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Filed on October 22, 2009, published the first business day after.
- Mica urges president: Let CUs continue to help small businesses
- House Fin. Svcs. Comm. approves CFPA Act
- Expedited CARD Act moves forward, with CU amendments
- Corp CUs, alt capital are stars of NCUA town hall
- NCUA ratifies higher NCUSIF cap, ok's community CU conversion
- Inside Washington
- WOCCU’s ‘Branch in a Backpack’ extends member service in Kenya
- Laid-off workers aided by new CU programs
- CUs can follow Community CU conference through live blog
- Wis. league drives CU participation in investment program
- CUNA noted in USA Today article on Obama announcement
- Calif. CU donates $70,000 this year to nonprofits
- Photo contest encourages CU members to ‘dream big’
- CU System brief
- Market News
- News of the Competition
- H&FF Radio experts offer ideas for taxes and the holidays
- Intuit now offering TurboTax for Online Banking
- Dynamic Card Solutions announces CardWizard 5.1
Mica urges president: Let CUs continue to help small businesses
WASHINGTON (10/23/09)—Credit union small business members are turning to their credit unions for loans because they cannot find credit elsewhere, including at banks, Credit Union National Association (CUNA) President/CEO Dan Mica wrote to President Barack Obama Thursday.
Mica offered CUNA's wholehearted support of small business initiatives announced by the president on Wednesday, which included increased loan limits for key Small Business Administration (SBA) programs. Mica volunteered CUNA to work with the U.S. Treasury Department, SBA and U.S. Congress to "achieve higher limits for key SBA programs, such as 7(a) and 504 programs today."
In his letter, Mica underscored to Obama that credit unions have continued to support the credit needs of their communities during the country's economic crisis and noted that credit union member business lending (MBL) activity grew by 14% for the 12-month period ending in June.
"However," Mica urged the president, "this growth cannot continue because of the statutory cap on credit unions' aggregate MBLs. Credit unions have a ceiling on the amount of member business loans they can make -- 12.25% of total assets -- despite very low MBL loss rates. We estimate that if the cap is eased, approximately $10 billion could be provided in new small business loans."
Mica urged administration and congressional support for H.R. 3380, the Promoting Lending to America's Small Businesses Act, to increase the MBL cap to 25% of a credit union's total assets. It also would raise the "de minimis" threshold for a loan to be considered a "member business loan" to $250,000, and exempt loans made to non-profit religious organizations as well as loans made in qualified underserved areas from the cap.
The Mica letter was also sent to the attention of U.S. Treasury Secretary Timothy Geithner, SBA Administrator Karen Mills, National Credit Union Administration Chairman Debbie Matz and U.S. Treasury Assistant Secretary for Financial Institutions Michael Barr.
House Fin. Svcs. Comm. approves CFPA Act
WASHINGTON (10/23/09)--The Obama Administration's proposed Consumer Financial Protection Agency came one step closer to creation on Thursday when the House Financial Services Committee approved H.R. 3126, the Consumer Financial Protection Agency Act, by a vote of 39-29.
While the Credit Union National Association (CUNA) has acknowledged the need for greater consumer protections, CUNA President/CEO Dan Mica said that he has "significant concerns about the impact that elements of this legislation will have on credit unions and their members."
Several amendments to the legislation were offered, with one that would limit the proposed CFPA's examination and enforcement authority to credit unions over $1.5 billion in assets and banks with more than $10 billion in assets drawing the interest of CUNA.
CUNA indicated that it would not support the CFPA legislation if this amendment remained attached to the bill, and Mica and league president Daniel Egan met late last week with Committee Chairman Barney Frank (D-Mass.) to discuss the issue. Following the meeting, Mica said that Frank "indicated a willingness to work with us to see if we can find a mutually agreeable solution before the bill goes to the floor for a House vote."
CUNA has also advocated that the tasks of examination and enforcement regarding credit unions must remain in the hands of the National Credit Union Administration.
