Banking Wire articles from May 2008

Banking Wire archives from May 2008

Why One CU Is Lowering Card APR.
May 1, 2008... WALNUT CREEK, Calif. -- With tax, home improvement and vacation seasons coming soon, Pacific Service CU is taking advantage of the Feds recent interest rate lowering campaign by offering its members a 5.99% interest rate on Visa cards. The...

Now In The Market.
May 1, 2008... SFEFCU Using RewardsNOW KENDALL, Fla.The $600-million South Florida Educational FCU has launched a new rewards program called Extra Credit through a partnership with Dover, N.H.-based RewardsNOW. With RewardsNOW, cardholders accumulate...

Herb Wegner Winners Share Wit & Wisdom At Awards Dinner.
May 1, 2008... WASHINGTON -- The National Credit Union Foundation honored two people and one organization with the CU communitys highest honor, the Herb Wegner Award. Heres a look at a little of what each had to say. Harriett May, CEO, GECU, El Paso. I...

Under the Microscope: Latest Developments In Research.
May 1, 2008... TWO STUDIES EXAMINE CASH MANAGEMENT, CARD REBATES BOSTON, Mass.Two new reports from Aite Group examine cash management and the strategic implications of card networks rebates and incentives. The first study examines major trends...

Aranjo Found Guilty On Charges Of Embezzlement That Led To CDCU's Liquidation.
May 1, 2008... SPRINGFIELD, Mass. -- Former D. Edward Wells FCU President Carol Aranjo, a one-time national spokesman for community development financial institutions, was found guilty of conspiracy and embezzlement charges in the 2003 failure of the...

NCUF Chairman Pledges To Beef Up CUDE Resources.
May 1, 2008... WASHINGTON -- The new chairman of the National Credit Union Foundation, Allan Kemp McMorris, has pledged more financial and human resources to expand the Credit Union Development Education (DE) program in the U.S. and worldwide. Credit union...

WesCorp Reports Best Financial In Its History In Wake Of 'Windfall'.
May 1, 2008... MONTEREY, Calif. -- The $30-billion WesCorp will report the best financials in its history when it releases year-end 2007 numbers in approximately 30 days, according to CEO Bob Siravo. Siravo acknowledged the robust financials reflect what he...

Correction & Clarification.(Correction notice)
May 1, 2008... In the March 3 edition a quote by Colorado CU Association CEO John Dill about the associations advocacy program should have read: One of the most important things we are trying to do with our program is not always to be playing defense. ...

What Court Ruling Means For CU Bylaws.
May 1, 2008... As a result, DFCU Owners United embarked on a petition campaign and gathered more than the 500 signatures required under DFCU Financials bylaws to call for a special meeting to remove the board. DFCU Financial refused to call the meeting, which...

NCUA Holding The Bag For Failed Florida Real Estate Deals.
May 1, 2008... WASHINGTON -- Want to buy some cheap Florida real estate? Call NCUA. Thats because the federal regulator has been left holding more than 1,000 residential real estate loans from two major credit union failures that provided mortgages to...

One CU's Driving Force: Why Financial Resources FCU Took Its Message To The Streets-Literally.
May 2, 2008... BRIDGEWATER, N.J. -- Financial Resources Federal Credit Union has driven into 2008 with a unique advertising medium that is promoting two branches located in its underserved communities. A mobile billboard appearing on a truck driven on...

Mega-Merger In San Diego: First Future, Cal Coast To Combine To Create $1.8B CU On Heels Of Retirement.
May 2, 2008... SAN DIEGO -- First Future CU and California Coast CU said last week they have agreed to combine in the latest credit union mega-merger, creating a CU with more than $1.8 billion in assets and 130,000 members. The new institution, to be...

CUs Mull Strategies To Offset Growing Auto Repos.
May 2, 2008... TAMPA, Fla. -- As credit-market stresses move from mortgages and credit cards to auto loans, some members here struggling to make their car payments are finding it easier to simply walk into the credit union and drop off their keys. Its...

On Deadline.
May 2, 2008... Kansas Expected To Pass Restrictive FOM Bill TOPEKA, Kan.A bill that would place significant restrictions on Kansas credit unions fields of membership was on the House floor and expected to pass at press time. If the bill becomes law,...

