Banking Wire articles from July 2008

Banking Wire archives from July 2008

As Prepaid Card Product Matures, Some Forecast A Growth Opportunity For CUs.
July 1, 2008... CHANTILLY, Va. -- The prepaid card industry is growing up. The proof is in the name. Previously referred to mostly as gift cards, this product was largely seasonal, tying into holiday gift giving. The fact that they are increasingly being...

Filene Adds CU Tomorrow Initiative.
July 1, 2008... MADISON, Wis. -- The Filene Research Institute has initiated CU Tomorrow, an initiative aimed at helping credit unions attract younger members, younger professionals, and younger volunteers. As one component of CU Tomorrow, Filene has also...

900 Turn Out For Illinois League Meeting.
July 1, 2008... CHICAGO -- Nearly 900 executives representing more than 150 credit unions turned out for the Illinois Credit Union Leagues (ICUL) 78th Annual Convention at the Chicago Hilton & Towers here. Themed, Blazing New Trails, the meeting was the...

Corp. Employees Are Walking The Talk.
July 1, 2008... GREENSBORO, N.C. -- Employees of First Carolina Corporate Credit Union are pledging to walk a distance equivalent to walking to every other corporate CU as part of a wellness program. Assembled by the corporates Wellness Committee, the goal is...

CU Employees Help Bust Gasoline Thief.
July 1, 2008... YORK, Penn. -- Two employees of First Capital FCU here are being credited with actions that led to the arrest of a woman who attempted to steal gasoline from a local convenience store. Gidget Smith and Tracey Hufnagle noticed a woman removing a...

Record-Breaking Year For Youth Savings.
July 1, 2008... MADISON, Wis. -- CUNA reported the National Youth Saving Challenge had a record-breaking year, as young credit union members deposited nearly $11.8 million into saving accounts throughout the week-long event. Through the saving challenge, held...

Prepaid Visa Card Sales Have Doubled.
July 1, 2008... SUITLAND, Md. -- Andrews FCU reported it has doubled its volume of sales in prepaid Visa gift card sales since the launch of its program in late November 2007. From November 2007 to February 2008, gross sales totaled 1,238 card with $99,906 in...

'Lagniappe Checking' Makes Its Debut.
July 1, 2008... BATON ROUGE, La. -- The $357-million Campus Federal has begun to offer a free checking product that offers higher dividend rates and ATM fee refunds, along with other premiums. The product, called Lagniappe Checking, was developed in...

Two New White Papers Now Available.
July 1, 2008... MADISON, Wis. -- Credit unions can learn how to use business services to build member relations and about Net Promoter Scores in two new white papers from the CUNA Operations, Sales, and Service (OpSS) Council. Taking Care of Business Members:...

Hood Shares Vision With Alaska's CUs.
July 1, 2008... JUNEAU, Alaska -- NCUA Vice Chairman Rodney E. Hood told the Alaska Credit Union Leagues Annual Conference here it was appropriate to be meeting in Juneau while the local area is in the midst of an energy crisis due to an avalanche hat had cut...

$32B Navy FCU Explains Move To Expand FOM Beyond Navy.
July 7, 2008... MERRIFIELD, Va. -- Why did the largest credit union on the face of the earth seek an even larger field of membership? Because, said Navy FCU in explaining its FOM expansion to the Department of Defense, it is the only credit unionindeed, the...

Hearing Set For NCUA Nominee: But The 2008 Elections And Race For White House Cloud Fryzel's Prosects.
July 7, 2008... WASHINGTON -- After a five-month wait, NCUA nominee Michael Fryzel will finally get a hearing before the Senate Banking Committee this week, but observers continue to doubt whether the Republican appointee will ever be voted by the full...

Supervisory Comm. Members Challenge Move Made By Board.
July 7, 2008... LOS ALAMOS, N.M. -- Controversy over an invalidated supervisory committee election continues to swirl around Del Norte Credit Union, as a perhaps former, perhaps current member of the committee is leveling new charges of conflict of interest....

Pain In The Gas: CUs Look To Cut Travel, Help Employees With Rising Costs.
July 7, 2008... KNOXVILLE, Tenn. -- The rapidly rising price of gas has credit unions seeking ways to reduce travel between facilities by staff and to help employees cope with the costsa cost that could affect employee retention and recruitment. At least...

