Banking Wire articles from December 2005

Banking Wire archives from December 2005

Open-Ended Loans Fuel lending Volume At More CUs.
December 1, 2005... MIAMI BEACH, Fla. -- Open-ended loans are being leveraged by more credit unions as they seek to appeal to members who don't want the inconvenience of filling out more paperwork for big-ticket purchases. Lenders at the CUNA Lending Council's...

CEOs Get Frank Assessment: Where CUs Stand Versus The Competition.
December 1, 2005... LAS VEGAS -- A trio of financial institution advisors had a sobering message for CEOs at a CUES-sponsored meeting here: they are largely unprepared to deal with many of the new regulations and competition they face. Sharing that message...

Tax Hearings Were Missed Opportunity For CUs.
December 1, 2005... WASHINGTON -- The credit union lobby missed a huge opportunity to satisfy congressional doubts and settle the argument over the credit union tax exemption-at least for the short-term. While the bankers used the recent hearings before the...

The CU Journal Daily.
December 1, 2005... SFCU Loans Support Main Sponsor FLINT, Mich.-Security FCU said it has expanded a discount loan special to help support its main sponsor group, General Motors employees at the automaker's Powertrain Flint North plant. The 1% loan...

All Aboard: Everyone's FCU Models New Branch On Old Train Depot.
December 1, 2005... TUCUMCARI, N.M. -- In a sense, Andi Baum has grown at the same rate as Everyone's Federal Credit Union in this old train depot town along historic Route 66. That growth has led to a "new" $500,000 main office modeled after the Tucumcari...

Product & Service.
December 1, 2005... CreditPlus Moves Into New Digs ALISBURY, Md.-Credit Plus, Inc. recently moved into a 50,000-square-foot office building featuring tighter security and expanded customer service capability. The larger building allows for expanded customer...

Cousminer Wins Individual Wegner Award.
December 1, 2005... WASHINGTON -- Bethex FCU CEO Joy Cousminer has been selected by the National CU Foundation as the winner of the Herb Wegner Memorial Award for Individual Achievement. "At the ripe young age of 79, Joy continues to shame me and others who...

CUES Elects Board Officers.
December 1, 2005... LAS VEGAS -- The Credit Union Executives Society selected its board officers for 2005-2006 after the CUES Annual Business Meeting. The officers are: chairman, Rose Bartolomucci, CEO of Kent CU, Kent, Ohio; vice chairman/chairman-elect,...

Four 'Future Leaders' Talk About Getting There.
December 1, 2005... ANAHEIM, Calif. -- Four young but fast-rising credit union representatives gave their views on the importance of mentors, networking, education and what they project as the role of credit unions a decade from now at a "future leaders" panel...

Regulators' Thorns (Bank Secrecy Act) And Roses (Tips For 'Eternal Bliss').
December 1, 2005... ANAHEIM, Calif. -- One regulator referred to the Bank Secrecy Act as "the biggest thorn in my side." Another warned credit unions they are considered the "weak link" in BSA compliance. Together, Melinda Love, director, NCUA Region V, and...

NASCUS Presses NCUA To Better Track Expense of Examining FISCCUs.
December 2, 2005... ARLINGTON, Va. -- NASCUS is urging NCUA to track the expense of examining federally insured state-chartered credit unions to help the agency achieve even greater cost savings in its annual budget. The comments were filed in a letter that...

Attacks Upon CUs Are Derided By NACCU Chair.
December 2, 2005... WASHINGTON -- National Association of Community CUs Chair Marc Schaefer derided banking industry attacks on the credit union tax exemption-particularly those aimed at community charters-saying an attack on community credit unions is an...

Strong Interest In Reverse Inquiries Seen.
December 2, 2005... DALLAS -- Southwest Corporate FCU reported client credit unions continue to demand customized investment vehicles. "We are on pace to match last year's record setting number of 'reverse inquiry' structures," said Cynthia Shi, Director of...

Chatfield Honored For Work In Defending Elderly.
December 2, 2005... RANCHO CUCAMONGA, Calif. -- California CU League CEO David Chatfield has won the Elder Financial Protection Network's Leadership Award at the group's second annual "Call To Action" luncheon. Chatfield was recognized for his efforts to...

