Banking Wire articles from August 2002

Banking Wire archives from August 2002

BRIEFS.
August 1, 2002... P & C Insurers Suffer Property and casualty insurers reported a $9 billion loss in 2001, compared to a $27 billion profit in 2000, according to research by Weiss Ratings, Inc., a provider of ratings and analysis of financial services...

Web-Based Auctions On Rise.
August 1, 2002... Bidding on S.B.A.-backed loans has come a long way from the days when sealed bids were mailed cross-country to Washington, and teams of due diligence experts locked themselves away in hotels to make sure the bidders had their paperwork in...

GreenPoint Bank Bets on Branches.
August 1, 2002... GreenPoint Bank, the New York state-chartered thrift unit of nontraditional lender GreenPoint Financial, is on the prowl for new deposits, expanding its branch network in the New York City area to capture business customers, an executive said....

The State of the Estate Tax And Section 326.
August 1, 2002... Dear Colleague: Florida's beautiful Everglades may be shrinking. But there's one swamp that keeps growing: the vast incomprehensible morass of laws generated by residents working the wetlands by the Potomac, known as Washington D.C. ...

Executive Changes: Columbia Chief Steps Down: Move comes after turbulent market takes a toll on profits.
August 1, 2002... J. James Gallagher, vice chairman and CEO of Columbia Banking System Inc., Tacoma, Wash., and vice chairman of Columbia Bank, has resigned. The 63-year-old former bank chief will stay on as a consultant, the bank has announced. Board...

What Does It All Mean To Your Credit Union? Funds Flow In As Investors Flee The Stock Market.
August 1, 2002... As much as $85 billion in new savings are expected to flood into the credit union movement this year as investors flee the plunging stock market for safe havens. "People are nervous about what's going on in the stock market," noted John...

What Does It All Mean To Your Credit Union? Eroding Trust An Opportunity For CUs, Say Analysts.
August 1, 2002... As cynicism about corporate ethics grows in response to sweeping congressional probes into a wave of alleged wrong-doing at some of the nation's top businesses, financial institutions could be made or broken as consumer distrust increases. ...

CU Boards Say They're Up To The Task.
August 1, 2002... Will credit union members begin to wonder if the types of accounting and insider trading scandals rocking many major corporations might also strike their credit unions? According to the chairmen of four boards of directors for CUs in...

Analysis: Another Wave of Refinacings To Hit.
August 1, 2002... Credit unions, get ready for yet another round of mortgage refinancings. According to mortgage agency Freddie Mac, interest rates on conventional (non-governmental) mortgages have dropped below 6.5%, an important psychological barrier...

ON DEADLINE.
August 1, 2002... Michigan Plan Would Do Away With 'Bond' PLYMOUTH, Mich.-State law would do away with the common bond for credit unions and allow credit unions to mix and match various types of charters, under legislative recommendations endorsed by credit...

Crackdown On Sub-prime Cards.
August 2, 2002... Federal financial regulators are drafting rules to crack down on subprime credit-card issuers. The Federal Reserve, Office of the Comptroller of the Currency, FDIC and Office of Thrift Supervision are drafting rules that would put...

Workshop Set For Colonias Region.
August 2, 2002... NCUA said it will host a workshop in El Paso, Texas, Sept. 4-6 to focus on federal resources available to credit unions serving a low-income area along the U.S./Mexico border. Some 12-million people live in the so-called Colonias region,...

Corporates Cancel Planned Study.
August 2, 2002... The Association of Corporate Credit Unions (ACCU) said it has now decided not to proceed with a study of the corporate credit union network and future products and services, "concluding that corporates adapting to change can take advantage...

CUNA To Market .coop Domain.
August 2, 2002... CUNA said it has signed an agreement with the National Cooperative Business Association (NCBA) to become the lead marketer of .coop domain names to U.S. credit unions. The reseller agreement allows CUNA Network Services, a technology...

Washington CU Adds An 's.
August 2, 2002... The former Washington Credit Union has a new name-Washington's Credit Union. The $262-million WCU said it made the change to "more clearly reflect who we are." Over the past 18 months it has merged with three other credit unions: The Federal...