One CU Won't Let Go of TJX.
May 2, 2008... BOSTON -- One credit union, Oregons SELCO Community CU, and one bank, AmeriFirst Bank in Alabama, continue to challenge the pennies-on-the-dollar settlement in the TJX data security case and earlier this month filed an appeal of the dismissal...

CTCU Opens East Palo Alto Branch A Case Of Mistaken Identity Theft.
May 2, 2008... LOUISVILLE, Ky. -- A federal grand jury charged a member of Fort Knox FCU with stealing $5,600 from another member after a teller mistakenly gave him access to the wrong account. The teller erroneously gave Douglas Calhoun, 45, access to...

Miami CUs Partner On TV Ads.
May 2, 2008... MIAMI -- Eight area CUs have bought time on the local NBC television affiliate to tout their service as part of the 100th anniversary of U.S. credit unions. Each of the 30-second commercials will feature a 20-second message about the CU...

Federation Explores Mortgage Strategies During Credit Crunch.
May 2, 2008... DURHAM, N.C. -- The safest and smartest choice for credit unions looking to finance mortgages right now? Begin with your own members. That was just one piece of advice given to CU professionals who spent two days learning how to safely...

Golden 1 CU To The Rescue With Mortgage Repair Loan.
May 2, 2008... SACRAMENTO, Calif. -- The $6.7-billion Golden 1 Credit Union is offering a Mortgage Repair Loan to members who have lost their homes to foreclosure due to an exotic mortgage. Teresa Halleck, CEO of The Golden 1, told the Credit Union...

Worth Noting.
May 2, 2008... CCUL/NCUL Redesign Website RANCHO CUCAMONGA, Calif.The California and Nevada Credit Union Leagues have redesigned their website. The new public site features streamlined information and links while the members-only site presents all...

CURIA COUNTER - 148.
May 5, 2008... At press time, the number of co-sponsors on the CURIA bill. 218 are needed to have a majority. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

The CU Movement's Secret Weapon For Growth: Collaboration.
May 5, 2008... OVERLAND PARK, Kans. -- Credit unions have a secret weapon that banks generally dont have when it comes to growth: collaboration. The cooperative spirit of credit unions fosters that secret weapon, and it can be an effective strategy to...

Now In The Market.
May 5, 2008... Select-A-Branch Teams With Triton LONG BEACH, Miss.In partnership with Triton and running exclusively on Triton RL5000xp ATMs with PrismT software, Select-A-Branch is offering a surcharge-free ATM network that features customized, branded...

Why To Reach Out To 'Thin File' Members.
May 5, 2008... HAMDEN, Conn. -- Credit unions seeking to reach into non-traditional markets such as underserved communities often hit a hard roadblock in consumers who dont have traditional credit scores. But there are alternative means of building a...

Shady Characters, People Of Character, And Future Characters.
May 5, 2008... An interesting question to ponder now that a state court has ruled that a credit unions bylaws exist for a reason and boards cannot arbitrarily decide whether or not to follow them, is just how certain boards will now react. In other...

How To Put Together An Effective Training Program For Directors.
May 5, 2008... This is the second part of a three-part series examining the board function at a CU. If you are like me, it is uncomfortable to be on a board not knowing much about the function of a board, and the directors role in it. For some who have...

Sometimes Saving Members Money In Short Run Is A Problem In Long Run.
May 5, 2008... I just read Frank Diekmanns article, Three Little Letters, GAC, Are Demanding Three More: ROI, (CU Journal, March 10), and would like to offer my response. I agree with several of Mr. Diekmanns points, and found his assumptions on the...

Research: To Grow Your CU's Business Practice The Golden Rule.(Company overview)
May 5, 2008... In their classic book, The Discipline of Market Leaders, Treacy & Wiersema discuss three marketplace differentiators: operational excellence, product leadership and customer intimacy. Product leadership is difficult to achieve in a highly...

