Banking Wire articles from October 2004

Banking Wire archives from October 2004

For Many CUs, 2004 Turning Into The Year Of The Evacuation.
October 1, 2004... With evacuation orders coming on top of evacuation orders in Florida, Mississippi, Louisiana and Alabama, credit unions have been working to prepare for one hurricane while trying to help members clean up from the last. Florida, alone, has...

State Charters Get A Look Ahead (But Not From The Fed).
October 1, 2004... Several hundred representatives of state-chartered credit unions and their regulators did a great deal of looking ahead here last week. But they weren't given any sense of whether or not the Federal Reserve will raise interest rates when it...

NLRB Delays CMG Decision.
October 1, 2004... The National Labor Relations Board said it won't take up a petition from professional employees at CUNA Mutual Group to form a separate union within the Office and Professional Employees International Union until the union's current unfair...

On Deadline.
October 1, 2004... Analysts Expect Fed To Raise Rates This Week ARLINGTON, Va.-Experts in the credit union movement are expecting the Federal Reserve to lift short-term interest rates again at this week's meeting. "I think they're going to raise rates," said...

Members Mostly Unconcerned Over Sponsor's Bankruptcy.
October 1, 2004... The second bankruptcy filing in two years by its main sponsor, US Airways, Inc., has not stirred member faith in US Airways Federal Credit Union. "The member reaction has been extremely calm," said VP-Marketing and Technology Ralph...

Cirelli To Retire As CEO.
October 1, 2004... After 35 years in credit unions, Joseph C. Cirelli plans to retire as CEO of US Airways effective Oct. 1, 2004. Cirelli has been CEO since 2000, joining in 1969 what was then Allegheny Airways FCU. Cirelli has been active in NAFCU the Filene...

CUNA To Sponsor 'Election Fair' This Week In Capital.
October 1, 2004... CUNA will sponsor an "Election Fair" this week on Capitol Hill. Sen. Lindsey Graham (R-SC) and Rep. Mike Michaud (D-ME), who were both supported by credit unions in their 2002 electoral victories, and Charlie Cook of the Cook Political Report...

Fishy Fundraising Effort In Minnesota.
October 1, 2004... Perhaps not surprisingly, the state of 10,000 lakes has turned to fish to raise money for its political action committees. The Minnesota Credit Union Network raised more than $3,500 from goldfish races held during its recent Fall Conference...

Worth Noting.
October 1, 2004... Maine CU Pioneer, Morin, Dies WESTBROOK, Maine-Jeannette G. Morin, who was frequently referred to as the "Mother of the Maine Credit Union Movement," has died. Ms. Morin, 90, was active in credit unions for six decades. From 1944-1974, she...

NCUA Says White House Not Behind Its Travel Decisions.
October 1, 2004... In a tight presidential election that has spawned Swift Boat Veterans and unflattering books about the entire Bush family, it probably shouldn't come as a huge surprise that some are seeing the White House's hand in where NCUA has been choosing...

The Invisible Hurricane: Many Employees & CEOs Survive The Storm, But Are Lost To Stress.
October 4, 2004... Dramatic footage from Hurricanes Charley, Frances and Ivan show flattened buildings and incredible wreckage. But for credit unions it's what seethes below the surface in the ensuring weeks, months and even years that creates what one expert...

Pace Of Raises Slows: Survey Finds A Little Less Added To The CU Paycheck This Year.
October 4, 2004... The rate at which CU executives are seeing pay increases is declining, although it continues to remain slightly ahead of other employers. According to new data assembled by CUNA's Center for Research and Advice for its 2004 Complete Credit...

Can't Beat 'Em-Join Together: Group Forms Among CUs To Fight Increasing Cybercrime.
October 4, 2004... An emerging information security roundtable, formed by credit unions and their vendors, is promising to join forces against the advancing threat of cybercrime. "Worms and malicious software have plagued us for years, but in just the...

Airline's Turbulence Leads To New FOM.
October 4, 2004... ALEXANDRIA, Va.-The NCUA board last week offered a soft landing for U.S. Airways FCU. The $600-million CU's chief sponsor, U.S. Airways, filed for a second bankruptcy earlier this month. The board approved one of its broadest community...

