Banking Wire articles from October 2008

Banking Wire archives from October 2008

Now In The Market.
October 1, 2008... Navy FCU Selects WAUSAU-FS VIENNA, Va.Navy FCU has selected WAUSAU Financial Systems (WFS) to provide it with a web-based branch capture application for capture, balance and review of all back counter check images. WFS will install the...

Quick Read.
October 1, 2008... BEN STEIN SLATED TO OPEN UPCOMING CUES MEETING MADISON, Wis.Actor, economist and author Ben Stein will be the opening speaker at CUES CEO Network 2008, Nov. 2-5 at the Four Seasons Hotel Las Vegas. CUES said Stein will deliver? his...

Correction.(Correction notice)
October 1, 2008... An incorrect photo of Greg Smith, president of Pennsylvania State Employees CU, appeared in the Aug. 4 issue. The Journal regrets the error. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved....

TJX Ringleader Was Govt. Informant.
October 1, 2008... BOSTON -- Last weeks charges against 11 individuals in the 2006 hacking of TJX Cos. and several other major retailers may be jeopardized by the fact the alleged ringleader was an informant for the U.S. Secret Service, which cracked the case....

Building Trust: How one advisor took over a tiny bank's flagging trust operation and turned it into a successful hybrid investment program.
October 1, 2008... "I got a call from a banker asking me ifI wanted to run the trust department. I went with my wife to the library to research what it was a trust officer did!" That's how Brett Topham describes his entry into the arcane world of trust. What...

Pursue Happiness: How a suicidal dentist took a chainsaw to his office and rebuilt it-putting quality of life first.
October 1, 2008... What would your dream practice look like? For some it means making as much money as possible as quickly as possible. For others it's building a practice around a flexible schedule in order to have a more balanced quality of life. Identifying...

Future Shock: The 10 events that rocked the financial industry during the credit crisis, and how the fallout will shape the future of the global financial system.
October 1, 2008... Where to start when trying to figure out how the banking industry got into the mess it's in today? And where, exactly, do we go from here? Most of the past 17 years, post-S&L crisis, was a golden age for banks large and small, filled with...

Time for PE Class: Banks need capital. Private equity firms have capital. It gets much harder from there.
October 1, 2008... There's little appetite among traditional investors to recapitalize banks these days, and no wonder since those who did step up early to help the nation's flailing banks have seen their positions quickly sink underwater. Yet, as much as banks...

SPEND MANAGEMENT: Banks offer unified corporate portals: Corporate clients have long desired that banks stitch together cash management, procurement and payment services. BMO and BofA are trying to deliver.
October 1, 2008... From spend management tools to SWIFT network integration, money-center banks are quickly evolving into the one-stop corporate payments shop that their treasury clients have long demanded. Last month, Bank of Montreal (BMO) announced a...

MARKETING: Text, Set, Match: Chase is using the US Open tennis tournament to draw attention to mobile banking via an SMS text marketing campaign; text-based marketing of bank products could be next.
October 1, 2008... The battle to win over the hearts and minds of consumers to mobile banking is like conquering the courts at Flushing Meadows-requiring fast returns, nimble mechanics and early anticipation of what strategy is needed for victory. As part of...

Chances For Data Security Bill Fade Away.
October 2, 2008... WASHINGTON -- Efforts by Congress to tighten laws on data security have melted away in a virtual babble of congressional committees. As many as eight committees in the House and Senate have taken up legislation aimed at curbing data...

State Examiners Tightening Scrutiny.
October 2, 2008... ARLINGTON, Va. -- When examiners visit state-chartered credit unions in the coming months management should expect tougher scrutiny of member business lending, vendor relationships, indirect lending, and HELOC portfolios, according to the trade...

Big Ticket ITem: IT Execs Told They Must Show How Their Budgets Contribute To Bottom Line.
October 2, 2008... WILLIAMSBURG, Va. -- Technology budgets stick out like a sore thumb, especially during a tight economy-so managers better have good analytical tools and make sure IT spending is in line with the CU's strategic plan, information technology...

Bankers Press GOP, Dems To Add CU Directive To Platforms.
October 2, 2008... WASHINGTON -- Bankers called on both national parties last week to include provisions in their platforms that would strengthen the nation's banks and, among other things, to direct credit unions to focus on what they say is the credit union...

