Banking Wire articles from December 2007

Banking Wire archives from December 2007

IM Offers Behind-The-Scenes Way To Serve Membership.
December 3, 2007... I just read the Credit Union Journal article on the use of instant messaging (IM) (CU Journal, Oct. 22). We began using the AOL Instant Messenger approximately five to six years ago internally, precisely for the reasons cited in the article....

Ineffective Board Meetings Are No Laughing Matter.
December 3, 2007... I'm certain that I'm not the only Credit Union Journal reader who laughed out loud while reading Frank Diekmann's op/ed entitled, "Forget Room 1408: Far Scarier Hotel Room This Halloween" (CU Journal Oct. 29). Unfortunately, our laughter...

If State CUs Want Interstate Branches, Convert To Federal.
December 3, 2007... Editor's note: this letter was written in response to an article that appeared on www.cujournal.com Nov. 2. I have and continue to see value in being a federal credit union. It adds credibility to our status and provides a solid insurance...

CUs Should Change Accounting Terms To Highlight Difference.
December 3, 2007... I've worked in the credit union industry for over 30 years. For the past 20 years I have been making this case about credit union accounting terminology. The reception for the ideas have been mixed-maybe it's that I'm talking about accounting...

Opportunity In Flat Growth Market: When Members Relocate.
December 3, 2007... When a credit union evaluates a new market for branching, household growth is almost always the first statistic they seek as a gauge of market opportunity. This is certainly sensible, since it is easier to thrive in a market where additional...

Dangerous Data Security Myths: Get Them Before They Get You.
December 3, 2007... How safe is your member data? Not nearly as safe as you might imagine-especially if you're blissfully unaware that many common assumptions about important data security matters are dangerously inaccurate. Below, five data security experts...

Research: When Brand, Culture Collide.
December 3, 2007... A credit union's brand is the place it holds in the minds of its members. In the same way, its internal brand, or culture, resides in the minds of its employees. Culture amounts to the written and unwritten rules that govern how employees...

Cards: Alt-Pays and Cards: Friends...and Foes: Research states online alternatives like PayPal, Bill Me Later and Google are a daunting challenge to the card firms - even when they are on the same page.
December 3, 2007... As a percentage of total U.S. online payments volume, non-card transaction options still comprise only 12 percent of the entire Web-based purchase market. But like Pearl Jam in its platinum-selling heyday, it's hard to label PayPal as...

Loan Origination: Making Gains in Times of Turmoil: Glenview State Bank and Washington Trust Bank hope Metavante products will streamline their mortgage lending and give them competitive boost.
December 3, 2007... With the mortgage market in a state of serious correction, many lenders are looking for ways to contain costs - and to grab marketshare as others flee the marketplace. Two banks that are doing just that are Glenview State Bank and Washington...

IP Telephony Plays a Key Role in Business Continuity.
December 3, 2007... Banks are on the front Lines when unexpected emergencies strike. Whether it's a hurricane, a fire, or a biomedical crisis, when an emergency happens, customers want access to cash reserves and bank products. However, in a crisis scenario,...

Credit Unions Cleared to Hold Stock in Visa IPO.
December 4, 2007... ALEXANDRIA, Va. -- NCUA ruled that hundreds of federally chartered credit unions will be allowed to own and hold stock they are about to receive in the initial public offering of Visa Inc., even though the Federal CU Act bars equity as a...

Senate Expected to Begin Review of CURIA Proposals.
December 4, 2007... WASHINGTON -- The Senate Banking Committee has signaled its willingness to begin studying regulatory relief proposals for credit unions and banks again, but the signal is a long and arduous process that is not likely to culminate in this...

Growth in Both Savings and Loans Slows at Nation's CUs.
December 4, 2007... MADISON, Wis. -- Growth in both savings and loans declined last month, according to CUNA, adding to fears of a slowdown in the overall economy. Savings actually declined by 0.5%, with $3.3 billion of credit union funds walking out the door....

NCUA Shutters Green Tree FCU after Just Five Years.
December 4, 2007... ABINGTON, Penn. -- NCUA said last week it liquidated Green Tree FCU, less than five years after its chartering by the Friends of Briar Bush, a nature conservancy started by the Quakers. Green Tree was one of the worst performing credit...