The CFPA legislation would seek to protect consumers of financial products through the creation of a powerful independent agency with extensive rulemaking, oversight, and enforcement tools.
Expedited CARD Act moves forward, with CU amendments
WASHINGTON (10/23/09)--The House Financial Services Committee on Thursday approved H.R. 3639, the Expedited CARD Reform for Consumers Act of 2009.
This legislation would move all of the outstanding effective dates in the Credit CARD Act to Dec. 1.
An amendment that would exempt depository institutions with under 2 million credit cards in circulation from the expedited effective dates contained in the bill, offered by Rep. Shelley Moore Capito (R-W.V.) and Rep. Brad Sherman (D-Calif.), was added to the legislation via voice vote.
Sherman also joined Rep. David Scott (D-Ga.) to offer an amendment to strike from the bill the expedited effective dates for gift cards. This amendment was also added via voice vote.
The Credit Union National Association has supported both of these amendments and worked closely with these offices on the amendments.
CUNA in a letter to committee Chairman Barney Frank (D-Mass.) and ranking Republican Spencer Bachus (R-Ala.) further praised the Capito/Sherman amendment, saying that it "recognizes the burden" that the expedited effective dates provided by H.R. 3639 would have on small issuers.
"Many steps need to be taken before credit unions and others will be able to comply" with the CARD Act in "any orderly fashion," CUNA President/CEO Dan Mica said, adding that "while the three month period between December and February is a relatively short period of time, it is a critical period of time for credit unions to take these necessary steps."
Federal Reserve Board Chairman Ben Bernanke has also presented the Fed's views on H.R. 3639, saying that while he could not predict how the accelerated CARD Act effective date would affect interest rates and availability of credit to consumers, the new date "would mean that consumers would receive important benefits and protections earlier."
Responding to a series of questions from Bachus, Bernanke added that the Fed would "issue final regulations without waiting for comments" if the new, accelerated compliance date of Dec. 1 prevented them from receiving industry comments in a timely fashion. The Fed may also have to implement portions of the CARD Act governing fees and disclosures for gift and other prepaid cards, credit card penalty fees, and rate increases without advance public comment if the effective dates of those provisions are moved forward to Dec. 1.
Both large and small creditors "must make extensive changes to their systems and business models" to comply with the CARD Act, and Bernanke said that the amount of time needed to comply with the act "may vary by creditor and provision."
Corp CUs, alt capital are stars of NCUA town hall
WASHINGTON (10/23/09)—The much-anticipated new rules for corporate credit unions could be considered the star of the National Credit Union Administration's (NCUA's) virtual town hall meeting Thursday, but the subject of alternative capital also got important attention.
During an extensive Q-and-A period, NCUA Chairman Debbie Matz was asked for NCUA's reaction to a recent joint proposal submitted by the Credit Union National Association and the National Association of Federal Credit Unions on alternative capital.
Matz responded that the agency is aware of the trade groups' joint proposal. She added that current alternative capital rules come from a statutory requirement and is not something the NCUA can change without new statutory authority.
Matz added that the board currently has not taken a position, but that it is her own view that there are some credit unions that would benefit from alternative capital.
She warned that a change in alternative capital rules would not be a "magic bullet" and would not save all credit unions from troubles and, she added, the NCUA would not permit problem Code 4 or 5 credit unions to offer such capital to their members.
Matz also opined that alternative capital must preserve the cooperative nature of credit unions and members and it must be transparent that these accounts are not insured.
The chairman added that NCUA has not been asked by U.S. Congress for its position on the subject, but would respond when asked.
In a separate development, Matz was quoted Wednesday by Bloomberg.com in a reaction to President Obama's initiatives to promote credit availability for small businesses.
She noted that credit unions that qualify as community development financial institutions (CDFIs), named in the administration plan, are the only credit unions currently allowed to receive outside capital. CDFIs serve low-income communities.
