CO-OP's ATM network (CO-OP Network) and services to 112 Utah credit...

Now in the Market.
April 2, 2007... Rochdale Group Drops CIA Name OVERLAND PARK, KAN.- The Rochdale Group, Inc. said it is dropping the Counter Intelligence Associates (CIA) name in favor of focusing on a single brand identity. The company said it's consulting division...

CU Representatives Take On Mount Kilimanjaro, Urban Violence.
April 2, 2007... MOUNT KILIMANJARO, TANZANIA -- A group of 32 people, including representatives of United Nations agencies, the United Nations FCU, and World Council of Credit Unions, scaled the heights of Mount Kilimanjaro to raise awareness and funds for...

Treasury Receives 213 CDFI Grant Applications For FY 2007.
April 2, 2007... WASHINGTON -- The U.S. Department of the Treasury's reported that its Community Development Financial Institutions (CDFI) Fund received a total of 213 applications for 2007. The applicants requested an aggregate of $146.1 million in...

Forget The Gavel, Today They Hang A Sword Over Your Head.
April 2, 2007... Imagine volunteering to take over the local Little League baseball program with the best of intentions and plans to clean up the fields and make sure all the kids have fun, thinking your only real worry is that enough parents sign up for the...

Calendar.(Calendar)
April 2, 2007... APRIL April 1-6 NAFCU Regulatory Compliance School. The Westin Arlington Gateway, Arlington, Va. For info: 888-336-4644 or www.nafcu.org. April 10-13 Texas CU League Annual Meeting & Expo, Hilton Austin, Texas. For info:...

Don't Count On CURIA To Stave Off Movement Wide 'Escape': Exiting the movement...seems more likely than the full passage of CURIA with secondary capital provisions...
April 2, 2007... In the first part of this series we noted that credit unions have become an industry in search of answers and not getting them. The pressure on earnings, and the striking difference in ROE at banks and credit unions, is forcing credit...

Why A Merger, Changing State Of Domicile To Iowa Are Needed By CUNA Mutual.(Company overview)
April 2, 2007... CUNA Mutual Group is comprised of multiple companies, including both insurance and noninsurance companies, diverse product lines that serve both credit unions and their members, domestic and international operations, and a number of strategic...

Letters To The Editor.
April 3, 2007... Has The Carl Icahn Era For CUs Begun? I find the Wings/Continental merger saga fascinating. I think the Continental FCU board of directors had better have their accounting hats on because if they turn down this very public and apparently...

Mergers: The Do-Nothing Option Is Gone Forever.
April 3, 2007... The unsolicited merger proposal from Wings Financial FCU recently presented to Continental FCU is generating much news coverage and discussion. Regardless of one's opinion about that situation, there is no doubt that the credit union industry...

The Driver Where The Keys Lie For What Happens Next.
April 3, 2007... PALM BEACH GARDENS, FLA. -- If nothing else, Wings Financial's decision to take its proposal to the membership of Continental FCU puts the emphasis where it belongs: the members. "I don't know enough of the facts to comment on this...

The Image Worries Expressed Over What Bid Will Mean To Perceptions.
April 3, 2007... WASHINGTON -- As the credit union movement struggles with conversions, unsolicited merger bids and other cooperative issues, one of the potential casualties is the integrity, credibility and image of the industry on Capitol Hill. "You...

The Regulations Views Expressed On Whether NCUA Needs To Step In Or Not.
April 3, 2007... FEDERAL WAY, WASH. -- While NAFCU's Fred Becker, as well as Continental CEO Tom Glatt, and others have called on NCUA to step in and put a stop to Wings Financial's attempts to appeal to members of Continental FCU, some are suggesting such...

The Watershed Agree Or Not, Analysts See A Changed CU Community.
April 3, 2007... PORTLAND, MAINE -- If there is one thing that most of those interviewed for this report agreed on it was that credit unions are, indeed, at a crossroads. "This is going to be a watershed event for credit unions, just as conversions have...

