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Filed on October 1, 2009, published the first business day after.
- House committee to hold hearing on Interchange, CARD Act changes
- CUNA issues comment call on HELOC changes
- NCUA announces dual CU closures
- MasterCard says 7-Eleven misled consumers on interchange
- Inside Washington
- Kennebec Valley members vote to stay a CU
- It’s National Co-op Month
- Schenk speaks of CU MBL on 'Marketplace' radio
- News Now’s top 10 stories for September
- Student-run CUs in the limelight
- United FCU works to revive Clearstar's auto lending
- Cards help students establish credit history
- Texas league, CUR announce board elections
- OpSS Council names two 'best practices' winners
- Trinidad/Tobago CU Policy Act draws opposition
- CU System brief
- Market News
- News of the Competition
- Financial Planning Week can jump-start family finances
- CSS, MoneyGram offer money transfer services
House committee to hold hearing on Interchange, CARD Act changes
WASHINGTON (10/2/09)--The House Financial Services Committee on Thursday announced that it has scheduled for Oct. 8 a hearing on H.R. 2382, the Credit Card Interchange Fees Act of 2009 and H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009.
The Credit Union National Association (CUNA) has publicly stated that changing the current interchange fee structure, as some merchants, including 7-Eleven, have promoted doing, would adversely limit consumer options, competition and technological innovation.
CUNA believes interchange fees allow business costs, including the risk of consumer nonpayment, to be shared by the payments participants and discussions regarding what value should be placed on the use of electronic payments should be within the purview of the industry participants.
Legislation that would allow merchants to negotiate interchange fees has also been introduced in the Senate, but it is not expected that H.R. 2382 nor the Senate-based legislation will be brought up for a vote during the fall session.
While it is not certain if and when a vote could happen, committee Chairman Barney Frank (D-Mass.) and House colleague Carolyn Maloney (D-N.Y.) recently introduced H.R. 3639, which, if approved, would move up the effective date of some portions of the Credit Card Accountability, Responsibility and Disclosure (CARD) Act to December of this year.
The committee has not announced witnesses for the hearing.
CUNA issues comment call on HELOC changes
WASHINGTON (10/2/09)--The Credit Union National Association (CUNA) has issued a regulatory comment call on the Federal Reserve Board's issuance of a proposed rule that would amend the disclosure requirements of Regulation Z for home-equity lines of credit (HELOCs).
The proposal, which will require creditors to provide specifically designed disclosures for a given consumers credit account, will replace the current generic, one-page HELOC disclosure. The information will also be presented in a tabular format, and creditors will need to present similar information in a similar format at the time of the account's opening as well.
Under the proposal, creditors will also be required to notify consumers of any changes to their account 45 days before those changes are to come into effect. Creditors will also be prevented from terminating any accounts that have not passed a 30-day late payment threshold.
Comments are due to CUNA by Dec. 10. Comments solicited by the Fed should be submitted by Dec. 24.
To view the CUNA comment call, use the link.
NCUA announces dual CU closures
ALEXANDRIA, Va. (10/2/09)--The National Credit Union Administration (NCUA) on Thursday reported that Alaska USA FCU will assume the assets and members of The Members' Own FCU after Members' Own accepted Alaska USA's sale offer.
Members of The Members' Own FCU, which held $85 million-in-assets from 11,000 members, will now be able to take advantage of "a broad array of financial services offered throughout the United States" via $4.1 billion-in-assets, 375,000-member Alaska USA FCU, the NCUA release announcing the purchase said. Alaska USA currently serves its membership via 56 branches in Alaska, California, and Washington, and also does business through a 5,600-unit network of shared branches, according to the NCUA.
The NCUA has also announced a second credit union closure, reporting that San Antonio-based Security Service FCU will assume the assets and member shares of West Texas CU, which has been liquidated. The $78 million in assets and 25,000 members of the El Paso, Texas-based credit union will now be served by the $5 billion-in-assets, 680,000 member credit union which serves Air Force members throughout the country.
In a release announcing the acquisition, Security Service FCU President/CEO David Reynolds said his credit union was "pleased" to welcome former West Texas CU members to the "family," adding that he looks "forward to serving and being part of the El Paso community."
MasterCard says 7-Eleven misled consumers on interchange
WASHINGTON (10/2/09)—MasterCard Inc. released a study that charges consumers were misled by a 7-Eleven Inc. petition intended to drum up support for interchange fee regulations.
