Banking Wire articles from June 2007

Banking Wire archives from June 2007

STATE STAT-SHOT.
June 1, 2007... Throughout 2007, the Credit Union Journal, in conjunction with ENCORE Card Services, are profiling the credit unions of each U.S. state and D.C. Rather than appear in alphabetical order, the states are being featured in the order they became...

Wescom Continues Mortgage Expansion; Acquires CU West.
June 1, 2007... PASADENA, Calif. -- Wescom Credit Union will acquire CU West Mortgage and merge it with CUSO Mortgage, which Wescom bought last year. Wescom CU will make the purchase through Wescom Holdings, its LLC CUSO. The $3.9-billion credit union said...

Worth Noting.
June 1, 2007... Nominations Are Now Open MADISON, Wis.-CUNA is seeking nominations for the 2007 Community Credit Union of the Year Award, sponsored by CUNA. The award honors a community credit union that exemplifies the ideals of the credit union movement...

Attracting New Members Not The Challenge-An Old Issue Is.
June 1, 2007... BAYTOWN, Texas -- Having great success in attracting new members is not enough. In fact, even keeping those members won't cut it. Success requires loyalty from the members a credit union already has, according to several experts, who shared...

Alabama's CUs Introduce Latest Media In Statewide, $400,000 Campaign.
June 1, 2007... BIRMINGHAM, Ala. -- Alabama's credit unions have launched the latest in a $400,000 media campaign aimed at both creating a more positive political climate in the state for credit unions and at driving greater membership growth. The...

Now On The Market.
June 1, 2007... Metavante Offers Rewards Program MILWAUKEE-Metavante integrated its Points2U rewards program into its online bill payment service. As a result, financial institutions can now award points for online bill payment activity, credit card and...

From The Keys To Best Practices To Practices In Key(Stone).
June 1, 2007... Practice may make perfect, but it's not perfection we're looking for. Instead, the Credit Union Journal is now calling for entries into our Third Annual Best Practices Awards program, which has developed into one of the most widely recognized...

Call For Best Practices Entries.
June 1, 2007... 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 themselves, a CUSO or even another CU. Nominations can also be submitted by...

Some Thoughts From A Roundtable Of Credit Union CEOs.
June 1, 2007... We recently held an extended roundtable session and invited a dozen credit union executives to discuss the state of the industry. We sent out a pre-reading package, and then met for two days of in-depth debate and discussion. We identified...

What 1 Bank Group Never, Ever Mentions.
June 1, 2007... In its latest barrage, the Wisconsin Bankers Association (WBA) is asking taxpayers to take a hard look at the "burden" credit unions' tax-exempt status puts on our state. However, what the WBA fails to mention is that while they're busy...

CDCUs Outpace Others: Year-End Data Shows Comm. Development Credit Unions Out-Performed Industry In 06.
June 4, 2007... NEW YORK -- Community development credit unions (CDCUs) significantly outpaced all other credit unions in membership growth during 2006 and showed strong performance in other categories, although the growth rate for assets has slowed. ...

Does Anyone Care About The 'Best-Kept Secret?'.
June 4, 2007... WASHINGTON -- It's been called credit unions' best-kept secret and its greatest differentiator, but do members-and more importantly, potential members-care? "It" is the cooperative structure of credit unions, and there has been great...

One Roadblock: It's Not Easy To Get A CU Started.
June 4, 2007... WASHINGTON -- Perhaps one of the greatest concerns about the future of credit unions is one that isn't making headlines: the difficulty of chartering a brand new credit union. "I hope to see a time when credit unions are easier to start,"...

Discover Plans Roll-Out Of Four New Card Programs.
June 4, 2007... BOCA RATON, Fla. -- Discover Network has introduced four card products that seek to reward loyal members, expand its own brand in the credit card market and offer credit unions a turnkey program with minimal startup hassles. Perks...

Study Projects Ongoing Debit Growth, Sees Other Trends.
June 4, 2007... HOUSTON -- Debit card transactions grew 18% during 2006 among U.S.-based debit card-issuing institutions and is expected to see similar growth in 2007, according to a study commissioned by the PULSE EFT Association. The PULSE 2007 Debit...