Continental Rejects Wings Offer.
April 3, 2007... EL SEGUNDO, CALIF. -- The board of Continental FCU again rejected an acquisition offer from the much-larger Wings Financial FCU, setting the stage for a protracted battle over credit union's first hostile takeover fight. The offer by the...

CUJ Q&A With Continental.
April 3, 2007... EL SEGUNDO, CALIF. -- The proposed merger bid by Wings Financial FCU to Continental FCU raises numerous questions. Here's how CFCU CEO Thomas Glatt, Sr., responded to questions from the CU Journal: Why is this not a good deal for...

NCUA Rules Bar Hostile Takeovers.
April 3, 2007... WASHINGTON -- CUNA and NAFCU continued their efforts to tamp down a potential spreading of unfriendly merger solicitations among CUs, urging NCUA to write guidelines or rules, lest the internecine battle between Wings Financial FCU and...

CUs Seek To Beat Payday Lenders At Their Own Game: Veridian Members Have A New PAL.
April 3, 2007... WATERLOO, IOWA -- As legislative leaders contemplate laws that would cap the interest on payday lending, Veridian Credit Union here is taking action now. The $1.2-billion asset CU launched a new product March 1 called the Payday...

CUs Seek To Beat Payday Lenders At Their Own Game: Pennsylvania CUs Offer 'Better Choice' As Alternative To Payday Loans.
April 4, 2007... HARRISBURG, PENN. -- A joint effort between the Pennsylvania Credit Union Association and the Pennsylvania Department of Banking to position credit unions as a solution to the growing problem of payday lending practices is gaining momentum. ...

Now In The Market.
April 4, 2007... New Company Aids CU Hiring INDIANAPOLIS-A new company, Achievant, has been established to help banks and credit unions recruit, assimilate, compensate and manage the performance of employees while insuring the actions of employees align...

Digital Insight Launches Small Business Services Solution.
April 4, 2007... CALABASAS, CALIF. -- On the heels of being acquired by financial software giant Intuit, Digital Insight has released two products designed to consolidate a member's personal or business data on a credit union's website. Digital Insight...

Credit Unions In The Media.
April 4, 2007... The Atmore Advance, Alabama, noted the visit of U.S. Rep. Jo Bonner, (R-AL) who talked about "concerns about credit unions operating under different rules and regulations as banks." He indicated that "credit unions are moving into areas that...

Spring Cleaning Your CU: Experts In Variety Of Fields Advise On What To Sweep Out This Spring.
April 4, 2007... It's Spring Cleaning time, and Credit Union Journal asked a variety of experts what cobwebs credit unions should be sweeping away. From moldy policies that need some serious sprucing up to literally cleaning up the branch, here's a look at what...

Under The Microscope: Study Claims Payday Loans Are Not 'Predatory': Latest Developments In Research.
April 4, 2007... ALEXANDRIA, VA. -- A study released by the Community Financial Services Association, a national trade group for the payday advance industry, said payday loans are not a "welfare reducing" form of credit. The study, titled "Defining and...

Under The Microscope: Inactive Equity Lines Pose Challenge for Providers: Latest Developments In Research.
April 4, 2007... ATLANTA -- A large proportion of equity line of credit holders has not used their line in the past year, according to a recent research study by Synergistics Research Corp. According to the study, entitled "Home Equity Lending Monitor...

Under The Microscope: Latest Developments In Research Alternative Data Will Extend Credit To Underserved.
April 4, 2007... WASHINGTON, D.C. -- New research from the Brookings Institution Urban Markets Initiative found millions of Americans could benefit from the credit industry using new and readily available information such as utility payment history to...

Under The Microscope: Symantec, Intel Say 'Virtualization' Will Reduce IT Costs: Latest Developments In Research.
April 4, 2007... CUPERTINO, CALIF. -- According to information technology giants Symantec and Intel, "virtualization" technology will play a large role in the financial services sector this year. Virtualization empowers a single IT administrator to manage...