Inventor Claims CU Infringement.
December 4, 2007... PHOENIX -- A local inventor has filed suit against five credit unions, alleging they infringed on his patent for a system to provide loans to employees in order to fund their personal contributions to 401(k) retirement plans. The suit was...

Bellco FCU Re-Enters Cards Market.
December 4, 2007... WYOMISSING, Penn. -- Bellco CU announced it once again will offer its members its own branded credit card. The credit union went live on Nov. 5 with two new Platinum credit card programs-one with rewards, one with a great rate-both meeting the...

Greylock FCU Offers 'New Road'.
December 4, 2007... PITTSFIELD, Mass. -- Greylock FCU introduced a subprime auto loan that will reset to a lower rate if the borrower reestablishes good credit. The rate on the "New Road" loans generally will be set at half the rate of other subprime lenders,...

Now In The Market.
December 4, 2007... CUs Add Ceto Cash Calculator SOUTHFIELD, Mich.-Central Corporate Credit Union (CenCorp) is reporting that more than 100 credit union branches in Michigan have signed-up for the Ceto Cash Calculator (C3) since its launch six months ago. C3...

Now In The Market.
December 4, 2007... SSCU Succeeds With CU Check 21 SPRINGFIELD, Ill.-Sangamon Schools Credit Union here is reporting it was able to stop $2,500 in bogus American Express Travelers Checks as the result of its implementation of the CU*Check 21 solution as...

The New Enemy: A Trojan Worse Than Phishing.
December 4, 2007... Crimeware is used to steal valuable business data that can be monetized in the burgeoning cybercrime market. Since crimeware is financially focused, it should come as no surprise that these Web-based attacks often target customers of financial...

Focus On One Differentiator To Add Member Value.
December 5, 2007... KEY BISCAYNE, Fla. -- You can't be a dessert topping and a floor wax, Steven Wilcox told attendees at the recent CUES' Network 2007 hoping to learn how to decommoditize their credit union. "You can't be everything," he said. "You have to...

CUES Elects New Board Of Directors, Officers.
December 5, 2007... KEY BISCAYNE, Fla. -- CUES elected its new board officers: Chair-Mark Hawkins, CEO, Altura CU Riverside, Calif.; Vice Chair-Carla Altepeter, CEO of CitizensFirst CU Oshkosh, Wis.; Treasurer-Dale F. Schumacher, CEO, Tampa Bay FCU, Tampa, Fla.;...

Councils Take Home Honors From CEO Network.
December 5, 2007... KEY BISCAYNE, Fla. -- CUES honored the following Councils during its CEO Network: CUES Alabama Council, Councils with less than 74 members; CUES Rocky Mountain Council, Councils with 75 to 150 members; CUES Michigan Council, Councils with more...

EHS Design, JMFA Named Suppliers Of The Year.
December 5, 2007... KEY BISCAYNE, Fla. -- EHS Design Inc., Seattle, and John M. Floyd & Associates, Baytown, Texas, won CUES' Suppliers of the Year award for their contribution to the CU industry. EHS Design Inc. is the winner in the category of 50 or fewer...

Withers, Grammatica Take Top CUES Honors.
December 5, 2007... KEY BISCAYNE, Fla. -- Kimberley A. Withers, president, Meridian Trust FCU in Cheyenne, Wyo. Was named 2007 CUES Executive of the Year at the CUES' annual CEO Network. Also honored was Richard M. Grammatica, vice president of risk management at...

CUJ Q&A: New Job Title At Allegacy: Senior Manager of Intercultural Markets.
December 5, 2007... WINSTON-SALEM, N.C. -- In September, Allegacy Federal Credit Union hired Lori Timm as senior manager of intercultural markets. The concept of having a multi-cultural program isn't new for the $1.1-billion institution, which has had a system in...

Credit Unions In The Media.
December 5, 2007... The Des Moines Register provided coverage of the return of financial institutions to the small town of Kellog, Iowa, which has had no financial services since a bank left town four years ago. The town of 600 people will now be served by Hedrick...

Worth Noting.
December 5, 2007... Leagues Revamp Match-Up Website RANCHO CUCAMONGA, Calif.-The California and Nevada Credit Union Leagues have revamped the match-up website, which helps consumers find a credit union they are eligible to join, and have rechristened it...

