Banking Wire articles from October 2007

Banking Wire archives from October 2007

READER RESOURCES.
October 1, 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...

CUs Should Look To Rapidly Rising Service Sector For New Growth Opportunities.(Company overview)
October 1, 2007... FORT LAUDERDALE. Fla. -- America's credit unions were in large part founded to serve companies that manufactured a product, but today the CU industry's future lies in better penetrating the service sector. That's a message that Dr. Jim...

Want To Serve Underserved? Reach Out To Some CU Experts.
October 1, 2007... FORT LAUDERDALE, Fla. -- National Federation of Community Development Credit Unions Executive Director Cliff Rosenthal is advising mainstream credit unions to partner with their community development brethren to reach out to more of the...

Ever Wonder What Examiners Look For When Reviewing Your MBLs? Insight Shared From Field.
October 1, 2007... FORT LAUDERDALE, Fla. -- One financial examiner is urging credit unions to take advantage of the growing trend of member business lending. "Credit Unions have an opportunity in MBLs," said Doug Lacy- Roberts, financial examiner supervisor...

How To Avoid The Complications Of Collections Post Merger.
October 1, 2007... FORT LAUDERDALE, Fla. -- For credit unions that have merged or bought up someone else's loan portfolio, collections may have gotten a whole lot more complicated-and they probably don't even know it. And not knowing it can cost them a...

Wanted: One CU Willing To Face Off Against IRS In UBIT Suit.
October 1, 2007... FORT LAUDERDALE, Fla. -- Wanted: intrepid credit union with just the right mix of products and services that isn't scared to go up against the IRS. As you might imagine, there just aren't a whole lot CUs lining up to answer that ad, but...

Now On The Market.
October 1, 2007... ARA and Vigilant Video Partner DALLAS, Texas-The American Recovery Association Inc. and Vigilant Video announced a service with the Digital Recognition Network to enable recovery agents to more effectively recover vehicles. The new...

Credit Unions Feel the Squeeze.
October 1, 2007... ALEXANDRIA, Va. -- Mortgage failures for CUs crept up at mid-year, holding down net income for the second quarter, NCUA reported. Real estate loans delinquent more than 60 days grew from 0.34% at year-end to 0.44% at mid-year, and foreclosed...

Colorado CU in Conservatorship.
October 1, 2007... FORT COLLINS, Colo. -- NCUA has taken over Norlarco CU in the face of mounting mortgage losses. The CU has seen a major increase in real estate delinquencies and in related losses in the second quarter. Mortgage delinquencies rose from $6...

BofA Bolsters Countrywide.
October 1, 2007... CALABASAS, Calif. -- Shares in ailing home lender Countrywide Financial Corp. surged more than 20% in after-hours trading after Bank of America announced a $2 billion equity investment in the firm. BofA acquired $2 billion in the form of...

Analysis: Overall Loan Quality At CUs Is Questioned.
October 2, 2007... WEST PALM BEACH, Fla. -- The problems in the subprime mortgage market combined with the large-scale investments in failed home loans in Florida plaguing at least three credit unions have raised bigger questions about overall loan quality at...

Florida Developer Tied To CU Loan Mess Is Found Drowned.
October 2, 2007... POINT PLEASANT BEACH, N.J. -- Frank D'Alessandro, the southwest Florida developer who partnered with three now-failed credit unions in a multi-billion dollar land speculation was found floating in the ocean last week, the victim of an...

Opportunity Knocks: It May Be A Crisis For Others, But For CUs Mortgage Meltdown Is A Boon.
October 2, 2007... LAS VEGAS -- The current mortgage situation is allowing credit unions to come out of hiding and let people know they are still around, and perhaps more importantly, still lending. "Some people are starting to call this the greatest...

BofA Cutting Off Accounts Small CUs Had Relied On For Liquidity.
October 2, 2007... RARITAN, N.J. -- A number of credit unions have received notice that Bank of America is shutting down accounts the CUs had come to rely on as an important source of liquidity. Although CU Journal could only confirm a handful of credit...

