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Fed regulators may delay bank stress test date

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WASHINGTON (8/28/12)--The implementation of regulations that would require holding companies, state member banks, and savings and loan holding companies with between $10 billion and $50 billion in assets to perform yearly, company-run stress tests could be delayed until September 2013, the Federal Reserve said on Monday.

The stress tests, required by the Dodd-Frank Wall Street Reform Act, are scheduled to go into effect when the stress test final rule, now in the proposed stage, is made final.

Banks have pressed the Fed to rework the stress test regulations. Some banks in comment letters said some of the stress tests overlapped with those of other regulators. They also took issue with the scheduling and disclosure of stress test results.

The Fed in a release said many commenters questioned whether their financial institutions would have the resources, readiness, and ability to conduct stress tests, given the likely short period between publication of a final rule and the start of the stress testing process.

"The delay under consideration would help ensure that these companies have sufficient time to develop high-quality stress testing programs," the Fed said.

The agency added it has discussed the potential stress test delay with representatives from the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp.

For the full Fed release, use the resource link.

CFPBs Cordray to join CUNA conference this week

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WASHINGTON (8/28/12)--Consumer Financial Protection Bureau (CFPB) Director Richard Cordray will join Credit Union National Association (CUNA) President/CEO Bill Cheney and CUNA staff to discuss CFPB rulemaking initiatives in an audio conference Thursday.

Attendees of the conference, which is scheduled to start at 2 p.m.  ET, will have the chance to discuss the CFPB's upcoming plans and what they could mean for credit unions directly with Cordray and Cheney.

CUNA Deputy General Counsel Mary Dunn, CUNA Senior Assistant General Counsel Jared Ihrig and Andrea Stritzke, vice president of regulatory compliance for PolicyWorks, will discuss the CFPB's proposed mortgage rules in a Sept. 6. webinar. This webinar will also focus on the agency's proposed "higher-risk" mortgage appraisal rule and the recently approved Regulation B appraisal proposal.

The audio conference and webinar are being offered separately and as a package deal.

To register for the Thursday audio and the Sept. 6 webinar, use the resource link.

RNC delays dont slow CU convention work

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TAMPA, Fla. (8/28/12)--Although Tampa dodged the bullet in terms of bearing the brunt of Tropical Storm Isaac, which is expected to become a hurricane today, the storm's threat managed to delay convention events by a day and presented other challenges for GOP organizers, points out Credit Union National Association (CUNA) Executive Vice President John Magill at the Republican National Convention (RNC) here Monday.

"The storm also is having some impact on news stories the convention organizers--as all organizers do--hope to generate to create buzz for the man they will nominate as their presidential candidate," he said. In this case, that is Mitt Romney, the presumptive Republican candidate for the nation's highest political office. His running mate is certain to be Rep. Paul Ryan of Wisconsin.

Click for slide showWhile Tampa is still expecting bad weather into today, this host city of the Republican National Convention (RNC) here this week was spared the brunt of Tropical Storm Isaac. However, the storm forced convention activity delays and has been quite a competitor for news attention that convention organizers would prefer stay focused on presumptive Republican presidential candidate Mitt Romney and his assumed running mate Rep. Paul Ryan of Wisconsin. (CUNA Photo)
At 2 p.m. (ET) the RNC chairman Reince Priebus called to order the political convention and then at around 2:10 p.m. adjourned until Tuesday at the same time. Republican organizers have sent out a message repeatedly that people's safety must take precedence above all else.

"Convention organizers are accomplished at meeting each and every challenge that comes their way--and often they have to do it on the fly. But having the threat of Isaac's approach to the convention city--well, that is unusual if not unique to this convention," Magill observed.

RNC organizers want the media to be entirely focused tightly on RNC events. Isaac has, to say the least, distracted some of that focus, Magill observed.

Although the city is decked out with "Welcome Republican National Convention" banners and signs from the airport to local eateries and shops, the airwaves here on Sunday and Monday were dominated by Isaac. And while news reports predicted that anywhere from 50,000, 70,000 or more than 100,000 people might flood the city for the convention, it is difficult to know how many decided to stay away because of the unsettled weather outlook.

"There is no 'normal' for a political convention," Magill said Monday. "But this storm goes beyond the 'normal' excitement and controlled chaos and brings an element all its own."

Although the convention has suffered delays, the work surrounding the event goes on, and CUNA and the leagues have hit the ground running to represent credit unions here, Magill noted. "Our thoughts are certainly with those who are now more possibly in the storm's path. But we will do everything to represent credit unions at this important national political venue," he said.

With an 8 a.m. daily organizational meeting to go over strategy, a daily 9:30 a.m. briefing by National Journal Group, for which CUNA is a sponsor, and issues meetings on such things as a new housing policy plan and member business lending strategy, as well as delegate events, and plans for the ribbon cutting at All Children's' Hospital in St Petersburg Wednesday, among many other responsibilities, CUNA officers and staff are deeply engaged, Magill said.

