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Filed on September 2, 2009, published the first business day after.
- Appeals court: UIGEA is not ‘unconstitutionally vague'
- Free-market think tank backs increased MBL power
- CDFI announces 100% of Recovery Act funds deployed
- CU-backed candidate wins Calif. special election
- Inside Washington
- Capital levels rise with increases in member savings
- Pa. auditor clarifies proposed tax status changes
- Southwest Corporate's July net loss: $178.2M
- Columnist: Hundreds of complaints about banks, none on CUs
- WOCCU Asia pioneer Augustine Kang dies
- Defense council honors three CUs
- University FCU challenge to students: Stretch $20.09
- Raleigh council approves SECU’s tower
- CU System briefs
- Market News
- News of the Competition
- CO-OP’s annual THINK Conference set for April
- CU24 has a growth spurt
Appeals court: UIGEA is not ‘unconstitutionally vague'
WASHINGTON (9/3/09)—The Unlawful Internet Gambling Enforcement Act (UIGEA) has had its vocal detractors and staunch supporters since even before it became law in 2006 and regulators have since been struggling with the task of implementation. In a recent opinion issued this week, the U.S. Court of Appeals in Philadelphia ruled that UIGEA is neither unconstitutionally vague nor does it violate gamblers' right to privacy.
The decision involves a suit filed in 2007 by the Interactive Media Entertainment & Gaming Association Inc., of New Jersey, against the U.S. Attorney General, the Federal Trade Commission (FTC) and the Federal Reserve System. The FTC and Fed are the federal regulatory bodies tasked with crafting rules to put the law into effect.
In March 2008, U.S. District Judge Mary L. Cooper dismissed the New Jersey association's challenge of UIGEA's constitutionality and the Sept. 1 court of appeals decision upholds that ruling.
The Internet Gambling law forbids the placing, receiving or in any other way knowingly transmitting a bet or wager using the Internet. Financial institutions are statutorily prohibits financial institutions from processing transactions used to place illegal bets online.
A three-judge appeals court panel, rendering the 10-page decision, declared that UIGEA "clearly provides a person of ordinary intelligence with adequate notice of the conduct that it prohibits."
Credit Union National Association (CUNA) General Counsel Eric Richard Wednesday said, "This decision, however, in no way addresses the costly and vague unfunded mandate this law place on credit unions and other financial depository institutions." Richard reiterated CUNA's support for enforcement of reasonable laws to prohibit unlawful Internet gambling. "However, UIGEA inflicts unreasonable policing requirements on financial institutions, which have proven difficult for financial institutions to meet," he said.
House Financial Services Committee Chairman Barney Frank (D-Mass.) has introduced two bills on this issue. The first, the Reasonable Prudence in Regulation Act (H.R. 2266), would push back implementation of UIGEA by a year. It's currently due to take effect on Dec. 1, this year. CUNA supports this bill. Frank's second bill, the Internet Gambling Regulation Consumer Protection and Enforcement Act (H.R. 2267), would allow Internet gambling companies to accept bets from persons in the United States if they are licensed by the U.S. Treasury Department and maintain effective protections against underage and compulsive gambling and money laundering and fraud. CUNA hasn't taken a position on this legislation.
Neither bill has yet been scheduled for committee consideration.
Free-market think tank backs increased MBL power
WASHINGTON (9/3/09)--Existing restrictions on credit union business lending should be lifted through legislative action, the pro-free market, Washington, D.C.-based Competitive Enterprise Institute (CEI) advocated in a letter sent to Senate offices early this week.
Though his organization promotes the complete removal of any rules that place caps on a credit union's ability to provide loans to its members, CEI's Director of the Center for Risk, Regulation, and Markets Eli Lehrer said that H.R. 3380, the Promoting Lending to America's Small Businesses Act, is "a good start" that is "worthy" of "careful consideration."
The legislation, which was introduced in late July by co-sponsors Rep. Paul Kanjorski (D-Pa.) and Rep. Ed Royce (R-Calif.), would double the current statutory Member Business Lending (MBL) cap of 12.25%, and would exclude from the new 25% statutory cap loans of less than $250,000, business loans in underserved areas, and loans to non-profit religious institutions.