On Deadline.
October 2, 2007... Savings Bank Acquisition of CU Moves Forward HAVERHILL, Mass.-Depositors of Haverhill Bank voted unanimously for the merger of a local credit union, Northeast Community CU, into the mutual savings bank. Sixty-seven depositors voted by a...

Community Development CUs Get $5M Infusion Of Federal Grants.
October 2, 2007... WASHINGTON -- Ten community development credit unions and support organizations will share $5.3 million in federal funding from the Community Development Financial Institutions program, helping to rebuild capital and expand services, the...

NYC Joins CUs In Anti-Poverty Program.
October 2, 2007... NEW YORK -- New York City officials are teaming with four community development credit unions and four banks to offer no-fee starter accounts as part of a city-wide savings initiative. Participant in the city's "Opportunity NYC"...

BizKid$ Debut Delayed As Teaching Materials Are Developed.
October 2, 2007... SEATTLE -- The PBS series BizKid$ has been pushed back 90 days to air in January 2008 so participating television stations can show the 23 episodes as one season. The show's producers and underwriters are also developing teaching aids for...

Worth Noting.
October 2, 2007... Colin Powell To Headline GAC WASHINGTON-CUNA said that Gen. Colin Powell, "Hardball" host Chris Matthews and the band America will be among the headline presenters at when the group hosts its 2008 Governmental Affairs Conference, March 2-...

Delinquencies, Foreclosure On Rise-And The Worst Isn't Over.(Conference notes)
October 2, 2007... LAS VEGAS -- The number of foreclosures have more than doubled in the last year, and we haven't seen the worst of it yet, according to one financial consultant. Rob Landauer, president and founder of New York City-based Andrew Davidson &...

Johnston: Rate Cut A Pleasant Surprise.
October 3, 2007... LAS VEGAS -- The Federal Reserve's decision to cut the Federal Funds rate by 50 basis points was greeted with enthusiasm at WesCorp's Credit Union Outlook conference here last Tuesday. Dwight Johnston, WesCorp's vice president of economic...

CUJ Snapshot.
October 3, 2007... LAS VEGAS -- The Federal Reserve's Sept. 18 decision to cut the Federal Funds rate by 50 basis points was announced during WesCorp's Credit Union Outlook conference here. The Credit Union Journal asked attendees if they were surprised by the...

Iowa CUs Team Up With AARP's Divided We Fail To Educate Presidential Candidates.
October 3, 2007... DES MOINES, Iowa -- The Iowa CU League has joined forces with the AARP and national- level business and labor groups to spread financial education and encourage bickering politicians to work together for the common welfare. The American...

The Credit Union Bookends To History Of The Cold War.
October 3, 2007... Few people likely noticed, but two pieces of world history and credit unions intersected last week like bookends of the Cold War. The first came as a piece of American history faded away last week in a press release that looked like so many...

Stop Telling Public What We Want Them To Know, Create Something Public Wants To Ask Us About.
October 3, 2007... About a year ago I created a marketing term: Brand Pimp. A Brand Pimp is defined as a person, business and/or organization that will ruin an established brand by cheapening it just to make a buck. Brand Pimps also try to establish a brand...

On Branding: Growth 101: Protect Your Core Members, Keep One Foot In Present & One In Future.
October 3, 2007... On Sept. 10, in the Credit Union Journal's daily news, there was a short article titled "Ensweiler Calls for National Cooperation to Build CU Membership." Dick Ensweiler is absolutely right. In fact this past spring I was contracted by CUNA to...

How You Can Use Technology To Turbo-Boost Your Cross Sales.
October 3, 2007... Banks generate precious revenues by utilizing call centers that are able to help customers with questions and concerns, while functioning as a means to market and cross-sell. Unfortunately, credit unions tend to lack these call centers due to...