On Wednesday, 7-Eleven executives made a dramatic deliver of 15,000 booklets of signatures to federal lawmakers as part of merchants' push for interchange rate reform.
This summer, MasterCard commissioned KRC Research to survey more than 1,000 adults in August and then again in September on interchange issues (American Banker Oct. 1). Seventy-three percent of the respondents, half contacted online, half by phone, agreed with the statement "the cost of accepting credit card payments" is a business cost merchants should bear, and 71% agreed that it is unfair for consumers to pay merchants' expenses for accepting cards.
However, 80% of people who signed the petition "mistakenly believed," according to the MasterCard report, that consumers would benefit from lower interchange rates. (See related story: House interchange hearing on Oct. 8)
Inside Washington
- WASHINGTON (10/2/09)--Rep. Mel Watt (D-N.C.) criticized banking industry representatives during a House Financial Services Committee hearing Wednesday, saying that they were preventing him from improving a bill that would create a consumer protection agency. Watt, chair of the monetary policy subcommittee, has been viewed as an ally to the banking industry--which has balked at the idea of such an agency (American Banker Oct. 1). At Wednesday's meeting, Watt accused the bankers of trying to kill the bill instead of improving it. The bankers' approach to the bill is "exasperating" and change in the financial services industry is needed, Watt said. Rep. Barney Frank (D-Mass.), who is drafting the bill that would create such an agency, said he is confident the legislation would pass. Watt and other lawmakers, including Rep. Melissa Bean (D-Ill.), have indicated they would like to tailor the agency's proposed powers. Two-thirds of subprime mortgages were originated by nonbank lenders, and because of that, Bean has questioned whether the agency should focus on subprime mortgages ...
- WASHINGTON (10/2/09)--National Credit Union Administration (NCUA) board member Michael Fryzel recently visited Great Lakes CU in North Chicago.
He toured the credit union and discussed credit union issues with Vikki Kaiser, Great Lakes CEO. "It is encouraging to see the efforts being made to meet the financial needs of their members," Fryzel said. Great Lakes CU has $595 million in assets. From left are: Lorraine Kost, senior vice president of administration; Lee Piekarz, board chair; Kevin Bogac, senior vice president of information systems; Robert Green, director; Kaiser; Fryzel; Yvonne Bailey, vice president of marketing and planning; Bertine Nixon, director; and Kamil Sakici, senior vice president and chief financial officer. (Photo provided by the National Credit Union Administration) ...
Click for larger view - WASHINGTON (10/2/09)--Ben Bernanke, Federal Reserve Board chairman, told lawmakers Thursday that the Fed should regulate the nation's largest financial institutions. The Fed's experience and power make it well-suited to be a consolidated supervisor for large institutions, Bernanke said. The responsibility for monitoring risk should be given to a council of regulators, including agencies that have power over various financial companies, he said. The council could monitor risks affecting investment banks, commercial and mortgage lenders, and pension and hedge funds (The New York Times Oct. 2). Democratic and Republican lawmakers have expressed skepticism about giving the Fed more power. Some have said they want to reduce the central bank's power ...
Kennebec Valley members vote to stay a CU
WESTBROOK, Maine (10/2/09)--Members of Kennebec Valley FCU (KV FCU) have voted against a proposal to convert to a bank charter and then merge with Kennebec Savings Bank in Augusta, Maine.
The Maine Credit Union League called the vote "a very positive outcome for both the credit union and its membership." A credit union charter is the best choice for consumers, the league added.
"This vote underscores the important role that members have in a credit union and the value that being a member-owner truly offers," said John Murphy, Maine league president.
Voting by KV FCU members on the proposed merger concluded Sept. 21. Last year, the credit union's board approved a proposal to convert to a bank and then merge with a local savings bank (News Now Sept. 23). The board said the proposed merger and conversion would place the credit union in a better position to grow.
After the proposal was approved by the board, members from KV FCU began sending letters to the editor of a local newspaper, expressing their thoughts about the proposed merger. Many members were against the proposal.
Members also formed several groups regarding the merger, such as KV Members Matter, which opposed the conversion; and KV Members Voting Yes for the Merger. A group also petitioned the credit union for access to board meeting minutes in which the proposal to convert was discussed (News Now Feb. 11).
KV FCU, Augusta, Maine, has $54 million in assets.
It’s National Co-op Month
MADISON, Wis. (10/2/09)--October is National Co-op Month, and resources are available from the National Cooperative Business Association (NCBA) to help credit unions with activities and celebration ideas.