CUs Exploring Internet Frontier In Quest To Reach Out To Elusive Youth Market.
May 5, 2008... RICHMOND, Va. -- When it comes to marketing to younger consumers, some of the more cutting-edge initiatives involve credit unions exploring the 3-D Internet space, modeling efforts after sites like Kaneva.com, moove.com and activeworlds.com....

CUNA Sends Letter in Support of FHA Proposal.
May 5, 2008... WASHINGTON -- CUNA sent a letter to House Financial Services Committee Chairman Barney Frank in support of Franks proposal to use Federal Housing Administration (FHA) loan guarantees as incentives for lenders to accept mortgage writedowns for...

FHLBs to Buy More MBSs from Members To Boost Liquidity.
May 6, 2008... WASHINGTON -- The Federal Housing Finance Board (FHFB) announced it will allow Federal Home Loan Banks (FHLB) to buy more mortgage-backed securities (MBS) from its members as part of the latest effort to add liquidity to the troubled mortgage...

NCUA Shutters Fledgling Low-Income CU In Missouri.
May 6, 2008... JEFFERSON CITY, Mo. -- NCUA said it is closing down newborn Missouri Farmers Union CU and merging it into nearby River Region CU because of the declining financial status of the low-income credit union. Missouri Farmers Union CU, which...

Mica leads session on public policy at NCBA Conference.
May 6, 2008... WASHINGTON -- The National Cooperative Business Association (NCBA) announced that CUNA President Dan Mica will lead a session on public policy and advocacy for cooperative concerns at its annual Cooperative Conference on May 1. The...

CUNA Loses out on House Seat In Illinois a Second Time.
May 6, 2008... BATAVIA, Ill. -- In just a matter of weeks, a CUNA-backed candidate twice has lost a bid for a House seatthe same House seat that was vacated by long-time credit union supporter and ex-Speaker of the House Dennis Hastert. CUNA first...

Southeast Corporate Rating Stable.
May 6, 2008... TALLAHASSEE, Fla. -- Fitch Ratings has affirmed the long-term Issuer Default Rating (IDR) and short-term IDR for Southeast Corporate Federal Credit Union at AA- and F1+, respectively. The Rating Outlook for Southeast Corporate is Stable. ...

Golden 1 Fund To Help Foreclosed.
May 6, 2008... SACRAMENTO, Calif. -- The $6.7-billion Golden 1 Credit Union has created a $20-million fund to help members in foreclosure due to a subprime loan to get back into their home. Golden 1s Mortgage Repair Loan offers a 30-year, fixed-rate...

Ingersoll-Rand Names New CEO.
May 6, 2008... ATHENS, Penn. -- Ingersoll-Rand FCU said it has promoted its chief financial officer, Michael Viselli, to be the new president and CEO of the $46 million credit union. Viselli succeeds Susan Luchaco. (c) 2008 The Credit Union Journal...

CU Mourns Chairman of 43 Years.
May 6, 2008... KINGSFORD, Mich. -- Norbert Bing Emond, who served as a volunteer for Iron Mountain Kingsford Community FCU for 47 years, the last 43 as chairman, passed away March 15 at 79. A U.S. Army veteran, Emond and his wife owned and operated Twin...

CUJ Q&A: Just What Does A Chief Ethics Officer Do?
May 6, 2008... MADISON, Wis. -- Compliance-related issues, and even core questions surrounding ethics have moved to the front of the stage for many businesses, including credit unions. For those reasons and others CUNA Mutual Group recently named Steve Koslow...

Credit Unions In The Media.
May 6, 2008... The Daily Item in Lynn, Mass. provided coverage of Brotherhood CUs partnership with the Massachusetts Coalition for the Homeless to help 29 local households pay for heating costs during February. BCU has offered to pay a portion of the heating...

Now In The Market.
May 6, 2008... Experian Launches Toolbox COSTA MESA, Calif.Experian announced the availability of the Attribute Toolbox, a data intelligence application that puts enhanced data access and attribute management capabilities directly into the hands of...

How Some Are Stemming The Tide Of Auto Loans Gone Bust.
May 7, 2008... IRVING, Texas -- Despite the fact that credit unions held a relatively small percentage of all repossessed auto loans, 0.1% according to CUDL, some credit unions are looking at various ways to stem a steadily rising tide of delinquencies...