Also In The Cards.
June 4, 2007... TNB Acquires Five Portfolios DALLAS-TNB Card Services has purchased the credit card portfolios of five more credit unions and is converting those card portfolios to TNB's agent issuing program. The total number of programs TNB has...

Two Institutions, Including A CU And A Former CU, Discuss Why They Exited Cards.
June 4, 2007... BOCA RATON, Fla. -- Although it viewed its credit card portfolio as central to its operations, a former credit union-turned-bank said the risks that portfolio faced outweighed other benefits, leading it to sell the cards. Laurie Stewart,...

Firm Seeking CU Partners For Prepaid Debit Aimed At Underserved.
June 4, 2007... BROOKINGS, S.D. -- One bank holding company here is preparing to "aggressively" roll out a prepaid debit MasterCard that will also offer additional functionality in June and says it is seeking credit unions with which to partner. The...

CEO Tells Legislators To Use CUs As A Model.
June 4, 2007... ALBANY, N.Y. -- Susan Commanda, above, CEO of Hudson River Community Credit Union, told a joint hearing before the state legislature that there has never been a need by credit unions to engage in the kind of deceptive credit card practices...

Contactless Cards Seen As The Answer In Micro-Debit.
June 4, 2007... ATLANTA -- Approximately $1.3 trillion in cash transactions are made every year for purchases of less than $5. Not surprisingly, that enormous slice of business is attractive to many in the payments area who are seeking to convert those...

Banks Discover There's Another Reward In Debit Reward Programs-For Themselves.
June 4, 2007... LINCOLN, Neb. -- While credit unions are offering debit card reward programs as a means to both counter competitors and provide value to members, not every issuer has such altruistic intentions. The American Banker, an affiliate of the...

Member Balances Have Risen 10% Over Past Year.
June 5, 2007... PORTLAND, Ore. -- Credit union members are borrowing more on their CU-issued credit cards. According to analysis by AssetExchange of the 2,050 CU card portfolios of $1 million or more, card balances among members grew significantly over the...

CUNA, NAFCU Take High Road As Cu Critic Moves To Fed.
June 5, 2007... WASHINGTON -- Representatives of CUNA and NAFCU, who have been at increasing odds in recent months, agree on one thing: both credit union advocacies have no plans to oppose would-be Federal Reserve Governor Elizabeth Duke, who has traveled the...

House Again Calls For New Scheme For Freddie, Fannie.
June 5, 2007... WASHINGTON -- The House last week once again approved a bill to create a new regulatory scheme for secondary mortgage market giants Fannie Mae and Freddie Mac, as well as the 12 Federal Home Loan Banks, but the measure has dubious prospects...

CUNA's PAC Raises New Funds After A Busy Month.
June 5, 2007... WASHINGTON -- CUNA reported that its political action committee raised $140,000 last month and spent $64,000, helping it to build its available cash to $235,000. An unusually busy period one month prior had depleted the credit unions' largest...

Bill Seeks To Bar Wal-Mart From Owning an ILC (Again).
June 5, 2007... WASHINGTON -- The House overwhelmingly approved a bill last week to bar commercial firms such as Wal-Mart from owning industrial loan companies and state-chartered banks. But the bill is expected to run into major opposition in the Senate,...

People.
June 5, 2007... America First Credit Union, named Janny Herron manager of its Sandy branch, and Jason Henrie manager of its Hope Avenue branch. Rhode Island Credit Union, Providence, elected Jane F. Correia to its supervisory committee. Earthmover...

Special Session On Untapping Value To Be Held.
June 5, 2007... LAS VEGAS -- The National Credit Union Foundation will host what it is calling a "Special Thought Leader" session during America's Credit Union Conference here this week titled, "Untapped: Creating Value in Underserved Markets." The session,...

3 White Papers Now Available From CUNA Councils.
June 5, 2007... MADISON, Wis. -- Three new white papers are available from the CUNA Councils. They include: * "The Traveling Branch: Business Development's Evolution," which examines the market and economic conditions that have helped business development...