Reiterating credit union claims that lifting the MBL cap could produce as much as $25 billion in new capital for investment, the letter added that the legislation would "expand credit where it is needed most" which could "presumably increase the level of prudential care taken with regard to credit-worthiness standards."
According to the letter, the smaller size and "narrowly-focused" lending standards of the "average credit union" result in the majority of available credit going to "smaller businesses that wish to use difficult-to-value assets," businesses that can experience difficulties if they try to borrow from other financial institutions.
CDFI announces 100% of Recovery Act funds deployed
WASHINGTON (9/3/09)--Money awarded through the U.S. Treasury's Community Development Financial Institutions (CDFI) Fund has been dispensed in record time, with the full $98 million in Recovery Act funds for financial assistance being distributed to a total 59 CDFIs and 10 Native American CDFIs within two months of the start of this year's program, the Treasury announced this week.
In a statement announcing the distribution of the funds, CDFI Fund Director Donna J. Gambrell said that the release of the funds was a "significant accomplishment" that was "achieved by utilizing new internal business practices that enabled the disbursement of the Recovery Act resources faster than ever before."
These financial assistance awards are "critical to getting these community-based lenders the capital they need to provide distressed communities they serve with the resources to stimulate local economic recovery," she added.
Gambrell earlier this year reported that recent economic and political changes, combined with the decline of loan availability from the mainstream lending community, caused demand for CDFIs to "skyrocket."
"Moving quickly to support communities made particularly vulnerable by the economic downturn" was a top priority for the CDFI Fund, Gambrell said in the recent release.
CU-backed candidate wins Calif. special election
WASHINGTON (9/03/09)--Credit union-backed candidate John Garamendi on Tuesday won a California special primary and will serve as the Democratic candidate for the congressional seat that will be vacated by incoming State Department official and current representative Ellen Tauscher (D-Calif).
Garamendi, who currently serves as lieutenant governor and previously served as state insurance commissioner, was supported by the California Credit Union League and the Credit Union Legislative Action Council (CULAC), and defeated 13 fellow candidates by gaining 26.2% of the total vote. However, Garamendi will next need to win a special general election on Nov. 3, since he did not win the 50% of votes needed to automatically assume the vacant congressional seat.
Garamendi is expected to win the seat because District 10, which spans Contra Costa, Solano and Alameda counties in Northern California, is mainly Democratic. Garamendi's main opposition will be Republican David Harmer, with American Independence Party candidate Jerry Denham, Green Party candidate Jeremy Cloward, and Peace and Freedom Party candidate Mary McIlroy also set to contest the open seat.
If Garamendi wins the November election, California Governor Arnold Schwarzenegger would appoint a replacement lieutenant governor.
CULAC and the league earlier this year also supported Judy Chu (D-Calif.), who won a special election for the House seat from the 32nd district.
Inside Washington
- WASHINGTON (9/3/09)--Two reports criticizing federal regulators' oversight of failed banks were issued last week. The reports come after the Federal Deposit Insurance Corp. (FDIC) was criticized in July for "slow and inefficient" oversight of the failed Franklin Bank of Houston (News Now July 9). The reports state that regulators should have been tougher with the National Bank of Ocala, Fla., and MagnetBank in Salt Lake City. Both failed in January (American Banker Sept. 2). FDIC's inspector general said the FDIC supervised MagnetBank but could have taken more action, such as noting a 2007 exam that indicated problems with the bank's commercial real estate lending. The report also said the Office of the Comptroller of the Currency should have been quicker to address problems it identified at National Bank, which failed because of construction and development loan losses ...
- WASHINGTON (9/3/09)--The Federal Reserve Bank of New York has expanded its network of Term Asset-Backed Securities Loan Facility (Talf) agents to include investors Wells Fargo Securities LLC, Williams Capital Group LP, Loop Capital Markets LLC and CastleOak Securities LP (American Banker Sept. 2). TALF is intended to make credit available to consumers and small businesses by facilitating the issuance of asset-backed securities ...
