Banking Wire articles from October 2003

Banking Wire archives from October 2003

Northwest Corp. Wins Best Practice Award.
October 1, 2003... During the CUNA Technology Council Summit here Northwest Corporate CU was awarded the "Best Practice Award" in the Web Solutions category. The corporate was recognized for its development of its NW Archive-Checks. The CTC praised the offering...

MCU First To Episys In Outsourced Environment.
October 1, 2003... Marquette Catholic Credit Union here has become the first Symitar client to convert to Episys in an outsourced environment. San Diego-based Symitar, Jack Henry & Associates Inc.'s service and software subsidiary serving the credit union...

Aurum Introduces Card Production Solutions.
October 1, 2003... Aurum Technology, a provider of open and integrated technology-based solutions for community financial institutions, said it has launched a comprehensive and integrated suite of card production solutions designed to enable both new and...

Fiserv Lending Plans Meeting, Signs New CU.
October 1, 2003... Fiserv Lending Solutions will hold its 2003 Client Conference at Disney's Yacht and Beach Club Resorts in Lake Buena Vista, Fla. from Nov. 9-12. More than 400 people are expected to attend the educational event, which, for the first time,...

DataSafe Release Includes New Features.
October 1, 2003... USERS, Inc., a unit of Fiserv, said its most recent release of its DataSafe core system contains several new software solutions that help credit unions provide faster service, operate more efficiently, and increase revenue. The new release...

A Town's Small-Bank Top Dogs Feud, Family Style: In timber and iron ore country up north, four generations of the Wilcox family run one of their community's most successful businesses. And they're not the only banking family in town.
October 1, 2003... Clair Wilcox was 26 and couldn't write a loan when he took over his father's bank in 1950. Now he's the semi-retired patriarch of Grand Rapids State Bank, a $240 million bank in a Minnesota town of 8,000 that's been owned and operated by the...

One Takes the High Road, One Takes the Low Road: And if borrower and lender meet in the middle of a former Western Union chief executive's Web site, maybe they cut a deal which leaves out a lot of the heartache brought on by bad debts.
October 1, 2003... Combine eBay and Repo Man and what do you get? A company called Debt Resolve. Well, at least you get the idea behind Debt Resolve. The White Plains, NY start-up aims to soften the tough, sometimes harassing collection tactics finance...

No Interest! No Problem? Leverage Lures Investors.: Funds offering a bigger bang for the buck are proving ever-more popular among supposedly rattled investors, prompting a flurry of new launches. But the juice that boosts returns can also increase losses.
October 1, 2003... The second quarter, and June in particular, saw record cash going into closed-end mutual funds. Since they're all leveraged to some extent, they raise the bar on the amount of bets made with borrowed capital. Thirteen closed-end funds...

Risk Tool Gauges Impact of Market, Political Volatility: Northern Trust is betting institutional portfolio managers will latch onto any tool that analyzes "event-driven" effects on their portfolios. Given what's going on, it's likely a safe one.
October 1, 2003... Institutional portfolio manager Bob Newland sounds like a football coach. He never actually said that "the best offense is a good defense," but he might as well have given his enthusiasm for a new risk management tool from Northern Trust....

Branch Delivery System Is Cornerstone of Retail Banking.
October 1, 2003... During the late 1990s, many assumed that people would flock to the Internet for banking services and that branch banking would quietly fade away. But, increasingly, the retail banking industry is realizing that assumption was wrong. While a...

PEMCO Debuts Card Activation Feature.
October 2, 2003... PEMCO Technology Services has introduced an instant card activation feature. "PEMCO is the first credit, debit, and ATM transaction processor in the United States to offer this cutting-edge capability that allows financial institutions to...

Online Resources, Harland Expand Agreement.
October 2, 2003... Online Resources Corp. said that Harland Financial Solutions, Inc. will expand its bill payment relationship with Online Resources beginning in the third quarter this year. The expansion will enable the companies' mutual credit union clients...

