Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Inside Washington (09/28/2012)
  • WASHINGTON (10/1/12)--Treasury Secretary Timothy Geithner Thursday sent a letter to the members of the Financial Stability Oversight Council calling for reform of the money market fund (MMF) industry. "Further reforms to the MMF industry are essential for financial stability," Geithner wrote. "MMFs are a significant source of short-term funding for businesses, financial institutions, and governments. The funds provide an important cash-management vehicle for both institutional and retail investors. However, the financial crisis of 2007–2008 demonstrated that MMFs are susceptible to runs and can be a source of financial instability with serious implications for broader financial markets and the economy." Last month, the Securities and Exchange Commission (SEC) announced that it would not proceed with a vote to solicit public comment on potential structural reforms of MMFs. The SEC took steps in 2010 to strengthen the liquidity, credit-quality, maturity and disclosure requirements of the funds. However, Geithner said the reforms did not address two characteristics of MMFs that leave them susceptible to destabilizing runs: the lack of explicit loss-absorption capacity in the event of a drop in the value of a portfolio security; and the "first-mover advantage" that provides an incentive for investors to redeem their shares at the first indication of any perceived threat to the fund's value or liquidity …
  • WASHINGTON (10/1/12)--In a letter to financial regulators, a bipartisan group of 53 senators stressed that proposed Basel III capital rules are too complex and expensive for community banks to comply with and will hurt the banks' ability to lend to borrowers. "Community banks have little or no access to capital markets," the group wrote. "In most cases, they must rely on the bank's officers, directors and shareholders to raise additional capital. Raising capital for community banks in the best of times is challenging and nearly impossible in times of economic stress." In June, the Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency released proposals that would implement Basel III in the U.S. Basel III standards will require banks to hold common equity of 4.5% by 2015. In addition, banks must hold a 2.5% conservation buffer, which will be gradually introduced by 2019, and increase Tier 1 levels from 4% to 6% by 2015 (News Now Aug. 14). The international bank rules are intended to force banks to hold more capital as a buffer against future financial shocks …
  • WASHINGTON (10/1/12)--The overall quality of first-lien mortgages serviced by large national and federal savings banks improved from the same period a year ago, but showed seasonal decline from the prior quarter, according to a report released Thursday by the Office of the Comptroller of the Currency (OCC). The percentage of mortgages that were current and performing at the end of the quarter was 88.7%, compared with 88.9% the prior quarter and 88.1 % a year earlier, according to the OCC Mortgage Metrics Report for the Second Quarter of 2012.  The percentage of mortgages that were 30 to 59 days past due was 2.8%, up 12.1% from the prior quarter but down 7.5% from a year ago. Seriously delinquent mortgages--60 or more days past due or held by bankrupt borrowers whose payments are 30 or more days past due--fell to their lowest level in three years. The percentage of mortgages that were seriously delinquent was 4.4%, down 0.8% from the prior quarter and 9.2% from a year earlier. Several factors contributed to the year-over-year improvement, including strengthening economic conditions, servicing transfers, and the ongoing effects of both home-retention loan-modification programs, as well as home forfeiture actions, the OCC said …
  • WASHINGTON (10/1/12)--The Federal Reserve on Friday began the quarterly publication of transaction-level information related to discount-window lending to depository institutions and open market transactions.  The data in the initial release cover transactions between July 22, 2010, and Sept. 30, 2010. The transaction-level detail supplements the extensive aggregate information the Federal Reserve has previously provided in weekly, monthly and quarterly reports. Data on discount window loans include the name of the borrowing institution, the amount borrowed, the interest rate charged and information about collateral pledged. Data on open market transactions include temporary and permanent purchases and sales of Treasury and agency securities, securities lending activities, and foreign exchange transactions and foreign currency reserve investments.  Information on each transaction includes the identity of the counterparty, the security or currency purchased or sold, and the date, amount and price of the transaction  …
  • ALEXANDRIA, Va. (10/1/12)--Credit union staff and volunteers still have time to register for the online town hall with National Credit Union Administration (NCUA) Board Chairman Debbie Matz Thursday at 3 p.m. ET. Registration for this free NCUA webinar is available online. Participants also will use this link to log into the webinar after registration. Registrants should allow pop-ups from this website
  • ALEXANDRIA, Va. (10/1/12)--Speaking at the Combined Council of America's Credit Unions' (CCACU) 31st Annual Conference last week, National Credit Union Administration (NCUA) Board Member Michael Fryzel encouraged credit unions to "understand what credit union members want and then make sure they get it in the least-cost, highest-quality manner possible. For 80 years credit unions have done this, and done this well," he said, but credit unions will need to do "as well or better" in the years ahead. CCACU credit unions are tied to the U.S. automobile industry, and Fryzel said while the automobile industry has had its share of issues, CCACU credit unions "have been unwavering in their service." …


News Now LiveWire
#creditunions celebrate #EarthDay2015 by being green aware with e-statements, hosting shred events, planting trees
10 hours ago
From @WSJ: 33% of companies say it took them more than 1 yr to discover a data breach.
14 hours ago
.@CAMCouncil taps into @MICreditUnions' career, tech training resources
15 hours ago
#Inflation ticks up in March, still relatively flat #NewsNow #Market
15 hours ago
#NewsNow Ill. league groups elect board, exec officers
16 hours ago