Mass. Gov. Wants Help For Homeowners In Crisis.
June 5, 2007... BOSTON -- Massachusetts Gov. Deval Patrick has directed Commissioner of Banks Steven L. Antonakes to seek delays from mortgage lenders, on a case-by-case basis, for any Massachusetts homeowner who has filed a complaint with the Division of...

10 High School Seniors Form CU's Advisory Council.
June 5, 2007... SAN ANTONIO -- The $3.9-billion Security Service Federal Credit Union (SSFCU) has selected 10 San Antonio high school students to participate in its first annual Youth Advisory Council. The students will assist the credit union in the...

Minority Report.
June 6, 2007... Two of the stories in this issue discuss how advisors can best target minority groups, in this case, women and Hispanics. In both instances, whether they actually have minority status is arguable-there are more women than men, and in some...

Retirees Question Reps' Ability to Help.
June 6, 2007... The future cost of healthcare is the biggest worry for people in retirement. But many of them don't trust their advisors to help them plan for this or for retirement in general, according to a recent Fidelity Investments survey of 813 retirees...

IT Consulting: Capgemini Banking on Renewed Cred: Its comeback strategy relies on building bank clients.
June 6, 2007... It's a pat on the back that carries a little sting for Lanny Cohen. "That word-relevance-always gets me," says the new chief executive for Capgemini North America. "When you look at the work we are doing in financial services, the kind of...

Customer Feedback: In-Store E-Surveys: Some banks are finding them more effective than mystery shoppers.
June 6, 2007... Mystery shopping helps financial institutions measure teller product awareness and service acumen, but one Tallahassee, FL-based regional bank found it mainly exposed the limits of using faux customers. With scripted questions and...

News from cujournal.com.
June 6, 2007... 3-Way Merger Is Proposed PONTIAC, Mich.-Affinity Group FCU will almost triple its assets to $100 million under a three-way merger approved by NCUA. The combination will add Crestwood Community FCU, a $30-million credit union in nearby...

Also Available To You.
June 6, 2007... Credit Union Journal Subscribers can access all content from the print edition every Monday simultaneously with its publication at www.cujournal.com. Additional resources include: * Front-page news stories are accessible by clicking on the...

Utah League Creates Site To Offer Info On Conversions.
June 6, 2007... SALT LAKE CITY -- With one credit union in its state mulling a conversion to a bank charter, the Utah League of Credit Unions has created a website aimed at educating members of credit unions about what would happen when such a conversion...

New Site For Pennsylvania's CUs.(Website overview)
June 6, 2007... HARRISBURG, Penn. -- The Pennsylvania Credit Union Association has unveiled a new website at www.pcua.coop. The site follows several months of redesign work, the PCUA said. It has also redesigned its consumer website at...

Accountability at Issue in Data Security Failings: Enforcing stiffer criminal penalties is one way to hold merchants and data brokers more accountable. This is good news for banks.
June 6, 2007... Merchants and data brokers take note: Banks are serious about security, and they're going to legal lengths to prove it. In the wake of The TJX Companies' data breach, in which the personal information of 45.7 million credit and debit...

M&A: Private Equity Takes Aim At Financial-IT Vendors: More than $330 billion awaits deployment.
June 6, 2007... Financial-IT companies are expected to lure a growing number of private-equity investors over the next few years, thanks to the dynamics of the industry and the huge amount of funds these investors have raised and want to put to work. The...

Pension Act Could Boost 529 Sales.
June 7, 2007... College 529 plans are likely to become bigger business for advisors now that the Pension Protection Act has made their tax benefits permanent. Although 80% of 200 financial advisors sold some 529 plans in 2006, according to an MFS Investment...

Quashed Merrill Rule: Rethinking Fees?
June 7, 2007... Bank broker-dealers are still in the dark over what the D.C. Circuit Court of Appeals' turnover of the Securities and Exchange Commission's broker-dealer exemption will mean to their efforts to grow fee business. The exemption, also known...

Mobile Banking: Get Ready for the New Zealand Invasion: Kiwibank's platform is on its way to the U.S.
June 7, 2007... Armed with a suitcase full of hypotheticals on how instant, remote access to banking accounts from mobile devices can change financial lives, technology salespeople are planning to pitch to American banks and consumers a mode of wireless remote...

