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Filed on October 23, 2009–October 25, 2009, published the first business day after.
- House committee schedules Friday hearing on overdraft bill
- Interchange changes would carry 'steep price' for consumers, CU CEO warns
- CUNA completes 1st Minn.-based campaign school
- Compliance Challenge: Overdraft fee notification
- NCUA takes over $5 million-asset First Delta FCU
- Inside Washington
- Federation joins Obama to support small biz lending
- CUs to support National Runaway Prevention Month
- Ohio CUs growing during economic downturn
- Mich. county wants to deposit money in CUs
- WOCCU helps grow Kenyan cooperatives
- Community CUs of the year announced
- CU System brief
- Market News
- News of the Competition
- Medicare Part D, Advantage costs rising in 2010
- Fourteen Puerto Rican CUs join FSCC network
House committee schedules Friday hearing on overdraft bill
WASHINGTON (10/26/09)--While legislation related to the CFPA and the CARD Act both passed through the House Financial Services Committee last week, there is still work to be done, and the path toward financial regulatory reform will march on when the full Committee holds a Friday morning hearing on The Overdraft Protection Act of 2009.
Sen. Christopher Dodd (D-Conn.) has introduced overdraft legislation on the Senate side as well. Dodd's bill, S. 1799, The FAIR Overdraft Coverage Act, would limit the fees that financial institutions can charge on overdraft protection services.
House Financial Services Chair Rep. Barney Frank (D-Mass.) has also indicated that the CFPA could itself create new overdraft rules.
The Federal Reserve Board is also drafting new rules on overdraft protection plans, and some in Congress, including Dodd, have expressed frustration with the regulators' efforts.
A full Committee hearing on Systemic Regulation, Prudential Matters, Resolution Authority and Securitization is scheduled for Thursday morning.
The Committee has not yet provided witness lists for either of these hearings.
Financial Services Committee markups will take place earlier in the week, with debate on discussion drafts of H.R. 3818, the Private Fund Investment Advisers Registration Act of 2009, H.R. 3817, the Investor Protection Act of 2009, and the Accountability and Transparency in Rating Agencies Act set to take place on Tuesday morning.
The Committee will also discuss a substitute amendment to H.R. 2609, the Federal Insurance Office Act of 2009, during this time.
Interchange changes would carry 'steep price' for consumers, CU CEO warns
WASHINGTON (10/26/09)--NARFE Premier FCU President/CEO Anthony Walker has warned that "cardholders would pay a steep price" if merchants succeed in getting Congress to alter the current interchange fee structure.
In a viewpoint published in American Banker, Walker, who leads the Alexandria, Virginia-based, $123-million-in-assets, 10,000-member credit union, said that while merchants claim that they are looking to protect consumers and offer them lower prices on items that they purchase from retailers, "what it's really about is protecting their profits and shifting costs to the general consumer."
While Merchant representatives that recently testified before the House Financial Services Committee said that their constituents would give back to consumers "in different ways, depending on things like costs, competition and their own economics," Walker focused on one potential perk that the Merchants Payment Coalition reps promised for purchasers: "free gift wrapping."
Walker also detailed the "huge benefits" that merchants receive due to their acceptance of credit and debit cards, saying that they are able to "outsource their credit risk to financial institutions who issue those cards and are left ‘holding the bag' if a customer doesn't pay their bill" at a price of "less than 2 cents on a dollar."
"Merchants get protection from fraud and theft, guaranteed payment, efficient record keeping and faster checkout," and also benefit from "higher sales" since "consumers aren't constrained by the amount of cash they have in their wallet" when they make purchases, he added.
Saying that interchange reflects a merchant's fair share of the costs of the convenient card system, the Credit Union National Association has fiercely opposed any merchant-proposed changes to the current interchange fee regime, and has launched its own interchange grassroots advocacy campaign which will advocate credit union views on interchange through thousands of postcards to Senators in Washington.
CUNA completes 1st Minn.-based campaign school
WASHINGTON (10/26/09)--Representatives from the Credit Union National Association (CUNA) this week completed another successful campaign school event, holding the latest in the series of educational sessions for over a dozen credit union professionals and volunteers in St. Paul, Minn.
Attendees of the campaign school, the first held in the state, included local political aspirants such as a current city councilman and a Water and Soil Conservation District Supervisor.