- WASHINGTON (9/3/09)--The Mortgage Bankers Association (MBA) was expected to propose a framework Wednesday that would overhaul Fannie Mae and Freddie Mac by allowing them to create securities that could be backed by certain kinds of mortgages (The Wall Street Journal Sept. 2). The companies would back the securities against defaults and pay fees into a federal insurance fund that would in return guarantee interest and principal payments to bondholders. However, the insurance fund would only go into effect if the companies suffered big losses. The framework would replace the current system--which assumes that the government would back Fannie and Freddie if they ran into trouble. The proposed backstop is needed to revive investor confidence, said John Courson, MBA president/CEO. Foreign investors have reduced their holdings in companies' debts even though the government had infused Fannie and Freddie with capital. On Tuesday, Fannie and Freddie's shares reportedly fell 17% in the New York Stock Exchange ...
Capital levels rise with increases in member savings
MADISON, Wis. (9/3/09)--Credit union capital levels closed in on their pre-financial crisis highs, and credit union members increased their savings balances by a significant amount in July, according to a Credit Union National Association (CUNA) economist's analysis of CUNA's monthly sample of credit unions.
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"In July, total credit union capital grew 0.7% to reach $89.037 billion, just shy of the high-water mark reached last November of $90.840 billion," Steve Rick, CUNA senior economist, told News Now. "However, the 9.3% asset growth since November has pushed the credit union capital-to-asset ratio down to 9.8% in July from 10.9% last November."
Credit union savings balances increased 1.0% in July to $763.8 billion. That's 9.5% more than during the first seven months of 2009.
During the month of July, share drafts increased 3.9%, followed by money market accounts (2.1%), regular shares (0.7%) and one-year certificates (0.3%). Individual retirement accounts declined (-0.6%).
"Credit union members increased their savings balances by a strong 1% in July, with the fastest pace set in the share draft (3.9%) and money market account (2.1%) products," Rick said. "Much of this growth, however, was due to a month-end payday. But so far this year, savings balances are up 9.5%, faster than the 5.8% pace set during the first seven months last year.
"Many credit union members are trying to increase their precautionary savings balances due to job-loss fears," he added. "But for many, this has become a difficult endeavor as layoffs, furloughs and paycuts reduce their income."
Credit union loans outstanding increased 0.2% during July to $586.3 billion, which is 1.0% more than in the first seven months of 2009. That is down from a 4.1% increase during the same period of 2008.
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In July, other loans led loan growth, rising 2.8%, followed by credit card loans (1.3%), home equity loans (1.0%), used-auto loans (0.6%), unsecured personal loans (0.5%) and other mortgages (0.2%).
However, new-auto loans declined (-0.2%), as did fixed-rate mortgages (-0.5%) and adjustable-rate mortgages (-1.4%).
"Loan growth has dropped off sharply so far this year as members try to deleverage their balance sheets," Rick said. "Loans grew only 1% during the first seven months, compared to 4.1% increase for the similar period last year. Fixed-rate first mortgages are the only loan category reporting decent growth--5.7%--so far this year, but the growth still is less than half the pace set last year--12.4%."
The loan-to-savings ratio decreased slightly to 76.8% in July from 77.5% in June. The liquidity ratio--the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities--increased to 21% in July from 20% in June.
"The growth rate disparity between credit union loan and savings balances has increased the investment portfolio by 31% over the last seven months," Rick explained. "Deposits at corporate credit unions have fallen from 17.2% of surplus funds--cash plus investments--in July 2008 to 13.8% today. Government securities and deposits at banks were the investment categories with a rising share of surplus funds."
Sixty-plus-day delinquencies at credit unions remained constant at 1.5% in July.
"The weak labor and housing markets were the major factors contributing to a 3.3% jump in total credit union loans delinquent--$8.8 billion--in July," Rick said. "The ratio of delinquent loans-to-loans now stands at 1.5%, up from 0.95% this time last year. With net job creation not expected until the spring of 2010, credit unions should plan for rising delinquency and loan charge-off rates well into next year."
The movement's overall capital-to-asset ratio remained constant at 9.8% in July. The total dollar amount of capital is $88 billion.
