Banking Wire articles from July 2004

Banking Wire archives from July 2004

Mergers & Aggravations: Congress Gives Cool Reception To Credit Union Requests To Resolve Impending Problem In Merger Accounting.
July 1, 2004... The credit union lobby's bid to fix an impending problem on merger accounting received a cool reception last week on Capitol Hill. Sen. Paul Sarbanes (D-MD), co-author of the Sarbanes-Oxley Act that brings greater accountability to...

The Anti-Cyber Attack Tool Kit: A Look At The Steps Credit Union IT Execs Are Taking To Fight Attempts At Online Crimes.
July 1, 2004... Credit unions are a growing target for cyberattacks-and IT executives are turning to an elaborate tool kit to face the threat. "Like many others, we've had to spend tens of thousands of dollars and hundreds of hours of valuable IT employee...

Fake-CU Scammer Gets 18-Months: Authorities Expect Scam To Continue.
July 1, 2004... It was swift justice for the man believed responsible for bilking hundreds, if not thousands, of Americans through phony credit unions over the past year. Leslie Card, a 35-year-old Jamaican national accused of running a boiler-room...

Succession Worries For Boards & CEOs: Concerns Shared At CUES Event.
July 1, 2004... There's a new group of critics speaking up about the lack of fresh blood on credit union boards: the board members themselves. "It seems that the only way to get off our board is to die," one director told The Credit Union Journal. "I've...

Bank Awards $400K To Nat'l Federation: Goal: Alternatives To Payday Loans.
July 1, 2004... JPMorgan Chase said last week its charitable foundations have awarded a $400,000 grant to the National Federation of CDCUs to help create credit union alternatives to the high-cost payday lenders that are proliferating around the country. ...

On Deadline.
July 1, 2004... NCUA Board Amends MBL Rules For FCUs ALEXANDRIA, Va.-The NCUA board last week proposed amendments to its member business loan (MBL) rules to make it easier for federal credit unions to participate in the U.S. Small Business Adminstration's...

Catch Fatherhood If You Can, Says Famous Ex-Con.
July 1, 2004... Chances are you've caught Frank Abagnale's story by now. Even if you haven't seen the movie about him, you may have marveled (or been repulsed) by what he pulled off. Your credit union likely issues checks to members that have been designed...

Lessons Learned In Making Loans 'Easy'.
July 1, 2004... General Mills FCU, a $177-million institution headquartered in Minnetonka, Minn., serves 22,000 General Mills employees and their family members. VP Lending Mike Long said the Internet is a "big reason why we can do so much mortgage...

Panel Has Advice On Online Mortgage Lending.
July 1, 2004... Online mortgage lending is becoming increasingly popular, and according to the participants in a panel discussion at CUNA Mutual's Discovery conference here, there is no reason for credit unions not to join the technology wave. The panel...

Strategy: Replicate Market Leaders.
July 1, 2004... 66 FCU is one credit union, but has four brands. in addition to its 66 FCU brand in Bartlesville, Okla., it is known as ConocoPhillips Credit Union in Houston, KU Credit Union at the University of Kansas, and as Tyson Credit Union to that...

Cal./Nevada League Ad Takes Banks To Task Over Profit Figures.
July 2, 2004... The California/Nevada Credit Union League congratulated the banking industry on another quarter of record profits in ads placed in Capitol Hill publication Roll Call. "Considering the non-stop complaints by the nation's bankers that they...

No More FLYING BLIND: How Compliance Software Is Helping 1 CUSO.
July 2, 2004... Credit unions can take the worry out of mortgage loan compliance with tools that ensure conformity to any federal, state, and local regulations, according to Mark Dent, president of SELCO Community CU's mortgage lending CUSO, Rainland Mortgage...

Technology News: Survey: 2 Million Hit By Online Check Scams.
July 2, 2004... Nearly 2 million Americans have had their checking accounts emptied or attacked by criminals, according to a new survey. Consumers affected reported an average loss per incident of $1,200, reports market research group Gartner, which based its...