On Deadline.
July 7, 2008... CU-Backed Candidate To Face Ex-ABA Lobbyist BOISE, IdahoA credit union-backed candidate here has won a Republican primary to fill the Senate seat vacated by retiring Sen. Larry Craig (R-ID.) Idaho Lt. Gov. Jim Risch will now face Democrat...

Q1 Data Show Loans Slowing, CUs Adding To Reserves.
July 7, 2008... ALEXANDRIA, Va. -- While sinking mortgage numbers were the most glaring in the data released by NCUA for federally insured credit unions during the first quarter of the year (see related story, page 12), the data also shows: * During the...

Customer Satisfaction With Their Bank Slides In Study.
July 7, 2008... WESTLAKE VILLAGE, Calif. -- Customer dissatisfaction with their retail banks has declined, according to a new study. The J.D. Power and Associates 2008 Retail Banking Satisfaction Study found bank customers unhappy due to issues with...

Patelco Plans To Address 'Confidence' Of Ex-CU's Members.
July 7, 2008... SAN FRANCISCO -- Having been selected by NCUA to take over troubled Cal State 9 Credit Union, where members have been consistently withdrawing funds, Patelco Credit Union said one of its first tasks will be to restore confidence. NCUA took...

NCUA Notes No 'Run' At Cal State 9.
July 7, 2008... ALEXANDRIA, Va. -- Patelco Credit Union was among several bidders for the assets of failed Cal State 9 Credit Union. NCUA Spokesperson John McKechnie said Patelco was chosen because of the financial suitability of the package it offered, and...

Worth Noting.
July 7, 2008... CUs 100th Birthday To Be Noted In Congress MANCHESTER, N.H.NAFCU this week will unveil an exhibit to celebrate its history as part of the 100-year anniversary celebration of U.S. credit unions at Americas Credit Union Museum. In addition, a...

Card Balances Up By Nearly 10% Over One Year Earlier.
July 7, 2008... PORTLAND, Ore. -- Credit card balances among CU members grew by nearly 10% at the end of the first quarter of 2008 over the same period one year earlier, while credit unions continue to gain strength in the overall card market. ...

Payday Lender Group Critical Of Proposal.
July 7, 2008... WASHINGTON -- A trade group representing the payday lending industry criticized a proposal for model payday loan alternatives, saying if adopted the plan would eliminate not just payday lenders but many of the programs offered by credit unions,...

Police CU Conference Draws Crowd.(Conference notes)
July 7, 2008... KANSAS CITY, Mo. -- More than 80 people representing 17 credit unions turned out for the Fifth Annual Police Officers Credit Union Conference here, the largest attendance in the shows short history. Organizers said attendees rated the show a...

BC Plan Guidance Released By Regulators.
July 7, 2008... WASHINGTON -- The Federal Financial Institutions Examination Council (FFIEC) has issued updated guidance for examiners, financial institutions, and technology service providers to identify business continuity risks and evaluate controls and...

Now In The Market.
July 7, 2008... Southeast Offers Help With Plans JACKSON, Miss.Leaders of CUs in the hurricane-prone southeast got lessons in prepration as part of Build A Plan in a Day Business Continuity workshop hosted by Southeast Corporate and conducted by the...

Wll Thy Evr Lrn 2 Hv A Cnvstn? & Other Questions & Insights.
July 7, 2008... So Im bumming a ride on a late afternoon last week in Philadelphia with a couple of credit union execs who are giving me a lift back to the train station when the talk turns to member service and whether todays generation is capable of...

2008 Call for Entries Best Practice.
July 7, 2008... The Credit Union Journal is announcing its Call for Entries for its Best Practices awards. It's easy to enter! Nominations may be submitted by credit unions, a CUSO, or even another CU. Nominations can also be submitted by suppliers to the...

Are You Ready To Be The Vince Lombardi Of Your Credit Union?
July 7, 2008... You are the coach of your credit union. While this may seem like an overly simplistic analogy, the statement is true. Your effectiveness as a leader is directly related to you believing your role as a coach and subsequently understanding your...