The Role 1 CU's Biz Services Played In Helping An Inventor Get Started.
December 5, 2007... BURLINGTON, Vt. -- Five years after receiving a micro-business loan from Opportunities Credit Union in 2002 to work on his new invention, Mark Harvie's company has been awarded more than $3 million in contracts from the Department of Defense....

After A Half-Century Of Service Spivey Urges Leaders To Protect Future Of CUs.
December 5, 2007... WACO, Texas -- After more than 50 years of service to the credit union movement, Billy F. Spivey retired Oct. 12 from his post as president of GENCO FCU, a position he held for 16 years. Spivey, 70, started his credit union career at William...

Lithuania Central CU Is First In Baltics To Offer Credit & Debit Cards.
December 6, 2007... VILNIUS, Lithuania -- Lithuania Central Credit Union has begun offering debit and credit cards for its affiliated credit unions, with plans to expand further into electronic banking in 2008. LCCU Chairman Sigitas Bubnys announced during a news...

Ireland's CUs Launch Nationwide ATM, Electronic Payments Service.
December 6, 2007... DUBLIN, Ireland -- This country's credit union's used International Credit Union Day to announce the creation of a nationwide ATM and electronic payments service. The system was developed and tested by CU Solutions Ltd., after five years of...

Peru CUs Reaching Out To Rural, Working Poor Populace.
December 6, 2007... LIMA, Peru -- Credit unions in Peru rolled out a comprehensive program in 2006 with World Council of Credit Unions (WOCCU) to increase financial services access for the rural poor in that country. Executives from various credit unions and...

U.S. CU Shares Inspiration, Working Models With Belize CU Movement.
December 6, 2007... FT. GEORGE, Belize -- Kyle Frick, VP with Bend, Ore.-based Mid Oregon Credit Union here, offered a motivational message to the more than 180 people attending the annual meeting of the Belize Credit Union League. Representatives of 13...

Malawi Hosts 8th Annual Africa Congress, Sees Scope Of Movement.
December 6, 2007... BLANTYRE, Malawi -- The World Council of Credit Unions hosted its 8th Annual Africa Congress here, where it welcomed the Cameroon Cooperative Credit Union League as its newest member. More than 400 credit union delegates from 21 countries...

Report: Subprime Cards Exploitative.
December 6, 2007... BOSTON -- Numerous credit card issuers are taking advantage of "inadequate laws and weak oversight by regulators (and) quietly collecting hundreds of millions of dollars in profits selling nearly worthless predatory credit cards targeting...

Birthplace Of CUs Celebrates 25th.
December 6, 2007... QUEBEC, Canada -- Birthplace of the North American caisses populaires and credit unions, the Maison Alphonse-Desjardins in Levis, Quebec celebrates 25 years of being open to the public. Since Nov. 5, 1982, the doors of this museum have been...

Agencies Issue Final FACTA Regs.
December 6, 2007... ALEXANDRIA, Va. -- NCUA is among five federal financial regulatory agencies that have issued final rules that provide consumers with an opportunity to "opt out" before a financial institution uses information provided by an affiliated company...

Spanish Resource Center Launched.
December 6, 2007... SILVER SPRING, Md. -- The National Foundation for Credit Counseling (NFCC) has launched a Spanish-language version of its Homeowner Crisis Resource Center at www.nopierdastuhogar.org. (The English-language site can be found at...

What Motivates Consumers Should Drive Marketing Strategy.
December 6, 2007... NEW YORK -- Marketing strategies need to reflect what motivates consumers and triggers purchases, according to one expert at CUNA Mutual Group. Speaking to the Direct Marketing Associations' national conference here, Dave Griffith,...

Grove On Special Detail To Treasury.
December 7, 2007... ALEXANDRIA, Va. -- NCUA Associate Director of External Affairs Justin Grove has been selected to serve on special detail at the U.S. Department of Treasury. Grove will advise and assist Treasury officials with task forces and initiatives...

CUs Team Up On $60K Radio Buy.
December 7, 2007... ORLANDO -- Credit unions in central Florida are buying $60,000 worth of radio time to promote credit unions as financial institutions. Organized by the Central Florida Chapter of Credit Unions, the ads appeared across 12 stations in the Orlando...

