Banking Wire articles from February 2002

Banking Wire archives from February 2002

President Appoints Matz, Johnson To Fill Vacant Board Seats At NCUA.
February 1, 2002... President Bush last week filled out the NCUA Board, naming JoAnn Johnson, a Republican, and Deborah Matz, a Democrat, as recess appointees to the three-member panel. The recess appointments came at the last minute, the evening before...

Story Prompts Class-Action Style Lawsuit Against Repo Car Seller.
February 1, 2002... A liquidation service that linked credit unions and their repossessed cars to retail customers is closed and facing a class action-type lawsuit after a story by The Credit Union Journal reported that credit unions were not receiving payment...

Community Group Files Lawsuit Over Repeal Of CAP.
February 1, 2002... The issue of community obligation refuses to go away for credit unions, with the nation's leading advocacy group for community reinvestment filing suit last week against NCUA over last month's repeal of the Community Action Plan, better known...

DOT CUs Scan Those 30,000 New Federal Employees.
February 1, 2002... The passage by Congress of a bill that will create a new federal agency and make up to 30,000 airport security screeners federal employees has credit unions with related fields of membership pondering ways to lure them as members. The...

ON DEADLINE.
February 1, 2002... City Council Denounces CU Over 'Partner' Snub LOS ANGELES-The city of West Hollywood is exploring cutting its ties with F&A FCU because the credit union turned away a woman's lesbian partner and the partner's daughter because the domestic...

CIT on Top of the S.B.A. 7(a) Lending Heap: S.B.A.-approved loan volume jumps by 45%.
February 1, 2002... CIT Small Business Lending was the nation's top S.B.A. lender in the 2001 fiscal year ended Sept. 30, and reported a 45% jump in government-approved loan volume over the previous year, according to government data. John Canning,...

An Alternative When Banks Turn a Blind Eye: Executive says business booms as banks implement tighter loan requirements.
February 1, 2002... Editor's note: With the economy in recession and tighter bank lending standards, business owners are being forced to hunt for capital through alternative sources such as FundAmerica Inc. Q: How did you start in business? Dan Itzler: I...

High Performers: Who They Are, and How They They Got There: Common threads include activity levels, experience, account volume, results.
February 1, 2002... While every business banker would like to be their bank's top performer, there's only room for one at the top. Drawing on statistical data from banks and recounting personal experiences, Nick Miller, president of the consulting firm Clarity...

Online: Pricing Battle Erupts Between Electronic and Traditional e401(k) Models: Brutal months ahead for the e401(k) players desperate to leverage their brands.
February 1, 2002... Electronic 401(k) providers - Emplanet, ExpertPlan and GoldK- prefer using distributors and broker-dealers to determine their pricing structures. In contrast, traditional 401(k) providers such as CitiStreet, Fidelity and First Union favor an...

The Big Shift: Lenders alter Internet strategy from loan origination to customer service.
February 1, 2002... Originating loans to small businesses using the Internet was never an easy proposition. Yet that never deterred Internet loan entrepreneurs, ambitious business banking managers, vendors and consultants eager to sell banks their services from...

President Appoints Matz, Johnson To Fill Vacant Board Seats At NCUA.
February 4, 2002... President Bush last week filled out the NCUA Board, naming JoAnn Johnson, a Republican, and Deborah Matz, a Democrat, as recess appointees to the three-member panel. The recess appointments came at the last minute, the evening before...

Story Prompts Class-Action Style Lawsuit Against Repo Car Seller.
February 4, 2002... A liquidation service that linked credit unions and their repossessed cars to retail customers is closed and facing a class action-type lawsuit after a story by The Credit Union Journal reported that credit unions were not receiving payment...

Community Group Files Lawsuit Over Repeal Of CAP.
February 4, 2002... The issue of community obligation refuses to go away for credit unions, with the nation's leading advocacy group for community reinvestment filing suit last week against NCUA over last month's repeal of the Community Action Plan, better known...