Under The Microscope: Branch-Building Getting More Expensive- Materials, Customization to Blame: Latest Developments In Research.
April 4, 2007... ST. LOUIS -- A new white paper from design/build and retail services firm NewGround examines why the cost of building financial institutions is on the rise. Bob Mannion, the company's senior vice president, design and construction, said:...

Contributions Cultivate Congressional Leaders.
April 5, 2007... WASHINGTON -- CUNA reported last week it contributed $200,000 to members of Congress last month, almost half of it to key players who will influence debate over the newly introduced CU Regulatory Improvements Act, better known as CURIA. ...

Mortgage Lender's Bankruptcy Leaves CUs High and Dry.
April 5, 2007... SAN FRANCISCO -- Dozens of credit unions around the country are struggling to untangle their finances from a local mortgage lender that filed for bankruptcy, the first sign of contagion for the credit union industry from the meltdown of the...

Wal-Mart Ends Bank Bid, CUs open more in-store branches.
April 5, 2007... WASHINGTON -- Seeking to put another controversy behind it, Wal-Mart Stores withdrew its application for a U.S. bank charter. The company, embroiled in numerous fights over its labor practices, made the decision after the FDIC decided last...

Agenda.
April 5, 2007... Hearings House Financial Services SubCommittee on Financial institutions and consumer credit, March 27, will hold a hearing on "The New Regulatory Guidances on Subprime Hybrid Mortgages: Regulators and Response. Senate banking,...

People.
April 5, 2007... Community 1 FCU, Greenville, S.C., announced that Rick A. Leonardi was elected president of the Piedmont Chapter of Credit Unions. Family Trust FCU, Rock Hill, S.C., named Angel Bryan training officer. The Clark County Chapter of...

Mistaken ID Nets Member $36,600.
April 5, 2007... APPLETON, WIS. -- A member of Fox Communities CU thought his number came in when he received a check in the mail for $36,624 from a mutual fund company Thrivent Financial Services. The only problem was the check should have been sent to a...

Legislative Panel OKs Cards Bill.
April 5, 2007... ST. PAUL, MINN. -- The House Labor and Consumer Protection Committee approved a bill that will enact MasterCard's and Visa's credit card security rules as law and require parties responsible for a data breach to pay the costs for affected...

CDCUs Rally for State CDFI Fund.
April 5, 2007... ALBANY, N.Y. -- Leaders among the community development credit union movement joined other community development financial institution representatives at the state Capitol to press for creation of a state CDFI fund. The group met with...

Ailing ATM ISO Delays Financial Reporting.
April 5, 2007... PORTLAND, ORE. -- TRM Corp., the nation's second-biggest independent operator of ATMs and a key credit union partner, has delayed the filing of its fourth quarter and annual reports while the company struggles to account for a major...

Private Equity Bids for Wolters Kluwer Unit.
April 5, 2007... AMSTERDAM -- Wolters Kluwer NV, the provider of a variety of systems and e- learning for financial institutions, said it has received bids from five entities, most of them private equity funds, for its education division. Bidders include...

Mexican CU Considers Foundation.
April 9, 2007... CAJA LIBERTAD, MEXICO -- A delegation from Caja Libertad, the second largest credit union in Mexico, visited credit union foundations in the U.S. as part of the World Council of Credit Unions' International Partnership between Caja Libertad...

Shared Branching Grows In Bolivia.
April 9, 2007... LA PAZ, BOLIVIA -- The Bolivian credit union sector boasts eight new rural credit union branches, a shared branching network with 64 points of service, remittance distribution and several new savings and credit products thanks to the success...

Russian CUs Get PEARLS Training.
April 9, 2007... SIBERIA, RUSSIA -- World Council of Credit Unions representatives trained 150 Russian credit union executives and government officials on effective regulation and strategies to increase outreach at the Russian Credit Union Forum in Siberia...