Cussing & Discussing 'Bad Guys' Didn't Help During The S&L Crisis, Either.
October 3, 2007... I read with great interest Frank J. Diekmann's editorial in the Credit Union Journal (CU Journal, Sept. 3) about how some current events are eerily similar to the S&L crisis of the 80's. Bear with me for some quick thoughts and observations. I...

Worth Noting.
October 3, 2007... Arrowsmith Retires After 24 Years NEW CASTLE, Del.-Barbara Arrowsmith, president of New Castle County Delaware Employees FCU, has retired after 24 years in credit unions. Arrowsmith began her career as treasurer-manager of the Wilmington...

Fed Restructuring to Shorten Check-Hold Times.(Conference notes)
October 3, 2007... WASHINGTON -- The Federal Reserve said it won't shorten check-hold times under the Electronic Funds Transfer Act to facilitate the Check 21 law, but a reduction in the Fed's check clearing operations will have the same effect. That's...

House Expands Federal Backing of Mortgages.
October 4, 2007... WASHINGTON -- The House voted last week to expand federal backing of mortgages in hopes of helping struggling homeowners avoid foreclosure. The bill, which now goes to the Senate, would allow the Federal Housing Administration, which...

Merger of bank trade groups Moves Forward.
October 4, 2007... WASHINGTON -- The merger of two avowed credit union enemies moved forward last week when board of America's Community Bankers voted unanimously to approve a combination with the American Bankers Association. The ACB, the trade group for...

Ex-CU Trims Jobs To Stem Losses.
October 4, 2007... FORT WORTH, Texas -- OmniAmerican Bank, a credit union-turned-bank, said last week it has laid off 35 of its 410 employees, or 8% of its workforce, to right itself after incurring losses following its conversion. Along with positions lost...

CUs Seek Foothold in TJX Case.
October 4, 2007... BOSTON -- Credit unions are bidding to join the lawsuit against TJX Companies that seeks millions of dollars in costs accrued in the company's massive data breach. SELCO Community CU, of Eugene, Ore., asked the federal court here to certify...

FBI Ordered To Return Funds.
October 4, 2007... EL PASO, Texas -- The FBI will have to return almost $76,000 it confiscated from a local executive as part of a corruption probe if federal prosecutors are unable to convince a federal judge they are entitled to the funds, the judge ruled...

READER RESOURCES.
October 4, 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...

CUJ EXIT Interview: From Building 'Bull Barns' In Missouri To Making Valves In California, Tom Sarvis Took A Long, Twisting Journey To Become A CU CEO.
October 4, 2007... DUBUQUE, Iowa -- Iowa credit union veteran Tom Sarvis retired May 31 from DuTrac Community Credit Union here after 23 years of service. During his tenure as DuTrac's president/CEO, a position assumed June 1 by Andrew Hawkinson, former...

Credit Unions In The Media.
October 4, 2007... In coverage of the problems in the subprime mortgage market, the San Jose Mercury News reported that credit unions are not likely to be dragged down by those problems, noting, "credit unions...hold their own pool of cash and don't rely on Wall...

Now In The Market.
October 4, 2007... Harvard ECU First With PayPass PURCHASE, N.Y.-MasterCard Worldwide and Harvard University Employees CU announced that HUECU has begun issuing Debit MasterCard cards enabled with the MasterCard PayPass payment functionality, bringing the...

In The Market.
October 4, 2007... PFCU Partners With Capital Mortgage SOUTHFIELD, Mich.-Premier Financial CU has teamed up with Capital Mortgage Funding. "We're really excited to offer Premier members our consultative approach to mortgage lending. With over 250...

Key House Lawmaker Suggests Piecemeal Passage Of CURIA.
October 5, 2007... WASHINGTON -- There is virtually no chance for passage of the credit union regulatory relief bill as it is in this Congress, but lawmakers may agree to pass some of the provisions in CURIA separately, a key member of the House said last...

NCUA To Pursue Transparency Bid Despite Industry Outcry.
October 5, 2007... WASHINGTON -- NCUA Chairman JoAnn Johnson said last week the regulator will continue its efforts to bring greater transparency to credit unions, even in the face of overwhelming opposition from credit union executives. Johnson told...