CUNA Political Director Trey Hawkins said that "one way credit unions can become more effective is to elect public officials who have a background in the credit union movement."
The need for legislators that understand the challenges faced by credit unions is made all the more important by the number of issues faced by credit unions at this time, including potential changes to interchange fees, the compliance burdens represented by the CARD Act, and potential changes to overdraft fee regulations.
CUNA's Senior Vice President of Political Affairs Richard Gose, who led much of the discussion at the campaign school, praised Minnesota credit unions for their "dedicated involvement in politics."
Attendees also heard behind the scenes stories from the candidacy process from Minnesota State Senator Chris Gerlach and State Representative Steve Simon.
The campaign school was co-hosted by the Minnesota Credit Union Network (MnCUN).
Successful graduates of previous campaign schools have gone on to win positions in West Virginia, Nevada, and Iowa.
CUNA's campaign schools are part of a continued effort to promote political involvement among credit union professionals and volunteers, and CUNA has currently scheduled a minimum of seven additional campaign schools in states throughout the nation during the 2009-2010 election cycle. CUNA also offers online courses for credit union representatives that are interested in political advocacy.
Mara Humphrey, MnCUN Vice President-Governmental Affairs, echoed those sentiments in a press release, saying that "Minnesota credit unions' increased involvement in politics has demonstrated that credit unions can have a significant impact on politics and can be prominent players in the election process."
"Through this Campaign School and our other political programs and activities, we are raising the political profile of Minnesota credit unions. Elected officials regularly turn to credit unions for support and viewing us as go-to resources for information on issues important to our movement," she added.
Compliance Challenge: Overdraft fee notification
WASHINGTON (10/26/09)--In this month's Compliance Challenge, the Credit Union National Association (CUNA) reminds credit union compliance managers that Federal regulations do not currently require credit unions to send a notice each time that courtesy pay fees or overdraft fees are charged to member accounts.
"It is just considered a best practice to do so," CUNA said.
Citing the National Credit Union Administration's (NCUA) recently issued Legal Opinion Letter No. 09-0608 regarding the Mailing of Insufficient Funds (NSF) / Overdraft Notices to Members, CUNA said that federal credit unions are not required to send a notice each time an NSF or overdraft occurs.
However, CUNA added, the NCUA's Truth in Savings rule does require credit unions to disclose any NSF and overdraft fees that are debited from a member's account on that member's periodic financial statement.
The fees should also be itemized by fee type and dollar amount, according to the letter.
The NCUA has also provided additional guidance on interagency best practices which recommends that federal credit unions promptly notify their members of any overdraft fees. However, this is only guidance and is not an actual regulatory requirement that is enforced by the NCUA.
To see the full compliance challenge, use the resource link.
NCUA takes over $5 million-asset First Delta FCU
ALEXANDRIA, Va. (10/26/09)—A need to correct "previous service and operational weaknesses" of First Delta FCU, Marks, Miss. moved the National Credit Union Administration (NCUA) to assume control of the $5 million-asset credit union Friday, according to a release from the agency.
The NCUA noted that the credit union remains open and operating to serve its 5,500 members. First Delta provides full financial services to people residing in Quitman, Panola, Tallahatchie and Coahoma counties.
The NCUA's goal in placing the institution into conservatorship is to "continue credit union service to the members and ensure safe and sound credit union operations."
At the NCUA open board meeting last Thursday, CFO Mary Ann Woodson noted that, as of the end of September, there had been 21 credit union failures in 2009 compared to 18 for all of 2008.
In a comparative number for banks, the Federal Deposit Insurance Corp. announced seven more bank failures late Friday, which tipped the number of failed banks to 106. All considered small banks, the smallest of the failed banks had $327.4 million in assets. The FDIC found banks to purchase and assume all the assets of the failed institutions.
Inside Washington
- WASHINGTON (10/26/09)--The success of the Federal Reserve Board's proposed plan to govern executive compensation will depend on whether it changes the way bankers are paid (American Banker Oct. 23). The plan will change compensation only if it is coupled with a "say-on-pay" proposal to prevent risky compensation practices, said Cornelius Hurley, a former Fed lawyer. However, shareholders have not been a part of the discussion about executive compensation. The Obama administration has proposed giving shareholders a nonbinding vote on compensation, but the provision was not included in the Fed's proposal. The proposal comes as Kenneth Feinberg, the Treasury Department's "pay czar" introduced pay standards that would cut the salaries of the 25 highest-paid executives at Citigroup and Bank of America ...
