Banking Wire articles from February 2005

Banking Wire archives from February 2005

eCU Technologies Offers e-Alerts.
February 1, 2005... CU Technologies, an automated financial service technology provider for credit unions and a CUSO of Pennsylvania State Employees CU, has created a strategic alliance with DocuMatix, a provider of on-line marketing tools and services for credit...

BISYS, Hyland Software Partner.
February 1, 2005... Hyland Software, Inc., developer of the OnBase enterprise content management (ECM) software suite, and BISYS, a provider of outsourcing solutions for the financial services sector, have formed a strategic alliance that will position OnBase as...

15 CUs, League To SilverCloud.
February 1, 2005... Fifteen more Credit Unions and one state league have become the latest to sign with SilverCloud for its information management solution. "We purchased SilverCloud to support our call center and member services teams; to help them provide our...

SmartSource Redesigns 2 Sites.
February 1, 2005... SmartSource Solutions, LLC, a wholly owned CUSO of Constitution Corporate Credit Union, has redesigned the websites for two institutions: CNBS, LLC, Overland Park, Kan., and Golden Plains Credit Union, Garden City, Kan. Behind the scenes,...

13 CUs In 90 Days To ULTRADATA.
February 1, 2005... Harland Financial Solutions, Inc. said that during the past 90 days 13 new credit unions have committed to implement as their core processing systems the ULTRADATA System and CuServ Evolution. CuServ Evolution currently serves more than 250...

USERS Cites 4 Solutions In 2004.
February 1, 2005... USERS, Inc. said that 2004 marked a number of major accomplishments for the company, including the delivery of four new technology solutions that enable credit unions to expand into new markets, operate efficiently, and ensure high availability...

Goal Is To Deliver Huge Petition To Congress...
February 1, 2005... Lawmakers will get a present from the credit union lobby just after they start the 109th Congress-a massive petition that will have millions of names on it asking Congress to retain the credit union tax exemption. The drive is the latest...

...But Utah Legislature Presses On With Its Own.
February 1, 2005... One petition that is not expected to go very far is one the Utah legislature is preparing that would ask Congress to step into the Utah banks' long-time war with credit unions on behalf of the banks. Credit union opponents started the new...

Fed Paper To Fuel Fire Around GSE Oversight.
February 1, 2005... The Federal Reserve issued a paper last week that is sure to fuel the simmering fire over regulatory oversight of the secondary mortgage market, specifically Fannie Mae and Freddie Mac. In its paper the Fed argued that the two...

The CU Journal Daily.
February 1, 2005... CUs' CEO Confidence Plummets DALLAS-Southwest Corporate FCU said its credit union CEO Confidence Index plunged again to a new low. The survey of nearly 500 CEOs during December 2004 found the index fell to 38.75, from 41.06 in...

Community Page.
February 2, 2005... CU Chapter Holds Motorcycle Run The Tampa Chapter of the Florida Credit Union League helped kick off the Credit Union Cruise For Kids Poker Run, which raised more than $23,000 for the Children's Miracle Network. STCU Celebrates 75th...

Credit Unions Changing Names Along With FOMs.
February 2, 2005... SCHENECTADY, N.Y.-First Teachers FCU here has changed its name to First New York FCU. The name change follows a charter expansion to serve anyone in five counties in the Capital Region: Albany, Schenectady, Saratoga, Renesselaer and Schoharie....

ALM First Financial Advisors Bought By Mngmt. Team.
February 2, 2005... Eastern Corporate FCU has sold its ALM First Financial Advisors unit to the subsidiary company's management team. ALM First President Emily Hollis along with Tom Manley and Angela Calvert have acquired the company, which has nearly $8...

CHCU Partners With Local 'Old School Jam' Radio.
February 2, 2005... As part of its continuing effort to educate and illuminate financial education issues for the African-American community, Charlotte Metro Credit Union is sponsoring a local urban "old-school jam" radio station's Tuesday morning talk show,...

Capital One Acquires Provider of Home Equity Loans.
February 2, 2005... Capital One Financial Corp., one of the largest credit card banks in the country, agreed last week to acquire eSmartloan, a provider of home equity loans, from the company's management and National Bank of Kansas City, for $155 million....