DOT CUs Scan Those 30,000 New Federal Employees.
February 4, 2002... The passage by Congress of a bill that will create a new federal agency and make up to 30,000 airport security screeners federal employees has credit unions with related fields of membership pondering ways to lure them as members. The...

ON DEADLINE.
February 4, 2002... City Council Denounces CU Over 'Partner' Snub LOS ANGELES-The city of West Hollywood is exploring cutting its ties with F&A FCU because the credit union turned away a woman's lesbian partner and the partner's daughter because the domestic...

Coping With Loan Portfolios Under Pressure: Tips to managing clients' transition to alternative funding.
February 4, 2002... We certainly have never taken a strong economy for granted. Despite our recent run of strong sales years in the auto industry and new home markets in Michigan, the economy has now hit a slowdown - and small businesses could be hit hard. ...

State Charters Presented With Five Insurance Options.
February 4, 2002... A noted bank consultant and expert on deposit insurance has outlined for state-chartered credit unions five options for share insurance reform, none of which will be easy. At the behest of the National Association of State Credit Union...

Formula For Distributing 9/11 Donations Announced.
February 4, 2002... After four months of collecting donations and wading through government regulations, the New York State Credit Union Foundation has arrived at a formula for distributing the more than $1 million collected by credit unions to aid victims of the...

Worth Noting.
February 4, 2002... NCUA To Send Fee Notices ALEXANDRIA, Va.-NCUA said it will begin notifying federal credit unions of their 2002 operating fees with invoices in March. In addition, all federally insured credit unions will be informed of the amount needed to...

In God We Trust-And Then Only With A Receipt.
February 4, 2002... In 1985 I drove past a scene straight out of the Depression. Hundreds of people were lined up outside a branch of Home State Savings in Cincinnati attempting to withdraw their life's savings. It was a good, old-fashioned run (good if you...

Peak-Performing Credit Unions During 3rd Quarter, 2001.
February 5, 2002... On this page are featured credit unions that have been identified, according to one set of criteria, of delivering superior value to their members. Determining how a credit union stands relative to its peers is a complex issue. Callahan &...

Incentive Programs Becoming Increasingly Sophisticated.
February 5, 2002... Credit unions need to pay increasing attention to rewards that will attract and retain qualified staff, according to three large credit unions that participated in a colloquium sponsored by the Filene Research Institute, Madison, Wis., and...

How KFCU Serves 17,000 Members From Just 1 Branch.
February 5, 2002... With one branch and 17,000 members, Kern FCU here has made a decision to invest in technology rather than branches in order to provide additional service to members. "We are very unique given our asset size and the number of members we...

Product & Service.
February 5, 2002... Corporates Paying Rebates NAPERVILLE, Ill.--The $2.5-billion Mid-States Corporate FCU said it will pay in excess of 5.00% on balances in its Cash Management Account on Dec. 31, 2001. According to CEO Dave Preter, Based upon the market...

The Lessons Enron Offers To The CU Community.
February 5, 2002... The growing scandal over the collapse of Enron has many a lesson for credit unions. Not the least of which is the fallacy of the audit. Or the urgent need for campaign finance reform. Or the fool's gold of derivatives. And that's just off...

PEOPLE.
February 5, 2002... REGION IV Earthmover Credit Union, Aurora, Ill., recently honored Executive Vice President Libby Calderone with a certificate for her 15 years of service. T & C Federal Credit Union, Pontiac, Mich., announced that branch manager Bob...

Journal Daily.
February 5, 2002... Converted CU's Stock Rises NAPERVILLE, Ill.-Stock in Allied First Bancorp, Inc., converted recently from Allied Pilots Association FCU, has risen 10% in recent days, partially on the strength of a disclosure that a Michigan investor has...

Community Page.
February 5, 2002... SDCU Receives Superior Rating EVERGREEN Park, Ill.-South Division Credit Union was awarded a 5- star rating by Bauer Financial Reports, Inc. Ill. CU Officials Attend Meeting NAPERVILLE, Ill.-The Southeast Chapter of Credit Unions...