The 529 Evolution: More college savings plans are offering tax breaks to out-of-state investors.
October 2, 2008... It has been quite a year for the normally unexciting world of 529 college savings plans. Between a landmark Supreme Court ruling on tax parity, market shocks that left the industry gasping and an ongoing consolidation of smaller plans, the...

Stretch IRAs: Clients can use qualified retirement vehicles in estate plans to extend the tax advantage.
October 2, 2008... Should your client name a trust as the beneficiary of his or her individual retirement account (IRA) or company plan? That's one of the most common questions we receive from advisors and that advisors receive from their clients. But while...

The Perils Of Crisis Mode: Home equity lenders are hunkering down, and losing opportunities.
October 2, 2008... Home equity lending has been a mainstay of retail banking profitability over the last five years, providing double-digit growth that seemed irresistible in peak market conditions. As housing prices soared, banks concentrated on sales campaigns...

Your Grandfather's Bank And Darn Proud of It: What's old is new again at Sterling National Bank. Continued success in troubled financial times validates the wisdom of this New York City bank's steadfast approach to the business.
October 2, 2008... Entering the dining room at Sterling National Bank's Fifth Avenue and 52nd Street headquarters in Manhattan, one can't help but feel a wave of nostalgia. The imposing mahogany table, the high-backed wooden chairs, the grandfather clock in the...

Mississippi Rising.
October 2, 2008... Since his days as a college-age, back-office worker, Michael Lindsey has turned heads with his technology acumen. In recent years he built a national profile, championing mobile services and payments as the future of relationship banking. As...

ONLINE BANKING: PNC, Frost Respond To Gen Y Demands: Spurred by the success of online PFM sites like Mint.com, banks build Web 2.0 banking apps that offer Gen Y consumers very visual, easy to use money management tools.
October 2, 2008... Attracting Gen Y customers who are used to sending 50 or more text messages a day requires a new approach to online banking, one that combines knowledge and control built into simple personal financial management toolsin short all the...

One Calif. CU Forced To Put Lid On Construction Loans.
October 3, 2008... APPLE VALLEY, Calif. -- The figure is as staggering as it was eye-catching: 20.45% of loans were delinquent at High Desert FCU as of June 30. The reality, according to a spokesperson for the $154-million credit union in the heart of a...

ON DEADLINE.
October 3, 2008... Calif. CU Stands Ready To Assist State Employees SAN DIEGO-The $850-million USE Credit Union last week said it was prepared to help any state employees whose paychecks may be temporarily cut because of the California budget stalemate. Gov....

Human Rights Commission Finds Rainbow FCU Guilty.
October 3, 2008... AUGUSTA, Maine -- The Maine Human Rights Commission last week found that Rainbow FCU discriminated against a disabled job applicant when it refused to consider her for a teller job last year because of her physical condition. Records show...

CU Journal Takes 60 Out To The Ball Game.
October 3, 2008... MADISON, Wis. -- The Credit Union Journal hosted an evening out at a Madison Mallards baseball game for representatives of CUNA Mutual, CUES, CUNA and the World Council. More than 60 people attended the pregame festivities and the game itself....

Desert Heat.
October 3, 2008... BIC: What new opportunities are there in your territory? Ham: There's a large local military base and they're moving in F-22s here [Lockheed Martin/Boeing's Raptor fighter jet], which means more military personnel and more support people...

Export Opportunities Beckon Smaller Firms: The weak greenback has its advantages, principally the cheaper relative cost of U.S. goods, which has propelled exports; more small businesses, and their banks, are looking to get into the act.
October 3, 2008... It may bruise the national ego that the Canadian loonie has pulled even with the U.S. dollar and the euro is trouncing the greenback, but there is a silver lining: America's relatively cheap exports are booming and have played a critical role...

Learning to Monetize Mobile In The Land Down Under: ANZ National and its New Zealand competitors are actually making money on mobile banking. Is the revenue model transferable to the U.S. market, or is the freebie genie out of the bottle?
October 3, 2008... There's no shortage of hype surrounding mobile banking, and there is even some impressive early consumer adoption. But what's been sorely lacking in U.S. deployments is a revenue model; so far, the channel's been a money pit for the...