Sallie Mae Seeks To Acquire Pennsylvania Lender, Which Rejects Offer.
February 2, 2005... Student loan giant Sallie Mae, which has been buying up competing student lenders, has offered to acquire Pennsylvania's state-run student loan business for $1 billion. Under the deal, Sallie Mae would pay $500 million up front and $100...

MassMutual Enhances Options On Website.
February 2, 2005... MassMutual Financial Group has launched a new section on its website that provides information on financial products and services that can help individual investors prepare for "life events." Called "Learn," the information can be found...

Bank Rolls Out Payday Lender-Like Product.
February 2, 2005... Austin Bank of Chicago is rolling out a program that will sound familiar to credit unions. Saying it was struck by the number of customers asking the bank for loans of less than $500 whom it turned down and who then left the bank and got the...

Mortgage Borrowers Through 4 Lenders Offered Starwood Points.
February 2, 2005... Members of the Starwood Preferred Guest program can earn thousands of Starpoints through a new arrangement with Awards for Mortgage and Real Estate, a company that provides rewards for customers who buy, sell, finance or refinance a home, or...

Information Being Gathered On History Of African-American Credit Union Movement.
February 2, 2005... The African American Credit Union Coalition is gathering information on the history of African Americans in the credit union movement, according to AACUC Chair Helen Godfery, who is also CEO of Shreveport FCU. The trade association is putting...

Eye On The Competition.
February 3, 2005... ATLANTA-CompuCredit, a subprime credit card and specialty finance firm, is moving into auto lending with its acquisition of a Wells Fargo & Co. unit, the Lake Mary, Fla.-based Wells Fargo Financial Consumer Auto Receivables. For CompuCredit the...

The CU Journal Daily.
February 3, 2005... CD Rate Is Tied To Super Bowl PORTSMOUTH, N.H.-Members of Northeast CU can bet on their favorite football team in next month's Super Bowl through the credit union's "Super CD" promotion, introduced last month. Members were offered the...

One Member's Journal.
February 3, 2005... Kiernan O'Brien, a member of THE Credit Union of Palm Beach County (Flordia), left here last week on a spur-of-the-moment trip to provide help in areas hit by the tsunami. At the time he was departing, O'Brien told The Credit Union Journal...

CUs Lose 'Great Friend'.
February 3, 2005... The death of Rep. Robert Matsui (D-CA) means credit unions have lost a "great friend," according to the California league. Matsui, 63, died of Myelodysplatic Syndrome, which weakens the immune system. "Robert Matsui was a dedicated public...

Stadium Name Deal Signed.
February 3, 2005... Security Service FCU has entered into a 12-year deal with the Colorado Springs Sky Sox to rename Sky Sox Stadium here after the credit union. Among the names being considered in the deal, which is for between $1 million and $1.5 million, are...

African-American Fraternity Granted Charter To Create A Virtual CU.
February 3, 2005... NCUA said it has approved a credit union charter for members and alumni of Kappa Alpha Psi, the African-American college fraternity that serves numerous campuses across the U.S. Organizers of Kappa Alpha Psi FCU do not plan to build any brick...

SACU Distributing CDs About Life Of Dr. Martin Luther King, Jr.
February 3, 2005... San Antonio Federal Credit Union (SACU) will provide free interactive CDs about Dr. Martin Luther King, Jr., entitled "Reaching Beyond Our Dreams" at all San Antonio branch locations on a first-come, first-served basis, while they last. The CD...

What About Reward?
February 3, 2005... Law enforcement officials were wondering this week just whom to give the $20,000 reward promised by the FBI for information leading to the Fishing Hat Bandit. Robbery rewards are usually awarded to outside tipsters who call in the identity or...

Member 'Can't Comprehend' Damage.
February 3, 2005... As profiled in the Jan. 10 issue of The Crdit Union Journal, Kiernan O'Brien, a member of THE Credit Union of Palm Beach County in Florida, made a spur-of-the-moment decision to fly to Thailand and use his construction skills to help...