UFCU Donates $250K To Concordia.
December 7, 2007... AUSTIN, Texas -- University FCU has made a $250,000 donation to the capital campaign of Concordia University. The funds are to be used to help build a new campus in northwest Austin. (c) 2007 The Credit Union Journal and SourceMedia, Inc....

Agencies Outline ID Theft Red Flags.
December 7, 2007... WASHINGTON -- The federal financial institution regulatory agencies, including NCUA, and the Federal Trade Commission have sent to the Federal Register for publication final rules on identity theft "red flags" and address discrepancies. ...

Holiday Spirit.
December 7, 2007... The holiday season usually means expansive gestures and plentiful gifts, and we've got both covered in this issue of Bank Investment Consultant. Being the season for gathering and giving, our article "A Time to Give," on page 35, addresses...

Banks, Pick Up Your Game.
December 7, 2007... Despite all of the industry chatter about retirement income planning, banks are significantly behind the curve in capturing the retirement assets of their core demographic: the mass affluent. A Nov. 5 survey of 2,997 mass-affluent consumers...

The Other Meltdown? Accountability of CEOs.: What if these writedowns were to hit $500 billion, as Royal Bank of Scotland Group chief credit strategist Bob Janjuah argues could happen?
December 7, 2007... The chaos raining down on the financial industry in the wake of tens of billions of dollars of writedowns at some of the industry's largest shops-Citi, Merrill, Countrywide, Morgan Stanley and Washington Mutual thus far-is just the beginning of...

ATM Fees: Do Larger Surcharges Spell Opportunity?: Wachovia, U.S. Bank join BofA in charging $3 fees.
December 7, 2007... Perhaps as a matter of punishment, perhaps as a matter of reaction, perhaps as a matter of customer convenience, high ATM surcharges are not only here to stay, but will continue to rise. Bankrate.com reports that banks will collect $4.4 billion...

Enterprise Fraud Management: HSBC Boosts Bottom Line with Anti-Fraud Tool: SAS system reduces costs per item by 53 percent.
December 7, 2007... HSBC is deploying the first major enterprise fraud system by an international financial institution, and thus making a strong case for centralized anti-fraud efforts. HSBC found during its U.S.-based pilot that improving fraud management...

E-bills: Hiding in Plain Sight: Profitable Customers.
December 7, 2007... Electronic bill presentment services, cast as a key support driver for billpay services at banks, might just be profit centers in and of themselves. In a new study sponsored by CheckFree Corp. using a year's worth of customer data from...

Greylock Offers Insurance Discount.
December 10, 2007... PITTSFIELD, Mass. -- In conjunction with the first ever Long Term Care Awareness Week, Greylock Insurance Agency and Berkshire Life Insurance Company of America announced an arrangement enabling Greylock FCU members to secure long term care...

Padak Appointed To Commission.
December 10, 2007... NAPERVILLE, IL. -- Frank Padak, CEO of Scott Credit Union was recently appointed to the Illinois Electronic Recording Commission. The Illinois Electronic Recording Commission consists of the Illinois Secretary of State and 14 other...

Anoka CUs To Merge Dec. 31.
December 10, 2007... COON RAPIDS -- Anoka Hennepin Credit Union (ACHU) and Anoka County Federal Credit Union (ACFCU) will officially become one financial cooperative on Dec. 31, following the recent vote of the members of the Circle Pines-based ACFCU. The...

NCUA Posts Record CDRLF Loan Volume.
December 10, 2007... ALEXANDRIA, Va. -- NCUA last week announced its Community Development Revolving Loan Fund had reached its threshold, having processed 40 loans totaling over $7 million during 2007 and bringing the total fund to more than $13 million. This is...

Capitalizing on Charitable Contributions.
December 10, 2007... Your altruistic clients are missing a chance to save while giving to charity, according to a new Fidelity report. Internal Revenue Service data shows itemized charitable deductions totaled $166 billion in 2004, and $123 billion, or 74% of that...

Bank Brokerage: A Bright Spot amid Subprime Woes.
December 10, 2007... It's all over the media-the subprime crisis is hitting banks hard with huge write-downs, falling stock values and significant job cuts. Is it time to panic? Industry observers don't think so. While parent banks are suffering, the effect is...