BANKING BRIEFS.
August 2, 2002... BB&T Earnings Increase 23% BB&T Corp. posted a 23% gain in earnings to $329 million in the second quarter, the bank reported. Including merger-related charges, net income for the second quarter totaled $328.0 million compared with $237.2...

New Products: Wachovia's Phase 1 Alternative.
August 2, 2002... When Malcolm Griggs, senior vice president and director of corporate risk policy at Wachovia Corp., wants to reduce the bank's exposure to commercial loans these days, he takes out an environmental liability policy. Griggs began looking at...

INSURANCE BRIEFS.
August 2, 2002... Sun Adds Rider to Policy Sun Life Financial has added a charitable giving benefit rider to its universal life insurance products offered by Sun Life Assurance Co. of Canada, Sun Life has announced. The benefit will equal 1% of the policy's...

Cash Management: Midsize Banks See Online Cash Management as a Requirement: Some invest in new platforms, others with converted software.
August 2, 2002... Every midsize bank executive responding to a recent survey said their bank had either implemented or planned to install an online small business cash management product. The reward, said the consultant who conducted the survey, is that...

TECHNOLOGY BRIEFS.
August 2, 2002... Mellon 1st Redesigns Site Mellon 1st Business Bank, an affiliate of Mellon Financial Corp. operating under the Mellon West companies, has launched MFBBiConnect to give customers executing Internet-based transactions more convenience and...

Is Mold Cause Of Worker Illness?
August 5, 2002... Dozens of workers with the Washington Department of Financial Institutions (DFI) have been getting ill, with some suggesting toxic mold is the cause. However, according to Gloria Papiez, director of administrative services for the DFI,...

Product & Service.
August 5, 2002... CUSO Signs Its First CU Client PASADENA, Calif.-Wescom Resource's Group, the CUSO of Wescom Credit Union, reported that the $110- million Foothill Federal Credit Union has signed on as the first client of the CUSO's disaster recovery...

How 1 Marketing Dept. Spends Money To Save Money.
August 5, 2002... Discover the Diamond difference. It's all right here in the latest edition of "The Diamond Edge," a redesigned newsletter the credit union has created in-house that seeks to boost product sales while simultaneously cutting production...

Product & Service.
August 5, 2002... '401(k) Your Way' Makes Debut SAN DIEGO-CUSO Financial Services, L.P., has introduced a multi- fund family retirement plan called "401(k) Your Way." The fund will be distributed by its 62 client credit unions. Plan sponsors will be able to...

Anatomy Of A Name Change: What (And Why) One Large CU Went Through.
August 5, 2002... According to one person, at any time there are as many as 1,000 credit unions exploring a change in corporate identities through a name change. Before doing so, those credit unions should include a broad constituency, including employees,...

Urban Success Story: How 1 CU Turned Itself Around.
August 5, 2002... Communitywide Federal Credit Union President Loren Roth is crediting networking with businesses connected to its primary source group, the South Bend Urban League, for increasing its loan volume by more than 50% to more than $60 million last...

News Briefs.
August 5, 2002... IRnet Wins Plaudits In Survey LOS ANGELES-A survey of wire transfer fees in this market showed the International Remittance Network (IRnet), which was developed by the World Council of Credit Unions, is the most affordable option for...

Product & Service.
August 5, 2002... ALM First To Offer Risk Hedge WOBURN, Mass.-ALM First Financial Advisors, LLC, a CUSO of Eastern Corporate Federal Credit Union (EasCorp) and a provider of investment advisory services to credit unions nationwide, said it has received...

NCUA May Add Amendments To MBL Rules.
August 5, 2002... NCUA is studying possible amendments to its member business loan (MBL) regulation as part of an expanded effort to kick-start business lending among credit unions. NCUA Board Member JoAnn Johnson told attendees to NAFCU's annual...

Charter Change Also Means Identity Change.
August 5, 2002... Last year's community charter conversion for Finance Center FCU has caused an identity change for the defense credit union, now known simply as, Financial Center. The new name, a shedding of the "credit union" tag, signals the credit...

