Headlines via Email
RSS Feed
What is RSS?
News Now Archive
Filed on October 6, 2009, published the first business day after.
- Mica touts CU difference in Bloomberg TV interview
- New Web page celebrates creation of CUNA
- Federal consumer panel meeting to focus on CARD Act
- Inside Washington
- WSJ: CUs, others would ‘pay price’ on interchange controls
- Wash. Post/Kiplinger’s: Avoid overdraft fees, bank at a CU
- Study: Consumers, small biz look to FIs for help
- Shared branching kept CU open during G-20 Summit
- California/Nevada leagues partner with Guatemala
- Missouri CUs crank it up for HFOT, soldiers
- Ex-manager sentenced to 11 years for $2.2M theft
- Nomination received for CUNA board election
- Google/Twitter adviser keynotes retail delivery convention
- Council paper addresses analyzing training needs
- Tinker FCU hits $2 billion in assets
- CU System briefs
- Market News
- News of the Competition
- Halloween: Save dough while having a scary good time
- FIS completes acquisition of Metavante Technologies
- PSCU Financial leases space to Ongoing Operations
Mica touts CU difference in Bloomberg TV interview
WASHINGTON (10/7/09)--Public demand and congressional action could force banks to adopt many of the conservative, pro-consumer business practices currently employed by credit unions, but credit unions will still be "driven by a different motive" than that of banks, Credit Union National Association President/CEO Dan Mica said during a Monday appearance on Bloomberg TV.
While banks will never be confused with credit unions, they may have to "pay more attention to what consumers want and not just what shareholders want," Mica added.
Mica also commented on the democratically owned-and-operated nature of credit unions, which is "clearly very different" from the way that the shareholder-beneficial banking industry is set up.
More specifically, Mica highlighted the beneficial lending and mortgage rates that credit unions have always provided to their members, as well as the strong 10% capitalization ratios that are currently held by credit unions. Mica also touted recent increases in mortgages, which are up by 8% for credit unions, and member business lending, which he said has increased by 14%.
"All in all, we are out there lending, and that is what this economy needs," Mica added.
While the exact format of the proposed Consumer Financial Protection Agency will likely change as it moves through the legislative process, Mica said that Congress "will almost certainly get something out," as there is a strong will among some congressional leaders, Treasury Secretary Timothy Geithner, and President Barack Obama to create the new agency.
New Web page celebrates creation of CUNA
WASHINGTON (10/7/09)--Videos of the inspirational speeches given at the 75th anniversary of the founding of the Credit Union National Association (CUNA), recorded by CUNA staff, are now up and ready for viewing on the CUNA website.
The speeches and a recreation of a historic photo of CUNA's founders took place at the Sept. 16 commemoration of CUNA's founding. Current credit union leaders and descendants of credit union pioneers met in Estes Park, Colo., the original location where American credit union pioneers developed and ratified the original CUNA charter three-quarters of a century before.
The commemoration of CUNA's founding was marked by speeches, a celebratory toast, dedication of a new plaque commemorating the founding of the nation's largest credit union organization, and the restaging of an iconic photo of CUNA founders taken in 1934, featuring credit union movement officials, supporters and officers of today.
Speaking at the event were CUNA President/CEO Dan Mica; CUNA Chairman Kris Mecham; American Association of Credit Union Leagues Chairman Rosie Holub; Kathy Pelletier, granddaughter of CUNA founder and first Managing Director Roy F. Bergengren; and Catherine and Bill Herring, children of CUNA founder and movement pioneer Louise McCarren Herring.
The videos, as well as a downloadable photo of those who joined to recreate the iconic photo of the founders of CUNA, can be viewed at the new CUNA web page.
To view the new web page, use the resource link.
Federal consumer panel meeting to focus on CARD Act
WASHINGTON (10/7/09)--The Federal Reserve Board's Consumer Advisory Council (CAC) has scheduled proposed rules to implement the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 as one of several topics of discussion for its next meeting, which will take place on Oct. 22.