Pa. auditor clarifies proposed tax status changes
HARRISBURG, Pa. (9/3/09)--Pennsylvania Auditor General Jack Wagner Tuesday sent a letter to the Pennsylvania Credit Union Association (PCUA) responding to PCUA's concern about a proposal to tax non-profit entities as part of his state budget recommendations.
In a letter to PCUA President/CEO Jim McCormack, Wagner clarified that while he recommended a review of tax credits, exemptions, and loopholes provided to select individuals and organizations, he did not mention any specific entities, including credit unions. "Nor did I dispute their value or suggest they do not focus on service to their members," he wrote (Life is a Highway Sept. 2).
Wagner asked that his clarification be communicated with credit unions and expressed interest in meeting with McCormack soon.
"We were very pleased to get this letter of clarification...recognizing the value that credit unions bring to Pennsylvania consumers," McCormack said. "We also look forward to meeting with the Auditor General and his staff to see how our organizations can work together for the benefit of Pennsylvanians."
McCormack had sent Wagner a letter expressing strong opposition against the proposal to tax non-profit entities. The suggestion is one of seven recommendations Wagner has made at least twice to the governor and General Assembly to explore during the state's budget impasse (News Now Aug. 18).
Pennsylvania entered its second month without a state budget on Tuesday, when the state's House and Senate conference committee resumed meetings after three weeks of suspended private talks. State government has operated on a "bridge" budget funding only day-to-day operations since Aug. 5.
Christina Mihalik, PCUA vice president, governmental affairs, attended Tuesday's meeting, and PCUA staff is monitoring any budget talks for any impact on credit unions (Life is a Highway Sept. 2)
Southwest Corporate's July net loss: $178.2M
DALLAS (9/3/09)--Dallas-based Southwest Corporate FCU has recorded additional investment losses on its mortgage-backed securities and further depletions of its membership capital shares at U.S. Central, according to its July financial statement posted on its website.
The numbers were initially reported to its members in July. Southwest Corporate recorded a net loss in July of $178.2 million, which results in a year-to-date net loss of $161.6 million and a retained deficit of $160.9 million. Its operating earnings before investment-related losses was $21.4 million.
Investment losses contributing toward the net loss included $113 million of other than temporary impairments in its portfolio of mortgage-backed securities, reflecting increased loss projection from March 31 to June 30. The corporate also recorded $67.6 million in additional depletion of U.S. Central membership capital, reflecting U.S. Central's depletion of those funds on July 31.
Southwest Corporate's 2008 audit remains in process pending the completion of U.S. Central's audit, which the corporate said was expected this week.
"Once U.S. Central's audited financial statements are reviewed, our audit is expected to be completed approximately four weeks later," said Melissa Wardell, Southwest Corporate senior vice president/chief financial officer, in the posted financial statement.
For the full report, use the link and click on July 2009 monthly report.
Columnist: Hundreds of complaints about banks, none on CUs
FORT WORTH, Texas (9/3/09)--Dave Lieber, "Watchdog" columnist for the Fort Worth Star-Telegram, told Texas credit unions that he receives hundreds of requests for help with bank problems and none for credit unions.
He recently gave a presentation titled "Why Americans Hate their Banks but Don't Know Enough to Love their Credit Unions," at the Fort Worth Chapter of Credit Unions' monthly meeting.
Lieber's column helps readers who have issues or problems with current situations affecting their communities (LoneStar Leaguer Aug. 28).
He said that while he has had hundreds of requests from readers to address or correct complaints facing the banking industry, he had not received any asking for help in dealing with a credit union.
With many "horror" stories relating to banking customers' complaints, Lieber had his audience laughing when he said he now understood why it was called "BANKruptcy" and not "CREDITUNIONruptcy."
WOCCU Asia pioneer Augustine Kang dies
MADISON, Wis. (9/3/09)--Augustine J.R. Kang, 85, a pioneer of the Asian credit union movement and founder of the first South Korean credit union, died Aug. 22 in Madison, Wis.
Kang was the first general manager of the Asian Confederation of Credit Unions, which became affiliated with the World Council of Credit Unions (WOCCU) in 1971. As manager, Kang worked with 20 Asian countries (Wisconsin State Journal Aug. 24).
