Banking Wire articles from February 2003

Banking Wire archives from February 2003

Utah's Banks, CUs Square Off At Debate On Tax Proposal.
February 3, 2003... Dozens of credit union executives packed a state Capitol auditorium in a face off with an equal number of bankers last week during an extraordinary legislative debate over the controversial proposal to tax the state's largest credit unions....

Credit Union's Plan To Buy Bank Raises Host Of Issues.
February 3, 2003... The proposal by University of Iowa Community CU to acquire Hawkeye State Bank is expected to take several months to complete as both state and federal regulators sift through the particulars of the unprecedented deal. James Forney, state...

State, Fed Regulators Pushing For Expanded Reg Relief Bill.
February 3, 2003... State credit union regulators called on Congress to include in its impending regulatory relief package a measure that would allow federally insured credit unions to offer secondary capital instruments, and to count those instruments as net...

CUs Awaiting Payment From Failed Broker To Wait Longer.
February 3, 2003... For dozens of credit unions awaiting repayment from the ill-fated investments with defunct Bentley Financial Services the check's not quite in the mail. An initial payout of $128 million to credit union victims from the rogue broker's...

ON DEADLINE.
February 3, 2003... Bill Would Exempt Some CUs On MBL Cap WASHINGTON-A measure introduced in the House last week would relieve some of the pressure on faith-based credit unions specializing in member business loans by exempting religious-based loans from the...

Groups, Including CUs, Blast Use Of Fee-Based Overdraft Plans.
February 3, 2003... More than 50 consumer groups have joined together to blast "fee- based overdraft programs" in place at more than 1,000 financial institutions, including credit unions. Calling such programs a "hidden and unfair tax on the most vulnerable...

Maine CUs Set New Record In Hunger Fight.
February 3, 2003... Maine's credit unions have set another record in raising funds to help end hunger in the state. At a ceremony at the Senator Inn in Augusta and with hundreds of representatives from Maine food and hunger organizations, Maine's CUs announced...

How 1 CU Is Using Marketing, Partnerships To Grow.
February 3, 2003... Kinecta Federal Credit Union may look like a community-chartered credit union and, at times, even act like one. But, says Teresa Freeborn SVP of marketing and communications, it's not. And, from Kinecta's view, it's even better because...

Worth Noting.
February 3, 2003... Forecast: More Bankruptcies In '03 WASHINGTON-The American Bankruptcy Institute (ABI) is forecasting that 2003 could set a new record for bankruptcy filings. According to ABI, the Administrative Office of the U.S. Courts reported during...

Smiles May Go Miles, But It's Research That Delivers.
February 3, 2003... In the yesteryears of credit union service, successful service- oriented transactions were completed with a smile and a personalized greeting. Today, the bar has been elevated for service expectations with consumers expressing the importance...

Number of Mergers During Past Year (271) A Slowdown.
February 5, 2003... NCUA also approved 29 mergers in December, the most in any one month in more than a year-and-a-half. But the 271 credit union mergers approved last year was down from the 300 combinations in 2001 and the fewest in four years. Twenty of...

Flight From Federal To State Also Shows Reduction.
February 5, 2003... The flight from federal charter also slowed dramatically in 2002 from the previous years. NCUA said just 14 credit unions converted to state charter in 2002. That number was down significantly from the 27 approved in 2001 and the lowest...

Hot Money May Cool Off For Some Time In CUs.
February 5, 2003... The nation credit unions continued to bathe in new savings last year, with more than $50 billion of new shares pouring into credit unions during the 12-month period, according to CUNA. That makes almost $110 billion in new savings flooding...

People.
February 5, 2003... The Virginia Credit Union League, Lynchburg, Va., named Alda Wilkinson senior vice president of governmental affairs/public relations. USA Federal Credit Union, San Diego, named Joetta McNamara-Mihalovich assistant vice president of...

The CUJ Daily.
February 5, 2003... Colo. Adopts Incidental Powers DENVER-The state Financial Services Board has approved a new rule allowing state-chartered credit unions to perform a variety of services in-house, rather than through separately created CUSOs, providing...