According to the Fed's notice, the complete CAC agenda also includes discussion of proposed rules regarding disclosures related to closed-end mortgages and home-equity lines of credit and potential consumer protections for home-secured credit.
Foreclosure issues will also be discussed during the meeting, with a particular focus falling on loss mitigation efforts, the Obama administration's Making Home Affordable program, and other topics.
Other items may be added to the agenda, if requested by CAC members.
Parties that wish to present their views to the CAC on these topics may send written statements to Jennifer Kerslake, Secretary of the Consumer Advisory Council, Division of Consumer and Community Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551.
The Credit Union National Association earlier last month nominated American Southwest CU President/CEO Brian Barkdull to represent credit union interests on the 30-member CAC panel.
Inside Washington
- WASHINGTON (10/7/09)--The Department of Veterans Affairs (VA) has asked financial institutions to honor emergency advance education payments that have been issued as checks from U.S. Bank. These checks, which began being issued last Friday, are for combat veterans to pay their educational benefits for the 2009 school term, and will be accompanied by a letter from the VA that validates the legitimacy of the check. According to the Credit Union National Association, some credit unions have questioned the validity of these checks, as they are drawn to U.S. Bank rather than the Department of the Treasury, as usual. Financial institutions that want to verify a given check may do so by contacting the VA at 1-800-827-2166. Additional contact information may be found at www.va.gov ....
- WASHINGTON (10/7/09)--The financial services industry needs to either support a proposed consumer protection agency, or prepare to be overrun by individual financial reforms that would affect credit cards, overdrafts and interchange fees, policy analysts say (American Banker Oct. 6). Bankers continue to oppose the creation of a consumer agency, but House Financial Services Committee Chairman Barney Frank (D-Mass.) said last month they need to pick their battles. Frank said he plans to continue pushing individual reforms until an agency is created. The chairman also is conducting a hearing Thursday on card reform and interchange fees. Meanwhile, Senate Banking Committee Chairman Christopher Dodd (D-Conn.) is expected to introduce legislation that would restrict overdraft fees. Consumer advocates say policymakers should keep pressure on the banks. The credit card industry "deserves a kick in the head for what they are doing," said Ed Mierzwinski, consumer program director for the U.S. Public Interest Research Group. If Frank wants to go "a la carte" for awhile on reforms, he has the group's support, Mierzwinski added ...
- WASHINGTON (10/7/09)--A version of a derivatives regulation bill, by House Financial Services Committee Chairman Barney Frank (D-Mass.), would give financial institutions and others more flexibility to use derivatives for hedging purposes without sending them through a clearing house. In comparison, a Treasury draft of a bill submitted to Congress in August would require all end user firms to use a clearing house unless they could show the derivative would be used to hedge against risk. Though Frank's bill is more flexible, larger banks may not support it because they would still have to fulfill clearing and exchange-trading requirements (American Banker Oct. 6). Financial observers also say it would hurt dealers' profits. The bill appears to have won the support of moderate Democrats, but it's unclear what members of the House Agriculture Committee, which oversees the Commodity Futures Trading Commission (CFTC), think about the matter. A hearing is scheduled for today to further discuss the bill. CFTC Chairman Gary Gensler is slated to testify ...
WSJ: CUs, others would ‘pay price’ on interchange controls
NEW YORK (10/7/09)--Credit unions, consumers and community banks will foot the bill if Congress decides to put price controls on interchange fees, says The Wall Street Journal.
In a Thursday opinion piece, John Berlau, director of the Competitive Enterprise Institute's Center for Investors and Entrepreneurs, points to 7-Eleven Inc. and other retailers as culprits in forcing "big government down the throats of American consumers.
"If Congress acts on 7-Eleven's misleading petition to put price controls on interchange fees, consumers will pay the price through the reduction of credit card reward programs such as frequent flier miles, and the possible return of annual fees," Berlau wrote. "Credit unions and community banks will pay the price, too, in higher costs that will make it more difficult to offer cards at all. This could force their customers to abandon their local lending institutions if they want the convenience of credit and debit cards.