She said, that Congress and the Obama administration "should consider whether to change the law so that other credit unions could receive outside funds."
When opening the NCUA's town hall meeting, Matz noted that more than 800 interested parties had tuned in for the session. Matz affirmed that a proposed final rule on the agency's comprehensive revamping of the regulations governing corporate credit unions will be issued at the Nov. 19 open board meeting.
The rule, NCUA General Counsel Bob Fenner reiterated, will have four key component parts. They are: capital, investments, governance and asset/liability management.
Fenner assured listeners that the rule will include phase-ins and delayed effective dates "as appropriate." There likely will be a 90-day comment period for the proposed final rule. The interim final rule generated more than 500 comments.
The virtual town hall meeting followed the agency's open board meeting which addressed insurance topics and approved a community charter conversion. (See related story: NCUA ratifies NCUSIF cap increase, community CU conversion.)
For more on the NCUA's corporate credit union rule, use the resource link below.
NCUA ratifies higher NCUSIF cap, ok's community CU conversion
ALEXANDRIA, Va. (10/23/09)--The National Credit Union Administration (NCUA) as expected has approved a final rule that will increase the National Credit Union Share Insurance Fund (NCUSIF) coverage for members of credit unions to $250,000 through 2013.
Approval of this rule puts the amount of member funds that are insured by the NCUA on par with the amount covered by the Federal Deposit Insurance Corporation.
The NCUA also approved final versions of interim measures that increased overage for revocable trust accounts and mortgage servicing accounts.
NCUA staff indicated during the meeting that the small number of public comments received and the lack of public opposition to the interim version of the rule indicated that the time had come to make the interim rule final.
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| NCUA Chairman Debbie Matz displays the 10 1b. document associated with the community charter conversion being considered by the agency at the Thurday open meeting. In December the agency will vote on a final rule to streamline the conversion process.(CUNA Photo) |
NCUA Chairman Debbie Matz complimented the rule as a "pro-consumer" application of regulations, and urged NCUA staff to look for other instances where regulations can be improved for the benefit of credit union members.
The board also approved the Kansas State Supervisory Authority's request for an exemption from Section 712.3(d)(3) of NCUA's Rules and Regulations, which dictates that an federal credit union that intends to lend to or invest in a credit union service organization (CUSO) must confirm that the CUSO will grant the NCUA and other regulatory authorities access to its records and internal controls before that federal credit union invests in or lends to the CUSO. However, Matz expressed some reservations that allowing state supervisors to take advantage of this exemption for the first time could create a precedent.
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| The NCUA board listens to staff attorney Frank Kressman's presentation on a final revocable trust account rule, which, in part, eliminates the concept of "qualifying beneficiary." (CUNA Photo) |
US #1364 Federal Credit Union's request to convert to a community charter that would cover "persons who live, work, worship, or attend school in, and businesses and other legal entities located in Lake or Porter Counties in Indiana" was also approved by the Board during the meeting.
Matz spoke in support of the conversion, saying that allowing the credit union to switch charters would strengthen the credit union's financial condition while also helping the community. However, NCUA Board Member Michael Fryzel told News Now that the NCUA would monitor the progress of the credit union's conversion over the next year and would encourage them to go back and follow up on their conversion plan if the credit union has not increased its activity within the economically depressed city of Gary, Indiana, which lies in Lake County, Indiana.
Matz also said that members of the credit union community can expect a proposed rule streamlining the community credit union charter process at the NCUA's December board meeting.
Turning to the NCUA's statistics on the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) and NCUSIF, NCUA Chief Financial Officer Mary Ann Woodson reported that the 21 credit union failures that have taken place as of last month have resulted in nearly $95 million in losses to the NCUA's insurance fund. Woodson also reported a total increase of 55 CAMEL Code 4/5 problem credit unions from the amount reported one year ago, and debuted a new slide comparing the total shares of CAMEL Code 3 troubled credit unions.