Data On Penetration Still Underserved: CUs Add 27 Million In Low-Income Markets.
February 3, 2005... NCUA announced that credit unions added more than 27.4 million potential new members in underserved areas across the country last year-but there is still no way to know how many of those people are actually joining a credit union. That's...

Tax Resolution Opposed In TV Spots: Utah CUs Unable To Stop Bank-Backed Plan.
February 4, 2005... SALT LAKE CITY -- After some heated wrangling between credit union and bank allies, the state House last week approved a non-binding resolution calling on Congress to help them tax credit unions. The measure, known as House Resolution 1,...

Changes Alter Check Processing Market: 'Your Head Will Need To Be On A Swivel'.
February 4, 2005... ONTARIO, Calif. -- With the CO-OP Network surpassing the one-billion debit transactions mark last year, does it finally mean that old reliable paper check really is becoming a thing of the past at last? Hardly, according to several check...

Will Fifth Time Be The Charm For Bankrtupcy Bill?
February 4, 2005... WASHINGTON -- Credit union representatives and their allies hope the fifth time is the charm with the bankruptcy reform bill-which went down to defeat in each of the last four congresses. A bankruptcy bill almost identical to the one that...

Four CU Vendors Form Utah Bank To Buy Card Portfolios.
February 4, 2005... SALT LAKE CITY -- Four credit union entities said last week they have formed a state- chartered bank under Utah's Industrial Loan Company Act that will buy and manage credit card portfolios for credit unions. The newly chartered company,...

On Deadline.
February 4, 2005... Senators Back Plan For New GSE Oversight WASHINGTON-A group of influential senators introduced legislation last week that would set a new regulatory scheme for Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank System. The...

Rising Rates Likely Reason For Drop In CEO Confidence.
February 4, 2005... DALLAS -- Concern over rising rates eating into earnings is behind the pessimism CU CEOs are showing about 2005. A December survey by Southwest Corporate FCU showed its CU CEO Confidence Index at 38.75 points, the lowest for 2004 and down...

CU Data Predicts Super Bowl Winner.
February 4, 2005... WASHINGTON -- The underdog Philadelphia Eagles will defeat the New England Patriots in Super Bowl XXXIX on Feb. 6, according to a prediction from Callahan & Associates, which is basing its projection on a model incorporating credit union...

Worth Noting.
February 4, 2005... PALS Workshop In St. Louis ST. LOUIS-NCUA Board Member Debbie Matz will host a PALS workshop here April 28. Entitled "New Markets, New Members, New Business," it will help credit unions of all sizes capitalize on opportunities to build...

Other Views On Corporate CU Mergers And 'Efficiencies'.
February 4, 2005... What a reaction! When the article "A Different View on What Lies Ahead for Corporate CUs" was printed in the Nov. 8, 2004 issue of The Credit Union Journal, my first thought was I had better prepare myself. I was certain that within days I...

CUNA Mutual Planning Lawsuit Against BJ's Over Credit Card Breach.
February 4, 2005... MADISON, Wis. -- CUNA Mutual Group expects to file suit against BJ's Wholesale Club and Fifth-Third Bank on behalf of some 300 of CMG's policyholder CUs who sustained losses when credit card information was stolen from the retailer's data...

CUNA Mutual, Union Settle Allegations.
February 4, 2005... MADISON, Wis. -- CUNA Mutual Group and OPEIU Local 39 have agreed to settle all allegations that CUNA Mutual had engaged in labor law violations in 2004. In December of 2004, the National Labor Relations Board General Counsel determined...

Five Key Questions Every CU Should Ask Its Corporate And Regional FHLB.
February 7, 2005... Most credit unions are members of a corporate credit union, and many also belong to a regional Federal Home Loan Bank (FHLB). These credit union partners provide access to wholesale funds for general liquidity and to manage loan or investment...

Payday Lenders Ought To Worry.
February 7, 2005... The Arkansas credit unions and banks in Ed Roberts' fine article "CU-Led Coalition Against Payday Lenders Awaits Ruling" (CU Journal, Jan. 10) have every reason to be worried about the outcome of the court case they have supported. For in...