"Contrary to the spin of the 7-Eleven and other big retailers, interchange fees, also called ‘swipe fees,' are only levied on merchants, and none of the major legislation currently before Congress would require retailers to pass on one penny of their resulting savings to consumers," Berlau added. "Australia's recent experience with interchange price controls, for example, resulted in no tangible benefits--but plenty of added costs--for consumers down under."
Mastercard Inc. and Visa have come out against 7-Eleven's position on interchange fees.
MasterCard released a study that claims consumers were misled by a petition intended to drum up support for interchange fee regulations (News Now Oct. 2).
Visa also weighed in on the interchange debate, saying that legislators and the public should not be swayed by the showy delivery of 15,000 booklets by 7-Eleven executives of signatures supporting interchange fee reforms (News Now Oct. 5).
CUNA has spoken in favor of the current interchange fee structure, saying that regulating interchange fees would adversely affect consumers, competition and technological innovation. CUNA also has highlighted the positives of interchange fees, saying that the fees help credit unions cover their expenses and losses while offering merchants a guaranteed source of payment at the time that the transaction is completed (News Now Aug. 10).
Wash. Post/Kiplinger’s: Avoid overdraft fees, bank at a CU
WASHINGTON (10/7/09)--Consumers should bank at a credit union to avoid costly overdraft fees, said a personal finance columnist for Kiplinger's, whose column was reprinted in The Washington Post Sunday.
In a column titled "Three Ways to Avoid Overdraft Fees," Joan Goldwasser tells readers that one way is to "bank at a credit union or small bank."
Goldwasser writes: "‘Credit unions have the lowest fees and require the lowest balances,' says Ed Mierzwinski of the consumer advocacy group U.S. PIRG. And small community banks make it easier to decline overdraft protection. If your bank doesn't let you opt out, find one that does."
To read the column, use the link.
Study: Consumers, small biz look to FIs for help
CALABASAS, Calif. (10/7/09)--Consumers and small business owners are seeing a light at the end of the economic tunnel and that light could be their credit union's online finance management tools.
A year after the banking crisis began, 52% of consumers surveyed said their financial prospects will improve during the next 12 months. And 61% of small business owners said they were also optimistic about their business's growth.
They will be turning to credit unions and other financial institutions to help them make the most of their opportunities. Nearly 70% of respondents expressed confidence in the stability of their credit union or bank.
Consumers and businesses surveyed also said they wanted more online tools from their financial institutions.
The survey findings were presented by Digital Insight, the financial institutions division of Intuit Inc., last week. Digital Insight is a provider of online financial management tools to credit unions and banks. Its research was conducted by Decipher research in July and August by polling 1,000 adults and 5j00 small business owners across the U.S.
Other findings:
- Roughly 80% of consumers pay bills and transfer funds online but 62% would like a single place to manage their complete financial picture, no matter where the information originates.
- Nearly half would like online help with tracking expenses and budgeting.
- About 80% of consumers and small businesses named their credit union or bank as their most trusted online destination to manage their finances--up from 68% last year.
- Seventeen percent of small business owners have increased their use of online financial management tools in the past year.
- The top five tasks that small business owners would like to manage online are: processing credit card and automated clearinghouse payments; invoicing; making remote deposits; planning and filing taxes; and learning about new products and services.
"Consumers and small business owners clearly are looking for help as they manage through the strained economy," said Sasan Goodarzi, president of Digital Insight.
"Financial institutions have an unprecedented opportunity to seize this moment and provide the tools and services that their customers and members want and need. By offering the right tools at the right time, they can build lifelong relationships that will help grow their business."
Credit unions are lending to small businesses owners who are struggling to find loans in a tight credit market. The Credit Union National Association says that increasing the lending limit for these loans to 25% from the current 12.25% would go a long way in helping small businesses. Increasing the limit would free up an extra $10 billion in capital for small businesses and commercial loans.
Shared branching kept CU open during G-20 Summit
HARRISBURG, Pa. (10/7/09)--Pittsburgh-based Allegent Community FCU temporarily closed its branch and relocated its entire staff to a remote location while the G-20 Summit of world leaders met in downtown Pittsburgh for three days in September.