Credit Union 24, Mosaic Reach Agreement.
October 2, 2003... Credit Union 24 has signed a referral agreement with Mosaic Software, Deerfield Beach, Fla. Under the agreement, Credit Union 24 will provide its Network participants the opportunity to take advantage of Mosaic's software product, Postilion,...

RDS Completes Type 2 SAS 70 Audit.
October 2, 2003... The accounting firm Crowe Chizek and Co., LLC reported that RDS here has successfully completed its annual Type 2 SAS70 audit examination. The audit evaluated controls related to the cuStar core data processing application system and service...

CastleGarde Moves To New, Um, Castle.
October 2, 2003... CastleGarde Inc., an information security program provider for financial institutions, is relocating to larger space. The company said the move is being necessitated by its growth and future plans to add more staff. Its new offices are...

Is DIP Financing Risky Business?
October 2, 2003... The last two years have been banner ones for business bankruptcies. Nearly 80,000 companies sought court protection in 2001 and 2002. What's even more remarkable is the size of some of the companies that filed. More than 150 of the...

PSCU FS, CSC Release Credit Risk Solution.
October 2, 2003... PSCU Financial Services Inc. and CSC Credit Services, Inc. have released a new solution to assist credit card issuers with a credit risk solution. According to the companies, the "Score Source" portfolio review solution allows all PSCU...

Community Page.
October 2, 2003... FORUM CU Joins Relay For Life FISHERS, Ind.-FORUM Credit Union employees and their families walked for Hamilton County Relay for Life to raise money for the American Cancer Society. Other fundraising efforts included a chili cook-off...

Prospects Fade To Latch On CU Provisions To FCRA.
October 2, 2003... It appears increasingly likely that the reauthorization of the Fair Credit Reporting Act, now known as FACT-for Fair and Accurate Credit Transaction Act-will not serve as the vehicle for broader financial services legislation, including those...

Charter Flip Will Shield Stamford CU From UBIT.
October 2, 2003... The decades-old troubles by state-chartered credit unions over the Unrelated Business Income Tax (UBIT) is threatening to drive state chartered credit unions to the safety of the federal charter. The state banking department said it has...

Michigan Regulator Backs CU Reform.
October 3, 2003... The Office of Financial and Insurance Services, the state's chief financial regulator, said it is fully behind efforts by credit unions to amend the state's credit union statute, now pending before the legislature. "We testified in favor...

People.
October 3, 2003... The Rhode Island Credit Union League, Warwick, R.I., elected to its board: Kenneth Poynton, chairman; Paul Archambault, first vice chairman; Cidalia Rocha, second vice chairman; Joan Saunders, secretary; and William Barker, treasurer. ...

The CUJ Daily.
October 3, 2003... Fugitive Returns Son To Mother YOUNGSTOWN, Ohio-Mark Samples, one of the FBI's Ten Most Wanted fugitives, waived extradition here and agreed to return to Minnesota to face charges in a 2001 armed robbery at Red Wing CU, while his...

Reader Tech Question #1.
October 3, 2003... Is there a rule of thumb yet on how frequently a website can and should be redesigned, or does it really not make any difference? Kristi Lowell, Director of Marketing, RDS, Indianapolis Because a credit union's website is a single piece...

Reader Tech Question #2.
October 3, 2003... One unresolved time-management issue related to our otherwise effective employee Intranet is content related to training and product updates. Do the participants on your panel have suggestions or experience in providing training/updates/content...

CMG Hosts Online Seminars.
October 3, 2003... CUNA Mutual Group will host five online asset liability management (ALM) seminars for credit unions this fall. All were originally presented at CUNA Mutual's "Discovery" Conference in June. Registration is open to all credit unions at a cost...

Rear View Mir ror Reflections From The Steering Committee: Leaders of The Campaign for Consumer Choice Share Insights On The Effort That Changed Credit Unions.
October 3, 2003... In this installment marking the fifth anniversary of HR 1151, two credit union league presidents who were members of the steering committee of the Campaign for Consumer Choice -Tom Griffiths of Iowa and Mike Mercer of Georgia-look back and...