- WASHINGTON (10/26/09)--The Treasury Department will begin slowing the Troubled Asset Relief Program (TARP) and improving its focus on homeowners and small businesses, Herb Allison, Treasury assistant secretary for financial stability, told the Congressional Oversight Panel Thursday. Elizabeth Warren, panel head, said she was concerned about the financial markets because "many of the factors that caused the crisis remain in place" (American Banker Oct. 23). However, she said she was encouraged that Treasury plans to wind down TARP. Allison said the department would wind down the Capital Purchase Program and other key programs at the end of the year. Allison also noted that banks will repay another $50 billion to the TARP fund during the next year. The Treasury has already received more than $70 billion in principal repayments and $6.5 billion in other interest and fees from TARP participants ...
- WASHINGTON (10/26/09)--The Federal Reserve may not lose credit on the emergency programs it used to fight the financial crisis, according to William Dudley, Federal Reserve Bank of New York president (Reuters Oct. 22). Dudley spoke at the Federal Reserve Bank of Boston's annual conference. The Fed's emergency facilities are naturally slowing, and the exit of some of the liquidity facilities is "going well," Dudley said. Fed Vice Chair Donald Kohn echoed Dudley's sentiments, saying that the liquidity facilities are "in the process of winding down without losses." The Fed also is not likely to suffer losses when it sells the mortgage-backed securities it acquired during the crisis ...
Federation joins Obama to support small biz lending
LANDOVER, Md. (10/26/09)--The National Federation of Community Development Credit Unions joined President Barack Obama and other elected officials last week to announce their support for small-business lending.
"We will make capital even more affordable to the community development financial institutions that focus on providing credit to America's small businesses in our hardest hit rural and underserved communities," said President Barack Obama at the roll-out of a series of Obama administration initiatives to spur small-business lending.
The president's address was delivered in the warehouse of Metropolitan Archives, a building that this small business (the archives) purchased with the help of a loan from the Small Business Administration (SBA).
Dan Mica, president/CEO of the Credit Union National Association (CUNA), also attended the event and followed up Thursday with a letter to President Obama about credit union member business lending. CUNA believes the administration and Congress should support a legislative fix to the member business loan cap as an important step to ensure credit is available to small businesses, which will promote economic recovery, Mica emphasized.
The president was joined by Treasury Secretary Tim Geithner, SBA administrator Karen Mills, Maryland Gov. Martin O'Malley; U.S. House of Representatives Majority Leader Steny Hoyer; and other elected officials.
Mica and Cliff Rosenthal, federation president/CEO, were among about 60 invited guests at the announcement. Among credit union movement attendees was Bill Bynum, president/ CEO of Hope Community CU/Enterprise Corporation of the Delta (Jackson, Miss) and chairman of the Community Development Financial Institutions (CDFI) Advisory Board of the U.S. Treasury Department.
"We believe that many more credit unions will seek certification now, and we are delighted that the CDFI Fund has committed itself to an expedited review process," Rosenthal said.
Community development financial institutions include credit unions, banks, loan funds, and venture capital funds that are certified by the Treasury Department's CDFI Fund in recognition of their mission and track record of serving low-income and underserved communities. Since its founding in 1994, the CDFI Fund has invested nearly $1 billion in CDFIs. The federation, itself a certified CDFI, has been a leader of the CDFI movement since the early 1990s.
While details of the program will be forthcoming at a later date, some key features were announced. For credit unions, CDFI certification will be required. About 150 credit unions are certified CDFIs. The majority of those are federation members.
The government's investment in CDFI credit unions will be in the form of subordinated debt that will count as secondary capital, or regulatory net worth, for low-income credit unions. "We are pleased that the Treasury Department has adopted this structure, and that the proposed rate is 2% for the first eight years," Rosenthal said.
He said that credit unions must have both CDFI certification and low-income designation by the National Credit Union Association (NCUA) to participate.
"Only low-income-designated credit unions currently have the power to accept secondary capital, Rosenthal added. "Conversely, low-income designation without CDFI certification will not make a credit union eligible. It's clear that CDFI certification will be a key credential for credit unions in the future, and the federation will continue to provide technical assistance to members seeking certification."