Minn. Oks Community FOMs.
February 5, 2003... State regulators with the Department of Commerce said they have approved two large community FOMs. The first will allow Anoka Hennepin CU, Coon Rapids, to serve more than 300,000 residents in the cities of Brooklyn Park, Champlin,...

Community Page.
February 5, 2003... SCU Donates $27,000 In Grants EUGENE, Ore.-SELCO Credit Union donated $27,462 in mini-grants. Award recipients included public and private school programs in both Lane and Deschutes Counties. DCCU Reports Holiday Deposits ...

NCUA Continues To Cut Costs.
February 5, 2003... NCUA announced Wednesday it is relocating its west coast Region VI office in Concord, Calif., a suburb of San Francisco, to Phoenix, under recommendations made by the agency's Accountability in Management (AIM) task force. The...

Canadian CU Has Similar Plans.
February 5, 2003... In the second credit union purchase of a bank in the last week, Desjardins CU, part of the Quebec-based Desjardins Group, said it has agreed to buy the provincial government-owned Ontario Savings Office, under the government's privatization...

Important Note: Note To Readers.
February 5, 2003... The Credit Union Journal's SEG & Business Development Conference has begun to fill up. As there is a cap on the size of the meeting, readers are asked to sign up as soon as possible. Scheduled for March 10-11 at the Westin Horton Plaza...

On Steelers, Revealers, Appealers And So Much More.
February 6, 2003... Some random stuff you really need to know: * Where do ex-NFL stars who played on one of the most storied teams in football history go when they no longer get to park in the player's lot? A lifetime of sports banquets and after- dinner...

One CU's Strategy For Making Staff Meetings Interesting: CU Journal Idea File.
February 6, 2003... The staff at Jeffco Schools Credit Union "got milk" all right, and more than 25 different types of cookies to go with it. As part of its quarterly meeting to announce Mystery Shopper results and acknowledge outstanding staff, officials...

Instant Messaging Twist: CU Does It Via Billboard.
February 6, 2003... Erie School Employees FCU has signed on to a unique billboard campaign with instant messaging capabilities controlled by a computer at its main branch. The $155-million credit union is one of only two companies in Pennsylvania, so far,...

Fed Up, Church Leads Drive To Form Its Own CU.
February 6, 2003... Jefferson Community Development FCU here has been granted a charter by NCUA and can now serve persons who live, work, worship, or attend school in communities of Jefferson County. It is the first federal credit union granted a charter in...

SECU Now Offering A Fixed Annuity To Members.
February 6, 2003... The $9.8-billion State Employees' Credit Union (SECU) said it has joined with Jackson National Life to offer a product frequently requested by members-the NCSECU Fixed Annuity. It is aimed at members seeking a long-term, tax-deferred...

Product & Service.
February 6, 2003... Pinnacle Financial Creates Unit HOUSTON-Pinnacle Financial Strategies has formed Pinnacle Performance Strategies (PPS) as a wholly owned subsidiary the company said will offer revenue-enhancement consulting services and data collection and...

SBA, Which Seeks To Expand Ties With CUs, Faces Questions From GAO.
February 6, 2003... The new year has not started out well for the beleaguered Small Business Administration, which has listed among its 2003 goals a significant increase in participation by credit unions in SBA lending. Already facing potentially...

CUs, Banks Likely To Be Lumped Together In Bill.
February 6, 2003... The credit union lobby was discussing last week an offer from lawmakers to separate the credit union provisions from the banking ones in the omnibus regulatory relief package that will be reintroduced in the House any day. The offer...

Rates On Savings, Loans Continue Their Slide.
February 6, 2003... Average dividend rates paid by credit unions kept moving downwards last week from already record depths. Data compiled by DataTrac Corp. shows the average paid by credit unions on regular shares slipped some more to just 1.24% last week;...

Business 101: Sallie Mae Reports Profits Double.
February 6, 2003... SLM Corp., the government-chartered entity commonly known as Sallie Mae, said annual profits more than doubled last year as the company expanded its student loan origination business to $11.9 billion-half of the private sector market-just...