Disagreement Over What Petition Means.
October 4, 2004... A new petition filed with federal labor authorities by dissident members of the CUNA Mutual Group union seeking to form a separate bargaining unit could result in the decertification of the union, which has been embroiled in a bitter labor...

On Deadline.
October 4, 2004... 27 Mergers In August Make 202 For Year ALEXANDRIA, Va.-NCUA said it approved 27 credit union mergers last month, making a total of 202 combinations through the first eight months of the year. Last month's approvals included 18 with one or...

eFunds Sale of 17,200 ATMs Not Expected To Have Effect On CO-OP Network.
October 4, 2004... eFunds Corp. agreed last week to sell its fleet of 17,200 ATMs, which make up the core of the credit union-owned CO-OP Network. The ATMs, the second-largest independent (non-bank) fleet, will be acquired by TRM Corp., a Portland, Ore.,...

Marketing Meeting Set For Colorado.
October 4, 2004... A special-one day marketing marketing conference featuring four experts has been scheduled for Oct. 26 here. The Credit Union Journal will be joining Automotive Avenues as a sponsor of "Marketing Success 2004: A Symposium for Colorado...

Meek May Inherit Earth, But Meek CUs Won't Get The Funds.
October 4, 2004... That an enormous intergenerational transfer of wealth is set to occur in the near future is well-documented. Less well documented is what credit unions can do to capture some of those funds. A new study from the Filene Research Institute is...

CUNA Hosts Election Fair As CUs Set Off To Hike The Hill.
October 4, 2004... Maine Congressman Michael Michaud, the only credit union volunteer serving in Congress, urged more than 300 CU representatives to make their voices heard to his congressional colleagues during CUNA's "Hike the Hill Month." "With just six...

Influence Matters, and It Is Making a Difference.
October 5, 2004... When U.S. Banker began working on "The 25 Most Powerful Women in Banking" last October-the ranking's debut year-early reaction from candidates was met with a good dose of optimism, yet some privately worried about its intent, how the market...

Payments: With Its Long Green Arm, Amex Reclaims Processing: The green giant aims to cut out the middlemen.
October 5, 2004... Global credit card giant American Express is making moves to get into another business-one it has long farmed out to processors. In between the point a cardholder buying a watch at Lord & Taylor swipes his green plastic through a reader,...

Compensation: Supplemental Retirement Benefits Gain Popularity: Stock option changes prompt new look at plans.
October 5, 2004... While CEOs at the 50 largest U.S. banks earned an average of $6.1 million in fiscal 2003, a 12 percent increase over 2002, banks are being advised to reevaluate executive pay policies as new stock-options rules take effect and supplemental...

Statute of Limitations: In Struggle Over Spilt Milk, Parmalat Spurs More Suits: Firm's bankruptcy entangles BofA, Citigroup, USB.
October 5, 2004... The sustained barrage of lawsuits thundering from Rome in recent weeks from the Parmalat bankruptcy is putting the world's biggest financial players on the defensive and sources say it should be the final notice-if one is still needed-that no...

The Fourth "P".
October 5, 2004... Price. Product. Promotion. Place. Remember those four components of marketing from business school? Since I went to college, marketing in general - and bank marketing in particular - certainly has changed. Prices are a lot different,...

Banks' 2005 Plans Take Aim at Wirehouses.
October 5, 2004... Regardless of which way the election or oil prices swing, banks will continue a resolute move toward advisory-based services in 2005, along with an aggressive push to hire more wealth management experts and build more tools to mine a wider...

Fleet/Q&R Broker Jobs Come Under Cloud.
October 5, 2004... The first big round of layoffs as a result of the Bank of America acquisition of Fleet occurred in August, but BofA insisted on being as vague as possible about which positions were being cut or even exactly how many were being cut - even after...

SECU Eliminating Many Fees; Members Can Donate Check Fees To Foundation.
October 5, 2004... State Employees CU is well known for having very few fees, but the credit union recently went on a quest to eradicate as many fees as it could afford. "We don't have a whole lot of fees around here, and the ones we have are very low,"...