The Six Regulatory Areas That Are Altering Bank Life.
June 7, 2007... Regulation in banking is like death and taxes: all three are certainties. For bankers who choose to view regulation as it is intended-as a safeguard, rather than an albatross-getting out in front of compliance issues can prove essential in...

Now In The Market.
June 7, 2007... E-Mail Encryption Chosen PONTIAC, Mich.-T&C FCU has chosen Zix Corp. to provide it with its E-mail Encryption Service. As a ZixCorp encryption customer, the company said, T&C joins the ZixDirectory, the largest email encryption directory...

Attention Marketers: Watch 'Click Fraud'.
June 7, 2007... SAN FRANCISCO -- Credit unions that have turned to e-media for marketing may be being overcharged for "clicks," according to a new survey. Fair Isaac Corp. said preliminary results of its research study into click fraud in pay-per-click...

Merging Canadian Centrals Pick Name.
June 7, 2007... TORONTO, Ontario -- A name has been chosen for the merged institution created by the partnership of Credit Union Central of Ontario and Vancouver-based Credit Union Central of British Columbia-Central 1 Credit Union. The proposed new name...

Costa Rica, Alabama Partner.
June 7, 2007... BIRMINGHAM, Ala. -- In his first visit to the U.S., Costa Rican Credit Union Association (FEDEAC R.L.) CEO Manuel Bolanos attended the annual meeting of the Alabama Credit Union League in Destin, Fla. The Alabama league has partnered with the...

Hits and Has-Beens.
June 7, 2007... Vikram Pandit, a Morgan Stanley alum, now heads Citi's alternative-investments unit after the bank's acquisition of hedge-fund Old Lane Partners, which he founded. Sallie Krawcheck (left), Citigroup's new wealth-management head, has...

Top Banks Focus on the 'E' in ROE.
June 7, 2007... (Top 200 Community banks ranked by 3-Year Average ROE) The most successful community banks are increasingly focused on a strategy of managing their capital base to increase returns on equity. By deploying their capital in more efficient...

Hancock Banks on Variable Annuities.
June 8, 2007... John Hancock Financial Services' sales of variable annuity in the bank channel hit a record $1.3 billion in 2006, up from $1 billion in 2005-itself a record year for the firm. The 28% increase marks the third consecutive year the insurer has...

Rich Clients Seek a Broader Range of Products.
June 8, 2007... Banks must offer a full array of products, including hedge funds and international products, to compete for wealthy clients, according to a U.S. Trust survey. At the same time, the wealthiest 1% of Americans say they prefer banks for...

M&A: Citi Targets Hedge Fund Business: The purchase of BISYS positions the bank to offer more services in North America.
June 8, 2007... Citi announced in May a $1.45 billion deal to purchase outsourcing provider BISYS in a transaction designed to boost the bank's administration and distribution services capabilities for the rapidly growing hedge fund, mutual fund and private...

News Makers.
June 8, 2007... CHECK FRAUD'S UP; CARD FRAUD'S LOW The 2007 payments fraud survey from the Association for Financial Professionals reports that more organizations (72 percent) reported check fraud activity than its previous survey (68 percent), despite...

Paraguayans Visit Mn.
June 8, 2007... BLOOMINGTON, Minn. -- The president of Paraguayan credit union trade association, Central de Cooperativas del Area Nacional Ltda. (CENCOPAN), was on hand for the Minnesota Credit Union Network's (MnCUN's) Annual Meeting. This is the fourth year...

Azerbaijan Delegation Tours N.E.
June 8, 2007... BOSTON -- A group of seven representatives of Azerbaijan's credit union movement spent nearly two weeks in New England visiting with the region's CUs. The group's visit was coordinated by UMassFive College FCU. In addition to visiting UMassFive...

Ireland's CUs Get New Powers.
June 8, 2007... DUBLIN, Ireland -- Legislation has been signed by Ireland's Minister for Finance, Brian Cowen, that will allow the country's credit unions to extend long-term lending. The update to the Credit Union Act increases to 40% the percentage of a CU's...