Is Compensation a Villain Of the Credit Crisis?
October 3, 2008... In this current crisis, pain is widespread and where there is pain, there is a search for villains. As a result, there is likely to be broad and deep investigation into Wall Street's compensation plans. The outcome of this work could be the...

EVENT PROCESSING: CEP Moves from Equities to Retail: Formerly the bailiwick of the capital markets, event processing engines are finding functions in the retail bank, from fraud and risk management to marketing.
October 3, 2008... With data coming in at more than 1,000 events per second, and nearly a quarter of stock market trading volume executed by software, complex event processing technology has eclipsed many traders with its ability to make sense of hundreds of...

The Cyber Security Quagmire.
October 3, 2008... THE tragedy of September 11th ushered in a paradigm shift in security. The financial sector's mantra, subsequent to that dark day, was to focus efforts on business continuity and resiliency. Headquarters were backed up to data centers at least...

Stuffers Respond To Member Worries Over CUs' Safety.
October 6, 2008... WEST PALM BEACH, Fla. -- Consumers across the country are seeing the headlines and TV news reports about bank failures and wondering about the safety of their deposits at your credit union. In response, Credit Union Journal has created...

WORTH NOTING.
October 6, 2008... Operation Best Wishes Wins Award SAN DIMAS, Calif.-Operation Best Wishes, the annual holiday program sponsored by Defense Credit Union Council, Overland Studios and WesCorp, has been named a recipient of an Award or Distinction during the...

CU Executive Salaries Still On The Rise Even As Economy Declines.
October 6, 2008... MADISON, Wis. -- Salaries for 2008 for credit unions CEOs rose 7%, despite the current shaky economy, according to the 2008 CUES Executive Compensation Survey. The survey showed that other credit union executives-EVPs, COOs, CFOs, CLOs,...

In Rare Move, NCUF Bestows Wegner Award On 2 Individuals.
October 6, 2008... WASHINGTON -- For only the third time in the 21-year history of the Herb Wegner Memorial Awards, the National Credit Union Foundation has named two winners in a single category, with Rita Haynes and Tom Sargent both winning the individual...

Now In The Market.
October 6, 2008... PSCU, FSCC, CU 24 Join Group MADISON, Wis.-CUES and Strategic Radar of Conshohocken, Pa., said that PSCU Financial Services (PSCU), Financial Service Centers Cooperative (FSCC) and Credit Union 24 (CU 24) are the latest to join in their...

Millions To Be Made, Billions To Be Sent-And At Wholesale!
October 6, 2008... I have, in just the past year alone, won the British National Lottery twice, inherited enormous sums of money from relatives at least two forests removed from my own family tree, and, like many of you, been the fortunate recipient of the...

CUs Must Rally Forces To Preserve Dual Chartering System.
October 6, 2008... Given the stressed economic environment, the failure of some financial institutions and the troubled mortgage market, it is natural that policymakers are reassessing the nation's regulatory structure in an attempt to prevent future crises. ...

Top 10 Suggestions For Setting The Course.
October 6, 2008... I understand if you have chosen to quit opening the newspaper. Overall net membership growth is declining. Net interest margins are not covering operating expenses. CEO and board leadership is in transition. The economy is bordering on...

Mica's Salary Easily Accessible To All.
October 6, 2008... Editor's note: this letter is in response to previous letters to the editor about the size of CUNA CEO Dan Mica's salary and an NCUA proposal to make all credit union CEOs' salaries public record. Dan Mica's salary and compensation numbers...

Breaking Up is Hard to Do: It's possible that the government's package of measures will keep Fannie and Freddie from the abyss, but that should not stop Congress from the real task at hand: nationalize, downsize and sell them off.
October 6, 2008... Socializing losses and privatizing profits is not the way free market capitalism is supposed to work, and yet that's what the country faces thanks to the government's now explicit guarantee of Fannie Mae and Freddie Mac, the too-big-to-fail...

Research: Don't Chase New Members At Expense Of Existing Ones.
October 7, 2008... In one quarter of 2005, AOL lost approximately 300 members per hour while sending out millions of free "Try AOL" disks. The company focused on attracting members rather than retaining them. Think of members as precious pearls on a necklace....