Banker Seeks CU Membership.
April 9, 2007... DUSHANBE, TAJIKISTAN -- During a recent visit to the United States to learn about the U.S. banking industry, Tajikistan banker Izatoullo Lalbekov became so impressed with the CU industry that he asked if he could become a member. ...

Aussies Take A Bite Out Of Debt.
April 9, 2007... PERTH, AUSTRALIA -- How's this for a reminder about how big a bite credit card spending takes from your budget-a credit card that looks like a chocolate bar with a bite taken out of it? The card, financial products and services provider...

New Zealand Hosts CU Institute.
April 9, 2007... AUCKLAND, NEW ZEALAND -- A new Credit Union Institute of New Zealand has been created here with a goal of promoting excellence and professionalism in credit union governance and management, ongoing education and a code of ethics. The...

UK CU Leader Dorman Honored.
April 9, 2007... DALMUIR, U.K. -- The World Council of Credit Unions has renamed its newly remodeled conference room here as part of a tribute to Rose Dorman, a credit union leader who shaped credit unions throughout Scotland and England. Dorman died last...

Canadian Govt. Tries To Prop Up CU.
April 9, 2007... NEW BRUNSWICK, CANADA -- As much as (C) $60 million is being allocated here by the government of New Brunswick to help prop up the Caisses Populaire de Shippagan, a credit union that has suffered financial difficulties for the past three...

Community News.
April 9, 2007... Credit Unions In The News: * Firstmark CU, San Antonio, Texas, presented a $50,000 check to CHRISTUS Santa Rosa Children's Hospital. * MSU Federal Credit Union opened new headquarters in East Lansing, Mich. * Cascade Community...

Be There Or Be Squarely Behind Everyone Else.
April 9, 2007... WHAT: Credit Union Journal's Business Development & SEG Conference WHEN: April 12 & 13 WHERE: The Hyatt Hotel, Boston THE SKINNY: Credit Union Journal's Business Development & SEG Conference is dedicated to strategies for...

Reader Resources.
April 10, 2007... Credit Union Journal Subscribers can access all content from the print edition every Monday simultaneously with its publication at www.cujournal.com. Additional resources include: * Front-page news stories are accessible by clicking on the...

How To Bring 'Passion' To Your Relationship With Members.
April 10, 2007... LAS VEGAS -- Credit unions looking to grow should follow the "three Ps" of financial services marketing, according to the founder of Market Insights. Joe Sullivan, who also serves as CEO for the Chicago-based consulting firm, said those...

Creating Member Value Will Drive Growth.(Company overview)
April 10, 2007... LAS VEGAS -- In an era of tepid member growth and flat yield curves, some credit unions have discovered innovative ways to bring people in their doors and get them to open accounts. That was the message from Mary Royston, marketing...

Marketing On A Shoestring? Develop Ties To Local Media For 'Free Ads'.
April 10, 2007... LAS VEGAS -- A credit union of any size can reap the value of "free advertising"- also known as editorial coverage in the media-and the value of that media exposure shouldn't be underestimated. "'Free' coverage in the media has a value...

Growth By The Numbers: Business Development Experts Offer Strategies To Ramp Up Growth At Your CU.
April 10, 2007... As part of an ongoing effort to offer strategies that help you make 2007 a success, the CU Journal has launched its "7 in 07" series, chock full of ideas for your CU to implement. The topic for this edition: business development. Members of...

Now in the Market.
April 10, 2007... Meriwest CU Extends Services SAN DIMAS, Calif-Financial Service Centers Cooperative, Inc. (FSCC) and Digital Dialogue announced that Meriwest Credit Union, San Jose, Calif., has signed on with Digital Dialogue to ensure its more than...

The Key To Having Satisfied Members? Have Satisfied Employees Serving Them.
April 10, 2007... FORT MILL, S.C. -- The best way to grow: don't focus on growth. "Profitability and growth takes care of itself. It's very difficult to articulate," said Sharonview Federal Credit Union CEO John Carlson, when asked what the key to success...