Now In The Market.
May 7, 2008... Enterprise, NewGround Team Up ST. LOUISEnterprise Car Sales has partnered with NewGround to promote member interest in special used car values through a digital signage graphics program for credit unions. The digital content includes...

Sentinel FCU Opens Office Inside Dealership To Bolster Lending.
May 7, 2008... BOX ELDER, S.D. -- One credit union has taken the if you cant beat em, join em approach by opening a financing office inside an auto dealership. Sentinel Federal and Kopren Motors are offering a fast, simple and convenient way for...

LAFCU Pushes Auto Loans In Seasonal Event.
May 7, 2008... LOS ANGELES -- With the advent of spring comes the traditional car-buying season, and Los Angeles FCU is one of many credit unions that will be holding special promotions in tandem with the season. LAFCUs Spring Vehicle Event from April 11...

Now In The Market.
May 7, 2008... CUDL Wins Marketing Award RANCHO CUCAMONGA, Calif.CUDLs AutoSMART Program and website (www.cudlautosmart.com) has been presented with Summit Internationals 2007 Marketing Effectiveness Award. CUDLs AutoSMART Program and website was...

Hannaford Says It Won't Pick Up Tab For Data Breach.
May 7, 2008... SCARBOROUGH, Maine -- Hannaford Bros. grocery store chain is placing the financial burden related to the giant cards breach initiated at its stores squarely on the backs of card issuers. A spokesperson for Hannaford, which is the core sponsor...

Post Card from the CU Past.
May 7, 2008... SAN DIEGO -- A proud Nancy Tinkler, center, shows off her awards won as Miss Credit Union of California 1969. Joining Miss Tinkler, a Whittier College sophomore and stenographer at Conservative Baptist Credit Union, Whittier, Calif., are (from...

California League Tries To Pass Data Security Bill.
May 7, 2008... SACRAMENTO, Calif. -- A data security bill sponsored by the California CU League once again is working its way through the California state legislature. The California Assemblys Judiciary Committee unanimously approved the legislation and sent...

Diamond Awards Winners Honored At Conference.
May 7, 2008... MADISON, Wis. -- Premier Members FCU in Boulder, Colo., won Competitions Best the highest Best of Show award in the CUNA Marketing and Business Development Councils Diamond Awards competition. PMFCUs Banking Grown Up was designed to brand...

Treasury Reform Plan Ignites Firestorm Among CU Lobby Groups: Plan Would Merge NCUA Out Of Existence, Blur CU Charter.
May 7, 2008... WASHINGTON -- A regulatory reform proposal by the Treasury Department that would combine NCUA with the banking regulators ignited a firestorm last week among the credit union lobby groups, some of whom insisted the plan could mean the end of...

Second Chance For CUs At Student Loan Carve-Out.
May 8, 2008... WASHINGTON -- Representatives from three of the biggest student lenders among credit unions are scheduled to meet with key lawmakers this week in an effort to claim a place in last years carve-out for non-profits from the major cuts in federal...

You've Closed The Loan- Now, Can You Collect On It?
May 8, 2008... DALLAS -- The question for credit unions in 2008 wont be whether or not to ramp up collections activity but how soon to start collections and whether or not to do it in-house. There is a marked increased in collections activities centered...

Do You Know To Whom You're Lending?: CUs Are Re-evaluating Underwriting Process As Crunch Continues.
May 8, 2008... BROOMALL, Penn. -- The economic slowdown has credit unions across the country taking another look at their loan underwriting standards. Those that havent done so are being urged to make sure they do. It makes sense to periodically...

On Deadline.
May 8, 2008... TJX to Settle With MasterCard Holders FRAMINGHAM, Mass.TJX Cos., which paid $40.9 million in December to settle claims with credit union and bank Visa issuers over last years massive data breach, has agreed to provide $24 million to...

Mass Appeal.
May 8, 2008... Ah, the mass affluent! Always the bridesmaid, never the bride, perennial C clients as they accumulate retirement assets when every advisor is hunting for more profitable A and B clients. This is a major conundrum for program managers and...