The CUJ Daily.
October 3, 2003... Bankers Mount New FOM Challenge JEFFERSON CITY, Mo.-The Missouri Bankers Association filed a new appeal last week challenging the state credit union regulator's field of membership grant, this one a three-county bid by tiny Southeast...

At Least 9 CUs Apply For New TIPS Charters.
October 3, 2003... At least nine federally chartered credit unions have formally applied to NCUA to expand their membership base by converting to the new Trade, Industry, or Profession-wide, or TIP, charter. Documents obtained from NCUA by The Credit Union...

Study: Privately Insured CUs Not Disclosing Fact.
October 3, 2003... A large number of privately insured credit unions are not complying with federal law and adequately informing members that their savings are not federally insured, a new government report said last. The report, issued by the General...

Bring Back the Club.
October 6, 2003... I'd like your reaction to a marketing idea I'm about to propose. If you think the idea is silly, uneconomic, impractical or illegal - or if you and others are doing it and I'm just not aware of it - please let me know. (Email me at...

Experts on Gen Y: Don't Underestimate Their Investment Needs.
October 6, 2003... A 20-something walks into a bank. What does he want? Free checking? A credit card? Guess again. He may be shopping for retirement investments. Members of Generation Y - the 60 million people born between 1979 and 1994 - are starting to...

Umpqua's New 'Stores' to Offer Investments.
October 6, 2003... Calling traditional banking environments "grossly outdated," Umpqua Bank of Roseburg, Ore., recently announced plans to open seven "stores" in 2004 like the one pictured above. Strand Atkinson Williams and York, the bank's retail brokerage...

Funds Fear Damage from Spitzer's Charges: Special from Money Management Executive.
October 6, 2003... New York Attorney General Eliot Spitzer's crackdown on hedge fund trading schemes by four mutual fund companies could wreak havoc on the mutual fund industry's squeaky-clean image. The possibility that fund companies cut deals with arbitrageurs...

State 'Cops' Move to Protect Seniors.
October 6, 2003... State securities regulators are taking steps to thwart investment scams against seniors in an economic climate that has created "a perfect storm" for fraud and abuse by bogus and even bonafide investment advisors. The North American...

Surveys Paint Less Rosy Retirement Picture.
October 6, 2003... Americans are facing retirement with diminished expectations and an emphasis on protecting their assets, two recent studies find. According to a survey conducted for Strong Retirement Plan Services, nearly half of adults currently employed...

New Products.
October 6, 2003... Fidelity Investments has launched five Advisor Freedom Funds, which invest in 13 Advisor Funds and Fidelity Cash Reserves. Four of the funds are managed to target dates in 2010, 2020, 2030 and 2040. They are automatically rebalanced and...

Provider Notes.
October 6, 2003... Ibbotson Associates has launched a marketing services group called Agency Ibbotson. It provides services such as marketing materials development, sales presentations, custom analysis, educational training programs and presentations, and review...

Financial Intelligence: How Provident Securities' Mike Schiess uses his military training to outmaneuver the competition.
October 6, 2003... Mike Schiess trained for a career in military intelligence. Today, he advises clients about stocks, options, bonds and insurance from his base at Cincinnati's Provident Securities. Could there be a connection? "My military training has...

Bank Rep Compensation: Gaining on Non-Bank Reps: A look behind the numbers as the payout and productivity gaps narrow.
October 6, 2003... Like their counterparts at traditional retail securities firms, bank investment consultants have struggled through the long bear market. Last year's compensation figures confirm the pain. Compensation of non-bank registered representatives fell...

The 'Future' Question: As CUNA Hosts a 'Future Forum,' Journal Asks: How Far Can You Plan?
October 7, 2003... If nothing is certain except death and taxes, how can credit unions be expected to plan for the future? To start with, they have to accept that instead of subscribing to some rigid, Soviet-esque five-year plan, they should find ways to be...