The Obama administration has provided momentum and support to the CDFI movement, more than doubling its appropriation request for the CDFI Fund and providing an additional $100 million in American Recovery and Reinvestment Act "stimulus" funding in the spring of 2009, the federation said. With such bright prospects, the federation said it is adamant in its resolve to expand credit union participation in the high-impact program.
For more information, use the link.
CUs to support National Runaway Prevention Month
CHICAGO and SAN DIMAS, Calif. (10/26/09)--Financial Service Centers Cooperative Inc. (FSCC), and National Runaway Switchboard (NRS) are partnering again to raise awareness with credit unions nationwide to support National Runaway Prevention Month this November.
FSCC is encouraging more credit unions to support the campaign, which aims to raise awareness of issues facing runaway and at-risk youth, and educate Americans about solutions and the role they can play in preventing youth from running way.
"The youth of today is our future," said Sarah Canepa Bang, FSCC president/CEO. "As community leaders and more importantly, as parents, we need to find ways to help prevent youth runaway. The ‘Answering the Call' campaign serves as a great way to spread the word on youth runaway and gain more awareness and support through credit unions and their members.
"This is an awareness campaign that can be supported by simply putting up a flyer at the credit union," she added. "The credit union movement has a long history of helping children and youth. We hope more credit unions will open their hearts to this worthy cause."
NRS receives an overwhelming amount of requests for help with calls coming in from across the country, said Maureen Blaha, NRS executive director.
"While NRS handles more than 100,000 calls a year, youth issues can be very complex," Blaha said. "We find that family dynamics is the most frequent problem identified by crisis callers. Youth run away from home for many reasons but our job is to help keep them safe and off the streets."
FSCC and NRS urge credit unions to participate in the campaign by using the promotional materials that highlight the campaign. Materials can be used inside credit union branches and lobbies to show support.
A community action kit is also available, which includes activities that can be used to help raise awareness and provide solutions that prevent youth from running away. These materials can be downloaded on the NRS website at www.1800RUNAWAY.org and by visiting www.fscc.com or www.cuswirl.com, and clicking on the NRS logo.
Family dynamics (divorce, remarriage, problems with siblings) and abuse (substance, physical, sexual, neglect) are the top reasons youth reach out for help, according to NRS call-volume statistics.
Research shows that between 1.6 and 2.8 million youth run away per year, and according to NRS' 2008 call statistics, more than half (51%) of the youth crisis callers were already on the street as a runaway or throwaway, and more than half (56%) said they had been away from home between one and seven days before calling NRS.
Ohio CUs growing during economic downturn
COLUMBUS, Ohio (10/26/09)--The national economic downturn has allowed Ohio's 402 credit unions to grow their memberships and make more auto and home loans, according to the Ohio Credit Union league.
Credit unions in the state benefited because they continued to make loans when many banks cut back on their lending, the league said (The Columbus Dispatch Oct. 23).
"Over the past 18 months, due to the economic stress, a lot of banks have had to build up liquidity and reposition their balance sheet, and this has forced them to curtail lending," Dave Fearing, league vice president of business services, told the newspaper. "And that provided the perfect opportunity for credit unions to add that needed liquidity to the market."
Credit union membership statewide rose about 30,000 in the first half of 2009 to nearly 2.7 million members, the league added.
So far this year, the market share of auto loans for Ohio's credit unions is 18.4%--up from 12.4% in 2008 and 10.1% in 2007, the league told the paper.
Mortgage originations for the first half of this year were $960.5 million--which is 50.2% higher than the 2008 total of $639.5 million. Also, market share is 3.5%--up from 2% at the end of 2007, the league added.
"This is the first growth we've seen in five years," Patrick Harris, league director of media relations, told the paper.
To view the article, use the link.
Mich. county wants to deposit money in CUs
MOUNT CLEMENS, Mich. (10/26/09)--A Michigan county has asked its commission's finance committee for a resolution so the county can deposit money at credit unions, according to a Michigan newspaper.
Oakland County, which has an annual budget of $700 million, deposits money into banks through certificates and checking accounts. State law doesn't prohibit counties from depositing money at credit unions--but doesn't specifically allow it (Daily Tribune Oct. 23).