Member Foils Card Scam, But Many Questions Remain.
February 5, 2002... A credit card scam targeting members of Gateway Credit Union here was foiled by the credit union, but a local bank customer wasn't so lucky when a $219 "fee" for the card was deducted from his account. The apparent scam involved a...

Success Of Philippines Effort Recognized With Award.
February 5, 2002... The Credit Union Empowerment and Strengthening (CUES) Philippines Project has been selected to receive the Herb Wegner Memorial Award for Outstanding Organization/Program from the National Credit Union Foundation. The project is being...

Foundation Decision Awaits IRS.
February 6, 2002... The board of the New York Credit Union Foundation has made a decision on how to disperse the more than $1 million it has collected for victims of the Sept. 11 attacks. But as The Credit Union Journal was going to press, NYCUF Director...

Michigan CU Glad To Suffer Loss (Staff Weight Loss, That Is).
February 6, 2002... When Security FCU in Flint let go of the equivalent of one employee, the staff celebrated. Good riddance, they thought, admitting openly that the extra blubber around the office was annoying and bothersome. Before you gasp in shock at...

Worth Noting.
February 6, 2002... CURA Funds Are Donated WASHINGTON, D.C.-The $459,000 that was collected by the "Credit Unions Rebuild America" (CURA) Fund to support relief efforts in the wake of the Sept. 11 terrorist attacks in New York, Washington and Pennsylvania...

Edward Jones: Nothing Ventured, Much Gained-Sans the Web.
February 6, 2002... For the past five years financial firms have been doing anything they can to survive what is Web warfare. Everyone, that is, except Edward Jones. The brokerage firm decided that its core business was in providing investment and portfolio...

News Analysis.
February 6, 2002... Security: The Crackdown on Money Laundering Could Mean a Software Boom But as data is gathered more precisely, it could also start an avalanche of privacy complaints american banks were already in hot water over money laundering last fall...

Customer Management: Those Rate Cuts Might Be Working After All: Refis explode despite an ill-conceived lack of retention marketing.
February 6, 2002... The various financial channels filled with pundits lamenting that a series of interest rate cuts by the Fed have failed to budge the faltering economy should take a closer look. Those cuts have fueled a stunning wave of mortgage refinancing...

The Big Ad Spend Decline Could Cost More Than It Saves: Pulling back during a recession is the last thing a firm should do.
February 6, 2002... The drastic cutbacks in advertising across all industries, including financial services, will likely end up costing companies more than it saves. What they save in marketing dollars could very well be lost in customers. Throughout 2001 and so...

Branding Strategies: Two Tickets to Chapter 11 Stadium: Enron Field isn't the first of troubled firms with pricey naming rights deals.
February 6, 2002... During a recent football game between the Minnesota Vikings and Baltimore Ravens at PSINet Stadium, ABC announcer Al Michaels turned to one of his colleagues, one-time funnyman Dennis Miller, to impart a bit of insight as the no-contest match...

Schwab Takes a Real People Spin.
February 6, 2002... Charles Schwab's trading Anna Kournikova for mom and her apple pie. The sports celebrity cache of its last campaign is scaled back in the latest run of ads as the firm puts a new face forward, focusing less on discount and more on...

Movers and Shakers.
February 6, 2002... Warren Wilcox has been named vice chairman of planning and marketing for Providian Financial Corporation. He will play a major role in the restructuring of Providian and will report to Joseph Saunders, president and CEO. Wilcox joins the firm...

Does Your CU Control The Circumstances, Or...
February 7, 2002... Life throws us curveballs all the time and we as individuals, credit unions, communities, and a country often find ourselves in circumstances we would rather not be in. Circumstances can either bring us down or motivate us. Some of us give...

Elected Chair Of Chamber, CEO Cites Value Of Contacts.
February 7, 2002... It's not enough to just make a token appearance at community business organizations like the Chamber or the Rotary Club. Just ask Gary Irvin, CEO of FORUM CU here. He's the new chairman of the Chamber of Commerce here for 2002. The...