NCUA Gives The OK To Expansion Of Business Loan Rules.
October 7, 2003... In a much anticipated move, NCUA last week approved new member business lending rules aimed at expanding a still small, but growing part of the credit union portfolio. The new rules will both make it easier to make loans for real estate...

CUNA Mutual Piloting Plan On Supplementary Capital.
October 7, 2003... CUNA Mutual Group introduced a new secondary capital pilot project aimed at easing the way to broader acceptance of supplementary capital. Under the project the credit union insurer will make supplementary capital infusions in credit unions...

Economic Rebound? It's Here, Argues Fed Analyst.
October 7, 2003... The long-awaited economic recovery will officially arrive during the current quarter, according to one person. The U.S conomy has been outperforming expectations since Sept. 11, 2001 and is poised to perform even better, but perceptions...

NCUA OK's Large Long Island FOM.
October 7, 2003... The NCUA board appeared to set a new standard for community charters last week when it approved an application from Bethpage (New York) FCU to serve virtually all of Long Island. The three board members were unanimous in their agreement the...

Will Banks: Bear Market: If banks can convince clients they are as savvy as brokerage firms, assets may stick when the market revives.
October 7, 2003... As surely as tulips blossom in spring and maples drop their leaves in autumn, financial products wax and wane in popularity with cyclical predictability. Demand for mortgages, for example, increases when interest rates decline. Similarly, when...

Hedge Funds for the Masses?
October 7, 2003... Most bank reps may never create a "collar" for a client's huge stock position or handle the sale of restricted stock. But hedge funds are one high-net-worth product that bank investment consultants may brush up against, if only because more and...

Keeping Reps Compliant: Continuing education expert Russ Foster offers tips on keeping up with the maze of state insurance licensing requirements.
October 7, 2003... The president of Citicorp Investment Services learned the importance of compliance this past June when he was dismissed for failing to keep up with insurance-related continuing education (CE) requirements. As the securities business endures a...

Wealth Management at FirstMerit: Building around a financial plan, relationship managers oversee new services at northeast Ohio bank.
October 7, 2003... George Paidas faced a familiar bank challenge: how to harness disparate banking efforts to better serve affluent clients and thereby improve performance. As head of FirstMerit Wealth Management, Paidas convinced his firm - Akron,...

Financial Planning on the House: Here's how First Tennessee makes no-obligation planning the core of its wealth management offerings.
October 7, 2003... Memphis-based First Tennessee National Corp. sells financial planning in an unusual way - it doesn't. To eliminate any question of conflicts of interest and to put its wealthy customers at ease, the bank provides complementary financial...

Beating The Drum At Future Forum.
October 8, 2003... For some time CUNA has been banging the drum about all it does for its affiliated member credit unions. Last week, it did so literally. Seeking to put some pep into a late-season conference that has suffered lagging attendance and was even...

Mich. Bankers Seek Concessions In Pending FOM Bill.
October 8, 2003... State Senate leaders fended off lobbying efforts by the Michigan Bankers Association last week to roll back expansive field of membership allowances included in a credit union reform bill making its way through the legislature. But the...

Wis. Reform Bill Provision Gives Workers Claims Over Creditors.
October 8, 2003... The state Assembly last week approved a credit union reform bill for the third time but this time the measure has already been passed by the Senate, which means the bill is on its way to the governor for his signature. Lawmakers also...

BECU Makes Big Commitment To Stores.
October 8, 2003... Boeing Employees CU will roll out 30 Express Service Centers inside Safeway grocery stores throughout the Puget Sound region over the next 14 months in what is thought to be the largest partnership between a grocer and a credit union to date....

A Month in the Life.
October 8, 2003... How does your daily routine compare to that of other bank investment consultants? What can you learn from their stories to help you succeed? To help answer those questions, BIC asked contributor Paul A. Werlin, president of Human Capital...

Rants and Raves.
October 8, 2003... The Allure of Independence I wanted you to know that you really got it right with your commentary "Mergers, Main Street and Staying Independent" (September 2003). As a community banker from Missouri for the past 20-plus years, and now...