Significant Opportunity For SEG Penetration Remains.
February 7, 2003... There is a lot of potential for SEG penetration out there. Truth is, businesses and their employees need the products and services that credit unions provide. The problem is that many of them just don't know it yet. The credit...

WOCCU Names Its Honorees.
February 7, 2003... The World Council of Credit Unions, Inc. (WOCCU) has named seven exceptional individuals and one organization as the recipients of the Distinguished Service Award (DSA), considered the highest honor bestowed by WOCCU. DSAs are presented to...

Members Fly To Travel Card.
February 7, 2003... Saying it was seeking to meet the travel needs of its members, United Nations Federal Credit Union (UNFCU) has launched VISA Platinum Access, which gives cardholders access to more than 400 VIP airport lounges globally via Priority Pass,...

'Treated Like A Bank'.
February 7, 2003... The Utah League of Credit Unions is running this 30-second TV spot entitled "Treated Like a Bank." The TV spot, along with related radio ads, are in response to a proposal to apply the state's franchise tax to large credit unions. The Summit...

'A Lousy $400-Million Profit'.
February 7, 2003... The Utah League of Credit Unions is running this 60-second radio spot entitled "Sob Story" in response to a proposal to apply the state's franchise tax to large credit unions. The Summit Group, Salt Lake City, is the agency. SFX: Bustling...

'Call Speaker Now'.
February 7, 2003... The Utah League of Credit Unions is running this 60-second radio spot in response to a proposal to apply the state's franchise tax to large credit unions. The Summit Group, Salt Lake City, is the agency. ANNCR: Banks don't like credit...

Small Credit Unions At 3rd Quarter, 2002.
February 7, 2003... Determining how a credit union stands relative to its peers is a complex issue. Callahan & Associates, Washington, D.C., has attempted to do so with its Return to the Member ranking system. According to Callahan's, Return to the Member...

Community Page.
February 7, 2003... CUs Open New Branches * Deere Community Credit Union opened a branch in Ankeny Hy-Vee, Iowa. * DEI is renovating Provident Credit Union, in Walnut Creek, Calif. * Alabama Credit Union held a grand opening at its new office in...

The CUJ Daily.
February 7, 2003... Card Disclosure Ruling Appealed SACRAMENTO, Calif.-The California Attorney General will ask a federal appeals court to overturn a federal court ruling invalidating the state's controversial credit card disclosure law. "We will appeal...

Calif. CUs Seek Broad FOMs.
February 7, 2003... State chartered credit unions continue to seek authority to serve large communities but have restrained some of their efforts over the past six months. Information obtained by The Credit Union Journal under the state's Public Information...

Important Note: Note To Readers.
February 10, 2003... The Credit Union Journal's SEG & Business Development Conference has begun to fill up. As there is a cap on the size of the meeting, readers are asked to sign up as soon as possible. Scheduled for March 10-11 at the Westin Horton Plaza...

On Steelers, Revealers, Appealers And So Much More.
February 10, 2003... Some random stuff you really need to know: * Where do ex-NFL stars who played on one of the most storied teams in football history go when they no longer get to park in the player's lot? A lifetime of sports banquets and after- dinner...

One CU's Strategy For Making Staff Meetings Interesting: CU Journal Idea File.
February 10, 2003... The staff at Jeffco Schools Credit Union "got milk" all right, and more than 25 different types of cookies to go with it. As part of its quarterly meeting to announce Mystery Shopper results and acknowledge outstanding staff, officials...

Instant Messaging Twist: CU Does It Via Billboard.
February 10, 2003... Erie School Employees FCU has signed on to a unique billboard campaign with instant messaging capabilities controlled by a computer at its main branch. The $155-million credit union is one of only two companies in Pennsylvania, so far,...

Fed Up, Church Leads Drive To Form Its Own CU.
February 10, 2003... Jefferson Community Development FCU here has been granted a charter by NCUA and can now serve persons who live, work, worship, or attend school in communities of Jefferson County. It is the first federal credit union granted a charter in...