Multi-Factor Authentication Gets Thumbs Down From CUs.
October 5, 2007... AUSTIN, Texas -- Multi-factor authentication (MFA) tools will soon turn one year old at many credit unions, but its seems unlikely that a celebration is in order, according to a new, informal survey of 50 CU managers conducted by the Credit...

On Deadline.
October 5, 2007... National Data Security Bill Now Looking Doubtful WASHINGTON-Legislation to protect credit unions and their members from data security breaches has been put on the back burner by Congress and its future left in doubt, key lawmakers said this...

Ruling Could Hamper Auto Loans-And Land CUs In Court To Defend Repo Practices.
October 5, 2007... RANCHO CUCAMONGA, Calif. -- A recent court ruling could have credit unions and other auto lenders doing business in this state spending time in court defending their repossession policies, according to the California CU League. The...

Small CUs Struggle To Make Their Wage Increases Measure Up.
October 5, 2007... MADISON, Wis. -- Nine out of 10 CUs with $1 million to $35 million in assets provided wage increases to their staff in 2006. That number is consistent with base pay increases in credit unions overall, according to the 2007-2008 Small...

Worth Noting.
October 5, 2007... Schmidt Named Midwest Partners CEO SIOUX FALL, S.D.-The board of directors of Midwest Partners Federal Credit Union have selected Jeff Schmidt to serve as its new president/CEO. Schmidt has a dozen years prior financial management...

CURIA COUNTER 127.
October 5, 2007... At press time, the number of co-sponsors on the CURIA bill. 217 are are needed to have a majority. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

Wescom Helps The Guerra Family Build New Home.
October 5, 2007... The Guerra Family and Wescom Credit Union President Darren Williams and SVP of Real Estate Lending Peter McNulty Raise the First Wall of the Habitat For Humanity Home as part of a building project that took place at the Los Angeles County Fair....

CUJ Q&A: NCUA Chair Discusses Recent Mortgage-Related CU Turmoil.
October 5, 2007... ALEXANDRIA, Va. -- As credit unions keep watch on how the subprime mortgage meltdown could have an impact on the movement, CU Journal asked NCUA Chair JoAnn Johnson to discuss what this, and the mortgage loan debacle that has put three credit...

Clarifying Context of Remarks.
October 9, 2007... During the recent National Directors Conference I presented a lot of data and analysis in a very short period of time and perhaps this made for a lack of clarity in your Aug. 27 report. In quoting Mark Twain, "travel is fatal to bigotry,...

Program Offers Co.'s Employees Payday Loan Alternative.
October 9, 2007... PHOENIX -- Arizona State Credit Union is partnering with a nonprofit healthcare employer to offer its employees an alternative to payday lending. University Medical Center Foundation's employees can take advantage of the CU's FlexCash...

Credit Unions In The Media.
October 9, 2007... Amy Crowe of Great Wisconsin Credit Union authored a column as part of the Wisconsin State Journal "What I Do" feature talking about her job as marketing assistant and, specifically, doing financial education in schools. "The most important...

Now In The Market.
October 9, 2007... Citadel Selects State National FORT WORTH, Texas-State National Cos. announced it has been selected by the $1-billion Citadel FCU, Thorndale, Penn. to provide it with Collateral Protection Insurance. Citadel cited the lightened workload...

Congress Seeks Solutions to Mortgage Market Morass.
October 9, 2007... WASHINGTON -- Lawmakers threw around several proposals last week to help alleviate the ongoing crisis in the mortgage markets, but it was clear any initiatives will take months-if not much longer-to develop. During a hearing with Bush...

READER RESOURCES.
October 9, 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...

CUJ EXIT Interview: Slow, Steady Approach The Key To 'Quiet' Success For Fiberglas FCU's Former CEO Fred Longstreth.(Company overview)
October 9, 2007... NEWARK, Ohio -- Fred Longstreth is sometimes reluctant to talk about his career at Fiberglas Federal Credit Union, but it's not because the former CEO, who retired July 1, has anything to hide. "It's been a long period of quiet, steady...