25 Performers Not Defined by Convention: For decades-what feels like eons to some-corporate America was defined by convention, and banking was no exception. That's all changed.
October 8, 2003... When Apple Computer launched its "Think Different" campaign six years ago, most executives got tripped up by the grammatically incorrect slogan. They missed the point. This should come as no surprise. For decades-what feels like eons...

Shakeup: Roessler's Out, Stock Surges At National Commerce: But does the future hold renewed focus or a sale?
October 8, 2003... As the summer started to heat up, Ernest Roessler abruptly quit as chairman and CEO of National Commerce Financial after several disappointing quarters and the settlement of a class-action lawsuit against the bank and a subsidiary. A few months...

Technology Spending: Which Do You Want First: Good News or Bad News?: Tech jobs at risk, but hatchet men in demand.
October 8, 2003... The next couple years won't be a good time for tech jobs in finance; conversely, it won't be a bad time to sell the technologies that help companies reduce costs-like payroll. That's the mixed bag from a recent TowerGroup report that...

Hits and Has-Beens.
October 8, 2003... Karl A. McNish was named assistant vp and branch manager of $847-million-asset Union Bank in Lauderhill, FL. He will oversee all branch activities. He was previously a senior loan officer with Affordable Home Mortgage. Torrance, CA-based...

ON DEADLINE.
October 9, 2003... CUNA Projects Return To The Black For 2003 RENO, Nev.-CUNA, which has been battling red ink each of the last two years, is on track to break into the black for fiscal 2003. CUNA Treasurer Don Larsen, president of Community CU, Tacoma,...

Louisiana Latest State In Which Bank Rattles Sabers.
October 9, 2003... The Louisiana Credit Union League is keeping a close watch on the Louisiana Bankers Association (LBA) after the bank trade group listed "credit union competition" as a primary issue for banks in the state. While the league indicated that...

Analyst: Squeezed Margins Demand Two Responses.
October 9, 2003... Despite moderate growth in recent years, credit unions hold just 6.4% of financial institution assets. Revenue growth remains flat, while operating expenses continue to rise. So how can credit unions succeed under those conditions in 2004?...

Worth Noting.
October 9, 2003... CUNA Elects Ensweiler Chairman RENO, Nev.-The CUNA Board Wednesday elected Dick Ensweiler, president of the Texas CU League, as its new chairman, the first league president to serve in the role lected as vice chair was Juri Valdov,...

Too Bad The Lobby Often Not Seen As Part of Your Brand.
October 9, 2003... "Wanted: Members!" This is how the old-west style sign read as I walked into the branch of a $100-million-plus credit union recently. It was tough to miss as it was displayed right beside the rate board. In fact it was the first thing that...

Fresh Ink.
October 9, 2003... 1. PNC Financial Services Group plans to buy United National Bancorp for $638 million in cash and stock. United National is a $3-billion-asset bank holding company in New Jersey and Pennsylvania. The deal, which adds 100,000 new customers to...

Word Is...: No Rest Yet from the Blaring Beat of the Boom-Boom Room.
October 9, 2003... Eight years, a book, more than a thousand complaints and innumerable curses have flown by on all sides. And still Pamela Martens and Judith Mione march through the system. The duo's complaints at Smith Barney's Garden City, Long Island...

Noted and Noteworthy.
October 9, 2003... New York state attorney general Eliot Spitzer's latest gumshoe work is, as of this printing, shaking the foundations of one of Bank of America's true Wall Streeters, asset management head Richard DeMartini. DeMartini is a formidable presence:...

California's Long Daydream: If Golden State voters think their Tasmanian devil of a recall election is going to make a big difference in solving their state's financial woes, they need to think again.
October 9, 2003... This started out as a curtain-raiser on California's soap opera of a recall election, due to take place a few weeks from the time of writing. Last night a circuit court postponed the recall. In the week it takes the page to go to the...