Also of interest, the NCUA board did not, as intended, address the issue of NCUSIF cost estimates for natural person credit unions for 2010. It is now anticipated that the board will consider this at its November 19th meeting.
Inside Washington
- WASHINGTON (10/23/09)--Speaking to the Exchequer Club in Washington Wednesday, Federal Reserve Board Gov. Daniel Tarullo discussed several ways to contain the problem that several of the nation's largest banks are considered "too big to fail." He suggested Congress create a special resolution procedure for systemically important firms, requiring large firms to have specified forms of contingent capital, and improve disclosure requirements for financial institutions. He also recognized that even if the measures are implemented, the "too big to fail" problem may still be tough to contain. Other alternatives he noted included "reversing the 30-year trend that allowed progressively more financial activities within commercial banks and more affiliations with non-bank financial firms. The idea is presumably to insulate insured depository institutions from trading or other capital market activities that are thought riskier than traditional lending functions," Tarullo said. "Another approach would be to attack the bigness problem head-on by limiting the size or interconnectedness of financial institutions. Some observers have even suggested that existing large firms should be split up into smaller, not-too-big-to-fail entities." But even without "too big to fail" problems, financial instability can still occur, he added ...
WOCCU’s ‘Branch in a Backpack’ extends member service in Kenya
NAIROBI (10/23/09)--The World Council of Credit Unions (WOCCU) is helping credit unions service people in remote areas of the world through a ‘branch in a backpack' program.
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| Jesus Chavez, World Council of Credit Unions' Kenya program director, demonstrates the "branch in a backpack," which brings credit union services directly to members. (Photo provided by the World Council of Credit Unions) |
The challenge in making the trip over Kenya's rough roads often reduces their interest in utilizing the credit union. With funding from the Bill & Melinda Gates Foundation, WOCCU developed the "branch in a backpack" alternative.
"This is another step in new transaction technology that will help us better serve people without easy credit union access," said Jesus Chavez, manager of WOCCU's SACCO Growth Program in Kenya, to members of the Kakuyuni Dairy Farmers Self-help Group this week.
A collection of high-tech electronic equipment, anchored by a Dell laptop computer with 160 gigabytes of memory, makes up Chavez's "backpack branch." Rounding out the basic lineup is an inexpensive computer-mounted camera, a portable scanner and point-of-service (POS) device with biometric capabilities. All fit into a standard-size backpack that can be taken to villages like Kakuyuni, whose members live too far from the nearest credit union branch to visit regularly.
The laptop serves as the branch's engine, with the mounted camera used to take pictures of new members in the field. The small scanner, which connects via USB port to the computer and taps its battery power to function, is used to copy legal documents required to enroll SACCO members. The POS device, which scans the print on each member's thumb or finger of choice, allows the credit union representative to verify the member's identity for each transaction. The device also sends the transaction's information for processing to the mainframe at WOCCU Services Group, WOCCU's for-profit subsidiary that shares its development program's Nairobi office and supports the high-tech initiative. The technology saves members countless hours of travel to and from their credit unions to conduct simple transactions, Chavez said.
The small laptop has limited battery life, which led the WOCCU program director to add a Powergorilla and Powermonkey to each of the backpack branches. The two devices, produced by Powertraveller Ltd., headquartered in the United Kingdom, are batteries for the laptop and POS device, respectively. They are rechargeable using small portable solar panels that fit into the backpack. WOCCU pays about $1,300 for each "branch."
The new backpack branch interacts with members' existing cell phone banking capabilities, an interactive technology that WOCCU introduced in Kenya in March 2007.
The devices use M-PESA, a software program created jointly by Kenya telecommunications provider Safaricom and the United Kingdom's Vodaphone. "M" stands for "mobile" and "pesa" is Swahili for "money." By March 2009, two years after WOCCU introduced the technology, M-PESA transactions throughout Kenya totaled $1.73 billion. "This year M-PESA has introduced online bill-pay," said Chavez. "The company also just announced that it was going international."