According to the Pennsylvania Credit Union Association, the credit union on Sept. 23 set up a temporary working environment, equipped with a call center, in North Hills. There, staff took phone calls, handled loan applications and performed most of their job functions (Life is a Highway Oct. 6).
The only thing Allegent didn't have was a physical branch for members to transact business. However, the credit union said the Shared Branching Network allowed Allegent members to make transactions at other credit unions in the area so they could avoid downtown Pittsburgh during the summit.
Call center staff for Allegent said most of the members used shared branching for the first time those three days and were pleased they could still make their financial transactions.
California/Nevada leagues partner with Guatemala
ONTARIO, Calif. (10/7/09)--Representatives from Guatemala's national credit union trade association met with a California assemblywoman from Guatemala and inked a partnership agreement with the California and Nevada Credit Union Leagues in a weeklong visit earlier this month.
The visit by representatives from the Federación Nacional de Cooperativas de Ahorro y Crédito (Federated Cooperative Credit Union System or FENACOAC) ended Oct. 2.
 |
| Oswaldo Oliva, left, CEO of FENOACOAC, Guatemala's credit union trade association, and Bill Cheney, president/CEO of the California and Nevada Credit Union Leagues signed a World Council of Credit Unions International Partnerships agreement Sept. 29. (Photo provided by the World Council of Credit Unions) |
"We're looking forward to working with credit unions in Guatemala now and in the future," Cheney said.
The leagues will work with the Guatemalan federation and WOCCU in the areas of advocacy, shared branching and the implementation of a share insurance fund in the Central American country. The recent meeting set the stage for considerable efforts to come, according to FENACOAC's Oliva.
"We learned a lot from our visit, and we're leaving with a list of things we're going to implement immediately," Oliva said.
The delegation also met with Assemblywoman Norma Torres (D-Pomona), the first Guatemalan immigrant to serve in California's state assembly, at the leagues' Ontario, Calif., office. Torres is a member of the Assembly Banking and Finance Committee.
A long-time credit union member, Torres said credit unions have special relationships with their members in that they know each member by name. She pledged to support the credit union cause in both California and Guatemala, and encouraged the delegation to stress the role credit unions play.
"You need to tell people about how credit unions are different from banks," said Torres.
In addition to Oliva, the FENACOAC delegation included Guillermo Peralta, board chairman; Carlos Flores, strategic marketing manager; and Mario Salvatierra, business coordinator. They visited to learn about the U.S. credit union system, league operations, risk management, marketing, branding and shared branching.
The delegation also met with Altura CU, Riverside; SchoolsFirst FCU, Santa Ana; and Financial Service Centers Cooperative, San Dimas.
The new partnership brings WOCCU's International Partnership Program's active partnerships to 25.
"Partnerships show that cooperation among credit union organizations is important in strengthening our industry worldwide," said Victor Miguel Corro, WOCCU senior manager for international partnerships, who participated in the visit. "I have no doubt that California/ Nevada's and Guatemala's willingness to share and exchange knowledge will make for better services offered to members."
Missouri CUs crank it up for HFOT, soldiers
BRANSON, Mo. (10/7/09)--Country music stars The Bellamy Brothers and Lee Greenwood ended the Missouri Credit Union Association's annual convention with a concert to raise awareness and funds for Missouri's first recipient of a specially adapted home built by Homes for Our Troops (HFOT).
 |
| SSG Robert Canine, his brother Jamie, Homes for Our Troops (HFOT) Founder/President John Gonsalves, Rep. David Day (R-148) and credit union representatives meet with singer Lee Greenwood (center, back row) before a concert to raise awareness and funds for HOFT homes for disabled veterans. |
 |
| The Bellamy Brothers met HFOT President/Founder John Gonsalves and Army SSG Robert Canine backstage during a fundraising concert at the end of the Missouri Credit Union Association's convention and exposition in Branson, Mo. Canine will receive a specially built home from HFOT. (Photos provided by the Missouri Credit Union Association)
|
Canine lost both legs below the knee in May 2009 when his Humvee was attacked in Iraq. A native of Mexico, Mo., Canine is walking again on prosthetics and undergoing physical therapy. He, his wife Jennifer and 8-year-old son Sebastian plan to reside in Columbia, Mo. United CU, Mexico, provided information about HFOT to Canine's family.