SECU Now Offering A Fixed Annuity To Members.
February 10, 2003... The $9.8-billion State Employees' Credit Union (SECU) said it has joined with Jackson National Life to offer a product frequently requested by members-the NCSECU Fixed Annuity. It is aimed at members seeking a long-term, tax-deferred...

Product & Service.
February 10, 2003... Pinnacle Financial Creates Unit HOUSTON-Pinnacle Financial Strategies has formed Pinnacle Performance Strategies (PPS) as a wholly owned subsidiary the company said will offer revenue-enhancement consulting services and data collection and...

SBA, Which Seeks To Expand Ties With CUs, Faces Questions From GAO.
February 10, 2003... The new year has not started out well for the beleaguered Small Business Administration, which has listed among its 2003 goals a significant increase in participation by credit unions in SBA lending. Already facing potentially...

CUs, Banks Likely To Be Lumped Together In Bill.
February 10, 2003... The credit union lobby was discussing last week an offer from lawmakers to separate the credit union provisions from the banking ones in the omnibus regulatory relief package that will be reintroduced in the House any day. The offer...

Rates On Savings, Loans Continue Their Slide.
February 10, 2003... Average dividend rates paid by credit unions kept moving downwards last week from already record depths. Data compiled by DataTrac Corp. shows the average paid by credit unions on regular shares slipped some more to just 1.24% last week;...

Letters.
February 11, 2003... Doing the Right Thing It was refreshing to read your last article on the Top 50 Bank Reps (December BIM). For once readers had a chance to focus on financial advisers who were not rewarded purely on their volume of business, but rather on...

Correction.(Correction Notice)
February 11, 2003... Due to a production glitch, the December issue of Bank Investment Marketing, which profiled the magazine's top 10 teams and top 30 individual reps, contained a number of typographical errors that had been corrected in early versions....

Your Voice Counts.
February 11, 2003... BIC encourages letters to the editor on topics relevant to the magazine or industry. Please keep letters brief and topical. Correspondence may be edited for length or clarity; if requested, name and company affiliation can be withheld from...

Fifth Third Limits Life Businesses, Sells P&C Unit to Hub International.
February 11, 2003... Is the year 2002 expired, so did Fifth Third's patience with selling P&C insurance. The business had been accumulated almost by accident through acquisitions of other banks, unlike BB&T, for example, which has been buying agencies. And...

PEOPLE ON THE MOVE.
February 11, 2003... FleetBoston Financial hired Jane-Marie Baker as svp and regional director for the Florida and New Orleans operations of its Quick & Reilly brokerage subsidiary. She joins Fleet from Charles Schwab, where she also ran operations in Florida....

A Lesson in Heart from Small-Town Banker.
February 11, 2003... We could all learn a thing or two from Matt Doyle-about adversity, commitment, tenacity and, ultimately, personal integrity. Most people pay lip service to some or all of the above. Those few people who do possess some of the above...

Cards: Bruised Under the Surface: Debt for the distressed leads to bumpy ride.
February 11, 2003... When Capital One announced a higher than expected charge-off rate in its credit card portfolio due to greater exposure to subprime accounts in the third quarter of 2002, it rattled the investing world and credit card lenders. More than that,...

Scene and Heard.
February 11, 2003... "Just having laws in place isn't going to stop the crooked people from figuring out a way to be crooked. It's weird." Brian Peart, president, Nexus Financial Group, on laws seeking to clamp down on unregulated state lenders charging...

Hits And Has-Beens.
February 11, 2003... Argentina's economic woes are unfortunately not new. Twenty years ago former junta dictator and president of Argentina (briefly), Leopoldo Galtieri, thought a war with Britain over the Falkland Islands would resuscitate its failing economy...

Fresh Ink.
February 11, 2003... 1. The Bank of New York wasted no time in a New Year to bolster its Securities Group. The $80 billion-asset bank signed an agreement in early January with CSFB to buy Pershing, a clearing services arm, for at least $2 billion in cash in a...

Karen Davis, BB&T Investment Services, Raleigh, N.C.: Karen Davis gave up her job as a successful regional manager to follow her passion: one-on-one client counseling. She has had no regrets.
February 13, 2003... Ken Davis knew what she wanted to do when she was only 12 years old. "I remember going to the bank with my mother and being in awe of everything that was going on," she recalls. Watching desk-bound bank employees counseling customers made a...