On Wednesday, WOCCU signed an agreement in Kenya with I&M Bank House to support the program SACCOs with clearing services required to make the backpack branch a viable option. However, Chavez also is ready to take his SACCOs to the next step in high-tech transactions by introducing a smart card that includes the member's identifying thumb or fingerprint on its memory chip. The device also can act as a stored-value card, enabling easier transfer of funds through ATM or backpack branch usage.
"It's called ‘virtual wallet,'" Chavez said. "Members just have to remember never to leave any of their fingers at home."
Laid-off workers aided by new CU programs
ERIE, Pa. (10/23/09)--Erie (Pa.) General Electric FCU has developed several new programs to help members who are among the 1,500 workers laid off from the company's Lawrence Park, Pa., plant.
The credit union is offering free consultations with financial advisers, and is working with members one-on-one to restructure loans as needed (Life is a Highway Oct. 21).
Also, the credit union has launched a website, LaidOffinErie.com, to help members and non-members find new employment, keep their finances in order, and plot new goals. The credit union is also offering a job-hunting seminar to the public, with an emphasis on interviewing skills and polishing resumes.
The $187.6 million-asset credit union received TV coverage about the new website and its special programs (see link).
In September, GE Transportation--builder of electric locomotives in Erie, announced that the 1,200 workers on temporary layoff were permanently without jobs.
Also, the company announced that within the next two months, 230 hourly jobs and 50 salaried jobs would be cut, along with 200 lost jobs at an engine plant in Grove City, Pa.
CUs can follow Community CU conference through live blog
LAS VEGAS (10/23/09)--Credit unions can follow happenings at this year's Credit Union National Association (CUNA) Community Credit Union and Growth Conference in Las Vegas by visiting CUNA's YES CU blog.
The conference kicked off Wednesday and will continue through Saturday in Las Vegas. The theme is "Share the Vision. Shape the Future." This year's conference combines the CUNA's YES Summit, Reach Out, and Community Credit Union conferences.
Josh Jones, CUNA manager of new media and communications, is live-blogging from event. He will provide updates on keynote speakers, breakout sessions and other events through blog postings and video. Jones blogged last year from CUNA's YES Summit along with Phil Heckman, CUNA director of youth programs, and Christopher Morris, CUNA Councils web manager.
"We took the original YES blog and re-branded it for the conference, and repurposed the editorial focus so that we cover growth and other issues in addition to youth and young adults," Jones said. "The moniker is now ‘Your Essential Strategies for Growth.'"
The blog also includes "quick quips"--a running status update that appears live on the blog's main page to give viewers immediate information.
To learn more about the conference, visit the YES CU blog or follow conference updates on Twitter by using the links.
Wis. league drives CU participation in investment program
MADISON, Wis. (10/23/09)--With the help of the Wisconsin Credit Union League, more than 3,500 credit union employees have registered for free online courses on investing through the REAL Progress and Pathways to Prosperity (RP3) program, according to Investor Protection Trust (IPT).
The program's goal is to provide on-line investor education to 4,000 employees and then study how investing behaviors changed among both employees and members of the credit unions. Because 3,500 employees have already registered for the first phase of the project, project leaders are confident that more than 4,000 employees will participate within the two phases (investorprotection.org September 2009).
More than 3,000 employees have taken the pre-course survey and more than 2,800 online course modules have been completed by employees, according to the Department of Financial Institutions (DFI).
The Wisconsin league also helped to sign memorandums of understanding with 75 credit unions statewide, surpassing the original goal of 40, the DFI said.
Also, during Money Smart Week in Wisconsin, Wis. Gov. Doyle's Council on Financial Literacy officially endorsed a concept to recognize employees and CUs for their participation, the DFI said.
IPT awarded a grant to the Center on Business and Poverty through the University of Wisconsin Foundation to implement the program. The Wisconsin league partnered with the Governor's Council on Financial Literacy, Precision Information, and other businesses and non profits on the project.