"This entire experience almost seems too good to be true," said Canine. "When I think about what Missouri credit unions and Homes for Our Troops are doing for me and my family, I just try not to cry. I am so thankful for everything."
Mid Missouri CU, Fort Leonard Wood, helped bring 25 local soldiers representing the base's Warrior Rehabilitation Unit to the concert for free. Brent Sadler, Mid Missouri chief operating officer, noted that when the HFOT concert coincided with the credit union convention, "it only made sense to reward some heroes that have actually been overseas protecting our nation by giving them the red-carpet treatment."
Both the Bellamy Brothers and Greenwood met with credit union representatives, Canine and his brother Jamie, and the Warrior Rehabiliation Unit soldiers before the concert.
Greenwood told the group, "It's a great thing that you are doing. I commend you for all of your hard work in helping these soldiers."
Credit unions in Colorado and Minnesota also worked with HFOT and the national presidential conventions to build homes in those states for veterans wounded overseas.
Ex-manager sentenced to 11 years for $2.2M theft
HOUSTON (10/7/09)--The former manager of the Houston Longshoreman's FCU No. 24 was sentenced to more than 11 years in prison for taking $2.2 million in fake loans.
Melinda Diane Andrews, 53, managed the credit union and created 110 phony loans for more than $7 million, court documents revealed (Houston Chronicle Oct. 5).
Using the bogus loans, she funneled away $2.2 million for herself and family members between 2000 and 2006, the document indicated.
Because of the thefts, the credit union closed in February 2006, prosecutors alleged in the original charges against her.
Andrews was sentenced to 135 months--11.25 years--in prison after being found guilty of financial institution fraud against the credit union, and for tax evasion and theft for failing to report $236,000 in stolen income in 2004.
The National Credit Union Administration discovered the improprieties during an audit (Examiner.com Oct. 5).
Nomination received for CUNA board election
MADISON, Wis. (10/7/09)--The Credit Union National Association (CUNA) has received another nomination for its 2009-2010 board elections.
The fifth nominee and district category is Laida Garcia, Florida Central CU, Tampa, Fla., District 3, Class B.
Already nominated are:
- Dennis E. Pierce, CommunityAmerica CU, Kansas City, Mo., District 4, Class C;
- John A. Graham, Kentucky Employees CU, Frankfort, Ky., District 2, Class A;
- Marla S. Marsh, Kansas Credit Union Association, Wichita, Kan., District 5, Class D; and
- Susan Steifel, Woodstone CU, Federal Way, Wash., District 6, Class A.
The deadline for nominations is Oct. 16. Nominations are being accepted in eight categories:
- District 1, Class C;
- District 2, Class A;
- District 3, Class B;
- District 4, Class C;
- District 5, Classes B and D; and
- District 6, Classes A and D.
Eligible candidates must be an employee or voting board member of the nominating credit union. Nominations must be in writing and seconded in writing by two other credit unions of the same size group from the district.
Only two seconds will be recorded for each candidate. Upon request, a list of credit unions by size group and district will be furnished to candidates to assist in obtaining seconds.
To be an eligible league candidate for a CUNA Director position, individuals must be a league president and be nominated in writing by their league, with a second in writing by at least one other league from the district.
CUNA's Corporate Governance Committee will verify eligibility of each candidate, the credit union's affiliation, size group and district, and date/time of receipt. Voting will begin Oct. 23 and close Dec. 18.
For more information, use the link.
Google/Twitter adviser keynotes retail delivery convention
SAN DIMAS, Calif. (10/7/09)--The keynote address of Financial Service Centers Cooperative's 2010 Credit Union Retail Delivery Convention will be given by Chris Sacca, Twitter adviser and former head of special initiatives for Google.