Mass. CU Adds MADD To FOM As Part Of Partnership With Group.
October 5, 2004... M/A-COM Federal Credit Union has added employees and members of Mothers Against Driving Drunk in Massachusetts to its field of membership as part of a partnership between the CU and the activist group. "The ability to offer our members as...

Default Insurance Pitched As Means Of Boosting Loans.
October 5, 2004... Default insurance may be one key to increasing lending, according to one person. Credit unions, nearly all of which are seeking to make more loans, have an opportunity in underserved markets, but often are leery due to associated risks,...

Product & Service.
October 6, 2004... Americard Is Now OneBridge INDIANAPOLIS-Card processor AmeriCard has changed its name to OneBridge as it expands its business. "The name OneBridge better reflects our vision to be a single source for all card processing needs," said Kim...

What Consumer Groups Are Advising.
October 6, 2004... Among the policies Consumers Union and Consumer Federation of America are urging financial institutions to adopt when it comes to implementing the new Check 21 laws are: * Don't use Check 21 to bounce more checks. Give consumers the...

For More Information.
October 6, 2004... Credit unions looking for additional information on Check 21 or materials to help members sort through what it all means can consider some of the following resources: * CUNA's Center for Professional Development offers statement stuffers...

Product & Service.
October 6, 2004... Online Mortgage Services Added ORLANDO, Fla.-Insight Financial has added an online mortgage origination center to its website at www.insightfinancialcu.com. "This website gives users the ability to research interest rates and loans...

CFA Objects To Proposals On Bank CRA From The FDIC.
October 6, 2004... The Consumer Federation of America (CFA) and a number of other consumer groups are calling for the Federal Deposit Insurance Corporation to withdraw proposed rule changes to the Community Reinvestment Act (CRA). "These changes, along with...

Product News.
October 6, 2004... Brinker Capital has added nine investment management disciplines to its managed account and mutual fund programs. They are large-cap equity, mid-cap equity, international growth equity ADR, core quality, core plus, core equity, international...

Tools and Resources.
October 6, 2004... The College for Financial Planning is offering a wealth management designation for financial professionals. Instruction for the designation covers asset management and selection, investment performance and strategies, insurance, estate planning...

Tales of a Pioneer: Jay Mastilak was PNC Advisor's first rep. Now she's a top producer. Here's how she grew her business.
October 6, 2004... Many bank reps talk about having seen lots of changes. PNC Advisors' Josephine "Jay" Mastilak really has. Now one of the top producers at the Pittsburgh-based broker-dealer subsidiary of PNC Bank, Mastilak was literally its first bank rep....

Pipeline.
October 6, 2004... Consumers Don't Walk the Talk Some 66 percent of consumers say discounts are why they participate in loyalty programs, according to a recent poll by Maritz Loyalty Marketing. In collecting rewards, most consumers choose gift certificates,...

MBNA, Capital One are Beaten, As Egg Goes Back in Its Box.
October 6, 2004... The brutal competition between MBNA and Capital One to put new plastic in stuffed-full consumer wallets-or, failing that, to buy customers outright-showed some interesting wrinkles in recent weeks. Capital One in particular must be aching. ...

Models: Predicting The Future With A New Tool: E-analytics get more accurate and detailed.
October 7, 2004... If you've ever had a date cancelled with someone from a ratings agency, it's pretty easy to predict how it went. "I'm sorry, I can't make it. I'm going to have to work all weekend on the model." And the model they're speaking of is a...

Mortgage: Refi Ebb Equals Internet Flow: Lenders use the lull to beef up on-line.
October 7, 2004... Now that the refinancing boom has abated, many mortgage lenders once too busy to review their old technology have the breathing room-not to mention the real business need-to update and streamline their operations to capture the predicted...

Spending: Fear, Regulation Are Driving It Spend: Continuity and compliance to drive investment.
October 7, 2004... Bank CIOs have their hands full these days. As financial institutions weigh the likely impact of natural disasters, terrorism, fraud and regulation on their businesses, many are expected to loosen their IT purse strings in an attempt to tackle...