Treasury Blueprint Could Shake Up Banks.
May 8, 2008... The U.S. Treasury Department has proposed reforms to banking rules that would create a slew of tougher regulations and impose taxes on credit unions and increase competition for all banks by opening up charters to mass retailers such as...

Rants and Raves.
May 8, 2008... Funds Transfer Pricing I am disappointed in the OpEd (Funds Transfer Pricing? Just Say No, April) The author does not appear to have a thorough understanding of Funds Transfer Pricing, or at least did not fairly present it. While the...

There's Enough Blame for All. Now, Get on With It.: Perot's argument that judgment and discretion should prevail in business over ambition and greed resonated with an industry whose suffering through the S&L crisis forced it to do some soul-searching.
May 8, 2008... In EDS Corp. founder Ross Perots sharper days, he used to say that business practices should come down to whats right or wrong, not whats legal or illegal. When I saw Perot speak in the early 1990s, Michael Milken was on his way to jail, Drexel...

Consumer Behavior: Discovering The Future Of Banking: MIT scholars, BofA execs pledge 'demo or die'.
May 8, 2008... Since 1985, the MIT Media Lab has gained renown for its research projects on the convergence of multimedia and technology, partnering through sponsorships with corporations such as Motorola and Nortel. Now, the Media Lab has linked up with Bank...

Data Backup: Protecting Core Systems: Peoples Bank taps Jack Henry for online backup solution.
May 8, 2008... Following hurricane Katrina, Peoples Bank CEO Chevis Swetman famously slept for weeks on an air mattress at his banks main Biloxi, MS location, keeping the institution alive while his town nearly drowned. With six branches lost to the storm and...

Elevations CU's Bill Sterner Dies After Heart Attack.
May 9, 2008... BOULDER, Colo. -- Bill Sterner, the well-respected CEO of Elevations CU and a long-time credit union activist, died following a heart attack he suffered March 28. Sterner, 66, joined the CU, then known as University of Colorado CU, in 1997 as...

Mich. League Teams With Gov. To 'Save The Dream'.
May 9, 2008... NORTHVILLE TOWNSHIP, Mich. -- Michigan league CEO David Adams will be joining Gov. Jennifer Granholmin on a media tour around the state to spread the word about a package of legislation the governor has signed being called Save the Dream. ...

Teller In Critical Condition After Shooting At SECU.
May 9, 2008... CHARLOTTE, N.C. -- A teller was in critical condition at a nearby hospital last night after she was shot during a robbery at the State Employees CU branch here last week. Police were searching for four people who fled after the hold up,...

Bill Would Allow NY CUs To Be Part Of Deposit Program.
May 9, 2008... LATHAM, N.Y. -- The New York State Assembly passed a bill that would allow New York state and federal credit unions to participate in the Excelsior Linked Deposit Program, which is aimed at making capital available to small businesses. The...

HNW Predicts Choppy Market.
May 9, 2008... High-net-worth investors are eschewing equities in favor of alternative investments, according to Tiger 21's latest asset allocation index. Tiger 21 is sort of an investment club for the super rich. It is an association of 160 investors,...

Retirement Assets Double in 10 Years.
May 9, 2008... Despite difficult market conditions, assets that are held in U.S. retirement plans have nearly doubled in value since 1997, according to a study conducted by Watson Wyatt Worldwide. The Washington firm said in a study that was released...

Trading: JPMorgan's Big Score: Prime Brokerage Business: Bear Stearns deal adds 1,000 hedge fund clients.
May 9, 2008... There are plenty of unknowns about how the acquisition of Bear Stearns by JPMorgan Chase will play out. But one aspect that seems pretty clear is that JPMorgan has established itself as a major prime brokerage player. JPMorgan gets a...

Extended Hours: Longer Hours Correlate To Higher Deposit Growth: Yet not all can be 'America's Most Convenient'.
May 9, 2008... The term bankers hours has a negative connotation and is an outdated insult at an industry where many institutions have 70-hour work weeks. TD Commerce Bank, for example, has championed customer convenience, offering 78 branch hours per...