The Credit Union National Association is a member of the NCBA board of directors.
The 2009 theme--"Your Values, Your Business!"--emphasizes that doing business with a cooperative means doing business with an entity that shares the same values as most Americans.
To promote this year's theme, the National Co-op Month Committee will use several vehicles to promote co-ops.
They include:
- Marketing advertisements--Ad templates that convey a unified message for increasing consumer awareness;
- A "group" page on the social networking site Facebook to educate consumers about Co-op Month and cooperative business;
- Status updates on co-ops through social networking site Twitter;
- Co-op themed promotional items to increase awareness of cooperatives available on Zazzle.com;
- A Day in the Life, a publication available for download at Lulu.com and that can be distributed to members; and
- A redesigned website, go.coop, for information about cooperative business.
For more information, use the link.
Schenk speaks of CU MBL on 'Marketplace' radio
NEW YORK and MADISON, Wis. (10/2/09)--Credit unions' ability to offer member business loans can help small businesses in a tightening market, Credit Union National Association senior economist Mike Schenk told a public radio audience on "Marketplace."
He was interviewed Wednesday as part of a story about business lending becoming rarer, now that the CIT Group--the nation's largest lender to small and medium sized businesses--is scrambling to work out a deal with its bondholders to stay out of bankruptcy.
CIT, which lends up to 70% of the funds businesses borrow, had earlier received $2 billion in funds from the federal government's Troubled Asset Relief Program (TARP). If that deal doesn't gel, CIT would become one the of biggest bankruptcies in the nation.
A CIT failure would jolt the still-fragile economy, Schenk told senior business correspondent Bob Moon. "It would more than likely cause some small businesses to go out of business themselves. The key for any small business at this point is to be looking for alternatives."
Schenk said there aren't many places for small businesses to go to get loans. Credit unions can help businesses with some types of business loans.
"We keep stepping to the plate and helping these folks out as much as we can. Loans at credit unions--business loans--actually grew 14% in the 12 months ending June."
For the full story, use the resource link.
News Now’s top 10 stories for September
MADISON, Wis. (10/2/09)--A story about the National Credit Union Administration (NCUA) banning 12 from financial institution heads up September's top stories for News Now. Other top 10 stories involve National Credit Union Administration Chair (NCUA) Debbie Matz's first board meeting, and two credit union robberies.
Here are the top 10 most requested News Now stories during September. Use the links to read the full stories:
10. Fed limits CARD Act minimum payment warnings to credit cards
WASHINGTON (9/30/09)--Proposed amendments to Regulation Z released by the Federal Reserve today would limit the required minimum payment warning disclosures outlined in the Credit Card Accountability, Responsibility and Disclosure (CARD) Act to credit card accounts.
9. Schumer to back Sen. overdraft bill
WASHINGTON (9/09/09)--Sen. Charles Schumer (D-N.Y.) announced Tuesday that he wants to see more consumer protections associated with overdraft protection plans and that he will back legislation targeting abusive practices.
8. Government lets UBIT filing date pass
WASHINGTON (9/16/09)--The government let its 60 days come and go and failed to file an appeal to a federal court judge's July decision that backed a favorable verdict for credit unions in an unrelated business income tax (UBIT) case.
BISMARCK, N.D. (9/11/09)--Tony Richards, president/CEO of Mid-America Credit Union Association (MACUA), has resigned, effective immediately.
6. Dodd may introduce overdraft fee bill this week
WASHINGTON (9/21/09)--Senate Banking Committee Chairman Chris Dodd as early as this week could introduce a bill that would require financial institutions to seek permission before they can enroll their accountholders in an overdraft protection program.
5. Former CU exec commits suicide during arrest
MACON, Ga. (9/9/09)--A former manager of a Georgia credit union committed suicide when local authorities tried to arrest her on charges of embezzlement.
4. Matz's first meeting: 0.15% NCUSIF assessment, CLF changes
ALEXANDRIA, Va. (9/25/09)--As anticipated, the National Credit Union Administration (NCUA) on Thursday approved a 0.15% of insured shares assessment on federally insured credit unions. The action is intended to help the NCUA return the National Credit Union Share Insurance Fund's (NCUSIF) equity to 1.3% of June 30, 2009 shares and repay $310 million in funds the Stabilization fund has borrowed from the U.S. Treasury.