Perception, Reality & Complaints.
February 7, 2005... Credit unions commonly complain that members grade them poorly on technology even though they keep adding new bells and whistles to their automated delivery channels. What's behind these complaints is not so much a lack of advancement,...

Guidelines Aimed At Limiting Default Rates On MBLs.
February 7, 2005... CHATSWORTH, Calif. -- As member business lending continues to surge, a credit union task force has unveiled new guidelines for avoiding a similar rise in loan defaults. Grace Mayo, CEO of Telesis Community CU here who leads the CUNA...

Two CUs Combine To Charter CU At Boys & Girls Club.
February 7, 2005... MADISON, Wis. -- Summit Credit Union and CUNA Credit Union partnered to charter a new credit union for members and employees of the local Boys & Girls Club. Called STAR (Save To Achieve Results) CU, the new financial institution will...

Product & Service.
February 7, 2005... Leadership Cruise Draws 25 ELKHART, Ind.-The Institute for Credit Union Advancement drew some 25 people to its second annual Leadership Cruise Symposium. The seven- day cruise seminar departed from Miami on Oct. 31st. John Andrews of D...

Up To 1 Million Petitions May Be Presented At GAC.
February 7, 2005... WASHINGTON -- Momentum continues to grow for what is expected to be a major gesture during CUNA's government affairs conference later this month- that is a nationwide petition drive urging Congress to protect the credit union tax exemption....

Minnesota Network Brings New Meaning To Mug Shot.
February 7, 2005... ST. PAUL, Minn. -- The Minnesota CU Network, which brought you legislative playing cards and sauerkraut for political fundraising, has introduced a different lobbying promotion. Representatives of the state league hand- delivered to all 201...

NCUA: FCUs Can't Offer Non-Members Investments.
February 7, 2005... ALEXANDRIA, Va. -- NCUA said a federal credit union is not permitted to provide investment services to non-members by using a shared employee with a broker/dealer. In a new legal opinion issued last week to Linsco/Private Ledger, the credit...

Dollar To Move Business To Birmingham, Ala.
February 7, 2005... BIRMINGHAM, Ala. -- Dollar Associates, LLC, the consulting firm created by former NCUA Chairman Dennis Dollar, said it is opening a Birmingham office where the operation will be based. The firm, which includes Dollar's long-time aide Kirk...

Opponents Of Salle Mae Buyout Airing Radio Ads.
February 7, 2005... HARRISBURG, Penn. -- Opponents of Sallie Mae's bid to acquire the state's student loan agency began running radio ads aimed at fending off the hostile takeover. The campaign by the Coalition to Preserve Access to Higher Education comes as...

Single-Sponsor CU Credits Educational Seminars With Driving Growth.
February 8, 2005... LOS ANGELES -- Many credit unions offer or sponsor financial education workshops for members. But Farmers Insurance Group FCU says its relationship with one such education provider has helped drive its net member growth. Les Ginoza,...

Sri Lanka's CUs Begin To 'Comprehend Task Ahead'.
February 8, 2005... COLUMBO, Sri Lanka -- Credit unions seeking to rebuild after the tsunami here are now beginning to "comprehend the difficulty of the task ahead of them," according to the World Council of Credit Unions (WOCCU). L.B. Dasanayake, general...

Study: 'Abusive' Lending Leading To Foreclosures.
February 8, 2005... CHAPEL HILL, N.C. -- Abusive practices by payday lenders lead to additional home foreclosures against borrowers, according to a new study. The analysis, performed by the Center for Community Capitalism at The University of North Carolina at...

Product & Service.
February 8, 2005... Clayco Financial Facilities Launched ST. LOUIS-Clayco has launched Clayco Financial Facilities, which will be composed of six veterans in the financial services industry and will be led by Paul Barrath, vice president. The company said the...

US FCU Lets Chiropractors Group Know It Has A Cure For 'Bank' Pain.
February 8, 2005... BURNSVILLE, Minn. -- A clever twist on popular chiropractic advertising was a hit for US Federal Credit Union at the Minnesota Chiropractor's Association trade show. At first glance, the backdrop of a woman holding her lower back as...