Repricing Its Accounts, Managing Growth Cited By BECU For Its Success.
October 7, 2008... TUKWILA, Wash. -- After revamping its pricing structure and keeping its focus OFF of growth, Boeing Employees CU is enjoying results that not only put it at the top of national peer rankings but also is allowing the CU to do the one thing it...

Now In The Market.
October 7, 2008... SWBC Purchases Nowlin Tower SAN ANTONIO-SWBC has purchased the Nowlin Tower here to be the company's new corporate headquarters. The Class "A" office building was built in 1984, and has approximately 236,000 rentable square feet and 13...

Power Sought to Charge Biz Loan Prepayment Fees.
October 7, 2008... ALEXANDRIA, Va. -- Credit unions are calling on NCUA to allow them to charge prepayment penalties on member business loans, a practice that is currently prohibited by NCUA. Among those asking NCUA to allow prepayment penalties is CU...

Mass. Gives State Charters Parity With Federal CUs.
October 7, 2008... BOSTON -- About 100 state-chartered credit unions got expanded powers last week to offer additional loans and services, under a new law giving them parity with federal charters. The parity law allows state charters to: increase unsecured...

NCUA moves to Sell Off Assets of Failed CU Start-Up.
October 7, 2008... CHARLESTON, S.C. -- NCUA sold off the remnants of the failed credit union start-up Port Trust FCU it had liquidated two weeks ago. The member accounts of the 2-year-old credit union, just 265 in total, were sold in a purchase and assumption...

Former-CU Makes Quick Entry Into Public Markets.
October 7, 2008... TALLAHASSEE, Fla. -- Just after a year since converting to a mutual saving bank, Sunshine Bancorp, the former Sunshine State CU, has filed to raise as much as $10.7 million in an initial stock offering. The $165-million mutual savings bank,...

Error Delays Pay For City Employees.
October 7, 2008... SAN DIEGO -- As many as 7,000 city employees did not get their paychecks automatically deposited Aug. 8 because of an employee mistake at San Diego Metropolitan CU, which disburses the city's payroll. San Diego Metropolitan CU President...

Foiled Once, Robbers Steal $76K.
October 7, 2008... SAN FRANCISCO -- Two robbers thwarted by a bandit barrier at Postal CU returned two days later and made off with more than $76,000, but were caught shortly afterward. The case began Aug. 4 shortly after opening when two masked men entered...

'Young & Free' Targets Gen Yers.
October 7, 2008... LAKE JACKSON, Texas -- Texas Dow Employees CU rolled out a new package of financial management tools targeted at members between 19 and 25 years old, so-called Generation Y. The $1.3-billion credit union is holding a contest to choose a...

CommunityAmerica Takes Members Out To The Ballpark For Its Annual Meeting.
October 8, 2008... KANSAS CITY, Mo. -- While most credit union annual meetings struggle to attract members, CommunityAmerica Credit Union has moved its meeting to a local minor league baseball park. That move, CommunityAmerica says, is one of the reasons it's...

Credit Unions In The Media.
October 8, 2008... Seasons FCU in Middletown, Conn. received coverage in the Record Journal for its move into an "eco-friendly" facility. The credit union is relocating to a LEED-certified building, the story reported, that includes floors made of recycled glass,...

Now In The Market.
October 8, 2008... CardWizard 4.0 Is Released ENGLEWOOD, Colo.-Dynamic Card Solutions (DCS), developer of CardWizard[R], an instant issue and PIN selection software application for financial institutions, announced its latest software application release,...

FedChoice Fridays Luring New Members.
October 8, 2008... WASHINGTON -- New members of FedChoice FCU here have a real reason to say "Thank God It's Friday." The credit union is offering anyone who joins on a Friday a $10 gift card to T.G.I.Friday's throughout the remainder of 2008. "We are...

It's 'Go Time'-Is Your CU Ready To Rock On ROE?
October 8, 2008... LAS VEGAS -- This is "Go Time" for credit unions, and they need to change the way they do business. That was the flatly stated message from Peter Duffy, who told attendees of an educational session at the recent National Directors'...