Investor education is being offered primarily through an on-line provider, Precision Information, and its Educated Investor University.
CUNA noted in USA Today article on Obama announcement
WASHINGTON (10/23/09)--The Credit Union National Association (CUNA) was noted in a Thursday USA Today article about the Obama administration's plan to boost lending for small businesses.
The article focused on helping the Obama administration's announcement of initiatives to help small businesses receive more access to credit. For instance, President Barack Obama plans to ask Congress to expand the maximum loan size of U.S. Small Business Administration (SBA) loans. Loans for small business borrowers would increase to $5 million from $2 million, and to $5.5 million for manufacturers. SBA's Microloan would increase to $50,000 from $35,000.
"The administration can and should go further in allowing more credit union access in making business credit available," CUNA told the newspaper.
Credit unions are capped at providing no more than 12.25% of their assets in small business loans.
To read the full article, use the link.
Calif. CU donates $70,000 this year to nonprofits
PLEASANT HILL, Calif. (10/23/09)--During the first three quarters of 2009, Pacific Service CU donated more than $70,000 to nonprofit organizations throughout Northern California.
"The need for services in the greater San Francisco Bay Area continues to be very high," said Toni Bullard, Pleasant Hill branch manager of the $1.7 billion asset, Walnut Creek, Calif.-based Pacific Service CU. "Our continued support of local non-profit organizations, like the Bay Area Rescue Mission, provides a measure of stability in uncertain times."
The Bay Area Rescue Mission was established in 1965 to provide food, shelter and charitable service to the homeless to help them achieve self-sufficiency. The mission offers long-term substance and homelessness recovery programs, short-term emergency assistance, and an after-school center for youth. Pacific Service donated funds to support the educational programs of the mission.
Also, the credit union donated four computers to the organization for computer literacy, education and homework assistance, and writing skills.
Other San Francisco Bay Area groups receiving donations from the Pacific Service in the third quarter include Oakland Ballet and Marine Mammal Center.
"Every year, local non-profit organizations provide valuable benefits to our community, and this year fund-raising for charitable organizations has been decimated by the economy," said Steve Punch, president of Pacific Service CU. "With the continued support of our members and board of directors, we are very proud to able to continue to support local organizations that contribute so much to our community."
Pacific Service has donated money this year to:
- The American Red Cross;
- Axis Community Health;
- Bay Area Rescue Mission;
- Cal Ripken Youth Baseball of Fresno;
- Children's Hospital Central California;
- Children's Hospital Oakland;
- City of Fresno Crime Prevention Office;
- Easter Seals Child Development Center in Fresno;
- Elder Financial Protection Network;
- Embarcadero YMCA;
- Food Bank of Contra Costa and Solano;
- Fresno County Economic Opportunities Commission;
- Fresno Police Activities League;
- Juvenile Diabetes Research Foundation of the Bay Area;
- Juvenile Diabetes Research Foundation of Fresno;
- Lindsay Wildlife Museum;
- Marine Mammal Center;
- Oakland Ballet;
- The Salvation Army of Fresno;
- The Salvation Army of San Francisco; and
- Shih-Yu Lang YMCA.
During the third quarter, Pacific Service also hosted free child safety events in Livermore and Vacaville. These events offered free DNA LifePrint kits, electronic fingerprinting and child safety journals, along with child health and safety information provided by area public safety groups and non-profits.
Launched in 2001, the credit union donates funds through its Community Involvement Program. Over the years, the credit union has given more than $1 million to area charities, impacting an estimated 386,000 people. An ongoing program funded annually by the credit union's board of directors--the Community Involvement Program-- primarily focuses its efforts on organizations that assist low-income and at-risk individuals, especially children.
The credit union gives to charitable organizations located in the 12 counties it serves: Alameda, Contra Costa, Fresno, Marin, Napa, Placer, Sacramento, San Francisco, San Mateo, Santa Clara, Solano and Sonoma.