County Treasurer Andy Meisner told the newspaper that there aren't a lot of "safe options" available for investments. The move isn't a "knock on banks," but the county wishes to "take advantage of any safe opportunity out there," he told the newspaper.
The county's investment policy is to promote safety, and depositing money in credit unions will allow it to fulfill that, Meisner added.
If the county's finance committee supports the resolution to allow deposits at credit unions, the measure will then move to the full 25-member commission for approval. Meisner said he expects bipartisan support for the measure, he told the paper.
WOCCU helps grow Kenyan cooperatives
TALA, Kenya (10/26/09)--The World Council of Credit Unions' (WOCCU) SACCO Growth Program in Kenya is helping the country's credit unions and businesses thrive.
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| Kenyan farmer Patrick Mutua cultivates 900 coffee trees. He also is a member of Universal Traders SACCO, which participates in the World Council of Credit Unions' SACCO Growth Program. |
Patrick Mutua is one individual the program is helping. With 900 coffee trees to tend, Mutua is considered by his neighbors to be a successful farmer and busy man. He also serves as vice chairman of the Kyaume Farmers' Cooperative, one of Kenya's coffee cooperatives, whose members band together for bulk purchasing and crop sales to negotiate the best prices for each.
Mutua and his fellow co-op members also are members of Universal Traders SACCO (UTS), a credit union whose five branches now serve more than 18,000 members, including 1,500 coffee farmers and eight growers' cooperatives like the one to which Mutua belongs. UTS is one of four credit unions that has grown in size as a member of WOCCU's growth program, funded by the Bill & Melinda Gates Foundation.
Although only two years old, UTS scored a coup when the Kenyan government recognized its value to members and partnered with the SACCO to administer the agricultural loan funds it provides to coffee growers nationwide. The plants are in the early stages of the growing season, with harvest nearly six months off, meaning the coffee farmers will be seeking to tap the 10 million Kenyan shillings (about $133,000) in government loan funds that UTS will distribute to farmers who are SACCO members, according to Jacob Wambua, manager of the UTS branch in Tala.
"We don't pay them in cash," Wambua said. "We post it to their credit union account. To qualify for the government funds, they must be actively cultivating at least 100 coffee trees. And they have to be members in good standing."
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| Universal Traders SACCO Chairman Isaiah Mutungi (left) and Jacob Wambua, branch manager, support Kenya's coffee farmers by administering government-funded loans. (Photos provided by the World Council of Credit Unions)
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The government loan program aims to strengthen and grow Kenya's coffee export program, which has languished in recent years due to social and economic issues. Funds are loaned to qualifying farmers at a 10% interest rate. Of that, UTS is able to keep 5% of the interest earned on the loans to fund its operations, Wambua said.
Participation in the government program is a step forward for UTS itself, whose membership had dwindled until two years ago when it became part of the WOCCU program. WOCCU provided technical assistance and branding support while fostering an aggressive marketing campaign that took credit union representatives into the massive twice-weekly public markets in Tala, which has a population of about 100,000, to solicit members.
The efforts helped the credit union grow from 1,600 members to its current level in about 18 months, according to Isaiah Mutungi, pastor of the Africa Inland Church and chairman of the UTS board.
The relationship with WOCCU has been a steep educational process in order for UTS to reach its current success levels, said Mutungi, who also farms his own crop of 800 coffee trees. It has also awakened in credit union staff and board members the notion that the SACCO members themselves can benefit from some much needed financial education, which has become an active part of their service program.
"In the olden days, people did not know banking," Mutungi said. "You can even give small babies coins and they learn how to spend, but not how to save. This is what we are teaching them."
Financial education is central to the program that supports the coffee farmers who live near Tala and the SACCO's four other branches. Understanding savings and learning how to manage money are especially critical this time of year, when the coffee trees are in their initial budding stages and far from providing any income to their growers. The support and strengthening WOCCU has been providing UTS over the past few years has enabled the SACCO, in turn, to provide similar services for its members, Mutungi said.
"Our partnership with WOCCU has added great value to the SACCO and gives us a better foundation for a more strategic approach," Mutungi added. "We believe we are ahead of other SACCOs in Kenya, but we are still learning. And we would like to pass that understanding on to our members as well."