3. U.S. Central 2008 financial statement released
WASHINGTON (9/14/09)--When assessing the December 2008 U.S. Central FCU financial statement released Friday, interested parties should remember that the reporting was completed under a since revised accounting standard that forced the corporate credit union to record a larger other than temporarily impairment (OTTI) charge than current accounting rules require, the Credit Union National Association (CUNA) said upon the release of the statement.
2. One dead, three arrested after CU robbery
TAMPA, Fla. (9/28/09)--Three robbery suspects were apprehended by police and one person was found dead, an apparent suicide, in the aftermath of a Thursday robbery of Grow Financial CU, in Tampa, Fla.
1. NCUA bans 12 from financial institution work
ALEXANDRIA, Va. (9/24/09)--Twelve former credit union employees have been banned by the National Credit Union Administration (NCUA) from participating in the business of any federally insured financial institution.
Student-run CUs in the limelight
MADISON, Wis. (10/2/09)--Several student-run credit unions were in the news Thursday. Two reports highlighted student run branches in an elementary school and a middle school. Another credit union announced the opening of two branches in local high schools.
ABC news affiliate WJLA aired a feature Wednesday on Apple FCU, Fairfax, Va., which has a branch in a converted storage room at Saunders Middle School. There, sixth, seventh and eighth graders can learn the business by working in it. The station conducted interviews with credit union staffer Jamie Gatchell, seventh grade employees of the credit union, Prince William County school administrative officials and a parent. To access the report, use the resource link.
Educational Systems FCU, Greenbelt, Md., opened a credit union branch at Lake Arbor Elementary School on Sept. 23, according to the Gazette and Washington Post (Oct. 1). Lake Arbor is one of eight county schools using the $313 million asset credit union's program, which allows students to open savings accounts and make deposits. Julio Martinez, a school financial education coordinator for the credit union, told the Gazette that 23 students opening savings accounts on opening day. He will visit the school every two weeks to collect student deposits. Use the link to access the article.
Blackhawk Community CU, Janesville, Wis., in a press release Thursday, announced it opened two student-run branches in Janesville high schools on Sept. 1. The Cougar Student CU branch is at Craig High School and is open from 11:45 a.m. until 12:25 p.m. each day school is in session. Viking Student CU branch at Parker High School will be open 11:15 a.m. to 12:25 p.m. each day school is in session. The joint project between the Blackhawk Community CU and the schools are the result of two years' preparation. Celebrations were held Sept. 23 at Cougar and Wednesday at Viking. They are the 86th and 87th student-run credit unions in Wisconsin, according to Marketing Director Donna M. Wagner.
United FCU works to revive Clearstar's auto lending
ST. JOSEPH, Mich. (10/2/09)--United FCU--the St. Joseph, Mich.-based credit union that acquired the ailing Reno, Nev.-based Clearstar Financial CU last week--is working to revise Clearstar's auto loan program with new standards.
Duane Nelson, United chief operating officer, told a local newspaper that auto loans, not risky mortgage loans, were the main factor in Clearstar's failure (The Herald-Palladium Sept. 30). Clearstar's policies on what it would loan on collateral were liberal and its rates were probably too low considering the risk involved, he said.
The deal, which was coordinated with support from the National Credit Union Administration, will help United get a foothold into one of the nation's fastest-growing areas, Nelson told the publication.
The Reno-Sparks metropolitan area grew 21% from 2000 to 2008. Once the economy turns around, the Reno area will grow again, Nelson said. He added the merger gives United some diversity in its member base.
With the merger, United will have more than $1 billion in assets and serve more than 111,000 members in Michigan, Ohio, Arkansas, North Carolina and Nevada. Of those totals, $141 million in assets and 16,000 members are from Clearstar.
Cards help students establish credit history
ITHACA, N.Y. (10/2/09)--Credit cards can help fiscally responsible students establish credit histories, according to a Credit Union National Association (CUNA) youth expert.
If a student has the financial stability to keep up with a credit card's balance, it can be a valuable way for the student to create a good credit score and get educated about finances, Josh Jones, CUNA manager of young adult programs, told The Ithacan (Oct. 1), Ithaca College's student newspaper.
Credit history also is important for acquiring loans, financial services, and for getting a job. Some employers look at applicants' credit reports to see if they are in good standing--especially if the applicant would be handling money at the job, Jones told the newspaper.