Photo contest encourages CU members to ‘dream big’
SANTA ROSA, Calif. (10/23/09)--Redwood Credit Union (RCU) is encouraging members to "dream big" with RCU's new "Big Picture, Big Value" photo contest and win $2,009 to be placed in a member's savings account in 2009.
The promotion encourages people to look at their personal "big picture"--their reason for saving money, borrowing responsibly and participating fully in their credit union to gain the best possible value on their financial services--and then submit an original photo of their "Big Picture" dream online by Nov. 8.
Photos will be posted to the credit union's website and the public can vote for their favorite "Big Picture" online Nov. 9 through Nov. 22. The grand prize winner will be announced on or before Dec. 15, and $2,009 will be deposited into an RCU Build-Your-Own savings account to help members save for their designated goals.
"As the overall economic picture begins to show signs of improvement, this promotion encourages our members and communities to focus on their own financial ‘big picture,' set goals for their future, and have a little fun by sharing their big dream for a chance to win the cash to help them achieve that dream," said Karen Graves, RCU senior marketing specialist, who is leading the "Big Picture" promotion.
RCU, based in Santa Rosa, Calif., has more than $1.7 billion in assets.
CU System brief
- HERNDON, Va. (10/23/09)--The Northwest FCU (NWFCU) Foundation
presented the Reality Store to the senior class of a local high school to teach them about finances. More than 700 students participated in the event. The Reality Store is a budget simulation workshop that assigns individuals a life scenario with familial and financial status. Students make a budget and choose expenditures for everyday living expenses--such as housing and food. The event also was taped by a public television crew to air during a show in November. Fifty-six volunteers, including staff from NWFCU, helped with the event. NWFCU, Herndon, Va., has $1.7 billion in assets. (Photo provided by Northwest FCU) ...
Market News
MADISON, Wis. (10/23/09)
- For a sixth consecutive month, the index of U.S. leading economic indicators increased in September, portending that the economy likely will continue to grow into early 2010, analysts said. The Conference Board's gauge of the economic outlook for the next three to six months rose a greater than predicted 1%--contributing to the largest six-month gain in 26 years, the private research group said Thursday. However, other reports indicated that home prices dropped and jobless claims increased in September. Low short-term borrowing costs, rising stocks, and a declining trend in claims are the measures that are sparking the leading index, analysts said. Those measures also are stopping the depletion of consumer finances and lessening the risk that the economy will have a downturn, analysts added. "The recovery is here and it's going to get a little stronger too," said Jonathan Basile, an economist at Credit Suisse, who accurately forecasted the gain in the index. "We are mindful that there are headwinds, like there are in every recovery, but the leading index is telling you there won't be a double dip" (Bloomberg.com Oct. 22) ...
- Small-business lending and aid to struggling homeowners will be the direction of a new course set by the Obama administration for the $700 billion financial rescue, according to Herb Allison, the assistant secretary who oversees the Troubled Asset Relief Program (TARP) at the Treasury. The Treasury is halting efforts used to stabilize bigger banks and the automotive industry, but the U.S. financial system remains "fragile" and the government must be cautious about the way it withdraws its support, he added. "It is time to set a new direction for the TARP, to account for the recent improvements in capital markets and to address lingering weaknesses in housing markets and small-business lending," Allison said in remarks to the Congressional Oversight Panel (Bloomberg.com Oct. 22) ...
News of the Competition
MADISON, Wis. (10/23/09)
- Kenneth Feinberg, the Treasury Department's master of compensation--also known as the U.S. pay czar--will cut total compensation for the top 25 earners at seven firms by an average of roughly 50%, sources familiar with the matter said Wednesday. The largest cuts will be in salaries--which will drop an average of 90%, the sources said. Feinberg said he may publicly disclose his rulings before an Oct. 30 deadline. However, some executives will still get big paychecks, the sources added. Also, Feinberg will mandate several corporate governance changes--including the separation of the positions of chairman and CEO; requiring boards of directors to create a "risk" committee; and stopping staggered terms for directors, the sources said (Reuters via Forbes.com Oct. 21 and Dow Jones via American Banker Oct. 22) ...