Tech Advances That Have Aided Fraud Can Also Fight It.
July 2, 2004... Advances in technology have added to the impact of fraud on credit unions and other financial institutions. The best response, two analysts told CUNA Mutual's Discovery conference here, is to turn some of those same advances back on the...

Three CUs Opt For Teres Solutions' SAIL Product.
July 2, 2004... Teres Solutions, Inc., a software provider to financial lending institutions, has signed three new credit union customers: Denali Alaskan FCU, Fort Bliss FCU and Telhio Credit Union. Teres Solutions' Software Application for Integrated Lending...

Technology News.
July 2, 2004... COWWW Upgrades E-Statements SPARTA, Mich.- COWWW Software, a provider of web-based archiving, retrieval, has modified its eStatements architecture to provide a unique eNotices solution to the $208-million KEMBA Financial CU, allowing...

With Website Up More Often, Member Calls Are Down.
July 2, 2004... Members no longer call to complain that Spokane Teachers Credit Union's website is down, according to Danny Jones, web developer at the $659-million CU. "Uptime has improved since we started proactively monitoring our web transactions,"...

One CU's Journey To Get Its ATMs Triple-DES Compliant.
July 2, 2004... Credit unions are under pressure to upgrade their ATMs to meet imminent legal and technological developments. But that compliance can be "costly and cumbersome," according to Calvin Curdt, vice president of Information Systems at Anheuser...

ECU Finds 'Clear Delineation' Between Mail, Online Surveys.
July 2, 2004... Eastman CU had heard all the talk about how much happier and more loyal online-using membership is than members who don't use a CU's online banking service. Now the $1.3-billion CU has discovered the truth for itself. ECU sent its...

How CU Security Experts View Their Operations, Market.
July 2, 2004... Credit unions are engaged with cyber-villains in a battle that will never be won-hackers spar with increasingly dastardly deeds, while Information Technology executives continue to batten down the hatches. "In the next few years, it's...

Community CU Selects Fiserv Solution: CU Journal Tech Shopper: A Look At What's New In The Market.
July 6, 2004... The $1.7-billion Community Credit Union here has selected Fiserv Comprehensive Banking Solution (CBS) Worldwide as its new core processor. "In an effort to meet the demands of our marketplace, we knew we had to change from our present system...

Fairmont FCU Renews With EPL; 100 At Meeting.
July 6, 2004... The 34,000-member Fairmont FCU here has renewed its data processing solution contract with EPL, Inc., Birmingham, Ala. FFCU has been an EPL client for 22 years, and has chosen EPL's in-house, web-based core processing solution, i-POWER. The...

IntegraSys Experiencing 'Dramatic' Increase.
July 6, 2004... IntegraSys, a unit of Fiserv, Inc., is reporting a "dramatic increase" in use of its Virtual Branch suite of consumer electronic financial offerings. In 2003, Virtual Branch processed more than 90- million electronic transactions including...

Numerous CUs Select PSCUFS' PayLynx Option.
July 6, 2004... PSCU Financial Services announced that Andrews FCU of Suitland, Md., Pan Am Horizons FCU of Miami, and Rivers Edge Community Credit Union of Allen Park, Mich., are implementing the company's PayLynx online bill payment product. "We are...

More Than 50 NE CUs To Switch To Symitar.
July 6, 2004... Symitar Systems has signed a contract with Los Angeles Federal Credit Union (LAFCU). The $556-million, 40,000-member credit union has selected Episys, "the most widely installed core product in credit unions with $25 million in assets," the...

Summit System Certified For Use With CUSC.
July 6, 2004... Summit Information Systems, a unit of Fiserv providing technology solutions to credit unions, has completed the testing required to certify its Spectrum Teller platform to the Credit Union Service Corporation's new shared branching network-The...

More Than 500 In Attendance At XP Event.
July 6, 2004... XP Systems, a business unit of Fiserv, Inc., hosted its annual Technology Forum at the Royal Pacific Resort in Orlando, Fla. Geared toward the information technology staff at credit unions on the XP2 system, the event was attended by more than...

Free Audio-Response Offered To Smaller CUs.
July 6, 2004... YourMSR.com is offering a free Audio Response special for small credit unions. With the purchase of its latest version of Internet Banking, any credit union with 2,000 members or fewer will receive the latest version of Audio Response for free....