NASCUS Applauds CUNA Chair Dorety's Call For PCA Reform.
July 7, 2008... NASCUS, the professional association of state credit union regulators, applauds CUNA Chairman Tom Doretys emphasis on the importance of capital reform in the CUJ Q&A feature of the May 19, 2008 edition of the Credit Union Journal. Dorety...

Worth Noting.
July 7, 2008... Groundbreaking Video Now Online WASHINGTONVideo showing the groundbreakings for the two Homes for Our Troops homes being supported by CUNA can now be seen at www.cuna.org/initiatives/homesforourtroops/index.html. CUNA, along with the...

Why CUs Should Never Settle For Less Than A 7-Sided Leader.(Conference notes)
July 9, 2008... FORT MYERS, Fla. -- Great leadership can be distilled down to seven key elements, and one leader implored credit unions never to settle for a leader with anything less than all seven. Pat Williams, co-founder of NBAs Orlando Magic and a...

Mortgage Mess Puts CUs In Driver Seat In Dealing With GSEs.
July 9, 2008... FORT MYERS, Fla. -- Credit unions may not have made the mortgage mess, but theyre part of the clean-up crew, and that is giving them new power when dealing with government sponsored enterprises like Fannie Mae and Freddie Mac. Youre seeing...

CUJ Snapshot.
July 9, 2008... PITTSBURGH -- Credit Union Journal asked CUs at the Pennsylvania CU Associations annual meeting, How is the economy affecting your members? Thomas Heyl, CEO of the $9-million MSA Employees, in Pittsburgh The economy isnt affecting us...

Study: 'Can Sustainability Be Woven Into Strategic Plans?'.
July 9, 2008... MADISON, Wis. -- Can the broader issue of sustainability in all aspects of life be woven into credit unions strategic thinking? It can be, according to a new study that notes the trend toward a more sustainable future is large and important...

OnPoint Community CU To Offer Cards For 1st Time.
July 9, 2008... PORTLAND, Ore. -- This Fall OnPoint Community Credit Union is launching credit cards for the first time in its 75-year history. The CU, which went community in 2006, is the largest in Oregon with $2.6 billion in assets and 186,000 members....

Mortgage Losses Grew 34% at CUs In First Quarter.
July 9, 2008... ALEXANDRIA, Va. -- Loan losses grew 34% at credit unions in the first quarter, while mortgage delinquencies continued to increase, portending continued troubles further into the year, according to NCUA. The average charge-off ratio rose to...

Bellco CU Files Lawsuit Against IRS Over UBIT.
July 9, 2008... DENVER -- Bellco CU, one of the largest state-chartered credit unions in the country, has filed suit against the Internal Revenue Service over the taxing agencys practices for assessing Unrelated Business Income Taxes, or UBIT. The...

Banks Team With CUs To Challenge On-Base Card.
July 9, 2008... ALEXANDRIA, Va. -- The Association of Military Banks of America has joined defense credit unions in asking the Department of Defense to terminate an on-base credit card program awarded to JPMorgan Chase. The banks and credit unions claim...

E1 Financial Opens In East LA.
July 9, 2008... LOS ANGELES -- State Senate Majority Leader Gloria Romero became a member of E1 Financial CU at its new branch in her home area of East Los Angeles to help celebrate the credit unions new initiative in this low-income community. The new...

CDCU Targets Bedford-Stuyvesant.
July 9, 2008... BROOKLYN, N.Y. -- Federal officials presented a check for $394,000 to Brooklyn Cooperative FCU officials to help mark the community development credit unions newest branch, in the low-income Bedford-Stuyvesant neighborhood. The new branch...

Hughes FCU Opens New HQ.
July 10, 2008... TUCSON, Ariz. -- Hughes FCU opened a new headquarters here and a seventh branch in it. All seven branches are about to add Saturday hours. The $400-million credit union plans to maintain its branch at its former headquarters building. ...

CU Awards $129,200 In Scholarships.
July 10, 2008... SAGINAW, Mich. -- Catholic FCU said it granted $129,200 in scholarships to 286 area college students who are members of the credit union through their annual Monsignor Forbes Scholarship Fundone of the largest credit union scholarship programs....

How To Keep From Getting Cut In The 'Scissors Economy'.(Conference notes)
July 10, 2008... SAN DIEGO -- Is your credit union prepared for the Scissors Economy, or are you about to be cut out by consumers who seek to slice costs by serving themselves? Todd Buchholz, managing director of the $15-billion Tiger hedge fund and former...