Remarks Planned Near Crash Site.
August 6, 2002... U.S. Rep. John P. Murtha has agreed to speak Sept. 7 to the Pennsylvania league's Fall Leadership Conference about his efforts in Congress to construct a memorial to honor the victims of United Airlines Flight 9, which crashed near...

CU PACs Poised To Play Key Role In Fall Political Races.
August 6, 2002... Credit unions have quietly accumulated almost $1 million in cash to be used to help influence this fall's pivotal congressional elections, when a single House or Senate race could determine control of either. The vast majority of those...

Tough Decisions In Many States.
August 6, 2002... * Tennessee credit unions are supporting Rep. Ed Bryant, a strong supporter of bankruptcy reform, in the Aug. 1 Republican primary to succeed Republican Sen. Fred Thompson, who is retiring after two terms. If successful, Bryant will probably...

Wash. State CUs Take Advantage Of Eased FOM Expansions.
August 6, 2002... It's all but impossible to monitor how many state-chartered credit unions here are taking advantage of the new rule that allows CAMEL 1 and 2 CUs to expand their fields of membership without applying for regulatory approval-but many are...

CUs Again Win 'Satisfaction' Poll; Banks Do Better.
August 6, 2002... Credit unions have once again beaten out banks and thrifts in a consumer survey rating customers/members' levels of satisfaction with their financial institution. But the American Banker/Gallup poll of 1,000 U.S. households also shows...

Behind The Happy Numbers, Trends Deserve Watching.
August 6, 2002... When the latest American Banker/Gallup consumer poll numbers were released last week the trade groups wasted little time in striking up the band and blowing the credit union horn. But if you listen, some of the music is beginning to sound...

'Alternate Capital' May Get The OK From Texas Regulator.
August 6, 2002... The Texas CU Commission endorsed a slate of recommended reforms to the state's CU Statute that would, among other things, allow state-chartered credit unions to offer alternative capital instruments to supplement primary capital. "The...

Idaho's Smaller CUs Get Mentors.
August 6, 2002... In an effort to help more credit unions in Idaho prosper, the Idaho league has developed a simple program to match credit unions with mentors. It comes in the form of a list on its website that includes the names, credit union...

13,000 Members Enter Contest.
August 6, 2002... Community CU said it attracted a whopping 13,000 entries during the first six months of a contest tied to its 50th anniversary. The year-long "Who Knew" online trivia contest is designed to push members to the credit union's website at...

Change In Recording Charge-Offs.
August 6, 2002... NCUA said it has followed the bank and thrift regulators in adopting a new policy prohibiting institutions from recording fee and other income as revenue for charged-off accounts. The new policy will require credit card lenders to add more...

Rising Deposits Has $2.8B Patelco Planning To Exit NCUSIF.
August 7, 2002... Officials at Patelco Credit Union, the nation's tenth-largest credit union, have applied to NCUA to convert their $2.8 billion institution to private deposit insurance, the biggest insurance conversion ever. Patelco is headed by former...

Mold Problems Can Be A Risk As CUs Buy More Facilities.
August 7, 2002... It isn't just homeowners who are suddenly learning their houses may be infested with unseen mold that could make them sick. Credit unions that are rapidly expanding their branch networks, especially by buying older, previously occupied...

Are SEGS Obsolete?: Rush To Community Charters Raises Questions About Value Of Old CU Standby.
August 7, 2002... With all the hype surrounding community charters and their ever- increasing geographic reach, has the once bread-and-butter select employee group (SEG) become a thing of the past? "I really thought we'd get maybe a handful of people....

Investments Too Conservative?: Just In Time For Football Season, Analysts, Regulators Debate Whether More Credit Unions Should Go Long.
August 7, 2002... Like a good quarterback, Peter Duffy would like to see credit unions go out long when it comes to making investments. But more often than not, Duffy says, investments with more than a two-year duration don't seem to be part of most...