Sacca will tell credit unions how to create a culture of new media by discussing his experiences with Google and how the credit union movement can use those principles to serve its members. He also will share how Twitter grew its business by 400% in three months.
Other speakers at the conference will provide analyses of the trends surrounding social media and the growth of dialogue, new retail delivery channels, disaster planning and the latest consumer and member trends.
The convention is scheduled for June 30 through July 2 in Chicago. This year's theme is "Delivering the Future...Now." The convention aims to provide credit unions with opportunities to enhance their strategies on membership growth, innovation and consumer trends.
Council paper addresses analyzing training needs
MADISON, Wis. (10/7/09)--A training-needs analysis can help credit unions in times of budget tightening to determine which types of training is most needed, according to a new CUNA HR/TD Council white paper, "Conducting a Training Needs Analysis for Your Credit Union."
The paper includes three case studies that show how credit unions have used training needs analyses (TNAs) successfully. The training leaders note in the paper that both formal and informal processes can do more than identify topics for training classes at credit unions.
A TNA also should:
- Advance progress toward the credit union's strategic goals;
- Refine training tactics;
- Improve communication;
- Offer opportunities for personal development; and
- Enhance workplace performance.
The paper also discusses formal and informal approaches as it explores credit unions' options for learning more about employees' training needs.
For more information about the paper or the Human Resources/Training Development Council, use the link.
Tinker FCU hits $2 billion in assets
OKLAHOMA CITY (10/7/09)--Tinker FCU (TFCU) announced Tuesday it has reached the $2 billion asset mark, despite the economy.
"I remember when we reached the $1 billion mark in 2001. It took us 55 years," said TFCU President/CEO Michael D. Kloiber. "Now in just eight years, we're at $2 billion."
He noted a "good, sound asset base allows us to do more for (our members in the way of services, technology and benefits." He attributed the growth to consistent sound business practices and the loyalty of the Oklahoma City-based credit union's more than 200,000 members.
"Like other credit unions, we avoided the subprime mortgage arena. And, we held steady with a solid asset and liability plan that emphasized consistently competitive rates without trying to lead the market on every product every day," Kloiber explained.
The credit union's member growth and loan growth were the results of the credit union's strong member service and branch network, a financial education program developed last year, www.buckthenorm.com--a TFCU-hosted website geared to teens and young adults, various outreach programs targeting Gen Y and a strong branding campaign, he said.
TFCU tracks member and public perception of its service and brand recognition. It has a Net Promoter Score of 85%, which means 85% of its members would recommend the credit union to their family and friends. Bankography listed TFCU in the nation's Top 10 for brand recognition, the credit union said.
CU System briefs
- ALBANY, N.Y. (10/7/09)--Credit union representatives from the Utica-Rome chapter of the Credit Union Association of New York
recently gathered for an event to benefit the association's state political action committee. Rep. David R. Townsend (R-Central N.Y./Utica-Rome) attended the event and spoke with his credit union constituents. Events like these "serve a dual purpose," said Cheryl Frantzen, association political action coordinator. "They help ensure that credit unions maintain a voice in the political arena while raising awareness among fellow credit unionists of legislative issues facing our credit unions today." Pictured are Jeff Gardner (waving), board member of Utica District Telephone EFCU; Townsend (at center in back), and several credit union representatives. (Photo provided by the Credit Union Association of New York) ...
Click for larger view - WESTBROOK, Maine (10/7/09)--The Maine Credit Unions' Campaign for Ending Hunger, in partnership with Good Shepherd Food Bank,
celebrated the fourth anniversary of Maine's first and only "food mobile" Monday with a contribution of $7,500. The amount is symbolic of the 7,500 pounds of food that the food mobile can carry each trip. The food mobile has distributed 1,129,540 pounds of food to food pantries throughout Maine since the mobile's inception in 2005. Food pantries in every Maine county receive its deliveries each year. Jon Paradise, governmental and public affairs manager for the Maine Credit Union League, and Diane Dunton, chair of the board of Good Shepherd Food Bank, stand in front of the state's only food mobile holding the check from the campaign. (Photo provided by the Maine Credit Union League) ...