Group Wants Reg Reconsidered.
February 7, 2002... A coalition of 12 financial services and homeownership organizations, including CUNA Mutual Group, CUNA, NAFCU and Navy FCU, is urging the Bush Administration to reconsider a proposed regulation on capital requirements against low down-payment...

News Briefs.
February 7, 2002... 41% Have No Emergency Fund BOSTON-While most financial planners recommend families have enough in savings to cover at least three months of expenses to prepare for emergencies or a job change, a new survey from Fidelity Investments found...

Out of the Courtroom, Back to the Boardroom-S1 and Corillian Settle: Anthrax may-or may not-affect biz; 'Net tax ban stays.
February 7, 2002... Word of the Month: Gorilla Warfare: As if the Liberty Alliance needs more muscle, one of the more interesting companies to watch this year-AOL Time Warner-is now on board. The Alliance is set to clash with Microsoft over dominance of...

Who's News.
February 7, 2002... It's more than six months after Bank One's Wingspan fluttered to earth, and the firm's shuffling its consumer Internet group. The latest deal of the deck puts former CMO of Wingspanbank.com, Kevin Watters, in charge, stepping up from his most...

Electronic Invoicing: Bet on Bill Payment in the Bitstream.
February 7, 2002... Two companies quibbling over shipping bill terms would normally cause a banker to become a little nonplussed. But put that disagreement regarding the invoice and its resolution into an on-line paperless electronic platform, and watch the...

In the Box.
February 7, 2002... Another small ad shop gets gobbled up. Berlin Cameron & Partners is now part of London-based WPP Group's Red Cell, strengthening its U.S. presence. Red Cell is a consortium of WPP agencies catering to innovative, underdog brands that buck...

Ad Spending: Bellwether or Blitz: Will Olympics and Super Bowl boost spending?
February 7, 2002... The first big tests of the new year are fast approaching for advertising, and at this point it seems like the Winter Olympics and the Super Bowl could go either way. Rates for Super Bowl spots held steady at about $2 million, although word...

BofA's Winter Biathalon is to Rebuild Its Brand by 'Embracing Ingenuity'.
February 7, 2002... Dan Roselli has fought to keep his ad budget big, and is spending a large chunk of it on the Winter Olympics, an event with regional venues and a huge international profile. Bank of America is a colossus in transition, in the middle of a...

You've Heard It. Maybe Even Said It. But What Does 'Change' Really Mean?
February 8, 2002... Technology is changing the way credit unions do business. How many times has that been heard at conferences and conventions? And how many times have you wondered exactly what it means? One speaker at CUES Directors Conference asked...

'Boards Have Technology Responsibility, Too'.
February 8, 2002... It is incumbent on credit union boards to understand what is going on with technology in order to make technology decisions, said David Furnace, director for Alex Sheshunoff Management Services, citing account aggregation as one emerging...

Why Product Matters Most: Even Though It Gets More Than Half Its Auto Loans From Online Apps, One CU Says It's A Mistake To Focus On The Delivery Vehicle.
February 8, 2002... Online lending giant Digital Federal Credit Union, with more than half of its auto loan applications captured via the Net, is nevertheless shy about fixating on its website as a delivery channel. "One mistake credit unions often make is...

Security: Virtual Document Shredders? Hmm.
February 8, 2002... For some, it must seem like digital heaven: platforms that let companies send messages that can't be copied, saved, forwarded or printed, but can be "shredded" by the sender at a given date. Think what that would have meant to Bill Gates. ...

Intranets: The Long, Winding Road of Enron.
February 8, 2002... The concentric circles of the still-developing Enron scandal will keep detectives, private and public, rapt for years. There will be other stories and lessons overshadowed by the pyrotechnics. Here's one: what about Enron broadband? The...

ECNs: Tough Act in Private Capital Markets.
February 8, 2002... When Laurence Allen and fellow former Bear Stearns chums drummed up the idea of an electronic communications network (ECN) to trade restricted securities, it was to bring liquidity to the private capital markets. But those who handle...