Baldly Going Where No CEO Has Gone Before.
December 2, 2005... TALLAHASSEE, Fla. -- Florida Credit Union League President Guy Hood had his head shaved after a PAC fundraising challenge he had issued was met. Hood told FCUL's Executive Vice President Aletta Shutes, that he would have his head shaved if...

1st Advantage Raises $200K For Relief.
December 2, 2005... YORKTOWN, Va. -- 1st Advantage FCU partnered with local Red Cross chapters to raise more than $200,000 for Hurricane Katrina relief efforts. Throughout September, the credit union encouraged the communities it serves to step up to the plate...

CU Supporter Elected President of Poland.
December 2, 2005... WARSAW, Poland -- A long-term supporter of this country's emerging credit union community has been elected as president of Poland. Lech Kaczynski, the leader of the Prawo i Sprawiedliwosc (Law and Justice) conservative party and acting mayor...

CUES Honors Councils, Individuals.
December 2, 2005... LAS VEGAS -- The Credit Union Executives Society has named its Alabama, Rocky Mountain and Michigan Councils as 2005 Outstanding Councils. In addition, CUES Alabama Council also received the award for most improved council. The announcements...

Fiserv Names Yabuki To Replace Muma As CEO.
December 2, 2005... BROOKFIELD, Wis. -- Fiserv, Inc. has gone outside the company to name its new CEO. Jeffery W. Yabuki, has been named to succeed Leslie M. Muma as president and CEO of the company. Effective on or before Dec. 1, Yabuki will also serve as a...

The CU Journal Daily.
December 2, 2005... CUs Eye Municipal Property Auction LAKELAND, Fla.-A surplus branch put up for auction by the municipal electric company has created a bidding contest by two interested credit unions. Community First CU, based in nearby Mulberry, and...

CUs Slow To Match Rival Cards' Savings Feature.
December 5, 2005... NEW YORK -- Two major card issuers, American Express and Bank of America, have introduced two different, competing card programs that share a common strategy: reward users by helping them build savings. The strategy would seem a natural...

Going To MARKET: Credit Unions At BAI Show Get First-Hand Look At Financial Landscape.
December 5, 2005... ORLANDO, Fla. -- What do some of the country's biggest financial services providers have planned for 2006? Many of the nation's more progressive credit unions were seeking answers at the Bank Administration Institute's Retail Delivery Show....

Consumers Want Products, Services, But No Relationship.
December 5, 2005... ORLANDO, Fla. -- The driving force behind many financial institutions' retail strategy is building relationships with customers or members. But a new study has found that nearly 70% of consumers have no interest in a relationship with their...

Despite Tepid Response, Some CUs See Healthy Future For HSAs.
December 5, 2005... GURNEE, Ill. -- Demand for the product has been anything but healthy to date, yet a number of credit unions are laying the groundwork for what they believe will be signficant member investments in Health Savings Accounts. Case in point is...

On Deadline.
December 5, 2005... Endpoint, Viewpointe See Point In Partnering MILWAUKEE-Endpoint Exchange, LLC announced last week it is connecting with Viewpointe Archive Services LLC to allow the nation's two largest check and image exchange networks to exchange credit...

CUNA Mutual To Lay Off Up To 185 People As It Continues To Retrench.
December 5, 2005... MADISON, Wis. -- CUNA Mutual Group announced it is laying off as many as 185 employees in its Madison and Waverly, Iowa, offices and plans to outsource much of the work to third-party providers, as the credit union insurer continues to...

Some Irony in Fed's OK of Plan.
December 5, 2005... WASHINGTON -- Zion's Bancorp, whose chairman also chairs the American Bankers Association, has received approval from the Federal Reserve to acquire Texas-based Amegy Bancorporation, Houston. Both CUNA and the Texas league have filed...

Mass. CUs Donate $100,000.
December 5, 2005... SOUTHBOROUGH, Mass. -- The Massachusetts' league's Social Responsibility Committee has presented a $100,000 check to the Massachusetts Coalition for the Homeless. The contribution was made on behalf of the Credit Union Affordable...