Community CUs of the year announced
LAS VEGAS (10/26/09)--The 2009 Community Credit Union of the Year awards were announced Thursday at the Credit Union National Association's (CUNA) Community Credit Union and Growth Conference in Las Vegas.
The Community Credit Union awards recognize and honor community credit unions that best exemplify the principles of the credit union movement while serving as a positive influence in the field of service.
New for 2009, CUNA added a secondary level of recognition as part of the Community Credit Union of the Year Awards--the Award of Merit. The award recognizes the outstanding work being done by credit unions across the country.
Award winners in the $250-million-and-below asset category were:
- Archer (Neb.) Cooperative CU, which received the Community Credit Union of the Year Award. Shelly Broekemeier, vice president of operations, accepted the award.
- US Community CU, Nashville, which received the Award of Merit. Credit union CEO Cheryl Thompson; Paul Johnson, executive vice president; and Cindy Bubin, senior vice president, accepted the award.
Winners in the $250-million-and-above asset category were:
- Elevations CU, Boulder, Colo., which received the Community Credit Union of the Year award for the same category. Dennis Paul, associate vice president of business and community development, accepted the award.
- Shell FCU, Deer Park, Texas, which received the Award of Merit. Angela Head, vice president of information systems, accepted the award.
For more information, use the links.
CU System brief
- HARRISBURG, Pa. (10/26/09)--Pennsylvania State Rep. Peter Daley (D-Fayette) presented the state House of Representatives with a resolution recognizing Oct. 11-17 as Credit Union Week in Pennsylvania.
The resolution recognizes credit unions for helping members improve their economic situations and the volunteers who support credit unions and charitable events, said the Pennsylvania Credit Union Association (Life is a Highway Oct. 22). Christina Mihalik, association vice president of governmental affairs, accepted the resolution from Daley (left). Daley is chairman of the state House Commerce Committee. (Photo provided by the Pennsylvania Credit Union Association) ...
Market News
MADISON, Wis. (10/26/09)
- In September, sales of existing U.S. homes rose to the highest level in more than two years because of homebuyers trying to use a federal tax credit for first-time owners before it expires, analysts said. Sales increased 9.4% to a seasonally adjusted annual rate of 5.57 million in September from a downwardly revised rate of 5.1 million in August, the National Association of Realtors said Friday. Economists surveyed by Thompson Reuters had expected sales to rise to an annual rate of 5.35 million. The median sales price was $174,000--down 8.5% from one year earlier and lower than August's median of $177,300. "There's a mini-boom going on in the housing market," said Tomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm (The New York Times Oct. 24) ...
- The costs of closing down large financial institutions should be paid by the financial services industry--not taxpayers, Federal Reserve Chairman Ben Bernanke told Congress last week. Bernanke said there should be a "credible process" for imposing losses on creditors and shareholders adding "any resolution costs should be paid by through an assessment on the financial industry." While Congress contemplates the largest make-over of financial regulations since the 1930s, Bernanke said it is "critical" that lawmakers fill regulatory gaps and give supervisors the tools to manage risk throughout the financial system (Bloomberg.com Oct. 23) ...
News of the Competition
MADISON, Wis. (10/26/09)
- Although American Express Co.'s balance sheet became tidier as loss provisions declined, the company said Thursday its third-quarter net income dropped 21%. AmEx said its third-quarter earnings were $640 million--or 53 cents per share, compared with--$815 million--or 70 cents per share--a year ago. "At the start of the year, the economy appeared to be in a freefall, the drop in card-member spending was accelerating and loan loss rates were rising rapidly," CEO Kenneth Chenault said in a press release. "Today, while there is still reason to be cautious about high unemployment levels, we are seeing broad-based improvements in credit quality, the trends in card-member spending are encouraging, and there are signs that the recession may be approaching an end" (MarketWatch Oct. 22) ...
- Capital One Financial Corp., a U.S. banking and credit card company, Thursday reported its first quarterly profit of 2009 Thursday in the aftermath of cutting its spending on marketing, analysts said (Reuters Oct .22). Third-quarter profit increased 14%--exceeding analysts' expectations largely due to increased revenues from lending, analysts added. Net income was $425.6 million--or 94 cents per share, compared with $374.1 million--or $1 per share for the period one year ago, the company said. "We're weathering the storm, but the storm is not over, and we continue to face several significant risks," said Richard Fairbank, Capital One CEO. "While the pace of deterioration appears to have slowed, labor markets have yet to actually improve" (Bloomberg.com Oct. 22) ...