RG2 Solutions Says ProBlox Cuts Expenses.
July 6, 2004... RG2 Solutions, a custom programming and systems integration provider dedicated exclusively to the credit union market, has introduced its ProBlox program. ProBlox allows credit unions to buy blocks of time from RG2 Solutions that they can...

Where CUNA Is Putting Its PAC Money This Year.
July 6, 2004... CUNA is continuing to build up its campaign warchest, just as the final months of the 2004 congressional elections approach. The trade group's political action committee raised $170,000 and spent $146,000 in May, leaving it with $586,000, the...

Congress Finally Extends Flood Insurance Bill.
July 7, 2004... After several false starts, Congress passed a permanent extension of a federal flood insurance bill last week. The bill extends the federally subsidized National Flood Insurance Program for five years and comes after the expiration of...

People.
July 7, 2004... The Alabama Credit Union League, Birmingham, Ala., named Kate Brand director of public and political affairs, and Win Cooper senior financial services specialist. Provident Credit Union, Redwood Shores, Calif., announced that Phillip...

The CU Journal Daily.
July 7, 2004... Banks Ask For Regulatory Relief WASHINGTON-Representatives of the banking community called on Congress last week during hearings before the Senate Banking Committee for dozens of regulatory relief provisions, many of which would gut...

Study: Credit Unions Add $4.5B To New York State.
July 7, 2004... A new study has found New York's credit unions directly and indirectly support 30,000 jobs in the Empire State, helping to generate more than $610 million in taxable wages and an estimated $4.5 billion to the gross state product. The study...

Liberty Seeking Patent On Photo Card Process.
July 7, 2004... Liberty Card Services has filed an application to patent its innovative photo card process. According to Liberty Card Services President Michelle Thornton, the Liberty process is unique because it uses Liberty's secure business-to-...

University FCU Opens Striking New Facility.
July 7, 2004... University FCU has opened this striking facility here. Designed by Angenora Architects of Austin, the credit union said it was seeking to create a "navigational landmark amidst its traditional southwest Austin surroundings." The goal is to...

Universal 1 CU Accepting Matricula Cards.
July 7, 2004... After the Indianapolis-based Mobile Mexican Consulate registered more than 700 Mexicans here for Matricula identification cards, Universal 1 Credit Union said it has begun accepting the cards as ID. "As a credit union, it's important to...

Community Page.
July 7, 2004... TADFCU Awards Three Scholarships SCRANTON, Penn.-The Tobyhanna Army Depot Federal Credit Union awarded John Paul Ruggerio Scholarships to: Emily Krzan, $1,500; Gina Sacco, $1,000; and Jacquelyn Harris, $750. Georgia FCU Member Wins...

Not Your Father's Lifestyle.
July 7, 2004... Directors attending CUES Annual Conference here were told that marketing to young people is about more than just kids clubs-and that they shouldn't use their own experiences as guides. Among the differences, noted speaker and author...

Community Page.
July 7, 2004... DECU Offers Discount Park Tickets RALEIGH, N.C.-State Employees' Credit Union is offering discount theme park tickets to members. TruWest CU Participates In Bun Run TEMPE, Ariz.-TruWest Credit Union sponsored and participated in...

Loyalty Cards: Spend And They Shall Receive: Summit collecting $1.5 million for nonprofits.
July 8, 2004... Summit Bank CEO Terrance M. Davis knows being socially responsible can pay off big in customer loyalty, but he never realized how big. In 2003 the $230-million-asset bank in Sonoma County, CA, faced a migraine familiar to other community banks...

Check 21: Perks Beyond Compliance Will Cost $$$: Huntington finds there's more than meets the eye.
July 8, 2004... Check 21's long-term impact beyond initial compliance may include boosting adoption of a number of innovations, such as transferring check images over the Internet. But with just a couple of months remaining until the bill goes into effect on...

