Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Inside Washington (04/08/2011)
* WASHINGTON (4/11/11)--Rep. Barney Frank, the ranking Democrat on the House Financial Services Committee, Thursday expressed optimism about a Senate bill delaying the proposed interchange rule (American Banker April 8). The Debit Interchange Fee Study Act would suspend implementation of the proposed rule for two years and calls for a one-year study of debit interchange fees. Frank said a key to the climate surrounding the interchange proposal came in February when Federal Deposit Insurance Corp. Chairman Sheila Bair and Federal Reserve Board Chairman Ben Bernanke warned the rule could hurt small banks despite an exemption in the law for institutions with less than $10 billion of assets. Frank said if a bill passes in the Senate, he believes it will move through the House quickly. The Credit Union National Association (CUNA) supports the new bill and opposes a cap on interchange fees and has told federal lawmakers that the proposed interchange rule would limit consumer options, competition and technological innovation. Interchange fees allow business costs, including the risk of consumer nonpayment, to be shared by the payments’ participants, CUNA said … * WASHINGTON (4/11/11)--The Federal Deposit Insurance Corp. (FDIC) appears to have softened its position on overdraft program guidance (American Banker April 8). In a banker conference call and in a "frequently asked questions" (FAQ) release on the topic, the FDIC indicated institutions under its supervision can communicate with customers who repeatedly incur overdraft charges via periodic statements rather than through in-person or telephone contacts. Cynthia Blankenship, vice chairman and chief operating officer of the $290 million-asset Bank of the West in Grapevine, Texas, first suggested the approach to FDIC Chair Sheila Bair during the recent Independent Community Bankers of America convention. Bair said the approach sounded workable. Blankenship said the original guidance, issued in November, was costly and cumbersome. The original guidance mentioned only telephone or in-person contact as means of contacting habitual overdraft users. In the conference call and the FAQ, the FDIC noted that banks have other alternatives. For example, a bank could expand on information it is already required to include in a customer’s normal statement …

RSS print
News Now LiveWire
St. Louis treasurer taps #creditunion to serve unbanked #NewsNow
12 hours ago
.@CUNAMutualGroup has committed $35K to @trustdotcoop over the next year to suppor the future of #creditunions.
13 hours ago
.@madison_mag gets the cooperative scoop from @SummitDoMore's @kimsponem
14 hours ago
.@VantageWestCU emeritus chairman Whittaker inducted into @DCUC_HQ Hall of Fame
15 hours ago
Australian newspaper covers Gen Y tips from @ServusCU at @WOCCU conference
16 hours ago