CUJ Snapshot: How Are You Allaying Your Members' Economic Fears?
October 8, 2008... LAS VEGAS -- The red ink has been flowing at financial institutions across the country, led by the spectacular failure of IndyMac, giving American consumers plenty to worry about. With all the talk about bank failures in the news, Credit Union...

IndyMac Failure, Board Term Limits Are Hot Topics.
October 8, 2008... LAS VEGAS -- Safety and soundness questions spotlighted by the IndyMac Bank failure as well as the more typical governance issues sparked passionate discussion at a recent conference for credit union directors, here. Ben Rogers, chairman...

Brother, Can You Spare 2,500 Dimes?: Why 2 CUs See Coin Counting Machines As Good Opportunity.
October 8, 2008... RICHMOND, Va. -- It's unusual to find a coin-counting machine in a U.S. credit union-only about 25% offer the service-yet automated coin-counting helps keep members from wandering off to other financial institutions, according to two credit...

TECHNOLOGY NEWS.
October 8, 2008... ACCU, CUISPA Team Up AUSTIN, Texas-The Credit Union Information Security Professionals Association (CUISPA) and the Association of Corporate Credit Unions (ACCU) are collaborating to facilitate online knowledge exchange among IT risk...

Is Your CU Ready To Raise The Red Flag? Alliant CU Lays Out Its Compliance Plan.
October 8, 2008... WILLIAMSBURG, Va. -- No credit union has raised the victory flag on its Red Flag program against identity theft, according to panelists at the recent CUNA Technology Council (CTC) Summit here-but Alliant CU of Chicago laid out part of its...

ITems.
October 9, 2008... uMonitor Seeing More Growth MEMPHIS, Tenn.-uMontior continues its expansion with the addition of three new CU clients for its account opening and funding service and five new CU users of its funds transfer product through the first half of...

IT Vendors Go Head-To-Head On Why Their Solutions Are The Best.
October 9, 2008... WILLIAMSBURG, Va. -- What are the top three reasons a credit union should consider your solution? That question was put to six core processor vendors that gathered for a panel discussion at the recent CUNA Technology Council Summit here....

ITems.
October 9, 2008... Redspin Releases Auditing Tool CARPINTERIA, Calif.-Redspin Inc. has released a new security auditing tool called WinCAT-AD (Windows Configuration Analysis Tools-Active Directory) it said allows administrators to see how their Group Policy...

Finding The Needles In The Network - And Who Will Remove Them.
October 9, 2008... KENSINGTON, Md. -- Steve Jones wants to know about every single weakness in the credit union computer network, and he wants to know who is going to deal with each vulnerability. To that end, the CTO at Signal Financial FCU here uses three...

The Member As Muse: Technology Leaders Resist Copying Competition.
October 9, 2008... LOS ANGELES -- Credit unions are technology copycats, too often content to follow in a single-file line behind their competitors, several IT leaders at large CUs told Credit Union Journal. "For innovation to happen, we need to resist...

Technology Shopper.
October 9, 2008... WRG Teams With TraceSecurity BATON ROUGE, La.-TraceSecurity and Wescom Resources announced joint partnership to provide external penetration testing to new WRG clients who deploy the MemberEdge Online Banking system. TraceSecurity's...

Quick Reads.
October 9, 2008... How One Michigan CU Is Structuring New Youth Acct. PARCHMENT, Mich.-First Community FCU has launched three new Youth Club accounts to encourage saving and build financial literacy skills for its young members. All three programs offer...

Pro and Blockbuster Award Winners.
October 9, 2008... WASHINGTON -- The annual Pro and Blockbuster Award winners-for excellence in public relations, marketing, and advertising by state credit union leagues and league service corporations-were announced during the American Association of Credit...

Corrections & Clarifications.(Correction notice)
October 9, 2008... In the Aug. 11 edition, a breakout box listed Wescom CU's mid-year 2008 losses as $10.9 billion instead of $10.9 million. The figure did appear correctly in the related story. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All...

African-American CU History Sought.
October 9, 2008... SHREVEPORT, La. -- The African-American Credit Union Coalition (AACUC) is seeking historical contributions to an exhibit, "A Journey of Hope-A Destination of Dreams," set to be unveiled Oct. 16 at America's Credit Union Museum in Manchester,...