Nielsen Stars In New TV Spots From Arizona Federal.
December 5, 2005... PHOENIX -- Arizona Federal Credit Union was seeking an actor to demonstrate how easy it is for members to use its products, and it has turned to well- known television and movie veteran Leslie Nielsen, an actor who has made a lengthy career...

Worth Noting.
December 5, 2005... Volunteer Institute Is Moved MADISON, Wis.-CUNA's January Volunteer Institute has been relocated to Puerto Vallarta, Mexico, from Cancun due to damage from Hurricane Wilma. The dates have also been slightly modified to Jan. 15-19. For...

Extra! Extra! Hear All About It. What CUs Told Us.
December 6, 2005... Do you know who takes your member data home at night? Are some of your vendor contracts a rip-off? Would you ever consider sending your board to non-credit union meetings only? I've seen some pretty intriguing credit union meeting agendas...

Time To Get More Creative In Soliciting New Business.
December 6, 2005... With internet banking and banking by telephone using interactive voice response, there's no disputing that the credit union industry has embraced technology, at least operationally. Yet notwithstanding a few exceptions, there's still a...

Product & Service.
December 6, 2005... LoanCenter Supprts Small Biz ATLANTA-APPRO Systems, Inc., a provider of automated credit risk management and financial technologies, said its LoanCenter Business now supports the latest version of the Equifax Small Business Credit Report....

Analyst Predicts Significant Competition In Debit Cards.
December 6, 2005... DALLAS -- Expect to see debit card promotions becoming almost as aggressive as their credit card counterparts, predicts one cards expert. "Debit promotions in general are really heating up," said TNB Card Services' Glen Lee. "The bigger...

SECU Adds A Personal Touch At 860 ATMs.
December 6, 2005... RALEIGH, N.C. -- State Employees Credit Union has added that personal touch to its 860 Cash Point ATMs, offering members a greeting upon entering their card and a "thank you" for their business once the transaction is complete. The new...

One-Third In Poll Consider Themselves Good With Debt.
December 6, 2005... PURCHASE, N.Y. -- A recent survey of 1,000 adults by MasterCard regarding consumers and financial management has found: * On a scale of 1 to 10, with 10 being the "best possible job," 32% give themselves a 10 when it comes to managing...

Navy Federal Wins Three Quality Awards From Visa.
December 6, 2005... VIENNA, Va. -- Navy Federal Credit Union has won three of Visa Service Quality Awards for 2004, the third year Navy Federal has been recognized for service excellence by Visa. The categories Navy Federal was recognized in are: Lowest Copy...

Diebold Website Offers ATM Locator, Safety Advice.
December 6, 2005... NORTH CANTON, Ohio -- Diebold, Inc. has developed a website aimed at consumers to assist them in using ATMs more safely and avoid fraud. Located at www.atmconsumersafety.com, the newly unveiled site provides consumer tips to protect against...

Visa Gift Cards Used As Premium To Attract New Members.
December 6, 2005... FRESNO, Calif. -- Educational Employees CU boosted new members by nearly 2,500 in three months by giving away 10 $500 Visa gift cards. The goal of the campaign, which ran in June, July and August, was to help attract new members to the...

Product & Service.
December 6, 2005... IPS-Sendero Intros Service Bureau ATLANTA-Fiserv, Inc. said its IPS-Sendero unit-a provider of technology solutions and education for strategic balance sheet, profitability and corporate performance management-has introduced service bureau...

Season's Greetings.
December 7, 2005... With the holiday season in full swing, bank investment consultants are presented with opportunities to join in the party spirit-but how far they should they go? For starters, clients aren't all cut from the same cloth. Most reps divide...

Rep Production Falters, but Banks Report Growth.
December 7, 2005... Individual advisers' average productivity was down in the first half of the year compared with the year before, a pattern that, given rising interest rates and a volatile stock market, seems unlikely to change in the near future. "The...

Retiring Boomers Face Reality Check.
December 7, 2005... After much talk about how baby boomers' approaching retirement will affect the financial and real-estate markets, the first wave of that generation turns 60 in January. But the financial burdens they will face will make affording a comfortable...