REP DATA.
February 13, 2003... AUM: $86.51 million Production: $895,000 (commission) Clients: 2,056 Licenses held: 7, 24, 63, 66, insurance Copyright 2003 Thomson Media Inc. All Rights Reserved.

The Gensler Group, Northrop-Grumman FCU, Gardena, Calif.: A former bank rep creates a select group of reps to provide full- service investment and insurance programs to CUs and small banks. It's working.
February 13, 2003... Every young bank rep thinks about how he would do things differently if he were running the program. In a few cases, that rep flourishes and does end up managing a team or a whole investment or insurance subsidiary. In this case, Dan Gensler is...

Shelley B. Thompson Comes Home To Lead City National's Wealth Management Group.
February 13, 2003... After punching her ticket at some of the biggest banks, Thompson is leading a broad program at one of the West Coast's fastest-growing private banks. So far, it's been a warm homecoming. The only thing sweeter than moving home to take a...

If You Build It, They Will Come: The VBA Creates its Own BD.
February 13, 2003... Is launching a member-owned BD in a foundering economy the right move? This isn't just a pipe dreamfor the Virginia Bankers Association: 28 banks havesigned up and the VBA expects to generate $15 million in revenue and $500 million in sales by...

Noted and Noteworthy.
February 13, 2003... Here's another reason why the European Union is not yet like the United States (reason number one-photo below- is that there are no restaurants in the EU that serve shrimp 'n grits). Recently Brussels took a few finance ministers to the...

The World's Longest Busy Signal.
February 13, 2003... A determined drive to pull the plug on telemarketing looks set to sail through Washington, as no politician will find votes in defending it. But there's more to the story. The winter buzz as yet-aside from Lott, and who can remember back...

Electronic Banking: Changing of the Guard For the Vendors: The front-running on-line banking and financial software firms are watching well-known personalities move on as the gloomy market demands different style.
February 13, 2003... It's that way with evolution: little things happen here and there, and then one day look up and, oh! The Ice Age has started. That's the way 2003 gets underway for the financial software vending industry. While expected for some time, the...

Biometrics: No Stealing Them Blind: The rise of identity theft has consumers feeling uneasy. Access secured via retinal scans or voice authentication could thwart the efforts of criminals.
February 13, 2003... Biometric technology has always seemed like a leap into science fiction for bankers. The technology allows the identification of people based on a defining biological characteristic such as the retina, fingerprint or sound of the voice. It...

Direct Banking: On-Line Billing. UK Style.: Interest from large British financial firms in an electronic billing venture means that momentum may be building for a piece of e- commerce that's had slow going there.
February 13, 2003... Barclays, HSBC and Lloyds-three of the largest financial companies in the United Kingdom-hope to succeed in electronic billing where others have failed. Together with software company Unisys, the three financials have created a...

America Is Asking: What's an AXA?: Few people seem to know. American equity analysts can't say much, if anything about it. Many marketing consultants have never even heard of it. Spelling out the name doesn't jog any memories either.
February 14, 2003... The biggest insurance company in the world is sleeping on our shores. Globally, AXA Group is the leading insurer by revenue and one of the oldest, founded in France in 1816. It has $956 billion in assets under management and has spent the last...

Hoaglin's Heroes: Huntington Bank is bouncing back from a two-year slide that has drawn fire from analysts. Its second campaign after a major management shuffle and rebrand proves it's no longer sleeping at the wheel.
February 14, 2003... Competition's insane throughout the $28-billion asset Huntington Bank's footprint, which spans Michigan, Ohio, Indiana and West Virginia. Comerica, Fifth Third, National City, Key Bank and Bank One are all after retail banking business,...

Money on the Rise; Banking on Insurance: Consumers are buying record amounts of insurance from banks. But consultant Michael White says there's still room for improvement.
February 14, 2003... Last year set a record for banks selling insurance. Final tallies aren't in yet, but bank annuity premiums in the first 10 months of 2002 have already surpassed 2001's record totals. It looks like there'll be about a 25 percent increase in...