Credit Union Journal Leader Board Profiles Of Peer Group Leaders.
April 10, 2007... CU: Sharonview FCU Assets: $802 million Membership: 56,194 No. of Loans: 46,566 Loan Portfolio: $727.36 million Total Shares/Deposits: $561.23 million Net Worth Ratio: 10.25% Callahan Return To Member Rankings...

Top 100 By ROAA.
April 10, 2007... The top 100 credit unions in return on averge assets 4Q 2006 Source: SNL Financial Rank Credit Union City State ROAA (%) 1 State & Parish EFCU New Orleans LA 413.79 2 First Baptist Church Oakland FCU Jacksonville FL...

Nicaraguans Work Word Of Mouth.
April 10, 2007... MIAMI, FLA. -- Nicaraguans living in the United States select remittance providers based on word of mouth, according to a survey conducted by World Council of Credit Unions and Central de Cooperativas de Ahorro y Credito Financieras de...

Airport Tells The Bigger Story In Credit Unions: Continental Members Know Little Of Wings Offer, Choices Abound In Newark.
April 11, 2007... NEWARK, N.J. -- Three weeks into a hostile takeover battle for Continental FCU, few of the members at the embattled credit union's Newark Liberty International Airport outpost even know of the offer by Wings Financial FCU to acquire their...

CU Halts Indirect Auto Lending.
April 11, 2007... JACKSONVILLE -- Community First Credit Union of Florida hit the brakes on indirect auto lending, saying it will gladly forego up to $100 million in annual loan volume. The second-largest auto lender in northeast Florida is doing it...

CUs Try Out Networked Merger.
April 11, 2007... PONTIAC, Mich. -- Three small Michigan credit unions are seeking to control their own destiny through a partnership with the aptly named Affinity Group CU here in the fulfillment of the "networked" credit union model. The $37-million...

Don't Get Caught In The Trap: 10 Mistakes To Avoid In MBLs.
April 11, 2007... ATLANTA -- Although credit unions are lobbying Congress for a higher cap on member business lending, many remain relatively new to the market. With that in mind, the Credit Union Journal polled a number of business lending experts on how...

Tough Lessons for the Subprime Market...Again: That New Century finds itself in this predicament should come as no surprise. The burning question? When will the other shoe(s) drop, and how painful will that be for the industry and investors?
April 11, 2007... Dark storm clouds are gathering over the subprime market. Last month, HSBC announced that its 2006 provision for bad debt would be $10.6 billion, 20 percent higher than what analysts expected, and that it would refrain from U.S. acquisitions...

Changing Of The Guard: Citi CFO's First 100 Days: Hike Stock Price, Earnings: Increasing transparency is also key.
April 11, 2007... Gary Crittenden, Citigroup's new CFO, has a formidable to-do list in his role, which he took up on March 12: strengthen earnings, lower the cost of funds and increase the stock price. The 53-year-old Crittenden, the former finance chief at...

Mobile Payments: FSTC Wants Turf Talks for Mobile Wallets: Launches first standards initiative with Clearing House.
April 11, 2007... Like a Sunday New York Times crossword, developing mobile-based payments technology and platforms seems like a perpetual work in progress. Different formats and approaches are being plugged into the test lab or rolled out into the market,...

Equities: The Science Of Research: Goldman backs tool to grade analysts beyond their "buy/sell" calls.
April 11, 2007... One of the latest management frontiers for firms is "knowledge management," which means melding market intelligence with larger strategic goals. For institutional investors, new systems are emerging that allow them to tailor market research in...

Image Exchange: Imaging: Are Happy Days Here at Last?: Interoperability and standards milestones fuel usage.
April 11, 2007... Are these the salad days for image exchange? A lot of industry observers think so. Volume growth is well above even optimistic expectations. For the first time in the Check 21 era, image-cleared checks have exceeded substitute items, and are...

Letter to the Editor.(Letter to the editor)
April 11, 2007... To the Editor: I read with interest John Adams' article, "Phishing Trip: A Magic Bullet Becomes the Crooks' New Weapon" (January). The article, which outlines recent phishing schemes that play on banks' movement toward multi-factor...

