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SafeAmerica CU to take on liquidated Kaiser Lakesides members assets

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ALEXANDRIA, Va. (9/2/09)--Oakland, Calif.-based Kaiser Lakeside CU early this week was acquired by SafeAmerica CU following a National Credit Union Administration (NCUA)-directed liquidation of the firm. According to an NCUA release, Pleasanton, Calif.’s SafeAmerica will assume the $24 million in assets and 3,500 members left behind by Kaiser Lakeside’s failure. SafeAmerica, which holds $315 million in assets from over 26,000 members, will now serve the former members of Kaiser Lakeside. Seven federally insured credit unions have liquidated and a further seven have merged with assistance as of August of 2009, an NCUA staffer told News Now. A total of 84 individual banks have failed during this calendar year, according to information available on the Federal Deposit Insurance Corporation’s Web site.

Barkdull appointment would enhance Feds consumer council CUNA

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WASHINGTON (9/2/09)--American Southwest CU President/CEO Brian Barkdull is the Credit Union National Association’s (CUNA) choice to represent credit union interests in the Federal Reserve’s Consumer Advisory Council (CAC) following his nomination earlier this week. Barkdull, who has served as American Southwest CEO for 11 years and has participated in the credit union movement for a total of 21 years, also recently served on CUNA’s Consumer Protection Subcommittee. If appointed, Barkdull would join Idaho CU League President Alan Cameron on the CAC. While Cameron does currently serve on the CAC, CUNA believes that adding an additional credit union representative to the board would enhance the work of the CAC. In comments accompanying the CUNA nomination letter, CUNA Chairman Kris Mecham said that Barkdull is a “well-respected financial institution leader” who is “extremely knowledgeable and articulate regarding consumer protection issues.” The Fed's Consumer Advocacy Council, which seeks to align the shared interests of consumers, communities, and the financial services industry and advise the Fed on the exercise of its responsibilities under consumer financial protection regulations, is composed of 30 members that serve three-year terms each. The Fed earlier this year requested nominations to the CAC, as 10 of the CAC's 30 members will be leaving the board at the end of the calendar year.

Inside Washington (09/01/2009)

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* WASHINGTON (9/2/09)--Senate Banking Committee Chair Christopher Dodd (D-Conn.) is considering a bill that would consolidate oversight for financial institutions into a single regulator, taking away powers from existing agencies. The bill, which is still being drafted, also would create an interagency systemic risk council (American Banker Sept. 1). Dodd’s committee hopes to pass the legislation this year. Dodd last brought up the idea of a single regulator during a hearing Aug. 4, but he wasn’t clear how much he would push for it ... * WASHINGTON (9/2/09)--Sen. Robert Menendez (D-N.J.) is pushing Federal Reserve Board Chairman Ben Bernanke and Treasury Secretary Timothy Geithner to focus on the commercial real estate markets. Tight credit and high vacancy rates are plaguing the markets, the senator said. The government needs to encourage commercial lending and kick-start the market for commercial mortgage-backed securities, Menendez wrote in a letter to Bernanke and Geithner Thursday (American Banker Sept. 1) ... * WASHINGTON (9/2/09)--The Federal Deposit Insurance Corp. (FDIC) Monday released some tips for financial institutions as they comply with the Credit Card Accountability, Responsibility and Disclosures (CARD) Act. Most of the CARD Act’s provisions take effect next year, but some took effect Aug. 20. The Summer 2009 issue of FDIC Consumer News provides information about changes in the rules and what they mean for the public ... * WASHINGTON (9/2/09)--Federal Deposit Insurance Corp. (FDIC)-insured institutions lost $3.7 billion in the second quarter, according to the FDIC. Total assets of insured institutions declined by $238 billion, and the number of institutions on the FDIC’s Problem List rose to 416 from 305 on March 31. Total reserves of the Deposit Insurance Fund stood at $42 billion. Loan losses, which totaled $66.9 billion, have had the greatest impact on industry earnings, according to FDIC Chairman Sheila Bair ... * WASHINGTON (9/2/09)--Registration is open for the Go Direct campaign’s two recognition programs for financial institutions--Go Direct Champions and Go Direct Community Ambassadors. The campaigns encourage consumers to sign up for direct deposit. Deadline for registration is Sept. 30 ...

CUNA analyzes NCUA overdraft electronic disclosures rule

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WASHINGTON (9/2/09)--The Credit Union National Association (CUNA) has posted a final rule analysis on the recent addition by the National Credit Union Administration (NCUA) of rules that mirror the standards set forth by the Federal Reserve Board’s recent additions to Regulation DD of the Truth in Savings Act. The NCUA amendments are similar in content to existing Fed standards that impose requirements for overdraft protection plan fees and electronic disclosures. Specifically, the NCUA will require credit unions to disclose on periodic financial statements the amount charged for overdraft fees and returned item fees. Credit unions will also be required to provide account balance information through an automated system that discloses only the amount of funds available for withdrawal, without including the additional funds that would be available under an overdraft program. CUNA reports that there are “no significant differences” between the NCUA and the Fed rules, barring the fact that the NCUA rules apply to credit unions. The NCUA rules will become effective in January of 2010. For more detailed analysis of the new rules, use the resource link.