Employment: Financial Industry Rates High on Diversity Issues: Citigroup, JPMorgan earn perfect GLBT scores.
December 10, 2007... Gay, lesbian, bisexual and transgender issues have been advanced in corporate America, thanks in part to efforts in the financial-services industry. The Human Rights Campaign Foundation's annual Corporate Equality Index showed that the...

Hits and Has-Beens.
December 10, 2007... Merrill Lynch CEO E. Stanley O'Neal is retiring after 21 years, replaced by interim nonexecutive chairman Alberto Cribiore. A CEO search committee has been formed. Gene Taylor, the top executive in the investment-banking unit of Bank of...

Fraud: TiVo Goes Beyond The TV: Raytheon Oakley's "TiVo-like" technology offers data leak replay.
December 10, 2007... Ask almost anyone who uses a Digital Video Recorder (DVR) and they'll tell you the technology has changed their lives, and they can't imagine how they watched television in the past. Raytheon Oakley Solutions is hoping a similar technology will...

Scoring Banks' Compliance With FFIEC Guidelines.
December 10, 2007... Compliance with FFIEC guidelines brought out the worst in many bankers. There hasn't been as much bellyaching about hitting a deadline since the feared Y2K, which, in the end, was much ado about nothing. The same can be said about hitting the...

Greylock Takes A New Road.
December 11, 2007... PITTSFIELD -- As global credit markets careen from the impact of a meltdown in sub prime lending, Greylock FCU has launched a new auto loan program aimed at helping credit-challenged borrowers. The New Road Loan Program will initially charge...

AAFCU Offers Rewards Checking.
December 11, 2007... COLORADO SPRINGS, Colo. -- Air Academy FCU has launched MAX Checking, a no minimum-balance, free checking account that rewards members with 6.01% APY earnings and automatic refunds on ATM fees for helping the credit union operate more...

Third Quarter Losses Soar At Some CUs.(Financial report)
December 11, 2007... ALEXANDRIA, Va. -- Credit unions around the country are reporting some of the biggest losses since the height of the last major real estate bust, in the early 1990s, when dozens of credit unions went bust. The reasons vary, but one thing is...

NCUA Sells Failed Huron River Area CU.
December 11, 2007... DETROIT -- NCUA called it quits last week on another credit union failure tied to real estate loans in south Florida, agreeing to sell Huron River Area CU, a once $320-million credit union, to Detroit Edison CU. As part of a so-called...

U.S. Bancorp Joins the UMA Fray.
December 11, 2007... U.S. Bancorp has become the latest large bank to roll out a unified managed account (UMA) platform. Its U.S. Bank subsidiary in Minneapolis introduced the platform in October, not long after Bank of America unveiled its own product and...

Top 50 Bank Reps.(Company overview)
December 11, 2007... Bank Investment Consultant is proud to present the Top 50 Reps of 2007. We have scoured the industry for the best producers in the bank branch system. We base our calculations on a production-to-retail-deposits ratio because territories vary,...

Fresh Ink.
December 11, 2007... 1. First Defiance Financial Corp. will acquire Pavilion Bancorp in a cash-and-stock deal worth for $55.7 million. Pavilion's unit, Bank of Lenawee, has eight banks in southeastern Michigan with a total of $290 million in assets and $230 million...

Opposition Grows Against Rules To Trim Shareholder Rights.
December 11, 2007... The Securities and Exchange Commission is expected to decide before year's end whether to approve any of the five controversial proposals that would curb the rights of shareholders to file resolutions and participate in choosing corporate-board...

Resiliency: Broadband Needs to Get Much Broader: Most disaster contingency plans depend on employees working remotely. But an overloaded Web may make that difficult. Will the feds have to take down YouTube?
December 11, 2007... With the new millennium, financial institutions have come face-to-face with several catastrophic events that have tested their business continuity and disaster recovery plans: 9/11, SARS, Katrina, and the possibility of an avian bird flu...

News Makers.
December 11, 2007... PHISHY PHONT PHAKES ASCIING FOR TROUBLE RSA found another unique form of attack in October which, while rare, has the potential for scammers to easily fake a bank site. RSA found a registered internationalized domain name using a...