About 84% of undergraduates surveyed by student lender Sallie Mae have at least one credit card--an increase from 76% in 2004. Students use the cards to pay for textbooks, school supplies and commuting costs. The average amount charged by students was $2,200--compared with $942 in 2004, the newspaper said.
Texas league, CUR announce board elections
FARMERS BRANCH, Texas (10/2/09)--Texas Credit Union League (TCUL) President/CEO Dick Ensweiler announced results of the TCUL and Credit Union Resources, Inc. (CUR) elections held Sept. 24.
Jim Minge was elected second vice-chairman of TCUL and chairman of CUR. Minge is a senior vice president at Randolph-Brooks FCU in Universal City. He has served on the board since 2006 and represents League District 8 (LoneStar Leaguer Oct. 1).
Paul Trylko was elected secretary-treasurer of TCUL and CUR. Trylko is CEO of Amplify FCU in Austin. He has served on the TCUL board since 2008, representing League District 12. In his new position, Trylko will also serve as chairman of TCUL's Political Action Committee.
Christa Hollier, was elected to the TCUL board by District 9 at a special meeting Sept 17. Hollier is CEO of Golden Triangle FCU in Groves. Last year, she was elected to the CUR board. However, with her election to the TCUL board, her CUR directorship became vacant.
TCUL, as sole shareholder of CUR, elected two individuals to fill vacancies on the CUR board:
- John Barad, CEO of Union Square FCU, Wichita Falls; and
- Jason Landry, CEO of Neches FCU, Port Neches.
Continuing board officers are:
- League Chair--Ayn Talley, CEO, Houston Police FCU;
- League First Vice Chair--Pamela Stephens, CEO, Security One FCU, Arlington; and
- CUR Vice Chair--Sandy Smith, CEO, Texas FCU, Dallas.
OpSS Council names two 'best practices' winners
MADISON, Wis. (10/2/09)--Two credit unions--Red Canoe CU of Longview, Wash., and Missoula (Mont.) FCU--are winners of the fifth annual CUNA Operations, Sales and Service (OpSS) Council's Best Practices Awards.
The awards recognize innovative solutions optimizing credit union performance. Winners delivered presentations on their entries during the council's 12th annual conference, which began Sunday and ended Thursday in San Diego.
Red Canoe CU won in the Sales and Service Management category for its creative implementation of the Credit Union National Association's (CUNA) Creating Member Loyalty program. With the program, the credit union saw results that included 20% deposit growth for the first six months of 2009. It exceeded its loan growth, sales performance and service goals. Staff esteem also has grown.
The credit union attributes its success with the program to:
- Senior management immersion;
- Pre- and post-session reporting;
- Creation of follow-up sessions;
- Internal promotions;
- All-staff recognition;
- Consistent measurement standards; and
- Clarification of the terms "sales" and "service."
Missoula FCU won the Branch Design category for its Platinum LEED Certified Branch, the second building in the state to achieve the highest LEED certification. (LEED stands for Leadership in Energy and Environmental Design, a green building rating system.) In addition to being viewed as the "green" financial institution in its area, Missoula FCU's ongoing, long-term operational expenses will be reduced. It estimated it will save $20,000 a year in energy costs. Double-stacked drive-up tubes and grey-water irrigation system, which filters and reuses water from fountains, sinks and showers for watering native grass landscapes, have resulted in an ongoing public blog. The branch design also has garnered press and non-industry awards.
To access the winning presentations, use the resource link.
Trinidad/Tobago CU Policy Act draws opposition
PORT OF SPAIN (10/2/09)--Trinidad and Tobago Labor Minister Rennie Dumas said that new legislation, the Credit Union Policy Act, will benefit credit unions. He made the statement after dozens of credit union stakeholders rejected the 67-page proposed policy at a Central Bank public meeting.
Dumas' comment was read on his behalf by Permanent Secretary in the Ministry of Labor Roslyn Khan-Cummings Wednesday during the National Credit Union Symposium in Port of Spain (Trinidad and Tobago Express Oct. 1).
"The credit union sector is one that is stable for decades has consistently provided access to credit facilities for our citizens," said Dumas' speech.
The proposal would mean the Central Bank would supervise credit unions, although development support would continue under the Cooperative Development Division.
Those opposed to the proposal said the approach to governing credit unions was a one-size-fits-all policy. They also said the proposed legislation is too stringent.