Enterprise Information Integration: Pacific Bancorp Pacifies Its Data: Deployment will make information transparent.
July 8, 2004... The means for banks to meld data sources through middleware abound, but for Pacific Bancorp it's all about offering customers access to products, channels and personalized information without the inconsistency of silos, all in real-time. ...

By The Numbers: Offshoring wave becomes tsunami.
July 8, 2004... TowerGroup says external IT spending will rise to 60% by 2006, compared to 50% in 1996. The culprit: offshoring. Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.banktechnews.com

Great Minds Think Alike, Or Do They? We Intend to Find Out.
July 8, 2004... In any industry, the individuals considered leading practitioners in their field-and those who follow them-like to swap notes and, when appropriate, war stories. Competition aside, financial players must excel in the fundamentals while...

One Great Opportunity.
July 8, 2004... Okay, let me come right out and say it: If banks don't seize the challenge represented by the retirement income market, they will have blown the biggest investment-related opportunity that ever fell into their lap. As BIC Managing...

Big Banks Paying More for Brokerage Talent.
July 8, 2004... In the battle for retail investment assets, banks are continuing to look more and more like their brokerage firm rivals in terms of the carrots they dangle to recruit and retain financial advisors. Indeed, the largest banks are practically...

SEC Loosens Gramm-Leach-Bliley Proposal.
July 8, 2004... The Securities and Exchange Commission has softened its stance on bank activities that would qualify under its broker definition in its proposal to implement provisions of the Gramm-Leach-Bliley Act of 1999. The new proposal contains 11...

Pru Unit Aims Managed Account Products at Banks.
July 8, 2004... Prudential Investments says it hopes to attract new assets by outsourcing an "a la carte" menu of managed account services to midsize banks, private banks, and trust companies. The Newark, N.J., investment services arm of the giant insurer...

Product News.
July 8, 2004... Cohen & Steers Capital Management has launched its Utility Fund. It offers four share classes, and is available for a minimum initial investment of $1,000. Operating expenses range from 1.5% to 2.15%. (800) 330-7348 or www.cohenandsteers.com....

A Banking Metric to Watch: Same store sales growth reveals the long-term winners and losers in the banking business.
July 9, 2004... That single metric should you look at to gauge how your bank is faring against the competition? You could do worse than same-store sales growth. That's the conclusion that the folks at First Manhattan Consulting Group came to after studying...

Michigan Reps Move to Fees.
July 9, 2004... This month, BIC heads to Michigan, where Steven Campbell, manager of Bank One Securities' Midwest region, and Mike Tafelski, retail investment officer and financial advisor in National City Bank's Ten Mile/Meadowbrook branch near Detroit,...

Message Board.
July 9, 2004... "The few that aren't compliant stand out." Joerg Ferchau, CEO of I-S-Cubed, on the influence of of MasterCard and Visa in setting security standards for payments. "Many customers had heard about it, but didn't know how it impacted...

Offshoring: Wave of Offshoring Turning Into a Tsunami for Banks: IT spending in FI outsourcing could hit 60 percent by 2006, up from 50 percent in 1996.
July 9, 2004... There's no doubt about it: Financial services won't be turning back the tide on overseas outsourcing of back-, middle- and front-office functions anytime soon, despite the numerous legislative attempts to stem it. Indeed, offshore...

To Spur Adoption, Banks Could Give EBP&P Lessons: Banks are fostering awareness of on-line bill payment. But they need to show people how it actually works.
July 9, 2004... MasterCard RPPS's Cathleen Conforti says consumers need a good lesson on e- payments from their institutions, and if banks provide it, robust adoption will follow. And offering it for free is also a good idea. The svp of MasterCard...

Wealth Management: First Republic Taps Afs For Hnw Bonds: The private bank, whose spate of HNW-originated asset-backed securities has grown by one-fifth over the last year, has chosen two AFS modules to help handle the booming business.
July 9, 2004... First Republic Bank hopes to turbocharge its asset-backed securities business, which has been exploding as high-net-worth (HNW) clients seek to capitalize on low mortgage rates to restructure their debt. Like institutional investors,...