N.C. CU Behind Interactive Ad Messages.
December 12, 2007... CHARLOTTE, N.C. -- Charlotte Metro Credit Union has begun a unique advertising campaign that allows for human interaction. Time Warner Cable customers with specially enabled cable boxes can participate in a campaign that tests interactive...

On Deadline.
December 12, 2007... Freddie Mac Reports $2- Billion Third Quarter Loss McLEAN, Va.-In another sign of the growing mortgage crisis, secondary mortgage market giant Freddie Mac has written down the value of its mortgage portfolio by a whopping $8.1 billion and...

CUNA, CFA Survey Forecasts Holiday Spending To Fall This Year.
December 12, 2007... WASHINGTON -- Consumer confidence continues to dwindle, indicating that holiday spending will be lower than in past years, according to the annual holiday spending survey conducted by CUNA and the Consumer Federation of America. The survey...

Loans, Growing, But So Are Delinquencies.
December 12, 2007... ALEXANDRIA, Va. -- NCUA said federally insured credit unions reported strong asset and share growth through Sept. 30, according to third-quarter 2007 Call Report data. "The loan-to-share ratio increased to 82.66% signifying credit unions...

Earning Trust: You can improve your chances of getting client referrals from trust officers in your bank.
December 12, 2007... You know that your trust officers can be an excellent source of high-quality referrals. Their clients are affluent or wealthy and they usually have established a high level of trust with them. With a referral from a trust officer, you can...

A Time to Give: 'Tis the season to think about how to help clients fulfill their charitable desires.
December 12, 2007... As the baby boomers inherit and retire, their plans are likely to include some form of giving back. According to the Center on Wealth and Philanthropy, roughly $41 trillion is expected to change hands through bequests and charitable giving from...

Noted and Noteworthy.
December 12, 2007... Banks aren't the only ones interested in the underbanked. The Chicago-based Center for Financial Services Innovation has created the CFSI Catalyst Fund, a private-equity limited partnership to cultivate new financial-services companies and...

The Further Economic Isolation of Iran: The new U.S. economic sanctions on Iran, including on three more state-owned banks, follow months of behind-the-scenes diplomacy. Will this new move turn the dial?
December 12, 2007... Washington's ongoing campaign to persuade financial institutions to break ties with Tehran twisted another notch tighter with tough economic sanctions against three state-owned Iranian banks, companies and military organizations. Designed to...

Word Around Town: What Happens in Vegas, Stays in Vegas?: What do Dr. Alan Greenspan and Sir Bob Geldof have in common? BAI, and not much else. The duo were among those doling out wisdom at RD.
December 12, 2007... With all due respect, Dr. Greenspan, get over yourself. Or so was the sentiment of this journalist attending BAI's Retail Delivery conference in Las Vegas last month. That the former Federal Reserve chairman feels compelled to bar all members...

Techies.
December 12, 2007... Banner Bank's Steven W. Rust is now EVP and CIO at the Walla Walla, WA institution. He had been SVP and CIO since 2004 * World-Check, a provider of open-source risk intelligence on individuals and businesses, appointed Mike Ainslie to the...

Worth Noting.
December 13, 2007... T&C Launces VENTURE Magazine Bloomfield Hills, Mich.-T&C Federal Credit Union recently launched the first issue of it's new bi-yearly teen magazine: "VENTURE: Forward Thinking For Teen Finances." The magazine, designed for T&C's Teen...

Economist Predicts An Upcoming Slide Into Full Recession.
December 13, 2007... SAN DIEGO -- The U.S. economy is slipping into recession as a result of the imbalances seen over the past two to three years, according to a noted economist. Christopher Thornberg, founder and principle of Beacon Economics and former...

Investing for Good: A growing number of clients are interested in socially responsible investments that reflect their values.
December 13, 2007... Perhaps it's political rancor at home, a growing awareness of strife around the world or alarm about global warming. But many clients who come to bank advisors are no longer simply seeking the best possible return at an acceptable risk. Growing...

Learning to Love Lawyers: Tips for successful teamwork with your client's outside experts.
December 13, 2007... If you aren't currently involved in retirement planning, you probably want to be. In American Brokerage Consultants' 2007 Survey of Bank Brokerage & Retail Investment Services, a clear majority, or 75% of responding banks, chose retirement...