Do What You Love and the Money Will Follow.
August 7, 2002... Minister, accountant, psychiatrist, salesperson, teacher. And, oh yeah, financial bodyguard. Today's bank reps wear many hats and only those who find the right balance will flourish as relationship managers in the future. But the ones who...

First Hawaiian Launches 529 Plans, Administered by Delaware Investments: Also, the Pennsylvania college-savings program is jumpstarted, and two banks are competing to be administrators for a revamped New Jersey program.
August 7, 2002... As with many other investment ideas, banks were not the first into 529 college savings plans, but are now making up ground rapidly on the mutual fund complexes and insurance companies that were early adopters. In the most recent program to get...

PEOPLE ON THE MOVE.
August 7, 2002... Northern Trust promoted Jana R. Schreuder to president and CEO of its retirement consulting subsidiary, based in Atlanta, with offices in Chicago and Seattle. She had been svp and head of national services for NT's personal financial services...

Truth Is Lost Amidst Chaos, Corporate Confessionals: Enron. Snake oil-selling Wall Street analysts. WorldCom. Merck. The public wants-and is entitled to-answers.
August 7, 2002... It gets uglier by the day. Just when you think one more scandal isn't possible-whether it's "inappropriate" accounting practices or smarmy Wall Street analysts touting dog stocks-another hits the street. What's shocking isn't the number of...

Nickeled And Dimed?
August 7, 2002... Enough already. That's the kind of kitchen-table attitude financial companies are facing when it comes to leaning on fees to extract extra profit, a practice that's become commonplace over the last five years. Sources say a tough economy...

Gold Gleams as Stocks groan. time to be bullish on bullion?
August 7, 2002... That the American wedding industry is now at $75 billion a year might be reason enough to invest in gold. Then there's that feeble economy and a scandal-ridden stock market, both uglier than a father-in-law with a shotgun. No wonder...

At New Wachovia, a Focus on Branding: A megabank's ad campaign uses a canoe to make a splash.
August 8, 2002... Wachovia Bank is about a third of the way through its 30-month merger with First Union, and the capital management group expects to complete its integration by summer's end, according to Don McMullen, group president. McMullen's group,...

Women May Be Better Investors, But They Still Get No Respect: Banks accelerate insurance-agency acquisitions.
August 8, 2002... Women have made substantial progress as investors in the past 10 years, according to a recent survey by Oppenhemer Funds, but have not gained a corresponding measure of respect from investment advisers. "Gender-wise, the playing field is...

TD, BoM Consolidate Mutual Funds: M&T forms VA partnership with Nationwide Financial.
August 8, 2002... * TD Asset Management has completed several big changes in its mutual fund group. Its international fund, which had been managed by Montgomery, and its balanced fund, with Schroder, were brought in- house.Separately,TD Mutual Funds folded nine...

Economic, Political Crises of Confidence Are Making Reps' Jobs Harder Than Ever.
August 8, 2002... Volatile markets and public distrust in accountants and corporate executives have investors reconsidering their investment allocations. This has created nothing but headaches for reps, who address not just client concerns, but planning models....

ON DEADLINE.
August 8, 2002... Employee Charged With Murder At Fort Bragg FAYETTEVILLE, N.C.-A loan receptionist at Fort Bragg FCU was charged last week with murdering her husband, an Army Special Operations officer, in the latest of a string of domestic murders...

CUNA Announces Board Winners.
August 8, 2002... In CUNA's just concluded board elections, Mary Shipe, CEO of Alhambra CU in Phoenix, and Richard Ghysels, CEO of First Financial CU in West Covina, Calif., have been elected to seats. Incumbents re-elected to their seats include Holly Herman...

Mica Presses FHFB On CU Issues.
August 8, 2002... CUNA President Dan Mica met with Federal Housing Finance Board (FHFB) Chairman John T. Korsmo and FHFB senior staff last week to discuss how credit unions could be better represented in the Federal Home Loan Bank (FHLB) system. Approximately...