Marketing: Can Scores Aid In TArgeting clients?: New scoring uses non-credit data and unique modeling aimed at improving the success of customer-acquisition campaigns for credit card, retail and continuity markets. But does it work?
July 9, 2004... Every marketer has the same gripe about the quality of names that dominate his database: How can he increase the odds that every single prospect is a qualified one who will accept his offer? Now Fair Isaac Corp., a provider of analytics and...

Small Business: Hibernia Tackles channel Navigation: Entrepreneurs have different needs than consumers, so an institution's alternative-channel strategy has to adjust.
July 9, 2004... One of the staples of channel management in financial services is migration, or the strategy of nudging consumers to less costly electronic transaction modes such as the Internet, where self-service is high and personal interaction is low....

Event Notification: Charter One Keeps its consumers Alert: The bank, which is in the midst of being acquired by Royal Bank of Scotland, is maintaining its product-rollout schedule. The latest one takes an active approach to customer notification.
July 9, 2004... While waiting for its acquisition by Royal Bank of Scotland to become official, Charter One remains active on the product-rollout front, deploying proactive and economical ways to connect with its base of consumers. The $41 billion-asset...

Kick That Tin Can: Banks Adopt VoIP: Does saving more than $5 million a year sound like a good idea? Just ask SouthTrust how.
July 9, 2004... Bank CIOs convinced that "huge savings" and "improved operational efficiencies" were terms that wouldn't be found in the same sentence have learned to rethink their IT strategy, thanks to the advent of voice-over Internet protocol. Banks...

BofA's Standards Under Fire.
July 12, 2004... I read your May 2004 commentary with great interest. I was a Bank of America full-service customer. No longer. BofA's "Higher Standards" is nothing more than a tagline with two words. It is meaningless. When the BofA fund scandal broke,...

Politics, Promises and the Impact (or Not) of Mergers: The case can be made that some mergers are in the best interest of shareholders. But what about what's in the best interest of communities? That's where the promises start.
July 12, 2004... In corporate America as in politics, everybody wants their fair share. So the question is, why should mergers be any different? They're not-with one exception: connection to the communities, not only in dollars, but sense. When it comes...

Gadflies: They Say, 'Show Me the Money,' and Mean It: Following the cash gains political currency.
July 12, 2004... What do Wells Fargo and the Teamsters have in common? Neither knew how much money Wells contributed to political causes last year. The International Brotherhood of Teamsters, owner of 3,900 shares of Wells Fargo, submitted a proposal not...

Funds: Lousy Corporate Governance? No Problem.: New fund will short the stock and wait for the fall.
July 12, 2004... A new hedge fund is hoping to cash in on the slew of bad news and investor skittishness regarding corporate governance. The fund's research objective will be to determine how well companies police those internal issues that have raised the...

Hits and Has-Beens.
July 12, 2004... Peter T. Garland joined the Bankers' Bank Northeast as chief credit officer responsible for managing all aspects of lending efforts. This is a new business for the bank and Garland will be building infrastructure to support this loan...

Uturists.
July 12, 2004... While investors and analysts have the luxury of being hyper-focused on the next quarter's results, bank executives know that near-term results must be balanced with long-term strategic positioning. Like the best chess players, they must think...

Harry Dent Says Prepare for Boomers' Aging.
July 12, 2004... For Harry Dent, the forces gathering to alter the banking industry can mostly be traced to the life cycle of the Baby Boomers. Dent, an investment strategist and author, whose most recent book is "The Roaring 2000s," is unabashedly bullish and...

Projections See Stronger Economy On The Horizon; Effect Of Rising Rates Is Queried.
July 12, 2004... Signaling an end to an era of cheap money, the Federal Reserve Board last week hiked its target for the bellweather Fed Funds rate by 25 basis points from its 46-year-low of 1%. The rate hike, the first in four years, is widely seen as...

NCUA Examiners Get The OK For Union Elections.
July 12, 2004... In the culmination of a year-long organizing effort, rank-and-file employees at NCUA voted last week to form a collective bargaining unit under the auspices of the National Treasury Employees Union. The vote was 345 to 220 for a local that...