One Person Sees Economy Bouncing Back By Year-End.(Conference notes)
July 10, 2008... SAN DIEGO -- The American real estate market has been in a recession for two years, but at least one economist believes it may be near bottomwhich should allow the overall economy to recover by the end of this year. Joe LaVorgna, chief...

CUJ Snapshot.
July 10, 2008... SAN DIEGO -- As the economy continues to be a hot topic, Credit Union Journal asked attendees of WesCorps recent Future Forum here, What is your corporate doing to help your CU get through the economic slowdown? Las Vegas, Nevada is the...

More Mergers On Way Means More CUs Must Rethink Brand.
July 10, 2008... GREENWOOD VILLAGE, Colo. -- The second half of 2008 should look much like the first half when it comes to mergers among credit unions. Whats important at any time, one company is reminding, is that when a merger calls for a name change, the...

Competition For Checking Accounts Will Be Heating Up.
July 10, 2008... NORRISTOWN, Penn. -- Spending marketing dollars wisely will be a must in an ongoing tight economy that has banks moving in on credit unions checking account business, cautions one national CU marketing firm. The competition is really...

Despite Economic Crunch CUs Should Resist Cutting Marketing.
July 10, 2008... LOUISVILLE, Ky. -- Marketing is often among the first cuts when the economy is slow, yet most CUs arent looking to slash marketing budgets this year, according to a quick survey from one digital signage company. What remains critical even...

Economy May Recover Quickly, But Margin Pressure Continues.
July 10, 2008... LOMBARD, Ill. -- A slumping economy will eventually recover, perhaps even in the second half of this year, but pressures on margins will continue in 2008 or 2009 and beyond for that matter, according to one analyst. We all feel the pain...

CUs Should Turn To Technology To Help Bolster Lagging Growth.
July 10, 2008... MINNEAPOLIS, Minn. -- Credit union performance during the second half of the year will depend on how well the industry addresses a familiar challengegrowth, says one technology provider that is emphasizing the effort really starts as soon as...

Take Advantage Of Economic Opportunity To Add Products.
July 10, 2008... SAN ANTONIO -- Delivering additional products to members can be easier during the kind of weak economy expected during the remainder of 2008, contends Harland Clarke here, which is further predicting members will be very receptive to CU...

Downturn Seen As Opportunity For CUs & Small Biz.
July 11, 2008... PORTLAND, Ore. -- The commercial lending market remains strong and growing for credit unions, with banks helping to send business CUs way, according to the leaders of four CUSOs. The opportunities for credit unions, the CUSOs told Credit...

CUs Offer Strategies For Building Share Of Mortgages.
July 11, 2008... WASHINGTON -- While other mortgage lenders are shutting down, credit unions are rolling out the welcome mat, with mortgage originations skyrocketing 53% in the first quarter of 2008 compared to the same time last year, according to Callahan &...

Corporate CU Writedowns Put Focus On Fair-Value Accounting.
July 11, 2008... SAN DIMAS -- As much as attention has focused on billion-dollar securities writedowns at the worlds largest financial companies, the fingerprints of fair-value accounting are nowhere more evident than in the arcane and isolated milieu of...

Political Intrigue May Cloud Fryzel's NCUA Nomination.
July 11, 2008... WASHINGTON -- Armed with one of the longest resumes of any NCUA nominee, Chicago lawyer Michael Fryzel breezed through a confirmation hearing before the Senate Banking Committee last week. But the prospects for the Republican candidate to...

Selling Advice.
July 11, 2008... Bank customers are so frequently described as boring-conservative, unsophisticated, etc.-that it's no wonder banks lead the financial services industry in fixed annuity sales. These products offer a predictable return, are guaranteed not to...

Annuities Get Hung Up On "What If".
July 11, 2008... The big crisis facing those nearing retirement these days is the fear that their savings won't last until they pass on. For those fortunate enough not to have that worry, there is a second concern: That they will spend every penny and won't...