EBP&P: Yodlee Leaps into ToughE-Billing Game. Ready?: Yodlee's BillDirect puts it in direct competition with the likes of Wells Fargo, BofA and CheckFree. Some hail it as groundbreaking. Others doubt its usefulness.
October 9, 2003... Yodlee, the account-aggregation company, has thrown its hat into the ring of the highly competitive electronic bill payment and presentment market. In August, the Redwood City, CA-based company launched a new bill presentment service...

Meet the "Tweeniors": Repackaged Boomers: Bank marketers work hard to understand consumers, but is their slicing and dicing getting out of hand? A label coined by Garrity Communications raises questions as to whether market segmentation leads or follows trends.
October 10, 2003... Market segmentation keeps getting more elaborate. It's a wonder banks aren't using people's favorite fragrances to sell scented checks. A market segment that Ithaca, NY-based Garrity Communications recently identified as...

AD Beat: Spooning Through The Alphabet Soup.
October 10, 2003... Small banks, too, are moving into other businesses. A new brand may seem dicey. Colorado-based First MainStreet proves sometimes it's not only worth it, but vital. Until this summer, First National Bank of Longmont was one of 28 banks in...

Power. Cool. Confident. Savvy. 25 Women Rewriting The Rules.
October 10, 2003... George Bernard Shaw once said "the power of accurate observation is commonly called cynicism by those who have not got it." It's this attitude many women have faced in banking over the years because they saw things so clearly, and acted on what...

Rank #1.
October 10, 2003... Plagued by a conflict-of-interest scandal, Sandy Weill turned to Sallie Krawcheck in one of Citi's darkest hours. How she goes about rebuilding investor trust has everyone's attention. Chairman and CEO Smith Barney, New York, NY ...

Rank #2.
October 10, 2003... Sure, it's a brand no one can touch, but Marjorie Magner runs Citi's global consumer group with a hint of guilt, a listening ear and the energy of someone just getting started. Chairman and CEO, Global Consumer Group Citigroup, New...

Rank #3.
October 10, 2003... It was Marion Sandler's analysis of the poorly managed thrift industry that led her and her husband to buy Golden West, now one of the most profitable companies in the country. Co-CEO Golden West Financial-World Savings and Loan,...

Rank #4.
October 10, 2003... Relying on her hard-earned knowledge of the bank's activities, Amy Brinkley uses a "three lines of defense" approach to manage risk firmwide. It could be her ticket to the top. Chief Risk Officer Bank of America, Charlotte NC ...

Rank #5.
October 10, 2003... From "Action Teller" dolls to branches that feature children's play areas and look like Starbucks, Deanna Oppenheimer is changing the way people think about going to the bank. President, Banking and Financial Services Group Washington...

Rank #6.
October 10, 2003... Leading behind the scenes, unassuming Heidi Miller personifies low-key and steady power. She's a key figure shaping $287 billion Bank One. EVP and CFO Bank One, Chicago IL Years in banking: 24 One of the pre-eminent...

Rank #7.
October 10, 2003... In a business where careers soar based on returns, Julia S. Gouw builds her professional and personal success on taking care of others Director, EVP and CFO East West Bank, San Marino CA Years in banking: 14 A philosophy Of...

Rank #8.
October 14, 2003... Getting in on the ground floor of forex and derivatives trading in the 1980s has helped Susan Storey become one of the industry's top debt managers. Managing director CIBC World Markets, Toronto Canada Years in banking: 21 ...

Rank #9.
October 14, 2003... A community banker with acute political skills, E. Lee Beard does not shirk from a fight, whether at the local country club or the halls of Congress. President, CEO and Director First Federal Bank of Hazleton PA-Northeast Financial...

Rank #10.
October 14, 2003... Leading Fifth Third into the Sunshine state and building an $840 million business, Colleen Kvetko shows a 16-year-old teller can make good. President and CEO Fifth Third Bank, Florida, Naples, FL Years in banking: 33 It may...

Rank #11.
October 14, 2003... Many bankers pay lip service to the notion of putting the customer first, but Barbara Desoer is altering BofA's cultural fabric to achieve that goal. President of consumer products Bank of America, Charlotte, NC Years in banking:...