CU System brief
- DUBLIN, Ohio (10/2/09)--Ohio Gov. Ted Strickland has appointed Vidya Iyengar, CEO of Marion (Ohio) Community CU, to a three-year term on the state's Credit Union Council Board. Part of the Ohio Division of Financial Institutions, the council of seven members provides advice and recommendations to the regulatory agency and governor on issues of importance to credit unions. Chaired by Deputy Superintendent for Credit Unions Rose Bartolomucci, the council meets quarterly. Other council members are: Aaron Michael, Atomic CU, Piketon; Gary Soukenik, Seven Seventeen CU, Warren; Matthew Studer, Toledo Postal Employees CU; Robin Thomas, Taleris CU, Cleveland; and Linda Williams, Akron Fire Fighters' CU ...
Market News
MADISON, Wis. (10/2/09)
- U.S. consumer spending in August experienced its biggest jump since 2001, signaling that the largest piece of the economy--roughly 70%--is bouncing back from the worst slump in nearly three decades, analysts said. The month's 1.3% increase in purchases was bigger than predicted and came on the heels of a 0.3% July gain that was larger than forecast, the Commerce Department said Thursday. Also, income went up 0.2% for a second consecutive month, and inflation decelerated. Back-to-school sales and the federal government's "Cash for Clunkers" vehicle rebate program--which expired in August--helped spark spending, analysts said. However, economists predicted weak spending gains for the remainder of the year, which could hamper the economy's recovery from recession. An unemployment rate that could rise above 10%, and high consumer debt levels could cause people to refrain from spending, analysts said (Bloomberg.com and The Wall Street Journal Oct. 1) ...
- In a bad sign for the U.S. job market, first-time claims for unemployment benefits jumped by 17,000 to a seasonally adjusted 551,000 for the week ended Sept. 26, the Labor Department said. However, continuing claims stayed on their downward trend, dropping 70,000 to 6.09 million for the week ending Sept. 19. Conditions in the labor market are experiencing uneven improvement, and the most recent numbers are indicative of how gradual progress will be, analysts said. With the Labor Department releasing its monthly report on unemployment today, economists expect the unemployment rate will increase to 9.8% from 9.7%--which is the highest level in 26 years (Moody's Economy.com Oct. 1 and The New York Times Oct. 2) ...
- U.S. workers affected by job-cut announcements in September declined for the second consecutive month to 66,404, from 76,456 in August, and 95,094 a year ago, according to the Challenger Report by Challenger, Gray and Christmas Inc. The reduction in the number of announcements is consonant with other labor market indicators that suggest the negative impacts of layoffs on the job market are abating, analysts said. In September, the largest number of job cuts were in the automotive industry (22,114); followed by government and nonprofit organizations (7,583); retails (6,180); pharmaceuticals (5,579); and industrial goods (2,438) (Moody's Economy.com Oct. 1) ...
- Bolstering signs of a housing rebound, the number of contracts to purchase previously owned U.S. homes increased more than predicted in August, analysts said. The pending home sales index--that of signed purchase agreements--rose 6.4% in August after a 3.2% July gain and marked the seventh consecutive monthly gain, said the National Association of Realtors. Pending sales increased 12.4%, compared with sales a year earlier. All four U.S. regions shared in the August rise in contract signings, with the West and Northwest experiencing the biggest over-the-month increases. Low mortgage rates, falling home prices and government stimulus programs have helped put an end to the housing-market implosion that spawned the overall financial crisis, analysts said (Bloomberg.com and Moody's Economy.com Oct. 1) ...
News of the Competition
MADISON, Wis. (10/2/09)
- Financial services institutions could cut expenses if they probe more deeply into their operating costs, say bankers and consultants. Some say another 20% of spending can be slashed from annual budgets--especially if they outsource contracts for software, transaction processing and property maintenance. In recent years, PNC Financial Services Group Inc. was among the companies that instituted a major efficiency program. It saved $400 million in annual costs with 30% of the savings connected to third-party relationships, analysts said. Also, financial institutions need to invest more in their departments that monitor and negotiate contracts, analysts said. Technology is another area in which more efficiency gains can be realized, they added (American Banker Oct. 1) ...
- After three consecutive months of increasing confidence in the economy on the part of U.S small-business owners, September saw a reversal. The most recent Discover Small Business Watch index dropped 2.1 points from August to 87.7. Only 13% of small-business owners surveyed said they think the recession is over for their business, 69% said the recession isn't over for their business, and 18% said they aren't sure. "Although slightly lower this month, small-business confidence has been on a gradual climb since May, so this looks more like a pause than a reversal," said Ryan Scully, director of Discover's business credit card. "A lot of people are eager for a definitive signal that the economy is on the mend, but America's small-business owners aren't sending that message yet" (tradingmarkets.com Sept. 30) ...