Splitting Chair, CEO Roles Is a Matter of Governance: The separation of the chairman and CEO roles is about the importance of communicating strong internal governance practices and demonstrating an unwavering commitment to investors.
July 11, 2008... Washington Mutual chief executive Kerry Killinger is the latest in a string of CEOs forced to surrender his chairman title. This follows on the heels of Wachovias Ken Thompson and Citigroups Charles Prince, both of whom also were eventually...

Leadership: To Split or Not to Split: That is the Top Question: The growing push to separate chairman, CEO jobs.
July 11, 2008... Had Ken Thompson been Wachovias CEO and Lanty Smith the chairman instead of Thompson holding both roleswould the bank still have leapt feet-first into the overheated mortgage market and bought Golden West Financial at the height of the housing...

Mobile banking: How Will Payments Ride Rails?: Mobile platform choices seem daunting. Just wait until things really get rolling.
July 11, 2008... Most of the recent discussion around mobile payments has been how, or if, carriers and banks will hammer out a shared revenue model. But when mobile payments become an everyday reality for banksand few forecast otherwise experts say there will...

Loyalty Programs: Retailers Picking up Tab to Share in Rewards: Banks such as Chase are meeting customer demands for loyalty programs by offering a wide merchant selection for earning and redeeming points. It helps when merchants foot part of the cost.
July 11, 2008... In a survey last year, Forrester Research found the iPhone effect encroaching into loyalty cards. Just as users of Apples popular all-in-one smartphone could quit carrying around iPods and laptops, North American cardholders began to express...

On Deadline.
July 14, 2008... Ringleader Of Young ID Thieves Gets Jail Time TUCSON, Ariz.The head of a ring that manufactured phony credit and debit cards to drain accounts at credit unions and banks was sentenced to more than five years behind bars. Robbin Brown,...

Newspaper's Mistake Leads To Run At CU.
July 14, 2008... CROSSETT, Ark. -- A local newspaper that incorrectly reported two Arkansas CUs filed for bankruptcy spurred a $639,000 run on money at one of the CUs and damaged reputations for both, report CEOs of the affected institutions. On May 26,...

CUNA, League Backing Iraq War Hero In Maine House Race @ti#By Ed Roberts, Washington Bureau Chief.
July 14, 2008... PORTLAND, Me. -- In one of its largest efforts of its kind, CUNA has spent almost $113,000 over the past week on independent mailings on behalf of Democrat Adam Cote, an Iraq war hero running in next weeks Democratic Primary for the state 1st...

Worth Noting.
July 14, 2008... Driving Force Of Largest Student-Run CU Retires DENVERWhen Donna Duvall-Serrano retired last week her career accomplishments were more than just a math teacher at Kent Denver School. Duvall-Serrano was the driving force and organizer in...

Most Gains Come After Retirement.
July 14, 2008... Investment returns earned during retirement play a critical role in providing retirement income, Russell Investments claims in its 10/30/60 Rule report, issued on May 27. The report challenges conventional wisdom that most retirement income is...

Fixed Annuity Sales Continue to Soar.
July 14, 2008... Sales of fixed-income annuities hit $18.8 billion in the first quarter of 2008, an increase of 35.2% over the first quarter last year and 7.2% higher than the fourth quarter, according to Beacon Research's Fixed Annuity Premium Study, released...

No Sex, But Lies and Videotape Abound in International Spy Thriller.
July 14, 2008... Is all fair in love, warand, ah, business? Just ask American Express Bank. In a case reminiscent of a Robert Ludlum thriller, AEB is suing Credit Suisse, claiming the Swiss bank sent an employee, posing as compliance officer, to AEBs Santiago...

Noted and Noteworthy.
July 14, 2008... Finding a guilty party to sue over losses in the mortgage market and the credit crisis is easy. Winning in court is more difficult. Retail and institutional shareholders are accusing UBS, Merrill Lynch, MBIA and Morgan Stanley of hiding...

Credit Decisioning: Top Tools for Tough Times: Today's risks prompt smaller banks to seek cutting-edge solutions.
July 14, 2008... At first glance, a $5.2 billion-asset bank in Montana wouldnt seem to have much in common with Charlotte, NC-based behemoth Wachovia. But when it comes to credit decisioning, First Interstate Bank is playing on the same field. First...