WOCCU Reps Assess Solomon Is.
June 8, 2007... SOLOMON ISLANDS -- Brian Branch, the chief operating officer for the World Council of Credit Unions (WOCCU) in Madison, Wis., visited these islands to assess damage caused by a recent tsunami and to identify how WOCCU and the Credit Union...

Is Umpqua Cool? Maybe. Quirky? Yup. Successful? No Question About It.
June 8, 2007... Leading for Growth: How Umpqua Bank Got Cool and Created a Culture of Greatness By Ray Davis with Alan Shrader John Wiley & Sons, $24.95, 226 pages Can a book by a bank CEO really have something to say that hasn't been said...

After Supremes Ruled for OCC, Fight May Move to Capitol Hill.
June 8, 2007... As expected, the Supreme Court negated potential legal challenges to the Office of the Comptroller of the Currency's preemption power over state laws, ruling 5 to 3 in April that state-chartered operating subsidiaries of national banks are...

The Gold Standard: What best practices make some bank brokerage programs stand out from the competition?
June 11, 2007... During its eight-year tenure at Key Bank, broker-dealer McDonald Investments made some big mistakes. For one, "it wanted Key's bank reps to become wirehouse reps, so it moved them out of the branches and into offices," says Marc Vosen,...

Old Girls Network: How top producer Margi Legowik landed a coveted position serving women-and men-in a man's world.
June 11, 2007... In a male-dominated business,Margi Legowik stands out. Not just because she is a woman at the top of her game, but because she's been so successful working with female clients. Just four years into her tenure at Primevest's program at Columbia...

Customization: Tailoring IT At Small Banks is a Challenge: Community banks compete mostly on service, not IT. But some flexibility would be nice.
June 11, 2007... Even though community banks compete mostly on service, many bankers still want the ability to adapt IT systems to gain a strategic edge. The question for banks with these aspirations-and whose IT departments are usually small and stretched...

Top Tech Deals.
June 11, 2007... Number One Citi signed an agreement to acquire back-office service provider BISYS Group for $1.45 billion to step up the bank's hedge fund and mutual fund services and private equity administration. Citi will retain the investment services...

Hoosier Attends Mexican Meeting.
June 11, 2007... INDIANAPOLIS -- Antonio Cato of Financial Center Credit Union was chosen by the Consulate of Mexico to represent Indiana at the 45th Annual Information Conference of the El Instituto de los Mexicanos en el Exterior (Institute for Mexicans...

Carolinas' CUs Act As Hosts.
June 11, 2007... LANCASTER, S.C. -- Representatives of the World Council of Credit Unions' (WOCCU) international remittance program visited Founders FCU here, along with Latino Community Credit Union in Durham, N.C., to get a closer look at how the institutions...

Kenyan Project Ongoing.
June 11, 2007... MOMBASA, Kenya -- The final shipment of wheat that is part of a United States Department of Agriculture (USDA) and World Council of Credit Unions (WOCCU) project aimed at mitigating the impact of the HIV/AIDS pandemic on affected families in...

China Invites CU Reps.
June 11, 2007... GUIZHOU PROVINCE, China -- A 14-member group representing the World Council and its board members will travel to China during June as part of a study group. The group will be led by WOCCU's Chief Operating Officer, Brian Branch, and Ralph...

Noted and Noteworthy.
June 11, 2007... Nearly 62 percent of ID-theft victims were notified of suspicious activity by a financial-services company-their own or another, according to the Identity Theft Assistance Center. ITAC surveyed 771 victims who used its free service over a...

Is U.S. Serious on AML? Watch Macau.: The U.S. may have ruined the reputation of a tiny Macau bank, but what about its account holders? Keeping the international financial system clean is one goal, but is it enough?
June 11, 2007... As the State and Treasury departments continue to bicker over how best to use a tiny Macau bank as a pawn in North Korea's nuclear negotiations, America's reputation as a fair and incorruptible cop on the international financial beat is being...

Acquisition Plans Designed By Some Familiar Names.
June 12, 2007... WASHINGTON -- Credit union insiders worried about the threat to credit unions coming from the bankers who want to repeal the CU tax exemption or convert healthy credit unions to banks, may miss the bigger threat coming from folks who have long...