Fishing For Fresh Faces: Anglers of the world, unite! At least that's the latest from the marketing lab at U.S. Bank, which figures it's on to a good hook for a checking account.
February 14, 2003... US. Bank is reaching a boatload of consumers with a new checking account brand by going after a single segment: people who fish. The Sporting Goods Manufacturers Association says 55 million Americans are anglers. "That's one in five...

Little Guys Steal a Play From the Big League: Credit unions and small banks are issuing debit cards, too. Now they're adding reward programs to the mix.
February 14, 2003... Reward programs for debit cards are new but catching on quickly with small banks and credit unions. The extra reach is proving helpful in staving off big bank competitors. First Resource Federal Credit Union is one of the first credit...

Doyle Town: One family stands head and shoulders over one of the lone star state's grittiest places. Urban bruises or hard-working neighborhoods, Matt Doyle's bank binds it all.
February 14, 2003... Texas City stinks. It's a jibe most in this odor-challenged industrial town have long endured from rival football crowds or visitors. It's as old as "Toxic City," a reference to the oil refineries and chemical plants that dominate the...

Blocking Consolidation in Canada.
February 14, 2003... Canadians' love-hate relationship with the "Big Five" banks-the largest and best employers and sponsors of community activities like pee-wee hockey teams-is at the core of their collective merger angst. With two mergers nixed, it's beginning...

Banks, Gangs and Interstates Make a Dangerous Mix: Heists are up nearly 50 percent in rural areas and small towns. Feds say it may get worse. The vast majority are solved; it's still the worst stress on workers.
February 14, 2003... Say a bank is looking to open a new branch. It wants a busy spot close to the highway with lots of traffic. Well, brace yourself. Those are some of the things that attract gunmen as well as customers. Bank robberies are a storied part of...

Reverse Mortgages? Fast Forward: Long maligned, reverse mortgages are gaining popularity as a product than can help older Americans deal with a sinking stock market and take advantage of real estate markets that remain hot.
February 14, 2003... A once obscure mortgage product known as the reverse mortgage is now gathering momentum, and may emerge as an important offering for banks over the next several years. It's geared exclusively toward senior citizens, a group that will grow to...

Once Starving for Service, Small Biz Now has Benefits: Banks big and small are selling investment plans to corner shops and family outfits. Employees demand them, and now the funds are out there.
February 14, 2003... A few years ago, finding a company with 25 employees that participated in a 401(k) plan would have been difficult. Today, thanks to specially-tailored plans and revamped tax laws, banks are targeting small businesses by extending them a full...

Banished for Twenty Years, Now Out of the Box: Single stock futures were securita non grata for two decades. Now they're back and are being touted as a trade for all reasons, delivering the returns on time. Could it be Candyland?
February 14, 2003... After a nearly 20-year ban, trading in single stock futures started in early November. It was a long road that required both an act of Congress and the settlement of a turf war between the Securities and Exchange Commission and the Commodity...

Forget 2002 Taxes, Weigh Your 2003 Strategies Now: The first quarter is viewed as the end of the tax season that begins in fall, but it really begins in January. For the next year, that is. The clock is ticking, but start now for 2004.
February 18, 2003... A 15-month year might sound like some dodgy accounting trick but it is actually a sophisticated way to approach wealth management and tax planning. In many cases dead leaves piling up in the fall are the trigger for advisers to start thinking...

Pershing, Intuit Offer Tax Program to Advisers.
February 18, 2003... Pershing struck a deal with Intuit to provide comprehensive tax- planning and support services to Pershing's customers and their clients. Starting late last year, Pershing began delivering TaxCenter, Intuit's interactive personal-financial...

From Greed to Fear: Why Advisers Rule Now: What do clients crave now? Goal-oriented advice that helps them meet their objectives promptly. It comes down to knowing what they would want to have-and what they must have. It's very different.
February 18, 2003... It has been a rarity for many advisers: catering to the post- exuberance investor, who ran with the bulls from the mid-1990s through 2000, before being brought to his knees by low equity valuations and declining principal. "Investors have...