* WASHINGTON (5/8/09)--South Carolina credit unions hiked Capitol Hill Wednesday and attended a Credit Union House evening reception. Ten credit union CEOs and several credit union members were at the Hill hike event. The group met with Reps. Joe Wilson (R), John Spratt (D) and J. Gresham Barrett (R). During the hike, credit unions weighed in on the Corporate Stabilization Package--which passed the Senate Wednesday--and briefed their legislators on regulatory and National Credit Union Administration issues.
Click for larger view
Credit unions also noted members’ concerns regarding interchange fees, the Community Reinvestment Act, and member business lending. From left are: David Casey, Family Trust FCU; Garry Parks, president/CEO of the South Carolina Credit Union League; Scott Weaver, Carolina Foothills FCU; Bill Love, MTC FCU; Matt Tebbetts, Greenville FCU; Brandon Pugh, league director of communications and public relations; Steve Fowler, league executive vice president of advocacy; Jim Nunamaker, league director of governmental relations; Beverly Ellis, Family Trust FCU; Paul Hughes, Greenville FCU; and Smokey Childers, Family Trust FCU. (Photo provided by CUNA) ... * WASHINGTON (5/8/09)--The Internal Revenue Service (IRS) recently sent a reminder to tax-exempt organizations with $25,000 or less in total yearly gross receipts to file their Form 990-N, or e-Postcards
, by May 15. According to the Credit Union National Association’s economics and statistics department, about 300 small, state-chartered credit unions are likely to need to file the e-Postcards, started last year. Credit unions that are subject to this reporting requirement should already have been notified … * WASHINGTON (5/8/09)--A bill by Senate Banking Committee Chairman Christopher Dodd (D-Conn.) that would triple the Federal Deposit Insurance Corp.’s (FDIC) credit line was approved by the Senate Wednesday. The FDIC also would be restricted from using funds to help a Treasury program to allow investors to buy troubled bank loans (American Banker
May 7). The bill would extend the FDIC temporary insurance increase of $250,000 per account to the end of 2013. The same bill includes provisions to create a temporary Corporate Credit Union Stabilization Fund and permit credit unions to spread the cost of National Credit Union Share Insurance Fund replenishment over a longer period of time (News Now
May 7). Another provision important to credit unions would extend--for four years--the higher, $250,000 federal share and deposit insurance ceiling due to expire at the end of the year. The bill will be sent back to the House to work out differences between the House and Senate versions ... * WASHINGTON (5/8/09)--Federal Deposit Insurance Corp. (FDIC) Chair Sheila Bair said Wednesday that Congress should create a council to oversee financial institutions deemed “too big to fail.” The council could be made up of the nation’s top financial regulators (The New York Times
May 7). Bair also said Congress should give incentives to make “too big to fail” institutions smaller, and those institutions could set aside extra capital or put money into insurance programs in case they have trouble again ... * WASHINGTON (5/8/09)--President Barack Obama Thursday released details of his plan to cut $17 billion from the budget in an effort to save money as government costs for health care, wars and bailouts continue to add up (The New York Times
May 7). The $17 billion would be saved by reducing or eliminating 121 federal programs. Some of the cuts include eliminating a $35 million radio navigation system that has been rendered obsolete, absorbing a literacy program into other Education Department programs, and eliminating an education attache position for the United Nations Educational, Scientific and Cultural Organization (UNESCO). The president said the savings would be enough for $2,500 tuition tax credits for millions of students for larger Pell grants ... * WASHINGTON (5/8/09)--Stress test results indicate that the nation’s largest banks will need $75 billion to survive potential losses from the economic recession. The results, released Thursday afternoon, were based on tests conducted at 19 banks (The Washington Post
May 7). Nine of the 19 banks do not need new capital, including Goldman Sachs and JPMorgan Chase. Eight can raise the capital they need by private money or common stock conversions. Wells Fargo needs $13.7 billion and Bank of America needs $33.9 billion. GMAC, the financing arm of General Motors, needs $9.1 billion in new capital, and Regions Financial Corp. of Alabama needs $400 million. Wells Fargo announced it would raise $6 billion through stock sales, and Morgan Stanley--which needs $1.8 billion--said it would raise $2 billion by selling stock ...