Click for larger view
Market News
MADISON, Wis. (10/7/09)
- U.S chain store sales rose 0.3% in the week ended Oct. 3, according to the International Council of Shopping Centers sales index. Sales also improved on a year-ago basis, increasing 1%, compared with 0.9% previously. Cooler weather sparked stronger customer traffic for the week, analysts said. However, spending remains weak, they added. Although sales have gained in each of the past two weeks, the index has not recovered its 2% decline from three weeks ago. Overall, consumer fundamentals continue to be mostly weak and unfavorable to spending, despite the end of the recession, analysts said. Job losses still are the most prominent drag on spending. Also, wage income is more than 5% below year-ago levels, they added (Moody's Economy.com Oct. 6) ...
- U.S. apartment vacancies rose to their highest point since 1986 because increased unemployment has reduced rental demand, said Reis Inc., a real estate research firm that monitors vacancies and rents in the top 79 U.S. markets. In the third quarter, vacancies increased to 7.8%. Effective rents--which are accrual rents paid by tenants--dropped 2.7% from a year earlier. Asking rents--what landlords were seeking--fell 1.8% from a year earlier. Declining wages and job losses are eroding the pool of potential tenants, analysts said. The U.S. unemployment rate climbed to its highest level since 1983, recording a 9.8% mark in August, the Labor Department said Friday. Rents are decreasing most steeply in some areas that had been doing well until a year ago when unemployment intensified in places such as Tacoma, Wash.; San Jose, Calif.; and Orange County, Calif., analysts said (The Wall Street Journal and Bloomberg.com Oct. 6) ...
- Blacks and Hispanic whites are substantially more likely to have their applications for housing refinancing denied than non-Hispanic whites, according to a Federal Reserve report on home mortgage data. The annual report is compiled from data culled from more than 8,000 mortgage lenders nationwide under the Home Mortgage Disclosure Act (HMDA) of 1975. The denial rate was 61% for blacks, 51% for Hispanic whites and 32% for non-Hispanic whites for applications to refinance conventional mortgages--those not insured by the federal government. The Fed report indicated that the differences among races could partially be due to factors that HMDA data doesn't measure, such as borrowers' overall debt-to-income ratios and debt records. Also, mortgage lending in some areas is more competitive than in others--and different groups of people may use different methods when looking for home loans, analysts said (The Wall Street Journal Oct. 6) ...
- It could take the U.S. four years--until 2013--to recoup all the jobs lost during the recession, said JPMorgan Chase & Co. economists, based on their analyses of "disappointing" September employment figures. Labor Department figures reinforce "the message that even our above-trend growth forecast won't deliver economic health," wrote Bruce Kasman, chief economist at JPMorgan, and David Hensley, director of global economic coordination in a note Friday to clients. The economy will grow at a 3.5% average pace in the second half of 2009 and will grow 3.2% for all of 2010, said JPMorgan. This forecast still "would represent a very disappointing outcome against the backdrop of damage done during the recession," Kasman and Hensley wrote. The three steepest recessions in the aftermath of World War II were followed by 5% average growth rates in the first two years of recovery, their research indicated (Bloomberg.com Oct. 6) ...
News of the Competition
MADISON, Wis. (10/7/09)
- Frontier Financial Corp. said its purchase by SP Acquisition Holdings Inc. fell apart. Federal regulators had ordered Frontier--a Pacific Northwest bank--to obtain more capital. "The parties could not secure the required regulatory approvals" by an Oct. 10 deadline, the two companies said Monday in a statement. SP--a blank-check company created to complete an acquisition--will be liquidated, analysts said. Frontier has 51 branches in northwestern Oregon and western Washington. It reported a six-fold rise in overdue loans from a year earlier, totaling $764.6 million in the quarter ended June 20, according to Federal Deposit Insurance Corp. (FDIC) data. Roughly 43% of Frontier's delinquent loans were in construction and development, the data indicated (Bloomberg.com Oct. 5) ...