Innovators 2008: Big Thinking Backed By Performance.
July 14, 2008... If theres a common philosophy that CIOs, technologists and futurists share, its the belief that the status quo poses far greater risk than not pushing forward, particularly at times of great strife in the financial industry. That sentiment...

Stang Looks Ahead To New Challenges For CU Movement.
July 15, 2008... PHOENIX -- As Troy Stang treks from the Arizona desert to the green forests of Oregon to take over the Credit Union Association of Oregon, he told Credit Union Journal his top priority will be to build on the leagues advocacy efforts started by...

Poitras Reflects On His Time As A CU Leader.
July 15, 2008... WILSONVILLE, Ore. -- Despite the many challenges facing credit unions, the retired president of the CU Association of Oregon Geme Poitras believes the cooperative model will continue to thrive. Poitras, who became OCUA CEO in 1992, is ready...

How 1 CU Made Its Gen Y Members Boom, Lopping 7 Years Off Average Member Age.
July 15, 2008... MINNEAPOLIS, Minn. -- City-County FCUs boom! Club has been a growth boon to the CU in the category many credit unions covetGen Y. The initiative aimed at ages 13-22 claims 6,190 participants, which has helped lower the average age of the credit...

Ohio Caps Payday Loan Rates.
July 15, 2008... COLUMBUS, Ohio -- Ohio joined the growing list of states restricting payday lending recently, when Gov. Ted Strickland signed legislation to limit the annual rates on the short-term loans at 28%. The new law also limits a borrower to four...

Trust Providers Broaden Advisory Services.
July 15, 2008... Financial services firms are making it easier for their investment advisors to address a broader array of clients' trust needs, ranging from estate planning to philanthropic giving. In late May, Pershing, the Jersey City, N.J., unit of Bank...

Winners Online.
July 15, 2008... If you haven't spent some time on bankinvesetmentconsultant.com, check it out. Several of this year's BIC Top 20 Program Managers have joined the discussion boards to talk directly with the editors and are offering to talk with you about their...

Repairing Libor's Credibility Crisis: The interbank rate set by the British Bankers' Association is being threatened. Can this venerable benchmark, on which markets have depended for 22 years, be saved?
July 15, 2008... The credit crunch is highlighting the cracks in the foundation of Libor, illuminating how a benchmark dependent on participants trust unravels when fear dominates the market. To help restore confidence, the British Bankers Association is...

Core banking: Suddenly, SAP: For a company whose clients include 21 of the world's 30 largest banks, SAP doesn't get much respect in North American banking circles. But the German firm may be near a breakthrough, thanks to the ambitious plans of a Canadian institution to change its core banking platform for $100 million.(Company overview)
July 15, 2008... Ken Caseys $100 million job, replacing the vital core banking platform at the heart of his institution, is a pressing matter under the broad prairie skies of Alberta. Answering that call is a German enterprise -application giant. That this...

Managed Services: MPLS Frees Banks To Hand-Off The Network: Banks know they can manage it themselves, but don't want to, so they call in MSSPs.
July 15, 2008... In two years, the frame relay data network may be as extinct as no-doc mortgages. By 2010, Forrester Research says most large banks, insurers and brokerages will have transitioned to multi-protocol label switching (MPLS), a data/voice...

News Makers.
July 15, 2008... BREAKING INTO P2P PAYMENTS Peer-to-peer payments have gained lots of traction overseas, but not here as much. MasterCard is looking to forge ahead in its home market, teaming with Obopay to pilot an on-demand payments service, which will...

Message In A Bottle? No. But It Does Make It Across The Sea.
July 16, 2008... Consider the observation, below, for a moment: Many of the countrys middle classes would never dream of borrowing from a credit union, associating it with the sort of scrimping and saving their parents did. Most of the new middle class...

Why CUs Can't Afford To Neglect The 'Back End' Of Mortgage Loans: Potential Fraud.
July 16, 2008... Much has been written over the past few years about the growing threat of mortgage fraud. Beyond the FBI statistics, MBA workshops, and the burgeoning industry in fraud detection software for loan originations, the threat of closing table fraud...

U.S. Central Deserved More.
July 16, 2008... Headlines everywhere are focused on todays uncertain economy and continuing market dislocation. Daily, we hear of another mortgage lender or other big bank in trouble. To be sure, this is a time not seen in the financial industry in recent...