- Kenneth D. Lewis, CEO of Bank of America Corp. (BofA), announced Wednesday he will resign at the end of the year. His successor will have to either capitalize on or salvage the acquisitions that engendered Lewis' downfall, analysts said. BofA has not named a replacement. Lawmakers and regulators have criticized Lewis since he masterminded a $29 billion January takeover of Merrill Lynch & Co., and bought subprime home lender Countrywide Financial Corp. in 2008, said David Hendler, an analyst for CreditSights Inc. Lewis is drifting out to sea, knowing the company can thrive without him, Hendler said. Since Lewis took the BofA helm in 2001, he spent more than $130 billion on acquisitions. The bank more than tripled its size and became the largest U.S. lender by assets and deposits, analysts said (Bloomberg.com Oct. 1) ...
Financial Planning Week can jump-start family finances
WASHINGTON (10/2/09)--Balance your checkbook. Develop your holiday spending plan. Start a savings account for your child. Get your estate in order. All these are ways to celebrate Financial Planning Week, Oct. 5-11, and one of the guests on this Sunday's H&FF Radio show shares many more tips to put your best plan forward.
Home & Family Finance airs Sundays at 3 p.m. EDT on the Radio America Network. The show also is carried on American Forces Radio Network. The one-hour program devoted to consumer finance issues is brought to you by America's credit unions and their 90 million members, and is presented by CO-OP Network.
The Credit Union National Association (CUNA) and Radio America are podcasting Home & Family Finance through iTunes, Podcast Alley, Odeo, and other popular podcast library sites, as well as on Radio America and CUNA's websites.
Sunday's show, which you also can hear later via the Internet, features Paul Berry, Washington, D.C., journalist and broadcaster, discussing these topics with special guests:
- "Financial Planning Week: Why It's Important to You and Your Family," with Ken McDonnell, program director, Employee Benefit Research Institute/American Savings Education Council, Washington, D.C.;
- "I Will Teach You to Be Rich," with Ramit Sethi, founder and writer of Iwillteachyoutoberich.com, and co-founder of PBwiki, San Francisco, Calif.;
- "Technology Trends at Your Bank or Credit Union," with Kathy Herziger-Snider, vice president, product development, CO-OP Financial Services, Rancho Cucamonga, Calif.; and
- "Payday Lending, Usury Laws, and Statutory Sleight of Hand," with Christopher Peterson, associate dean for academic affairs and professor of law, S.J. Quinney College of Law, University of Utah, Salt Lake City.
Home & Family Finance is a resource center for personal finance information at CUNA. The radio show is sponsored by CO-OP Network, the national credit union ATM network; Cabot Creamery Cooperative, maker of award-winning cheddar; Western Corporate FCU, also known as WesCorp, and its member credit unions; and the Defense Credit Union Council and member credit unions, serving those who serve our country worldwide.
For more information, see "Tough Times Series: Payday Borrowing Pokes a Hole in Your Pocket" in Home & Family Finance Resource Center.
CSS, MoneyGram offer money transfer services
MINNEAPOLIS (10/2/09)--CUNA Strategic Services (CSS) and MoneyGram International announced they will provide 7,900 credit unions access to MoneyGram's global money transfer and bill payment services.
CSS has offered MoneyGram money order services to credit unions for more than 35 years.
Under the agreement, the credit unions--which represent 21,000 individual branches--can implement the money transfer and bill payment service. Once implemented, the credit unions will be connected to 180,000 agent locations in more than 190 countries and territories for money transfer services. MoneyGram ExpressPayment services also are available for payments to 2,000 U.S. billers, including auto and mortgage lenders.
About 90% of credit unions do not offer global money transfer services, said Tim Summers, general manager of Consumer Products--Americas.
An Aite Group survey cited by the companies also indicates that 85% of credit unions have increased their deposits over last year and 70% are working to attract deposits from banks.
"Last year, more than 6,000 credit unions implemented solutions offered via CUNA Strategic Services' partnerships," said Wes Millar, CSS senior vice president. "Expanding our relationship with MoneyGram to money transfer and bill payment services provides an instant opportunity for credit unions to enhance their products."
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