Worth Noting.
October 7, 2004... In NY, $500K In Scholarships LATHAM, N.Y.-Credit unions in New York, along with the state league, awarded more than 510,000 in scholarships to members who graduated high school this year and were beginning their college studies in the fall...

The Time For Credit Union Political Activism Is Now.
October 7, 2004... This week, a number of key federal policymakers and their credit union constituents will be in one place-NAFCU's Congressional Caucus at the Grand Hyatt in downtown Washington. As part of the Caucus, over 400 credit union representatives will...

The Indirect Payoff: Using Its Success In Indirect Lending As Its Model, SACU Is Now Automating Much Of Its Other Lending.
October 7, 2004... Larry Biernacki thinks he can follow San Antonio Federal Credit Union's consumer loan performance with a hit sequel on the mortgage side. "Indirect lending was our first focus," said Biernacki, SACU's senior vice president of Lending. "Now...

Noted and Noteworthy.
October 7, 2004... Talk about the road not taken. For longtime banker Steve Southard of Culpeper, VA, population 9,664, it was the other guy who got big and rich. Now the county's treasurer, Southard recently had reason to recall an old business partner of his,...

With No Political Will, There's No Way: Few bills will pass before the election. Of course, lawmakers are busy electioneering-or getting reelected-but perhaps there's a more cynical reason why.
October 7, 2004... In Washington, when the going gets tough, the tough...do nothing. With the Republicans' August infomercial giving President Bush more than a tiny bounce over Democratic presidential challenger John Kerry, legislators and lobbyists have...

Telecommunications: VoIP: Kick That Tin Can: Does saving more than $5 million a year sound like a good idea? Just ask SouthTrust how it's done.
October 7, 2004... Bank CIOs convinced that "huge savings" and "improved operational efficiencies" were terms that wouldn't be found in the same sentence have learned to rethink their IT strategy, thanks to the advent of voice-over Internet protocol. Banks are...

What Time's It, Grampa? 529 College Gift Time.: With average annual private tuition costs at $40,000, students and their relatives can be paralyzed by sticker shock. But banks can counter that fear with smart ideas for savers.
October 7, 2004... The summer may be just behind us, but the holiday season is fast approaching and bank executives say this is one of the most critical times to educate customers about saving for college, particularly the tax benefits of 529 college-savings...

AD Beat: With Service-Career Focus, TIAA-CREF Hones Message: Fierce competition drove the investment firm out of the shadows and into the mass media with a campaign that honors typical clients. Is the future as bright there?
October 8, 2004... Feeling the squeeze of competition from big banks like never before, Teachers Insurance and Annuity Association-College Retirement Equities Fund, or TIAA-CREF, has launched its first national campaign, with expensive TV and print ads that...

Icons of Influence.
October 8, 2004... Ask any woman who has made it to the top where power ends and influence begins and she'll likely tell you the former is meaningless without the latter. Why? Because influence is a door opener, and open doors mean the ability to effect...

A steady hand steers a business more profitable than Wal-Mart or Coke.
October 8, 2004... 1. Marjorie Magner Chairman & CEO, Global Consumer Group Citigroup, New York NY Years in banking: 31 Rank last year: #2 MPWIB Fourteen months ago, Marjorie Magner ascended to one of the most- powerful and...

Technology News.
October 8, 2004... Online Bill Pay Volume Soars With 'Free' Offer VERNON HILLS, Ill.-Baxter Credit Union (BCU) said the number of members who have signed up for online bill pay grew 33% in the just- ended three-month period in which it offered the service...

How IT Dept. (Of One) Resolved PC Security Demands.
October 8, 2004... Diligent software patching can make or break network security for credit unions, But Northeast Community Credit Union is one of many that just can't keep up on its own. "I don't have the talent or time in-house to manually identify and...

New Online Liberty Solution Helps To Resolve Number Of Check-Related Threats, Issues.
October 8, 2004... Liberty has introduced Check Management Solutions, which it describes as a one-stop, online resource that enables credit union staff to resolve-and even help prevent-non-payment, NSFs, lost or stolen checks, forged signatures and other...