Telepresence: Can You See Me Now? Life-like telepresence: May soon leap into Wachovia's lobby.
May 9, 2008... The telepresence video conferencing system Wachovia installed for cross-country internal management meetings is so cutting edgeand so expensiveits insulting to call it video conferencing. Inside specially constructed studio rooms, the...

Cyber Watch: Mr. Beckstrom Goes to Washington.
May 9, 2008... U.S. Homeland Security Secretary Michael Chertoff has rarely commanded much of a presence when speaking publicly. The job, it seems, is bigger than he. And then there is the matter of government bureaucracy slow, plodding, endless. Is it...

Corporates Downplay Subprime's Affects On 2007 Statements.
May 12, 2008... WASHINGTON -- When corporate credit unions shortly release their 2007 year-end financials, it is not expected most will be reporting any significant losses as a result of failed investments in mortgage-backed securities, according to a...

Post Card from the CU Past.
May 12, 2008... DALLAS -- Female employees of Safeway Centrex Federal Credit Union here stay in shape to serve members through daily after-hours aerobics classes in the credit union's lobby. Credit union manager Janice Brabham (front left) teaches the 1981...

CUNA Steps Into Ky. FOM Case.
May 12, 2008... FRANKFORT, Ky. -- CUNA has filed a friend of the court brief in the Kentucky Court of Appeals saying a lower court ruled incorrectly in applying federal administrative law precedents to a credit union field of membership lawsuit. At issue is a...

Study Sheds New Light On Costs, Affects Of Multi-Factor.
May 12, 2008... AVONDALE, Ariz. -- A new study sheds light on the costs and challenges being felt by credit unions as they administer and support multi-factor authentication (MFA) and other authentication products and services. The study, conducted by...

Banks Post Record Sales.(Financial report)
May 12, 2008... Bank holding companies earned record income of $22.8 billion last year in commissions and fees from the sale of mutual funds and annuities, according to the Michael White-Symetra Bank Holding Company Fee Report released March 31. Banks'...

Poll Sees Later Retirements.
May 12, 2008... Unexpected healthcare costs and inflation are top concerns for retirement, according to a survey of workers age 55 to 74. To combat these concerns, reports an April 2 report by MFS Investment Management, pre-retirees expect to work on...

SEC Allows Shareholder Vote On Equator Principles Proposal.
May 12, 2008... Shareholders of Citi and Bank of America have a right to know the green-washing policies of the banks lending policies, the Securities and Exchange Commission says. In rejecting the banks efforts to block shareholder proposals...the SEC...

Noted and Noteworthy.
May 12, 2008... The International Monetary Fund warns that worldwide losses from the U.S. subprime mortgage crisis could total $945 billion, according to a new report, which criticizes the excessive risk-taking and weak underwriting by undercapitalized banks....

Homeland security: Manhattan Project for Cyber Sec: The government says it's stepping up defenses, but do the plans amount to a real strategy or just a hodgepodge of tactics?
May 12, 2008... When he addressed security professionals at RSAs security conference last month, Department of Homeland Security Secretary Michael Chertoff wasted no time in indicating that the financial system represents the heart of the risk. Imagine, if you...

News Makers.
May 12, 2008... PATENT GIVES BOFA NEW CONTROL Bank of America secured a patent for its Active Card Control solution, a technology that gives clients real-time ability to manage corporate cards and employee expenses. The bank says the card will give...

Worth Noting.
May 13, 2008... Call For Wegner Nominations MADISON, Wis.Nominations are now being accepted for the credit union communitys highest honor: the 21st Annual Herb Wegner Memorial Awards presented by the National Credit Union Foundation. Nominations are due...

On Agenda: Strategy Behind BECU's 12%-15% Annual Growth.
May 13, 2008... TUKWILA, Wash. -- To grow your credit union, dont focus on growthfocus on making members happy. Thats BECUs strategy, and it must work. The credit union has recorded membership growth of 12% to 15% for each of the last three years....

Now In The Market.
May 13, 2008... Retton To Join Think Meeting RANCHO CUCAMONGA, Calif.Mary Lou Retton, the first American woman to win an Olympic gold medal in gymnastics in 1984, has been added to the speaker roster for CO-OP Financial Services Think 2008 conference. The...