Product News.
December 7, 2005... ING has introduced the Secure family of three index annuities. Index Five carries a surrender charge period of five years. Index Seven carries a seven-year surrender charge period. Index Opportunities Plus features a 5% first-year premium...

If There Were a Santa, Then I Would Wish For...: Yes, death of the whistleblower provision is right up there with tighter board controls over executive compensation and protection of shareholder interests.
December 7, 2005... Ah, if solving banking's challenges and making good on its promises were only as simple as creating a Christmas wish list, things would feel more like "It was the Night Before Christmas." Fantasy? Yes, but a little whimsy around the...

Investment products: Index-Rate Annuity Sales Surge at Banks Nationwide: An opportunity to offset sales losses elsewhere.
December 7, 2005... A once-obscure product, the equity-indexed annuity, is climbing steadily in popularity-representing a major sales opportunity for banks-thanks to its higher recent returns than the traditional fixed annuity. In the first half of 2005, bank...

Authentication: FFIEC Commands Two-Factor ID by 2006: Better online security becomes mandatory.
December 7, 2005... The wait-and-see attitude that many institutions had taken with regard to two-factor authentication for online banking-primarily out of concerns about expense and customer convenience-got a dose of reality last month when the Federal Financial...

Hits and Has-Beens.
December 7, 2005... Cincinnati, OH-based Fifth Third Bancorp has named Candace Fitzek svp and head of retail banking. Fitzek, who has been in the industry for 25 years, was most recently evp of retail banking for Webster Bank of Waterbury, CT. Amalgamated...

Deposit-Insurance Reform Is Out of the Gate-Once Again.
December 7, 2005... Will federal deposit-insurance reform, an idea first floated by the Federal Deposit Insurance Corp. in 2001, finally find its way into law this year? Sure, go ahead and hold your breath. This summer, legislators of both chambers tweaked and...

Noted and Noteworthy.
December 7, 2005... The Asian Development Bank and the International Finance Department of the World Bank became the first international financial institutions to issue bonds locally in China last month when they released the 10-year yuan-denominated panda bonds....

Retiring Boomers Face Reality Check.
December 8, 2005... After much talk about how baby boomers' approaching retirement will affect the financial and real-estate markets, the first wave of that generation turns 60 in January. But the financial burdens they will face will make affording a comfortable...

Product News.
December 8, 2005... ING has introduced the Secure family of three index annuities. Index Five carries a surrender charge period of five years. Index Seven carries a seven-year surrender charge period. Index Opportunities Plus features a 5% first-year premium...

Dreams No Longer Come True, And Other Observations About Bankruptcy Reform.
December 8, 2005... MIAMI BEACH, Fla. -- Bankruptcy attorney Jeff Kertman has spent two decades specializing in the practice. Among some of his observations before the CUNA Lending Council's recent annual meeting about the new Bankrptcy Abuse Prevention and...

What Do You Think?
December 8, 2005... What do you think about the new bankruptcy laws and the effect it will have and is having on your credit union? The Credit Union Journal welcomes your input, as always, on this topic and any other in these news pages. Comments, letters to the...

International Partnership First Announced Winner Of Wegner Award.
December 8, 2005... WASHINGTON -- The National Credit Union Foundation announced that this year's Herb Wegner Award for Outstanding Program will honor the partnership among the World Council of Credit Unions, the California and Texas CU leagues, and the Caja...

Awards Recognize Excellence In CU Lending.
December 8, 2005... MIAMI BEACH, Fla. -- CUNA Mutual Group presented the 6th Annual Excellence in Lending Awards at CUNA Lending Council's conference. The awards recognize excellence in consumer lending and mortgage lending categorized by asset size. This...

Two Cents for Ben Bernanke: Everybody's got an opinion, and few economists can stay silent when the question is this: What advice would you give the incoming Federal Reserve Bank Chairman? Bernanke should take note. This group's two cents actually makes real sense.
December 8, 2005... Sure, talk may be cheap, but for the proposed Federal Reserve chairman, Ben S. Bernanke, it might pay to listen. Who would have thought economists were such an opinionated bunch? Filling the enormous shoes of outgoing chairman Alan...