Campaign Gets Members To Reactivate Accounts.
February 8, 2005... ST. PAUL, Minn. -- A simple direct mail campaign that included a cute puppy with sad eyes and the offer of a free Subzero Rolling Cooler Bag were enough to motivate some 583 members of Postal Credit Union here into reactivating their...

How 1 CU Dealt With SEGs' Reactions As It Went Community.
February 8, 2005... MIRAMAR, Fla. -- When Eastern Financial Florida Credit Union converted to a community charter two years ago, some members weren't happy about it. "They said they didn't feel special anymore," noted Gary Lanier, VP of Sales and Member...

Register Now!
February 8, 2005... WHAT: The Credit Union Journal's Sixth Annual SEG & Business Development Conference WHEN: March 31-April 1 WHERE: Renaissance Orlando Resort at SeaWorld HOW: To get more info or sign up? Visit www.cujournal.com. Or see details on...

Study: Payday Loans Up 84% In Washington State.
February 8, 2005... OLYMPIA, Wash. -- A new report on payday lending in Washington state indicates that payday loans grew by 84% from 2000 to 2003, representing more than $1 billion in such loans. The report, released by Washington's Department of Financial...

Student Follows Credit Card Solicitors Around Campus.
February 8, 2005... ALBUQUERQUE, N.M. -- Despite a prohibition against on-campus solicitations, representatives of Citibank allegedly were at the University of New Mexico handing out fliers to receive a free sandwich from Blimpies. But when those students went...

Mich. League Biz Unit Offering Discount On Internet.
February 8, 2005... PLYMOUTH, Mich. -- The Michigan CU League said its CUcorp Images & Ink CU has teamed up with PowerNet Global Communications to offer discounted Internet services through Michigan and Ohio credit unions. The program will offer high-speed...

Why 1 CU Is Expanding In Underserved Philly.
February 9, 2005... PHILADELPHIA -- American Heritage Federal Credit Union wants low-income Philadelphia residents to help it boost membership by 5% and expand assets at a rate twice as fast by year's end. After being approved to add the city of Philadelphia...

CU Officials Raise Funds For Memorial.
February 9, 2005... OKLAHOMA CITY, Okla. -- Two executives at the former Federal Employees Credit Union (now Allegiance) who were injured in the 1995 terrorist blast at the Murrah Federal Building here are involved in the Second Decade Campaign, which seeks to...

CUES Faculty Member Is Published.
February 9, 2005... MADISON, Wis. -- An article co-authored by Gail J. McGovern, Harvard University Professor of Management Practice and faculty member at the CUES/ California league Advanced Leadership Institute faculty member, has been published in the...

The CU Journal Daily.
February 9, 2005... Canadian Mega-Merger Approved ONTARIO, Canada-The provincial Financial Services Commission of Ontario has approved the combination of Niagara CU and Hepcoe CU, creating the province's biggest and the country's third-biggest credit union...

FCUs May Alter Par Value.
February 9, 2005... ALEXANDRIA, Va. -- It is permissible for a federal credit unions to increase the par value of shares for new members provided it does not violate any state or federal anti-discrimination laws and that there's a rational basis for doing so,...

15,000 Buy Policies In 4 Weeks.
February 9, 2005... VIENNA, Va. -- Navy Federal Credit Union has launched a debt cancellation program provided by CUNA Mutual Group. Navy Federal has begun offering three options of what it has branded "Payment Protection Plan" to cancel loan and credit card...

Benson Named CEO At EPL, Inc.
February 9, 2005... BIRMINGHAM, Ala. -- Wayne Benson has been named CEO of EPL, Inc., the credit union-owned data processing company that serves more than 100 CUs. Benson had been serving as EVP/chief marketing officer after joining the company in 2004. Prior...

25,000 Bluebird Boxes Are Sold.
February 9, 2005... RALEIGH, N.C. -- State Employees Credit Union here said it closed 2004 by exceeding its goal of selling 25,000 "bluebird boxes" as part of its "Bluebird Project." The aim of the project, which is in conjunction with Frank Newell and his...