In 1983, Kang moved to Madison to start a special project at WOCCU that launched the credit union movement in China. He worked for WOCCU until his retirement in 1995.
In addition to his work in the credit union movement, Kang authored two books: "Just As It Is" and "The Conversation That I'd Like To Share With Someone."
Kang also received the Ramon Magsaysay Award for International Understanding in 1981 and an honorary law degree from St. Francis Xavier University in Nova Scotia, Canada, in 1984.
Defense council honors three CUs
SAN FRANCISCO (9/3/09)--Three defense credit unions were recognized
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| On hand at the Defense Credit Union Council presentation of the Army credit union of the year award to Fort Sill FCU were, from left: Cpt. Marocco Roberts, Army liaison; Robert Hopper, Fort Sill FCU chairman; Col. Marlene Fey, commander of USAFINCOM; Denise Floyd, Fort Sill FCU president/CEO; and Dennis Potter, Fort Sill FCU liaison officer.
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The Defense Credit Union of the Year awards and their recipients were:
- Army Award: Fort Sill FCU, Fort Sill, Okla.;
- Navy/Marine Corps Award: Navy FCU Souda Bay Branch, Crete, Greece; and
- Air Force Award: Andrews FCU, Andrews AFB, Md.
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| The Defense Credit Union Council presented its Air Force credit union of the year award to Andrews FCU. Pictured are, from left: Audrey Davis, deputy assistant secretary of the Air Force-FO; Chris McDonald, president/CEO of Andrews FCU; and Henry Bowman, Andrews FCU.
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Fort Sill was acknowledged for its outreach efforts in the military and civilian community and its encouragement of financial literacy, specifically among Fort Sill's junior enlisted soldiers and their families. The credit union offers programs such as the In-Balance Check Book Revitalization and the Break-Out Loan, semi-annual training to units on use and potential problems with credit cards and the ATM card, and one-on-one counseling on family finances and budgeting.
Navy FCU Souda
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| At the Defense Credit Union Council's presentation of the Navy/Marines credit union of the year award to Navy FCU Souda Bay Branch, Greece, were, from left: Capt. James Reich, acting deputy assistant secretary of the Navy-FO; Jean Jeffries, branch manager at Navy Souda Bay; Lt. Johnny Quesada, Souda Bay CU liaison officer; and Lee Gounds, executive vice president, branch operations. (Photos provided by the Defense Credit Union Council)
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Andrews FCU was cited for: its support of Andrews Air Force Base; its extensive financial education through regular briefings, educational seminars and participation in Airmen and Family Readiness Center workshops; its support of the Military Saves campaign through seminars and special savings accounts for new savers; its efforts against payday lending by providing alternative loans and education and participating in town hall meetings in the community.
University FCU challenge to students: Stretch $20.09
AUSTIN, Texas (9/3/09)--University FCU (UFCU) is challenging Central Texas college students to prove how far they can stretch $20.09 in 2009. It is hosting an online video contest and social media campaign, which runs through Sept. 17.
The purpose of the challenge is to teach young adults the benefits of making smart financial decisions at each stage of life and to let people know how much can be achieved with only $20.09.
Participants record creative ways to make $20.09 last as long as possible and post their videos, which must be between 30 seconds and three minutes long, on YouTube via www.twenty09challenge.com or UFCU's Facebook page.
Entries will be judged on how creatively participants spend their money and how inspiring their actions are to others. The first place winner will receive a $500 Visa gift card; second place, a $300 card; and third place a $100 card.
David Lee, University of Texas student and social media strategist representing UFCU, came up with the contest idea.
"I was inspired by the basic concept of showing people the benefits of an action rather than merely telling them that it's beneficial," Lee said.
University FCU, based in Austin, Texas, has $1.067 billion in assets.
Raleigh council approves SECU’s tower
RALEIGH, N.C. (9/3/09)--The Raleigh, N.C., City Council Tuesday approved a plan for a 12-story, mixed use building that State Employees' CU (SECU) wants
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| State Employees' CU, Raleigh, N.C., was recently approved to construct an office building in downtown Raleigh that will house a credit union branch, office space and a parking deck. (Photo provided by State Employees' CU) |
SECU said its board had considered building the facility for several years and decided to implement the plans to boost the state's economy. Construction is expected to begin this fall (News Now June 6).