Failing To Get Outside The Box: How Can You Think Outside The Box, If You Don't Know You're In It?
July 12, 2004... There's something refreshing about a speaker who calls his own advice "not particularly useful," acknowledging that even though he knows everyone in the room agrees with what he has to say, not a single one of them is likely to put it into...

Study: Savings Good For Members, And CUs.
July 13, 2004... Encouraging members to save more of their money is more than just good for the member-it's good for the credit union. A new analysis from the Filene Research Institute shows that by increasing savings per member, credit unions can reduce...

On Deadline.
July 13, 2004... CUNA Mutual Seeks Union Breakthrough MADISON, Wis.-CUNA Mutual Group presented a new contract offer to its employees' union last week in an effort to break a three-month stand-off on contract negotiations. In its latest proposal to the...

Time To Sign Up For Day In the Life!
July 13, 2004... The Credit Union Journal is now accepting participants in its annual Day in the Life of Credit Unions project. This popular feature always fills up fast, so make sure to contact Judy Hartnett (jhartnettcujournal.com, or 888-832-2929) as soon...

CUNA, Lawmakers Urge CUs To Stand Up And Be Heard.
July 13, 2004... Several Members of Congress joined CUNA CEO Dan Mica in urging credit unions to "stand up and make themselves heard" on Capitol Hill in a live, national webcast hosted by CUNA. Credit unions cannot allow the bankers, who recently stepped up...

Worth Noting.
July 13, 2004... Apps Accepted For Scholarships RANCHO CUCAMONGA, Calif.-The Richard Myles Johnson Foundation is now accepting applications for its Leadership Scholarship Program for the 2004-2005 school year. The program provides four scholarships of...

Fresh Ink.
July 13, 2004... 1. Cleveland-based National City continues to strengthen its Midwestern base with plans to buy Wayne Bancorp for $180 million. Wayne operates in communities that are contiguous to National City's operations in northern Ohio, according to...

Currency: The Travelers Cheque That Stays at Home: Amex tries breathing new life into aging product.
July 13, 2004... American Express is targeting its travelers cheques to people in foreign countries who like to keep cash dollars at home because they don't trust the local currency or banking system. The company currently markets a version of its travelers...

Pipeline.
July 13, 2004... Wamu Goes Multi-Ethnic In a move to further expand its outreach with multicultural consumers, Washington Mutual has for the first time selected an African- American advertising agency of record, Carol H. Williams Advertising. Dieste Harmel...

Merger & FOM Update.
July 13, 2004... Burning Mountain Merges Into Western Rockies RIFLE, Colo.-The $9.8-million Burning Mountain Credit Union is merging into the $70.5-million Western Rockies FCU. BMCU cited the ability to expand product offerings for agreeing to the merger...

The Overlooked Value Of Doing Cultural Due-Diligence.
July 13, 2004... When it comes to most mergers in any industry, but especially in credit unions, making the numbers work is the easy part. Perhaps it's too easy. In nearly all CU mergers, everything hinges on the financial due- diligence given by...

Langley FCU Targets Payday Lenders With New Low-Cost 'Quick-Cash' Option.
July 14, 2004... Payday lenders are being targeted by a new alternative product being rolled out by Langley Federal Credit Union. Called Quick Cash, it can save borrowers hundreds of dollars in ridiculously high interest rates being charged by payday...

Liquid Gold: Another CU Uses Gas As Lure.
July 14, 2004... The idea of using gasoline as a promotional tool is growing as the price of gas rises. The $83-million Fiberglas Credit Union here has rolled out a promotion in conjunction with Englefield Oil/ Duke and Duchess that offers $100 in free gas to...

Analyst: Rising Rates Should Scuttle Mortgage Plans.
July 14, 2004... Interest rates have risen from recent generational lows, but they still are below what was considered an excellent rate just a few years ago, according to one person, who believes sufficient factors remain in alignment and make this the perfect...

Product & Service.
July 14, 2004... BTC, Great Lakes In Trust Deal NAPERVILLE, Ill.-Bator Training & Consulting, Inc. (BTC) has entered into a partnership with Great Lakes Estate Planning (GLEP) to provide trust services to credit unions. Oak Brook Terrace, Ill.-based GLEP...