NAFCU Pleased With NCUA Move.
June 12, 2007... ARLINGTON, Va. -- As the Credit Union Journal was going to press, NAFCU President Fred Becker issued a statement in response to NCUA Chairman JoAnn Johnson saying the agency is reviewing the bid by Wings Financial FCU to put an unsolicited...

Wings Has Looked At Other CUs, Has Registered Other URLs.
June 12, 2007... APPLE VALLEY, Minn. -- Wings Financial has not just looked at Continental FCU as a merger partner, it has also been looking at the $290-million FAA First FCU, Los Angeles, which has an air transport TIP. John Wagner, a spokesman for the...

Chances For Data Security Bill Rapidly Fading.
June 12, 2007... WASHINGTON -- Even with the growing number of data security breaches, chances for legislation to rein in online identity fraud are fading away as key parties to the issue continue to hold to divergent paths. The conflicts were on display...

Cashing Out Of Your Home: Reverse mortgages are gaining ground as baby boomers hit retirement.
June 12, 2007... The reverse mortgage is an esoteric product that has existed on the margins of the home-lending market for years. But events are conspiring to push reverse mortgages into the mainstream. Wall Street now views the product as a potential industry...

Too Much of A Good Thing?: Overregulation may be discouraging bank reps from offering their clients the most suitable products.
June 12, 2007... Annuities have long been the stock-in-trade of bank offerings to clients, but these days, the product seems to have become something of a dirty word-at least certain kinds of annuities. At Bank of Rhode Island, for example, investment...

Cyber Security: Insurance Not Standard Yet, But Choices Abound: Typical policies now offer a range of protections, as data breaches become more problematic. But at what point should premiums be spent instead on shoring up security?
June 12, 2007... What's your best guess on how much it would cost your institution if someone in marketing lost a laptop with 10,000 customer records? ChoicePoint was said to have put the price tag at $100 per record. Ponemon Institute estimates $182 per...

Pricing, Rewards Drive Key Credit-Card Choices: Consumers were once less fickle about their cards, but no more. Today they want it all-with double points, if you please. Discover and Countrywide tap deeply into this demand.
June 12, 2007... Defaulting subprime mortgages, rising variable rates and a sluggish real-estate market seem to be taking their toll on the American psyche, as consumers show a growing inclination toward products that seemingly demonstrate increased financial...

Cyber Security: Data Breach Insurance Gains in Popularity: As data breaches become more frequent, insurance policies offer a range of protections. But should money spent on premiums be spent on shoring up security instead?
June 12, 2007... What do you think it would cost your institution if a laptop with 10,000 customer records went missing? ChoicePoint was said to put the price tag at $100 per record. Ponemon Institute estimates $182 per record. Forrester Research gives a range...

Ethics: You Have to Be Good. Everybody's Watching.: IT professionals have long relied on self-policing when it comes to ethical behavior. And that's a good thing, since bad behavior reflects poorly on everyone.
June 12, 2007... Peer pressure gets a bad rap; it is, in fact, a force for good. So say some of the leading thinkers on financial IT ethics, who met in February at the RSA Conference in San Francisco to discuss the latest on ethics in the workplace. ...

How Are CUs Coping With Housing Price 'Hangover Effect?'.
June 13, 2007... SAN DIEGO -- The speculative rush that drove up housing prices in many parts of the country has created a hangover effect where the challenge now for credit unions isn't simply to help members finance a new home, but also to keep it once...

'Multi-Cultural Banking Center' To Help Wean Poor Off Predatory Loans.
June 13, 2007... BROCKTON, Mass. -- In the midst of the state's worst home foreclosure storm, HarborOne CU launched a project last week to help turn the area's low-income homeowners and immigrants away from predatory loans. One of the main functions of the...

Former Columbia Director's Home Is Vandalized With CCU's Name By Michael Bartlett, Reporter.
June 13, 2007... VANCOUVER, Wash. -- The tensions surrounding the attempted conversion of Columbia Credit Union here to a bank two years ago are apparently not settled, after a former board member at the credit union had her home vandalized with the letters...