Compliance Automation: A Tiny Bank's Big Leap Into Protecting Itself: Great Florida Bank is growing fast, very fast. And that brings regulatory, security, consumer and employee headaches.
December 8, 2005... Great Florida Bank is a young bank in a big hurry. The Miami Lakes-based institution opened its lone branch in June 2004 with startup capital of $60 million. By this October, the bank had grown to $700 million in assets and nine branches. COO...

Bad Data: Filling In the Blanks: Bank spending for improved data quality is expected to grow up to 30 percent annually in the next two years.
December 8, 2005... When it comes to operational risk, bank executives do a lot of tossing and turning over customer data. A June 2004 survey from Cary, NC-based business analytics firm SAS noted that financial institutions felt "collating sufficient volume of...

Automated Provisioning: Giving Workers Digital Identities: By combining electronic employee ID and access, firms such as Courion, Microsoft and IBM are hoping to trim time, costs and reputational risk for bank customers.
December 8, 2005... The basic principle behind banking-that customers seek a trustworthy place to keep their money-seems obvious. But according to Chris Sullivan, vp of customer solutions at Framingham, MA-based enterprise-provisioning firm Courion Corp., many...

Cisco Voice/Data Solution Aimed At Smaller Organizations.
December 9, 2005... ORLANDO, Fla. -- Cisco Systems, which acknowledges its solutions have primarily targeted just the largest companies and credit unions, will roll out in January an integrated voice and data solution aimed at companies with less than 50...

Banks See Big Opportunity In Check 21 In Business Deposits.
December 9, 2005... RLANDO -- The big banks are wasting little time leveraging Check 21 and seeking to lock up small businesses with remote deposit capture solutions. That's because they know what many credit unions may not realize, according to two experts:...

The FYI From BAI.
December 9, 2005... Among some of the observations and points made worth noting from BAI's Retail Delivery Show included: How To Steal Someone's Data * Not surprisingly, much of the meeting's content dealt with online security breaches. And while the...

A Big Target, Bank of America, Also A Big Example Online.
December 9, 2005... RLANDO, Fla. -- Where Bank of America goes, banks in America (along with credit unions) often follow. That may be most evident in online banking and bill pay. BofA has more than 15-million active online users, and six million of those use...

Organically Grown: Strategies For Leveraging Branch Traffic.
December 9, 2005... RLANDO, Fla. -- As credit unions race to community charters and to build branches, the banking industry already knows that's an expensive strategy for capturing new members/customers and, in turn, their business. That's why many are...

Tools & Resources.
December 9, 2005... Bloomberg Press has released a revised version of Investing in Hedge Funds by Joe Nicholas. It explains hedge fund structure, the risks versus the benefits of these vehicles, how to evaluate individual funds and where to find specific...

Calendar.
December 9, 2005... Dec. 6 Roundtable: Professional Buyer and Manager Selection Cerulli Associates Boston (617) 437-1098, or www.cerulli.com Dec. 8-11 Financial Planning: Process and Environment American College Bryn Mawr,...

The 50 Most Valuable Players.
December 9, 2005... BIC is proud to present this year's list of top financial advisers working in the bank channel. While they are ranked from one to 50, it should be noted that these advisers represent the best performers in the country, much as the S&P 500...

Managed accounts in the Bank channel: In-depth Research On How Banks Package and Distribute Managed Accounts.
December 9, 2005... Separately managed accounts are a rapidly growing segment of the financial industry, encompassing an estimated $620 billion in assets under management as of mid-2005, according to the Money Management Institute of Washington, D.C., a nationwide...

How Far Is Your Platform from Perfection?
December 9, 2005... More and more, clients are demanding a comprehensive investment platform, giving them the ability to access both your bank's asset management capabilities as well as external solutions. A recent study by 3C Financial Partners, entitled Platform...

In The Cards: Smart Card Alliance Reports Increase In Membership.
December 12, 2005... PRINCETON JUNCTION, N.J. -- Perhaps indicative that its long-predicted blossoming has finally occurred, membership in the Smart Card Alliance has grown by more than 45% in the last year, with 54 new organizations becoming members. The...