- The Federal Reserve Bank's asset holdings for the week ending Oct. 21 increased to $2.204 trillion from $2.196 trillion last week (American Banker Oct. 23). Securities also increased to $773.48 billion from $773.46 billion. Discount window borrowing dropped to $107.46 from $111.76 the week before. Borrowing by commercial banks through the window decreased to $23.56 billion Wednesday, compared with $27.23 billion the previous week ...
Medicare Part D, Advantage costs rising in 2010
WASHINGTON (10/26/09)--If you're enrolled in Medicare Part D, expect to see a significant increase in your out-of-pocket costs. In 2010, average premiums for Medicare Part D will increase by 7% to $30 a month. The average cost for Medicare Advantage plans will increase by 22% to $39 a month (US News & World Report Oct. 13).
Premiums aren't the only items that are increasing. More stand-alone drug plans will have deductibles and more will have coverage gaps starting in 2010. Medicare Advantage plans also are increasing co-pays, and not all providers participate in the plans.
Even if you're happy with your current coverage, you should be prepared for other changes. For example, many insurers are changing formularies--the lists of medications that they'll help you pay for--and you may have to pay more for a medication if your insurer switches your drug from preferred to non-preferred.
Some tips to handle rising costs:
- Take advantage of this year's open enrollment period. You have from Nov. 15 through Dec. 31 to examine all the prescription drug plans your state offers.
- Analyze your options for Medicare Part D. Fortunately, you can get expert help making this analysis. The U.S. Department of Health and Social Services offers a Medicare prescription drug plan finder. Visit Medicare.gov and click on "Compare Drug Plans." Type in your drugs and dosages, and see the total out-of-pocket costs for your medications throughout the year. Or, call 800-633-4227 for personalized assistance (Kiplinger's Oct. 8).
- Consider Medicare Advantage. Medicare Advantage (also known as Medicare health plans) is an alternative to paying for the combination of Medicare Part B, a Part D prescription-drug plan, and a medigap policy. To find out about prices and coverage for plans in your area, go to Medicare.gov and click on "Compare Health Plans."
For more information, use the links.
Fourteen Puerto Rican CUs join FSCC network
SAN DIMAS, Calif. (10/26/09)--Fourteen Puerto Rican credit unions are participating in shared branching through Financial Service Centers Cooperative, Inc. (FSCC)'s Shared Branching network. This addition represents the first shared branching partnership with credit unions headquartered in Puerto Rico in the CU Service Centers Network.
Participating credit unions or cooperativas de ahorro y credito--as they are called in Spanish--include Abraham Rosa/Arcoop, Aguas Buenas/BUENACOOP, Aiboniteña/BoniCoop, Caribe FCU, CooPACA, Guaynabo, Jesús Obrero, Las Piedras, Naguabeña, Padre McDonald, Quebradillas, Rincón, Rodríguez Hidalgo, and Saulo D Rodriguez/Guracoop.
The Puerto Rican credit unions form Circuito Cooperativo Inc. has been organized as the first cooperative corporation in Puerto Rico. The primary goal of Circuito Cooperativo Inc. is to unify marketing efforts behind shared branching in Puerto Rico.
Helvetia del Caribe, a credit union data processor, will help FSCC launch the services in Puerto Rico. Helvetia del Caribe provides shared branching software and equipment to credit unions so they can provide shared branching services.
"We are grateful to work with Circuito Cooperativo Inc. and Helvetia del Caribe," said Sarah Canepa Bang, FSCC president/CEO. "Their commitment to cooperation and innovative support tools are helping multiple Puerto Rican credit unions gain access to shared branching. Due to this exclusive partnership, we expect the participation of Puerto Rican credit unions to continue to grow."
The 14 credit unions will add 36 branches in Puerto Rico. They will join Baxter CU of Vernon Hills, Ill., which has a branch already operating as an outlet in Carolina, Puerto Rico.
FSCC provides nearly 6,200 full-service deposit-taking locations in the U.S. and overseas.
Copyright © 2009 - Credit Union National Association, Inc.