- The Beige Book--the Federal Reserve's regular report on economic activity nationwide--noted that regional economies in most parts of the U.S. are recovering--largely because home sales have rebounded, and factories and manufacturers are on the mend. The report noted the contrast between tentative signs of economic recovery and lingering weaknesses in the economy, analysts said. While Fed Chairman Ben Bernanke has said the recession likely is over, the pace of improvement has been slow, analysts added. "Reports of gains in economic activity generally outnumbered declines, but virtually every reference to improvements was qualified as either small or scattered," the Fed said in the report (The New York Times Oct. 22) ...
H&FF Radio experts offer ideas for taxes and the holidays
WASHINGTON (10/23/09)--Policy experts on Sunday's H&FF Radio show tackle a range of issues facing families during the coming winter: IRS minimum distributions extended, home heating tips, credit reports and money management tips for the holidays.
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:
- "IRS Extends Deadline to Roll Over 2009 Required Minimum Distributions," with Dennis Zuelhke, compliance manager, Ascensus IRA Services, Middleton, Wis.;
- "Home Heating This Winter: Temperatures, Fuel Costs, Tips and Tax Credits," with Ronnie Kweller, deputy director of communications, Alliance to Save Energy, Washington, D.C.;
- "Your Credit Report Card: Do You Make the Grade?" with John Ulzheimer, president of consumer education, Credit.com and contributor to CNBC's On the Money, Atlanta, Geo.;
- "Tips for Happy Holidays without the Financial Headache," with Michael Gutter, PhD, assistant professor and family financial management specialist, University of Florida, Gainesville, Fla.; and
- Your Questions Answered: Annuities as a Retirement Funding strategy; Need Help Paying Bills--Do You Have to Give Power of Attorney; Increase Insurance Coverage When Remodeling: Paying Bills on the Web--Pay Each Company or Pay from Your Financial Institution or Consolidated Service.
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 (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, read "IRS extends deadline to roll over 2009 RMDs" and "Act quickly to correct credit report errors" in Home & Family Finance Resource Center.
Intuit now offering TurboTax for Online Banking
CALABASAS, Calif. (10/23/09)--Intuit Inc. announced that it is offering TurboTax for Online Banking to financial institutions so they can turn their online banking site into a tax resource.
TurboTax allows users to pre-populate tax forms with tax data from online banking to save time. Credit unions who implement TurboTax can increase deposits and develop stronger relationships with their members, Intuit said.
TurboTax guides users through their tax returns, helping them with deductions and credits to maximize their refunds. Users also can file their returns electronically and direct deposit their refunds in up to three accounts.
Intuit also noted that the solution can be integrated with FinanceWorks, an online financial management solution offered by Intuit's financial institution division, Digital Insight.
Intuit provides business and financial management solutions for financial institutions including credit unions. Its financial institutions division, Digital Insight, is a CUNA Strategic Service provider.
Dynamic Card Solutions announces CardWizard 5.1
ENGLEWOOD, Colo. (10/23/09)--Dynamic Card Solutions (DCS) announced the release of CardWizard 5.1, which includes upgrades that help speed up the card issuance process and personal identification number (PIN) selection for card programs.
CardWizard allows financial institutions, including credit unions, to produce fully personalized, printed unembossed cards in real-time. The new software also has enhanced interfaces and reporting functions, multiple language capabilities and a new menu option to specify PIN-pad devices.
Companies can combine CardWizard with other card issuance machines or PIN pad devices. CardWizard 5.1 integrates into existing branch, host and network systems, the company said.
DCS, based in Englewood, Colo., provides instant issuance and PIN selection solutions for financial institutions, Visa and MasterCard.
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