Mortgagebot Study Finds Future Loan Opportunities Will Be Online.
October 9, 2007... MEQUON, Wis. -- Mortgagebot has released its Benchmarks 2007 study, which is based on a comprehensive survey and analysis of the online lending practices and procedures that have been implemented at more than 3,600 mortgage-lending websites...

Now In The Market.
October 9, 2007... Raddon Hosts CEO/Directors' Forum LOMBARD, Ill.-Raddon Financial Group recently hosted the CEO/Directors' Forum for CEOs and directors of credit unions with assets in excess of $500 million. The forum featured Dennis Dollar, principal...

How Nixed Insurance Program Is Creating Stink At VSECU...
October 9, 2007... MONTPELIER, Vt. -- Vermont State Employees Credit Union is dealing with some unexpected, and very negative, publicity after announcing the end of a nearly 50-year-old insurance product. Starting Oct. 1, VSECU won't be paying insurance...

Regulator Disclosure Reviewed.
October 10, 2007... DENVER -- Colorado's state lawmakers plan to review a law the prohibits state regulators from disclosing the financial situation of credit unions placed in conservatorship after such a move against Norlarco Credit Union resulted in protests and...

DSECU Gets New Name: Education First CU.
October 10, 2007... SOUTHGATE, Mich. -- On Oct. 1, the name "Education First Credit Union" will debut, replacing the name "Downriver School Employees Credit Union." Education First CU will feature new member services, and an expansion project that will extend...

RSA Reports Increase In 'Man-In-Middle' Attacks.
October 10, 2007... BEDFORD, Mass. -- The RSA Anti-Fraud Command Center (AFCC) is reporting what it calls an "interesting" development in the underground community of fraudsters who create "phishing kits." The AFCC, which is a 24x7 "war room" that seeks to...

Check Kiter Gets 29- Month Prison Sentence.
October 10, 2007... PORTLAND, Ore. -- York County woman was sentenced to 29 months in prison for a sophisticated check kiting scheme that drained more than $45,000 from area credit unions and banks. Twenty-eight-year-old Cori Godin pleaded guilty to using...

Advisors See Slow Growth In Second Half.
October 10, 2007... Advisors are less optimistic about the U.S. economic and political landscape than they were early this year, according to a Schwab institutional survey of 1,100 independent advisors. One-third of advisors expect no rise in the Standard &...

Demand for Advisors Rises.
October 10, 2007... Broker-dealers are no longer distinguishing between different channels (bank, brokerage, independent) in their quest to hire new advisors. What's great for advisors is that demand for their services far outstrips supply, forcing broker-dealers...

Privacy Push: Banks Chafe Against Move To Block Use of SS Numbers: Would alternative ID method be too costly?
October 10, 2007... Two major federal efforts to curb the widespread use of Social Security numbers are putting banks-the largest private-sector users of those nine sensitive numbers-on defense. Social Security numbers are the crucial piece of data used to...

Fresh Ink.
October 10, 2007... 1. Bank of America invested $2 billion in Countrywide Financial Corp. BofA said the market has underestimated Countrywide's value. Analysts said the extra liquidity should assuage investors' concerns and provide a healthy investment for BofA....

ATM Fraud: Tools Make Use of Six (Or More) Degrees: ACI, citizens help stop CA skimming gang.
October 10, 2007... A federal judge came down hard on a pair of Californians earlier in September after their guilty pleas for participating in an ATM-terminal skimming spree in at least six Rhode Island and Massachusetts supermarkets earlier this year. Arman...

FutureNow List: The Best of Security in 2008.
October 10, 2007... Media companies, like all businesses, are constantly looking for ways to serve readers better-with more in-depth content, more efficient delivery and with an eye toward the future. BTN, published by SourceMedia, is preparing to retool its...