Fraud is Rising, But Victims, Banks are Fighting It.
October 8, 2004... Talk about fraud in banking circles and one will inevitably hit a nerve. That became apparent last month when I penned a commentary on the frustrations customers face when they become victims of fraud, and how bank employees often exacerbate...

Communications: Next-generation Im Opens Two More Pandora's Boxes: Is technology that combines IM with file-sharing and VoIP an innovation or a conduit for even more viruses?
October 8, 2004... Skype, an innovative free application combining file-sharing, instant messaging and voice-over IP phone calls, has been tapped by every major Wall Street bank. Embodying the convergence craved by bankers and traders forced to use no fewer...

News Makers.
October 8, 2004... Mortgage fraud is booming, says FBI Fraud in the mortgage industry-which includes the booming on-line sub-industry-is up nearly 190 percent from 2001. In the first nine months of 2004, mortgage companies and banks reported 12,100 instances...

Top Tech Deals.
October 8, 2004... Numberone eFunds, a provider of risk- management, electronic payments, ATM and global outsourcing products, has extended its strategic alliance with BISYS, which sells business process outsourcing products for the financial sector. ...

Credit Unions Told To Wait Til Next Year For Legislation.
October 12, 2004... The cry was "wait till next year" for credit union legislation during NAFCU's annual Congressional Caucus last week. With a little more than two weeks left in the 108th Congress, lawmakers were loath to project any confidence that credit...

Florida's CUs, Leagues Hone Skills In Disaster Planning.
October 12, 2004... The Florida Credit Union League knew something about hurricanes before. But now the league has become something of an expert at disaster planning and recovery. "We are not a disaster relief agency," said FCUL's Mark Ivester, almost as if...

CUs Are Awarded $7M In CDFI Grants.
October 12, 2004... Six credit unions and four credit union-backed organizations will receive almost $7-million in federal funding under the Treasury Department's Community Development Financial Institutions program, most of it to help them expand or start...

Which Route To Bank Rep Success?: Banks have embraced a team approach to investment and insurance sales, but dedicated reps may be better off. Here's a look at both routes.
October 12, 2004... Platform programs in which dedicated reps manage teams of Series 6- licensed bankers are fast becoming the norm at the nation's largest banks. But are reps better off as managers of platform teams or as solo practitioners? According to Ken...

Commerce Bank: Ahead of the Curve: Just as it has redefined the retail banking experience, Commerce Bank is changing the way investors and bank reps approach investments.
October 12, 2004... Christian Wagner joined Commerce Capital Markets in December 2000 and has never looked back. Now senior vice president and director of investment services for Commerce Bank's broker-dealer subsidiary, Wagner was so frustrated with the...

Target: Women: Are your investment and insurance programs adding more female clients? Find out how to succeed in this underserved market.
October 12, 2004... Looking for "the greatest untapped source of revenue" for the remainder of the decade? If so, marketing consultant Mark Alarik says you should look no further than the woman who just walked into your branch - and the millions just like her...

The Challenge in Life Sales: Mismatched distribution models and misunderstood products have led to disappointing insurance sales at banks.
October 12, 2004... Over the past five to seven years, financial institutions have been frustrated by their lack of success in life insurance sales. While they strongly desire the high profit margins and revenues that can be generated in successful life insurance...

What We Saw on Our Branch Tour: Our annual trek through Manhattan brought some depressing experiences.
October 12, 2004... What's the first thing that banking executives should do to begin to improve the performance of their retail systems? Simple. They ought to get out and visit their branches more. If they did, they'd likely be appalled at what they'd find:...

Target: Women: Are your investment and insurance programs adding more female clients? Find out how to succeed in this underserved market.
October 13, 2004... Looking for "the greatest untapped source of revenue" for the remainder of the decade? If so, marketing consultant Mark Alarik says you should look no further than the woman who just walked into your branch - and the millions just like her...

The Challenge in Life Sales: Mismatched distribution models and misunderstood products have led to disappointing insurance sales at banks.
October 13, 2004... Over the past five to seven years, financial institutions have been frustrated by their lack of success in life insurance sales. While they strongly desire the high profit margins and revenues that can be generated in successful life insurance...