Protecting Data Online Is a Top Priority for Consumers.
April 12, 2007... It was just a few years ago that Citigroup's identity theft ad campaign brought the issue to public light. The irony is that people seemed to remember the spots more for their dark humor on the subject rather than for the message they attempted...

Invoice Management: Banks Give Legal Bills A Good Scrubbing: Barclays and AOL are using Web-based applications to itemize what their lawyers are charging them-and should not be charging them.
April 12, 2007... Spend management is usually associated with ferreting out the hidden costs of physical goods such as desks, chairs, paper and pens. But the discipline can also be used to control the costs of professional services-such as legal fees. ...

News Makers.
April 12, 2007... ID THEFT LOSSES UP; BANK SITES BYPASSED The news keeps getting worse for victims of identity theft. Not only have their ranks swollen by 50 percent since 2003, according to a new Gartner survey, but the average loss has more than doubled...

Payments: Automation is Washing Money Orders Away: Prepaid cards are the new vehicle of choice among the unbanked who have long endured high money order fees. Payments firms better take note.
April 12, 2007... The rise of automated payments has heavily influenced the strategy of banks and the behavior of consumers, and there's now evidence the fallout is reaching into the unbanked market as well. For companies that play in the money order game,...

Disconnect Between Boards and IT.
April 12, 2007... When it comes to IT strategy, most corporate board members say it's an important part of the business, yet there is a disconnect when it comes to actually putting that view into practice by aligning IT with overall corporate strategy,...

Techies.
April 12, 2007... Barclays named Mark Saunders senior technology officer for business banking and global payments. Saunders was formerly an svp with Bank of Montreal. In his new position, he will be responsible for overseeing IT strategy and delivery in...

International-Rule Adoption May Harm Emerging Economies.
April 12, 2007... Traditional approaches to bank supervision could actually hurt the societies they're aiming to protect, particularly those in emerging economies, according to new research by Brown University economist Ross Levine. The professor of economics...

Noted and Noteworthy.
April 12, 2007... How many nanoseconds will it take George "Woody" Young III, the top- producing banker at Lehman Brothers who resigned on February 12, to be scooped up by a competing firm? Not many, say analysts, who claim Woody's departure is related to a long...

On Deadline.
April 12, 2007... Acquistion Of Harland Shrinks Check Printers ATLANTA-In a deal that will shrink the number of check printers again, shareholders of John H. Harland Co. approved the takeover by M&F Worldwide, the company controlled by corporate raider Ron...

CUSO-FS Pays $4M to CU Partners.
April 12, 2007... SAN DIEGO -- CUSO Financial Services LP, which provides broker-dealer services for more than 100 credit unions, paid out $4 million of its $6 million net for 2006 to its credit union partners as a partnership dividend. The 10-year-old...

Robbing Fannie to Pay Fhlubbie.
April 13, 2007... WASHINGTON -- The House Financial Services Committee turned away a proposal to have the 12 Federal Home Loan Banks, known as "Fhlubbies" distribute as much as $500 million a year in affordable housing funds collected from Fannie Mae and...

Veristate Name Rejected Again.
April 13, 2007... MONTPELIER, Vt. -- Members of Vermont State Employees CU voted down a proposal to change the name of the state's second largest credit union to Veristate CU, the second time members rejected a name change. Almost 11,000 of the...

Shoreline CU Plans New HQ.
April 13, 2007... MANITOWOC, Wis. -- Shoreline CU said it has hired La Macchia Group LLC to design and build a new headquarters for the $70-million credit union. Construction began recently and will be completed later this year. La Macchia Group is based in...

Portland FCU Eyes New Home.
April 13, 2007... PORTLAND, Mich. -- Portland FCU broke ground on a project to build a new administrative offices. The new building will serve as the headquarters for the $175 million credit union. The facility will be a two-story, 28,000 square- foot building...