Free Report Offers 7 Lessons.(Report)
October 10, 2008... WASHINGTON -- The National Credit Union Foundation has published a new report titled, "Steer Clear: How Credit Unions Help Car Buyers Avoid Predatory Loans." The report, said NCUF, shows how credit unions could gain a sustainable share of the...

National Presence: CUs Seek High Profile At Conventions.
October 10, 2008... ST. PAUL, Minn. -- For the second week in a row, credit unions will be seeking to raise their profile and advance their interests at a political convention. This week it's with the GOP at the Republican National Convention here. Last week,...

State Realities: Regulators Talk Balance Sheet Issues.
October 10, 2008... SEATTLE -- Don't think for a moment the U.S. Treasury Department's proposal to eliminate dual chartering for credit unions is going to quietly pass by the attention of NASCUS. The National Association of State Credit Union Supervisors held...

Trades, Banks Press NCUA To Rethink Credit Card Plan.
October 10, 2008... WASHINGTON -- The Comptroller of the Currency is urging NCUA, the Federal Reserve Board, and the Office of Thrift Supervision, to make significant changes to a proposal to define unfair and deceptive credit card practices. The OCC, which...

Revisit, Document Policies Before Examiners Arrive.
October 10, 2008... CHICAGO -- Credit unions in all regions of the country should be revisiting and thoroughly documenting the thinking behind all policies and procedures as state and federal regulators toughen the examination process, according to one CPA firm....

Postcard From The Past-And Present: 54 Years Later, CU Member Recalls Photograph.
October 10, 2008... MORA, Minn. -- When Steve Ahlness opened the July 14 issue of Credit Union Journal, he noticed something familiar about the 54-year-old photo that was published as part of this newspaper's Postcards from the Past series. Ahlness, it turns...

ON DEADLINE.
October 10, 2008... Southern Calif. Proposed Merger Is Called Off MORENO VALLEY, Calif.-A proposed merger between Visterra Credit Union here and the Credit Union of Southern California in Brea has been called off. The two credit unions, both founded in...

Rogue FCU Is Auctioning Off Repo Cars Over The Internet.
October 10, 2008... MEDFORD, Ore. -- With a big increase in auto repossessions, Rogue Federal Credit Union is auctioning off its returned or repossessed vehicles on the Internet. A surge in the number of people turning in their cars because they can no longer make...

Truliant Offers Mini-Grant Program.
October 10, 2008... RALEIGH, N.C. -- Truliant Federal Credit Union has launched a new program that provides funding to local non-profits. Called the "Truliant Community Mini-Grant Program," it provides grants to nonprofits can use to support operational costs. ...

FDIC Reports Boost To Reserves By Staggering 2,000%.
October 10, 2008... WASHINGTON -- The Federal Deposit Insurance Corp. (FDIC) boosted reserves more than 2,000% during the second quarter to cover the costs of bank failures. FDIC said it was reserving $10-billion during the second quarter after the number of banks...

Members Worried? Put Them At Ease.
October 14, 2008... WEST PALM BEACH, Fla. -- Just what the heck is a credit union? And how safe are they? The Credit Union Journal has created statement stuffers that directly address members' current concerns over the security of their credit union, what the...

Mid-Year Data Show Members Are Savers, Not Borrowers.
October 14, 2008... ALEXANDRIA, Va. -- Credit union members continue to save more than they are borrowing as the economy stifles economic activity. Mid-year data released by NCUA shows savings were up significantly during the first half of the year at 7%, compared...

WORTH NOTING.
October 14, 2008... Bankers Won't Seek Divestiture Of Members HARRISBURG, Penn.-Bankers in this state have filed a response in Federal District Court in a ruling on field-of-membership involving three credit unions in the state. The bankers asked that the...

Success In Lac Qui Parle And Yellow Medicine? Yes, Shows Dawson Co-Op.
October 14, 2008... DAWSON, Minn.-Despite the tough conditions in rural Minnesota and the shrinking population in the counties Dawson Co-op CU serves, the $53-million credit union has deployed strategies to keep going strong. Even as the population of Big...