Louisiana CU CEO, Comeaux, Dies.
August 8, 2002... Allen Comeaux, 58, president of Lafayette District Telephone Credit Union has died. In addition to his work in credit unions and with the league, Mr. Comeaux was active in sports in his community, coaching football, basketball, baseball and...

Loose Change.
August 8, 2002... Seeking Payment for the Past Edward Fagan, the lawyer involved in the $1.25 billion settlement against Swiss banks that backed the Nazis, is back in the courtroom. He's suing U.S. and Swiss banks for allegedly profiting from loans to the...

O'Neal And Komansky Dance Lukewarm Duet.
August 8, 2002... A recent Merrill Lynch print ad touting tighter standards for research analysts is getting solid C's from consumers. Response has been mixed and that may be the best Merrill can hope for, seeing as consumer perception is swayed more by...

CU Assn. Of The West Hires Beach.
August 9, 2002... The CU Association of the West, the newly formed umbrella organization over the Washington, Oregon and California/Nevada credit union leagues, has hired former Colorado CU League President Carroll Beach to coordinate the joint programming...

Dole Visits With N. Carolina League.
August 9, 2002... Former presidential candidate and cabinet secretary Elizabeth Dole met last week with top credit union officials here to ask for their support in her race to succeed five-term Sen. Jesse Helms, who as former head of the North Carolina...

Gore To Leave CUNA For Hill.
August 9, 2002... Jennifer Porter Gore, manager of congressional and public affairs for CUNA, is leaving that position to become press secretary for the minority staff (Democrats) of the House Financial Services Committee. Active in numerous areas with CUNA,...

Bandit Leaves Without The Bag.
August 9, 2002... A Houston man was arrested here last Friday, just hours after he allegedly botched an armed robbery at Washington Community CU. Mark Kisner, 34, walked into the credit union around 9:30 am and handed the teller a demand note indicating he had...

J. Mark Dunker, Central State Bank, Muscatine, IA: Dunker is going back to the future. His new bank bought his old bank, and now he hopes to expand his practice to the old territory.
August 9, 2002... Fresh out of college and armed with a degree in investment finance from Drake University, J. Mark Dunker, trained with IDS Financial Services in its Des Moines and Denver offices. Dunker says his two years with IDS provided invaluable training...

Renewed Emphasis on Planning May Herald Return of the Generalist.
August 9, 2002... The trend toward specialization in financial planning seems to be ebbing. Banks may once again be becoming the province of the broadly- trained generalist who has access to specialists when necessary. Three letters are on the lips of many...

Come And Get It: BOK Cooks Up Wide Distribution for Its Fund Group: With an emphasis on telling its story "concisely and consistently," Bank of Oklahoma hopesto lasso lots of new distribution partners for its American Performance Funds.
August 9, 2002... Bank of Oklahoma hopes to add an international fund to its small but growing American Performance proprietary complex soon. Sub advisers have been interviewed since the spring, and BOK hopes to have the portfolio in the market by the end of the...

MasterCard's Latest Pitch: Pastime is Priceless too.
August 9, 2002... It's supposed to be the Midsummer Classic, but if you ask a baseball purist, the All-Star game is losing its luster. Some of the biggest names in the sport have turned down invitations and-with this last contest called in a controversial...

A Tantalizing Technology Tango.
August 9, 2002... In Mexico, a country where only five people in 100 have computers, Yahoo! and Banco Santander are rolling out a service bringing on-line storefronts to small businesses. What are they thinking? How many corn farmers in Zacatecas are going...

C2IT's Mexican Connection.
August 9, 2002... Banks are making it clear they will no longer sit on the sidelines and watch firms like Western Union wire billions of dollars to Mexico each year. The First Data-owned Western Union has dominated the wire transfer business for decades and is...

Low Cost of Funds Credited For Big Rise In Income.
August 12, 2002... An early mid-year analysis of credit union data indicates that in the year ending June 30, credit unions recorded an astonishing 35% increase in net income, due in large part to declining costs of funds. That finding is part of Callahan &...