What We Saw on Our Branch Tour: Our annual trek through Manhattan brought some depressing experiences.
October 13, 2004... What's the first thing that banking executives should do to begin to improve the performance of their retail systems? Simple. They ought to get out and visit their branches more. If they did, they'd likely be appalled at what they'd find:...

When merger drew protests, threats, she never blinked.
October 13, 2004... 2. Peyton Patterson Chairman, CEO & President NewAlliance Bancshares, New Haven CT Years in banking: 21 Rank last year: #14 MPWIB No other bank leader has fostered more change nor weathered more controversy-during...

Taking personal risks over the years helps her mitigate BofA's.
October 13, 2004... 3. Amy Brinkley Chief Risk Officer Bank of America, Charlotte NC Years in banking: 26 Rank last year: #4 MPWIB Amy Brinkley once gave a man known for keeping a grenade on his desk advice on whether to keep the name...

Release the hounds! This equestrian-minded banker can handle her steed and track down profitable customers.
October 13, 2004... 4. Cece Sutton Evp, Head of Retail BankING Wachovia, Charlotte NC Years in banking: 26 Rank last year: #6 WtoW In equestrian dressage competition, the rider and the horse are one. The animal gallops and canters...

Member Response Indicates Facility Is On The Right Track.
October 13, 2004... Few credit union buildings manage to capture the very heart and soul of a CU's membership as Clinchfield FCU's facility has done. In fact, the railroad credit union's building, modeled after the old train depot in which the CU got its...

World Council CEO Arnold To Leave Job Effective January 1.
October 13, 2004... Arthur Arnold, who oversaw a turnaround at the World Council of Credit Unions in both its finances and profile, plans to step down Jan. 1, 2005. Arnold said he made the decision not ti seek a contract renewal within the past several weeks,...

On Deadline.
October 13, 2004... NCUA Decision Could Have Broad Implications ALEXANDRIA, Va.-In a decision that could have broad implications, NCUA said last week it has approved a request from an unnamed federal credit union to provide loan processing and underwriting...

Trade Groups Object To NCUA's Private Insurance Plan.
October 13, 2004... Both CUNA and NASCUS have sent comment letters to NCUA objecting to its proposal on private deposit insurance. "The proposal would require NCUA's prior approval for the inclusion of information about private insurance in mailings to...

60 Minutes' Andy Rooney Includes CUNA In Criticism.
October 14, 2004... During his commentary on the Sept. 26 edition of CBS' 60 Minutes, Andy Rooney included a mention of CUNA in remarks that were not complimentary. The reference was to attempts by companies and groups to run advertising urging people to...

Worth Noting.
October 14, 2004... Check 21 Webcast On Oct. 21 SAN DIMAS, Calif.-WesCorp will host a Check 21 webcast on Oct. 21 that will seek to answer participants' questions about the new law, which goes into effect Oct. 28. Sheri Ledbetter, WesCorp's director of public...

Some Random Thoughts That The Wind Just Blew In.
October 14, 2004... Some random thoughts I had while hunkered down between the now weekly hurricanes-and at the end, a compilation of the priceless advice gleaned from talk-radio callers as disasters struck. * First, a big THANK YOU to all the readers of The...

The Lessons For The U.S. From Lost Tax Battle In Australia.
October 14, 2004... If you're the leader of or a volunteer at a credit union in the United States, no one needs to tell of the attacks upon the credit union tax exemption. And the banking industry is promising only to increase the level of its vociferous objection...

Why Transaction Surveys Can Be So Valuable.
October 14, 2004... Ten years ago most member research was driven by general surveys, which provided the "view from 30,000 feet" and remains valuable for seeing the big picture and identifying opportunities and "red flags." Today, credit unions also need the...

Hop in for a spin. She sees an open road for Fifth Third.
October 14, 2004... 5. Colleen Kvetko President, CEO & Chairman of the Board Fifth Third Bank, Florida, Naples FL Years in banking: 34 Rank last year: #10 MPWIB It's mid-September and hurricane Ivan is looming in the Atlantic, 100...