Loan To Act As Secondary Capital.
February 9, 2005... WICHITA, Kan. -- Cessna Employees Credit Union has made a $50,000 loan that is to act as extended secondary capital to Communities United Credit Union, a community development CU that serves low-income members in northeast and central...

Name, FOM, Charter Changes.
February 9, 2005... Jeanne D'Arc Expands In Mass, NH LOWELL, Mass.-The $600-million Jeanne D'Arc Credit Union, which for 90 years has served the 17 communities surrounding the Greater Lowell area, is now open to anyone in the Massachusetts counties of...

Doing What's Right Trumps What's Expected: The leadership gap quotient is the difference between how a CEO behaves when revenue and earnings are up and when the opposite is true, and how that affects the organization.
February 10, 2005... Management shakeups are part of corporate America's legacy and Wall Street's fickle dynamic. In the end, someone always pays the price for not living up to the Street's expectations-or the CEO's reading of those expectations-and it's rarely...

Privatized Accounts: Social Security Slugfest Emerging on the Hill: SIA: Firms would earn $39 billion over 75 years.
February 10, 2005... In the divisive battle to allow partial privatization of Social Security, which financial services' lobbyists have been quietly touting on Capital Hill, Republicans must convince five Democratic senators to vote against their own party in one...

U.S. Mortgages: As Housing Market Leaks, Foreign Players Get Soaked: But HSBC and Amro dodge the raindrops.
February 10, 2005... The recent boom years of the American housing market were the very mirror image of a sluggish economy: With interest rates slashed, interest in refinancing and real estate speculation soared. The U.S. housing market not only provided the helium...

Hits and Has-Beens.
February 10, 2005... One of banking's highest-ranking, Deanna W. Oppenheimer, resigned as president of Washington Mutual's retail-banking group. She's been with the $289 billion company since 1985. A successor hadn't been named by press time, but Stephen J....

Investment Banking: As European Banks Flail, Americans See an Opening: Commerzbank is out and CSFB is rebuilding.
February 10, 2005... As the new year takes shape and numbers once again rule the mean streets of Frankfurt and Zurich, what's left of their ambitions for global high finance and investment banking? The close of 2004 saw Commerzbank abandon the major leagues to...

Pipeline.
February 10, 2005... M&A Deals Slip in 4th Quarter Bank and thrift mergers and acquisitions declined significantly in the fourth quarter with 58 transactions announced, compared to 84 transactions in the previous quarter and 87 in the fourth quarter of 2003,...

Financial Players Step Up in Wake of Killer Wave. Will It Be Enough?
February 10, 2005... It's not yet Valentine's day, and already 2005 is off to a serious and sobering start. There was the runup to the scheduled Iraqi elections, fraught with violence, legitimacy concerns and uncertainty about whether they'd take place at all....

Noted and Noteworthy.
February 10, 2005... Forget consolidation. Florida expects a record number of new community banks this year, and you can blame entrepreneurs. County officials in Orlando alone are looking at half a dozen potential new charters involving community banking veterans....

Look Out for the Falling Greenback: Economists expect the dollar to continue its slide in 2005, which could portend another global economic crisis. And the West's favorite punching bag? Yep, China.
February 10, 2005... Despite the dollar's recent bounce, economic observers worry that if the dollar's value continues south unabated, it threatens to spawn an economic crisis like the one that rippled across Asia in 1997 and 1998. And that's prompting pressure...

Business Strategies: The People(Soft) Vs. Larry Ellison: The contentious battle between Oracle and PeopleSoft was always about money. Now Oracle CEO Larry Ellison must convince financial clients to stick around.
February 10, 2005... The December conclusion of the Oracle-PeopleSoft saga was, paradoxically, startlingly sudden and also rather anticlimactic. Though PeopleSoft shareholders had tendered a majority of their shares to Oracle in November, signaling the takeover...

Why Bigger Isn't Always Better: Yes, it's a myth: High investor returns don't correlate to larger market share, says a recent study. Organic market growth-and the direction the bank's heading-is key.
February 11, 2005... It's considered an article of faith in many banking circles: the greater the market share, the more pricing power and scale efficiencies- and profits-an institution will get from that market. Large-bank executives, eager to make their...