Candidate Getting Considerable CU Backing In Mich.
August 12, 2002... Credit unions in this state aren't just getting behind the candidate at an unprecedented level; they're intertwined in his message. The Michigan Credit Union League is backing Republican gubernatorial candidate David Bonior with mass...

Worth Noting.
August 12, 2002... Lending Awards Deadline Aug. 9 MADISON, Wis.-The deadline for submitting nominations for the 2002 Credit Union Excellence in Lending Awards has been extended to Aug. 9 by the awards sponsors, The CUNA Mutual Group and the CUNA Lending...

Look For Injuries At Crash Site Of Two Phrases.
August 12, 2002... Arturo Rodriguez doesn't know he symbolizes an approaching clash within an American credit union community that is far larger and older than he may ever know. He only knows he's got a truck loan that's such a wreck it should have come with...

BB&T Investment Services, Charlotte, NC: What do bank reps really want? Training to do their job well-and a way to track their progress. This bank has figured out a way to do both.
August 12, 2002... When it comes to sales productivity and career satisfaction for bank reps, BB&T Investment Services wrote the book. Literally. Armed with the powerful customized program Pandia, BB&T two years ago devised a four-level professional strategy...

Old-Economy Stocks, Like Railroads and Oil Firms, Put the 'E' Back in P/E Ratios: Real companies making real products for real customers and generating real revenues are emerging as advisers' best bets whether in mutual funds or individual equities.
August 12, 2002... While streaking New Economy stocks like software, telecom and e- business have ended up in a heap like the legendary locomotive engineer Casey Jones, real railroads, as well as oil companies, heavy manufacturing and resource-based firms are...

Following the Money: A floundering global economy didn't curb the number of HNWI from growing 3% in 2001. But the affluent had their financial advisers working overtime to protect their capital and enhance returns.
August 12, 2002... Despite stagnating recession and volatile equity markets, the number of high-net-worth individuals rose 3% last year across the globe, or by 200,000 people, to 7.1million, claiming an estimated combined wealth of $26.2 trillion-or 29.4 trillion...

Deep in the Heart of Texas, A Homegrown Gal Shapes A Little Brokerage Called Frost.
August 12, 2002... With a vision sustained over 21 years, President Karen Banks Personifies "The Frost Philosophy." To date, revenue is still surging at an annual clip of 30%. Now that's success. To put herself through the University of Texas, former music...

Union Planters To Introduce SMAs, Aiming for 10% in Fee Revenue: The separately managed accounts are part of a three-phase program to boost fee revenue and give reps plenty of leverage to gather new assets. The plan will also build cohesiveness at a bank built by acquisition.
August 12, 2002... Next month Union Planters Bank of Memphis will introduce a wrap program based on separately managed accounts, the last of three innovations that have been designed to help UP's Series 7 investment managers reach the mandated goal of 10%...

In Mad Scramble to Offer SMAs, Banks Turning to Outsourcers.
August 12, 2002... From technology to investment management to back-office services like accounting and tax management, outsourcers are elbowing their way into the SMA business. And banks are paying attention. Every bank needs to offer 'em, but not every bank...

Revisiting Authorization Parameters Boosts CU's Income.
August 13, 2002... Credit unions can mine their existing credit card portfolios for more revenue simply by reevaluating their authorization parameters. Just ask Navy Federal Credit Union, which is already seeing a difference after working with MasterCard to...

In God We Trust; Everyone Else Has Much Work To Do.
August 13, 2002... The concept of trust has always been a premium in the financial markets, and the way financial institutions have sought to instill trust has evolved over the years. Now, the question for many is how to regain trust in the wake of the recent...

Product & Service.
August 13, 2002... 'ON DEMAND' Makes Its Debut TAMPA, Fla.-CastleGarde, Inc., which provides network security and compliance services, has introduced a new vulnerability assessment product called "ON DEMAND." The company said that ON DEMAND remotely...

One CU's Strategy For Helping Prospects To 'Move Over'.
August 13, 2002... Escambia County Employees Credit Union has created a "Move Over Kit" that seeks to make it a lot easier for members and potential members to make the $30-million CU their primary financial institution. It includes a poster and a...