In The Cards: CU's Visa Cards Feature The Sights Of Yuma.
December 12, 2005... YUMA, Ariz. -- Members of A.E.A. FCU are showing off their new Visa check cards with visages of their hometown, thanks to a joint project between the credit union and the Yuma Community Marketing Group, the local tourist center. The partners...

In The Cards: Members Group Helping Convert ATM To Debit.
December 12, 2005... DES MOINES -- Citing the growth in debit volume, The Members Group here said it is working with client CUs to convert their ATM cards to debit cards as a means of increasing relationships. "There are all kinds of statistics available that...

Hyland Brings NCUA Board Back To Three.
December 12, 2005... ALEXANDRIA, Va. -- Christiane "Gigi" Hyland was sworn in to the NCUA board Nov. 18, bringing the panel to its full compliment of three members for the first time in a year-and-a-half. Hyland, a long-time credit union hand, was sworn in by her...

FEMA To Resume Paying Flood Insurance Claims.
December 12, 2005... WASHINGTON -- The Federal Emergency Management Agency will be able to resume paying claims from the National Flood Insurance Program after Congress approved new funding-again-for the NFIP on Nov. 18. Both the House and Senate approved a...

Bankers Take One Last Shot At CU Taxation.
December 12, 2005... WASHINGTON -- Even though the head of the tax-writing House Ways and Means Committee made clear his intention not to tax credit unions, the bankers took one more shot in written comments submitted to the committee as part of the wrap-up to the...

CUNA Donates $21K To Various Leadership PACs.
December 12, 2005... WASHINGTON -- Contributions to political action committees like "Defend America PAC," "Prairie PAC," and "The Good Fund," helped CUNA continue to develop its ties with congressional leaders last month. Donations to the so-called leadership...

Attractiveness Of 1-Year ARM May Start Waning.
December 12, 2005... McLEAN, Va. -- The yield curve continued to flatten out, with short-term mortgage rates moving ever closer to long-term rates, Freddie Mac said. The average for the benchmark 30-year, fixed-rate mortgage rose to 6.37% its highest in two...

The CU Journal Daily.
December 12, 2005... Pay-By-Cell Coming To CU Near You CHICAGO-Discover Financial Services, the parent of PULSE EFT, is testing contactless card technology that will allow its cardholders to pay by cell phones at the point of sale. The technology will also...

Looking at the LANDSCAPE: Financial Services Leaders Share Their Strategies, Concerns And Viewpoints.
December 12, 2005... RLANDO, Fla. -- Four executives with large financial services providers responded to questions last week on customer satisfaction metrics, market segmentation and more during BAI's Retail Delivery Show here. The participants were Benjamin...

Positioning: The Cultural Challenge for Banks.
December 13, 2005... Bank trust divisions have historically seen themselves as both investment managers and customer advisors. But in its survey report "The State of SMA Distribution Through Bank Trust Divisions," the Money Management Institute, of Washington,...

When Opportunity Knocks Banks Can Answer: Enhance organic growth and improve profitability by adding wealth management solutions to your bank investment program.
December 13, 2005... There are two pools of potential investors that could seriously influence the popularity of bank investment programs today. First, we are on the cusp of what will be the biggest wave of retirement in the history of the United States. On January...

It's Only Rock 'n' Roll, But They Like It: First National Bank launches a marketing campaign to reach a younger demographic through local indie rock. But will young Oklahomans dance on into the bank's branches?
December 13, 2005... In the early days of the hot Nebraska summer, the suits at First National Bank of Omaha decided to chill out. Well, that's not entirely true: They were going to run the company-which, with its affiliates, has assets totaling $16 billion-as...

AD Beat: This is Not Your Father's Campaign. Wait, Maybe It Is.: Ameriprise Financial focuses its financial-planning message at Baby Boomers, whose members begin turning 60 in January. In redefining retirement, they'll need help to fund it.
December 13, 2005... Baby Boomers include the generations of the hippie and the CEO, the idealist and the pragmatist, the workaholic and the free spirit-in short, the Americans who've become whomever they've wanted to be. The sheer number of Boomers has...