The building will be about 240,000 square feet. The project will include a credit union branch, 31 residential units, office space, and an eight-level parking deck with 165 spaces (wral.com Sept. 1).
SECU also plans to open 15 new branches in the next fiscal year, the credit union said.
SECU, Raleigh, N.C., has $18 billion in assets.
CU System briefs
- NEW BERLIN, Wis. (9/3/09)--WISCOR CU, a $15 million asset credit union in West Allis, Wis., has merged with Landmark CU, a $1.4 billion asset credit union in New Berlin, announced Landmark. The merger was effective on June 30, with data processing systems merged on Aug. 28, enabling WISCOR members to begin using Landmark branches. WISCOR's West Allis location has closed and its five employees are now Landmark employees. Earlier this summer another West Allis-based credit union, Lifetime CU, also merged into Landmark. WISCOR CU posted a net loss of $115,563 during first quarter 2009. The loss included a $126,054 payment to the National Credit Union Share Insurance Fund (Business Journal Milwaukee Sept. 1) ...
- NORTH MIAMI, Fla. (9/3/09)--Mount Sinai FCU, Miami, has been approved by the Florida Office of Financial Regulation to merge with Peoples CU in North Miami. The merger was approved Aug. 26 without a shareholder vote because regulators considered Mount Sinai FCU to be undercapitalized (South Florida Business Journal Sept. 2). After the deal is complete, the credit union's branches will be managed by Peoples CU. Mount Sinai has $17.7 million in assets as of June 30. The credit union has a net worth-to-asset ratio of 1.43%, below the 7% threshold considered to be well-capitalized. Peoples CU has $61.7 million in assets as of June 30. The combined credit unions will have $79.4 million in assets and a net worth ratio of 9.75% ...
- BEAVERTON, Ore. (9/3/09)--Enterprise Car Sales presented $5,000 to Doernbecher Children's Hospital (DCH) Aug. 25 to make a contribution to the Credit Unions for Kids program of Oregon and Southwest Washington, said the Credit Union Association of Oregon. "[The contribution] will go to help us reach our current goal at DCH, which is a two-year $1 million goal to fund the professorship of Dr. Robert Steiner, who specializes in inborn errors of metabolism and osteogenesis imperfect," said Kasey Rockwell, association director of credit union development and Credit Unions for Kids program coordinator. Credit Unions in Oregon and southwest Washington raised more than $879,000 during the 2008 campaign year for Credit Unions for Kids ...
Market News
MADISON, Wis. (9/3/09)
- U.S. companies cut more jobs than predicted in August, according to data from ADP Employer Services. The month's data are a sign that employers are not confident about a recovery from the steepest recession since the 1930s, analysts said. The 298,000 jobs cut in August--290,000 was the forecast--followed a revised 360,000 lost in July. Consumer spending, which constitutes roughly 70% of the U.S. economy, may be slow in rebounding in the next few months, analysts said. Also a pending Labor Department release will indicate the U.S. unemployment rate increased to 9.5% in August, they added. The labor market's return to health will be "slow and painful" due to the scope of the recession and uncertainty surrounding the vigor and sustainability of a recovery, said Ryan Sweet, a senior economist at Moody's Economy.com (Bloomberg.com Sept. 2) ...
- U.S. factory orders increased less than forecast in July, hampered by a drop in non-durable goods such as food and oil--which mitigated a rise in demand for new equipment that exceeded predictions, analysts said. Orders rose 1.3% following a revised 0.9% June increase that was bigger than anticipated, the Commerce Department said Wednesday. Factory orders were forecast to rise 2.2 %, according to the median of 63 estimates in a survey by Bloomberg News. Meanwhile, possibly reflecting lower prices, the 1.9% decrease in non-durable goods orders was the largest drop this year, analysts said (Bloomberg.com Sept. 2) ...