- Bank of America Corp. (BofA) plans to test a service that allows customers to use mobile phones to deposit checks electronically. Although BofA is not the first company to offer mobile remote capture, it would be the biggest, analysts said. "I think BofA entering the fray is by definition a game-changer," said Bob Meara, a senior analyst at Celent--a Boston market research company. If BofA enters the market it would transform a niche application into a mainstream offering, analysts said. "This will be a driver for other top 10 banks to do this," said Nicole Sturgill, the research director for delivery channels at TowerGroup, an independent research firm (American Banker Oct. 6) ...
Halloween: Save dough while having a scary good time
WASHINGTON (10/7/09)--As consumers cut back on everything from groceries to gas, it's not surprising that they'll also cut back on celebrating Halloween. Nearly one of three (29.6%) consumers say a down economy will affect their Halloween spending plans.
Consumers are expected to spend an estimated $4.75 billion on Halloween this year, with the average person planning to spend about $56--down about $10 per person from last year (National Retail Federation Sept. 29).
Though money may be tight this year, it doesn't mean that you still can't have some "spook"tacular fun. Here are a few ideas:
- Decorate your home using standard household items. You may be surprised to find that you probably have tons of items already on hand that would make fantastic decorations. You easily can paint black bats on cardboard, cut them out, and dangle from fishing line; use yarn to create giant spider webs for windows and staircases; recycle old clothes and costumes, stuff them with newspaper, and set them out on your front doorstep or bench (wikihow.com).
- Check out Halloween websites. Many sites have clearance sections displaying last year's favorite costumes. Chances are your three-year-old is too young to know the difference between the "new" Spider-Man and the "old" one--unless he has an older brother suite101.com.
- Shop around. Steer away from Halloween specialty stores, where prices usually skyrocket. These stores generally are temporary and many are not set up to do returns or exchanges, or to offer merchandise credits. Also consider shopping closer to Halloween, when prices often fall to 50% to 75% off the original prices at most retailers.
- Make your own. Sometimes the best costumes aren't purchased in stores. Gaudy clothes, a hat, map, and camera make a tourist; spiked hair, makeup, and torn clothing make a rock star; and a sweat suit, tennis shoes, ponytail or headband, and iPod make a great runner or fitness trainer.
FIS completes acquisition of Metavante Technologies
JACKSONVILLE, Fla. (10/7/09)--Fidelity National Information Services (FIS) announced it has completed the acquisition of Metavante Technologies. The resulting company, called FIS, will continue to serve credit unions and other financial institutions, the companies said in a release.
FIS and Metavante provide transactional and payment technologies to financial institutions, including credit unions. FIS is headquartered in Jacksonville, Fla.
Under terms of the agreement, FIS acquired all of Metavante's outstanding shares of common stock, with each shareholder receiving 1.35 shares of FIS common stock for each share of Metavante common stock held.
"We will continue to make business and product investments and we will strategically integrate our products, where it makes sense to do so in order to deliver high-value solutions to our clients and prospects," said Frank Martire, FIS president/CEO.
PSCU Financial leases space to Ongoing Operations
ST. PETERSBURG, Fla. (10/7/09)--PSCU Financial Services is leasing some of its Phoenix data center space to Ongoing Operations to support growth resulting from credit unions purchasing Ongoing Operations' disaster recovery/business continuity services.
The lease is for five years. PSCU Financial Services, a credit union service organization (CUSO), helped create Ongoing Operations, which is a CUSO that provides business continuity and disaster recovery solutions to credit unions.
The Phoenix data center will be Ongoing Operations' fourth location--the company also has data centers in Maryland, Oregon and Colorado.
Ongoing Operations chose PSCU's data center because it offers Payment Card Industry Data Security Standards compliance to protect cardholder information, according to Kirk Drake, Ongoing Operations CEO.
Copyright © 2009 - Credit Union National Association, Inc.