Expanded Fiduciary Role Opens Up 401(k) Business.
October 11, 2007... The Pension Protection Act ushered in changes to 401(k) plans, including fiduciary protection for providers using automatic enrollment and default investments, and making higher contribution levels and catch-up contributions for older workers...

Will U.S. Trust Be A Good Fit?: Bank of America's Newest Acquisition Is Off To A Rocky Start.
October 11, 2007... What do you get when you cross Wal-mart and Tiffany's? According to Morningstar bank analyst Ganesh Rathnam, the result would be something akin to Bank of America's acquisition of U.S. Trust. A huge retail operation, BofA is making its bid for...

Credit Collections: Fair Isaac, Online Resources Are at the Door: The Web banking firm is teaming up with Fair Isaac to expand Web-based delinquency collection tools.
October 11, 2007... The credit clock is ticking along toward full-blown crisis, if it isn't already there. The table is set for technology firms looking to win business from creditors who are hungry for new debt collection and management solutions. One of the...

News Makers.
October 11, 2007... INTELLIGENCE DESIGNS, B.O. GOING ON SALE? Every since Oracle acquired Hyperion for $3.3 billion, business intelligence market analysts have been wondering when Paris-based Business Objects would land a suitor. Now, a French news report...

Inside The Beltways, Across The Sound, Inside The Branch.
October 11, 2007... Of the many afflictions that plague those who either move to or spend too much time in Washington is the dreaded-and surprisingly difficult to treat- InsideTheBeltwayitis. Perhaps the best thing that can be said about the disease, whose onset...

Beyond Bread & Butter: How Auto Lending Can Be A Differentiator For CUs.
October 11, 2007... Some may think that blurring the lines between credit unions and other lenders is good for credit unions, while others can argue that becoming more like a bank without providing distinct benefits to members will eventually dilute the credit...

Using The Roof Over Your Head To Make A Dent In Your Overhead.
October 11, 2007... One of the largest of operating expenses for any business is real estate, and credit unions can save significant amounts of money by purchasing rather than leasing office space. While there are arguments both pro and con for owning, the...

What CUs Should Know Before Deploying Self-Service Devices.
October 11, 2007... There are many misconceptions when it comes to self-service kiosks. A kiosk will not replace employees, end customer member service problems or automatically increase sales. But if kiosks are used properly, credit unions can significantly...

Goldman Uses Capital Markets To Pay for Children's Vaccinations.
October 11, 2007... Some 27 million children are not vaccinated against the most common childhood diseases, and Goldman Sachs this year is tapping the power of the capital markets to pay for solving the problem. The bank helped the International Finance Facility...

Noted and Noteworthy.
October 11, 2007... A growing number of large banking institutions, such as Bank of America, HSBC and Citigroup, has been at the forefront of the green movement, but how green can community banks claim to be? Miami-based Union Credit Bank is the first U.S....

Survey Shows Bank Fees Have Spiked To An All-Time High.
October 12, 2007... NORTH PALM BEACH, Fla. -- The bounced check fees and ATM surcharges being charged by the nation's banks have hit a new high, according to a new survey. In addition, Bankrate.com is reporting its Fall 2007 Checking Account Pricing Study...

NCUA Rules On Member Access To CU Records.
October 12, 2007... ALEXANDRIA, Va. -- Over the popular objection of credit union executives, the NCUA Board last week approved new rules to open up the internal books, records and minutes of board and committee deliberations to rank-and- file members. The...

Fed Rate Cut Sparks Action: Economists At Corporate CUs Share Insight Into What Recent Fed Action Means For Economy, Credit Unions.
October 12, 2007... WARRENVILLE, Ill. -- Corporate credit unions are on alert after the Federal Reserve's 50-basis-point rate cut had some observers interpreting the Fed's move as a signal it is concerned the credit-market crunch will slow economic activity...

Speculators Charged With Stalking CU Conversion Candidates.
October 12, 2007... WALL STREET -- Three more speculators were charged last week with illegally gaining access to lucrative initial public offerings of mutual savings banks-including several former credit unions-in a scheme that netted them more than $3...