- Mortgage loan application volume--declined 2.2% for the week ending Aug. 28 on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Market Composite Index dropped 3.1% compared with the previous week and increased 22.7% compared with the same week one year earlier. The index is part of the Weekly Mortgage Applications Survey, conducted by the Mortgage Bankers Association (MBA). The Refinance Index decreased 3.1% from the previous week, and the seasonally adjusted Purchase Index dropped 1% from a week ago. For Mortgage Applications Decrease in Latest MBA Weekly Survey, use the link ...
News of the Competition
MADISON, Wis. (9/3/09)
- August U.S. auto sales received a spark from the "Cash for Clunkers" program and rose to their highest monthly total in more than a year, stoking hopes that in the months ahead the auto industry's recovery will continue, analysts said. Although the industry anticipates a sales slowdown in September, automakers said they are optimistic that the improving U.S. economy will lead to a broader expansion of vehicle sales. Automakers sold 1,261,977 cars and pickup trucks--about a 1% increase from a year earlier and up from 997,824 in July. The August tally was the first time the industry experienced a year-over-year increase since October 2007 and its highest sales total since May 2008, analysts said (The Wall Street Journal Sept. 2) ...
- Saying it will save the credit card processor more than $100 million, Visa Inc. announced Monday it would prepay the remainder of a big legal settlement with U.S. merchants-- which will garner the company a discount. Visa said it will prepay $683 million by Sept. 30--which will negate the $800 million it still owes on a $2 billion settlement reached in June 2003 by its subsidiary, Visa USA. The settlement was a culmination of a lawsuit that alleged Visa and MasterCard Inc. conspired to set prices and restrict trade (The New York Times Aug. 31) ...
- Citigroup Inc. is selling three credit card portfolios to U.S. Bancorp and is shutting down the co-branded cards it issues for retail partner Home Depot Inc. to rid itself of troublesome card assets, analysts said. The Citi Holdings unit that Citigroup formed in January comprises the three card portfolios being sold and the Home Depot accounts. They are among the unwanted assets Citigroup intends to sell or unwind and include cards it issues for affinity groups and retailers, or as an agent for smaller banks (American Banker Sept. 2) ...
CO-OP’s annual THINK Conference set for April
RANCHO CUCAMONGA, Calif. (9/3/09)--CO-OP Financial Services' annual THINK Conference is set for April 18-21 in Scottsdale, Ariz.
Reservations for the conference are already being accepted. Registration will be free again this year, CO-OP said.
"With the THINK Conference, we look very carefully at the issues facing the credit union industry and look for speakers with remarkable success stories to tell with lessons credit unions can make immediately actionable," said Stan Hollen, CO-OP president/CEO.
Past THINK speakers include Steve Woznick of Apple; Scott Bedbury of Nike; Peter Schutz of Porsche; and Ken Schmidt of Harley Davidson. Speakers for the 2010 conference will be announced this month.
CO-OP Financial Services provides products and services to credit unions including ATM access, debit processing, ATM processing, shared branching, check imaging and mobile payments.
CU24 has a growth spurt
TALLAHASSEE, Fla. (9/3/09)--Credit Union 24, a credit union-owned ATM and point-of-sale network, announced that six credit unions recently joined the network.
The credit unions are:
- Lion's Share FCU, Salisbury, N.C.;
- Ashtabula County School Employee CU (ACSE), Ashtabula, Ohio;
- Mint Valley FCU, Longview, Wash.;
- Enfield (Conn.) Community FCU;
- Radford (Va.) Pipe Shop Employees FCU; and
- Family Savings FCU, Gadsden, Ala.
Lion's Share FCU joined the network because its members are located throughout Southeastern U.S., according to John McGrail, Lion's Share CEO.
"Lion's Share FCU represents a work force that has significant presence in the Southeast region," McGrail said. "The credit union is experiencing incredible growth as it embraces the challenge of catering to a geographically dispersed membership."
ACSE CU signed on to the network because of its large tourist population. Visitors who are members of CU 24 participating credit unions can use ACSE CU's ATMs, said Mike Riesterer, CEO of the credit union.
CU 24, Tallahassee, Fla., offers credit union members with access to more than 100,000 ATMs nationwide.
Copyright © 2009 - Credit Union National Association, Inc.