Wealth Management: Mass Affluent are Avid On-Line Users: The Web is a key factor in growing this business.
February 8, 2002... Banks seeking an edge in the most lucrative U.S. retail market, the burgeoning wealth-management sector, have to target clients who require the kind of "high-touch" service more common among private bankers. This means drilling down four or...

Customer Management: Those Rate Cuts Might Be Working After All: Refis explode despite an ill-conceived lack of retention marketing.
February 8, 2002... The various financial channels filled with pundits lamenting that a series of interest rate cuts by the Fed have failed to budge the faltering economy should take a closer look. Those cuts have fueled a stunning wave of mortgage refinancing...

The Big Ad Spend Decline Could Cost More Than It Saves: Pulling back during a recession is the last thing a firm should do.
February 8, 2002... The drastic cutbacks in advertising across all industries, including financial services, will likely end up costing companies more than it saves. What they save in marketing dollars could very well be lost in customers. Throughout 2001 and so...

Branding Strategies: Two Tickets to Chapter 11 Stadium: Enron Field isn't the first of troubled firms with pricey naming rights deals.
February 8, 2002... During a recent football game between the Minnesota Vikings and Baltimore Ravens at PSINet Stadium, ABC announcer Al Michaels turned to one of his colleagues, one-time funnyman Dennis Miller, to impart a bit of insight as the no-contest match...

Technology News.
February 11, 2002... CO-OP Going Wireless ONTARIO, Calif.-The CO-OP Network has introduced Cellular Digital Packet Data (CDPD) technology, wireless technology it said is similar to the way police cruisers access DMV databases. CO-OP Network is making it...

Investments Soar, But Technology Is Flat On Most CFOs' Desktops.
February 11, 2002... As loan volume has slowed, credit union investment portfolios have correspondingly increased. Investment managers working to get the most out of those funds are under the gun-and there's no off-the-shelf technology to assist with analysis. ...

Why One Smaller CU Has Opted For 24/7 Lending System, Center.
February 11, 2002... Around-the-clock lending is an affordable option for small credit unions, according to Natural Resources Conservation Service (NRCS) FCU. It credits its ability to lend 24/7 thanks to an agreement between Computer Consultants Corp.,...

1st Hosted Conductor Site Is Set.
February 11, 2002... Symitar Systems, a subsidiary of Jack Henry & Associates, Inc., reported it has signed its first Conductor core data processing system client in a hosted, service bureau environment. The $20-million NOED FCU in New Orleans will convert to...

Insurance: Cross-Pollination Seeds for Sale: S1, McCammish align.
February 11, 2002... Symbiosis between bank and insurance company is barreling toward extinction, thanks in large part to Gramm- Leach-Bliley. For big banks, referring customers back and forth isn't just innocent back scratching anymore; it could mean forfeiting...

Asset management: Bank One Shakes The Foundation: New technology can cut philanthropic hassles.
February 11, 2002... For most wealthy households, private family foundations are a must, making in-house expertise on the matter mandatory. But Bank One thinks it has found a loophole in that theory. In a partnership with Foundation Source, the Chicago-based...

Cash Management: Think It was a Tough Year? Just Ask UCB.: Two mergers and systems issues fuel problems.
February 11, 2002... When United California Bank opted to go on-line with a cash management tool in 1999, it figured it was doing the smart thing. But instead, it wound up juggling chain saws and broken bottles as the $11 billion-asset institution went through...

Schwab Takes a Real People Spin.
February 11, 2002... Charles Schwab's trading Anna Kournikova for mom and her apple pie. The sports celebrity cache of its last campaign is scaled back in the latest run of ads as the firm puts a new face forward, focusing less on discount and more on...

Movers and Shakers.
February 11, 2002... Warren Wilcox has been named vice chairman of planning and marketing for Providian Financial Corporation. He will play a major role in the restructuring of Providian and will report to Joseph Saunders, president and CEO. Wilcox joins the firm...

In the Box.
February 11, 2002... Another small ad shop gets gobbled up. Berlin Cameron & Partners is now part of London-based WPP Group's Red Cell, strengthening its U.S. presence. Red Cell is a consortium of WPP agencies catering to innovative, underdog brands that buck...