CUNA also attended the opening session of the convention, which was held in the Tampa Bay Times Forum.

Inside Washington (08/27/2012)

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  • WASHINGTON (8/28/12)--Final rules addressing swap dealer and major swap participant requirements were approved by the Commodity Futures Trading Commission (CFTC) on Monday. The rules, according to the CFTC, will improve the risk management procedures of swap dealers and major swap participants, and will highlight risk management concerns for swap dealers and other participants earlier. The rules, which were approved by a 5 to 0 vote, will become effective 60 days after they are published in the Federal Register. The CFTC last week proposed a rule that would exempt credit unions and other co-ops with $10 billion or more in assets from some swap-clearing requirements. Credit unions and other financial institutions with under $10 billion in assets are already exempt from the requirements under a separate CFTC proposal …
  • WASHINGTON (8/28/12)--A recent U.S. District Court for the Northern District of Georgia ruling that could prevent the Federal Deposit Insurance Corp. (FDIC) from pursuing simple negligence claims against the executives of failed banks will soon be re-examined by the U.S. Court of Appeals for the Eleventh Circuit. (American Banker, Aug. 27) The Georgia court ruling found that business judgment rules protected the directors and officers of Integrity Bank, which failed in 2008, against simple negligence claims. The FDIC has appealed this ruling. The FDIC may be forced to present stronger cases when it attempts to recover funds from bank directors if the Georgia ruling is upheld. The ruling could also make it more difficult for banks to find qualified directors and officers if the appeals court sides with the FDIC …

Ann Romney guest of honor at CUNARNC playground project

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TAMPA, Fla. (8/28/12)--Ann Romney, wife of presumptive Republican presidential candidate Mitt Romney, will join the Credit Union National Association (CUNA), the League of Southeastern Credit Unions and National Journal Group at this week's ribbon cutting ceremony for a charitable "leave behind" project in the Tampa-St. Petersburg area.

The ribbon cutting ceremony, which is scheduled for Wednesday at 10 a.m. ET, will unveil a recently completed therapeutic playground for All Children's Hospital. The playground, which will serve All Children's Hospital and patients in the area, contains special play equipment designed for the rehabilitation process. New plants were brought in and a retaining wall was constructed as part of the playground renovation process.

CUNA President/CEO Bill Cheney said, "America's credit unions are honored to have Mrs. Romney attend this important event that so vividly demonstrates credit unions' involvement in their communities and their philosophy of 'people helping people.'"

The Southeastern Credit Union Foundation led fundraising efforts for the playground project, and CUNA, which has a history of Republican and Democratic party convention leave-behind projects, also planned and raised funds for the project. The League of Southeastern Credit Unions also supported the project with its own fundraising efforts, and supplied volunteers to help construct the playground area.

National Journal Group has partnered with CUNA and credit union partners on past leave-behind projects.

The playground project, which has been in the works for months, is in honor of the 2012 Republican National Convention, which began Monday in Tampa and is scheduled to continue through Aug. 30.

A similar project to build a rooftop playground is also underway at Levine Children's Hospital in Charlotte, N.C. The Charlotte renovation project will honor the 2012 Democratic National Convention, which kicks off next week.

"Credit unions see both projects as an opportunity to leave something positive behind that will continue to benefit the Charlotte and Tampa communities long after the balloons have dropped and the convention ended," Cheney said.

NEW Ann Romney guest of honor at CUNARNC playground project

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TAMPA, Fla. (UPDATED: 3:30 P.M. ET, 8/27/12)--Ann Romney, wife of presumptive Republican presidential candidate Mitt Romney, will join the Credit Union National Association (CUNA), the League of Southeastern Credit Unions and National Journal Group at this week's ribbon cutting ceremony for a charitable "leave behind" project in the Tampa-St. Petersburg area.

The ribbon cutting ceremony, which is scheduled for Wednesday at 10:00 a.m. ET, will unveil a recently completed therapeutic playground for All Children's Hospital. The playground, which will serve All Children's Hospital and patients in the area, contains special play equipment designed for the rehabilitation process.

CUNA President/CEO Bill Cheney said "America's credit unions are honored to have Mrs. Romney attend this important event that so vividly demonstrates credit unions' involvement in their communities and their philosophy of 'people helping people.'"

The Southeastern Credit Union Foundation led fundraising efforts for the playground project, and CUNA, which has a history of Republican and Democratic party convention leave-behind projects, also planned and raised funds for the project. The League of Southeastern Credit Unions also supported the project with its own fundraising efforts, and supplied volunteers to help construct the playground area.

National Journal Group has also partnered with CUNA and credit union partners on past leave-behind projects.

The playground project, which has been in the works for months, is in honor of the 2012 Republican National Convention, which began today in Tampa and is scheduled to continue through Aug. 30.

CUNA's News Now will provide continuous coverage of the convention.