CU Economists Foresee Another Fed Rate Cut.
February 12, 2002... The Federal Reserve's action last week cutting short-term interest rates a record 11th time this year is expected to spur more rate cutting among credit unions. "Credit unions will continue to cut loan and dividend rates. The market is...

Wheat Left To Defend Legacy Of An Old Rival.
February 12, 2002... The effort by NCUA board members Geoff Bacino and Dennis Dollar to rescind the Community Action Plan, or CAP, before the controversial initiative became effective, left the third board member, Yolanda Wheat in a peculiar position of defender...

Seven More Convert To Community Charter.
February 12, 2002... NCUA said it approved another seven conversions to community charter in October, making a total of 84 community conversions through the first 10 months of the year. More than 300 FCUs have converted to community charter over the past four...

Finance Innovation.
February 12, 2002... SecuritiesHub added 144A debt offerings to its on-line portal operations in January, the first time these securities have been available outside traditional venues connecting brokers and clients. The 144A market has been notoriously...

Ten Hottest CIOs in Financial Services.
February 12, 2002... Many financial executives were eager to bid good riddance to 2001, dismissing what began as an unpleasant year and ended with a sobering reality. The world had changed and, with it, so too must business. Few would argue that the role of the...

In Troubled Times, Merrill and McKinley Power Up.
February 12, 2002... Hotfile 1: John McKinley, CTO, Merrill Lynch It was like a line from The Pretenders' Chrissie Hynde: my city was gone. That pretty much sums up the feeling at the end of last year, and it played out in countless ways after September. ...

Allan Woods Takes Mellon from Provincial to Global Financial Player.
February 12, 2002... Hotfile 2: Allan Woods, Vice Chairman & CIO, Mellon Financial The completed sale of Mellon Financial's retail and small business banking units to Citizens Financial Group in December was a symbol of the firm's transformation from its...

Ad Spending: Bellwether or Blitz: Will Olympics and Super Bowl boost spending?
February 12, 2002... The first big tests of the new year are fast approaching for advertising, and at this point it seems like the Winter Olympics and the Super Bowl could go either way. Rates for Super Bowl spots held steady at about $2 million, although...

BofA's Winter Biathalon is to Rebuild Its Brand by 'Embracing Ingenuity'.
February 12, 2002... Dan Roselli has fought to keep his ad budget big, and is spending a large chunk of it on the Winter Olympics, an event with regional venues and a huge international profile. Bank of America is a colossus in transition, in the middle of a...

Lessons in Rich Living from the King of Wealth.
February 12, 2002... The irony with Citigroup's advertising, which was head and shoulders above any other campaign during an uncertain, difficult and recession-plagued year, is that it comes from Sandy Weill's bank. Weill's outsize personality is brash, big and...

ON DEADLINE.
February 13, 2002... Small CU, Big FOM ROCHESTER, N.Y.-Roch-ester Postal Employees CU has obtained approval from the state Department of Banking to convert to a community charter serving the 750,000 residents of Monroe County, one of the largest community FOMs...

Calif. CU Plans To Charter Bank In Order To Make MBLs.
February 13, 2002... Seeking a way around restrictions on member business lending and secondary capital, Arrowhead Credit Union here is planning to charter a subsidiary bank. The bank subsidiary is part of a larger strategy to expand the services Arrowhead...

NAFCU Presses Congress For Relief From Many Provisions Set By HR 1151.
February 13, 2002... NAFCU extended its efforts last week to obtain regulatory relief for credit unions by urging Congress to overturn several provisions of HR 1151, the CU Membership Access Act, that the group believes are hindering credit unions. Among...

Edwards and the Wells Conversion.
February 13, 2002... Hotfile 3: Webb Edwards, EVP, Technology and Operations, Wells Fargo It was the sort of project where the tried and true formula just wouldn't cut it. Webb Edwards had converted a number of acquisition scores in his years as one of...