NCUA Lifts Letter of Understanding Against Toledo Metro Federal CU

ALEXANDRIA, Va. -- The NCUA recently lifted its Letter of Understanding against the Toledo Metro Federal Credit Union, recognizing that it has resolved the disputed issues.<p>The NCUA said in its statement that the credit union had "improved its underwriting and compliance with NCUA rules and regulations.''</p><p>The credit union had signed the LUA in 2006 acknowledging its problems and promising to correct them. The problems listed were poor loan quality, field of membership violations, delinquencies and weak management. Agency records at the time indicated the credit union's delinquencies and charge-offs were well above its peers and return on assets was negative.</p><p> </p><p><strong>NCUA Announces 2009 Meetings</strong></p><p>ALEXANDRIA, Va. -- The NCUA Board is scheduled to hold 11 board meetings next year, all of them on Thursdays, starting at 10:00 a.m. at their headquarters here.</p><p>The three-member panel has meetings scheduled every month, except August, as it does every year. The meetings are open to the public, though the board sometimes meets in closed session afterward if there are confidential matters to discuss.</p><p>The meeting dates are: Jan. 15, Feb. 19, March 19, April 16, May 21, June 18, July 16, Sept. 24, Oct. 15, Nov. 19 and Dec. 17.</p><p> </p><p><strong>NCUA to Hold Share Insurance Webinar</strong></p><p>ALEXANDRIA, Va. -- In the wake of the current financial crisis, the NCUA is sponsoring a Webinar on its share insurance program on Oct. 7.</p><p>The 90-minute session, Share Insurance 101, will be hosted by NCUA Board Member Gigi Hyland. It is part of the agency's continued outreach on the subject, in light of the nation's economic difficulties and the highly publicized failures of some banks.</p><p>The Webinar, which is free, is scheduled to take place on that date from 1:00 p.m. to 2:30 p.m. (EDT).</p><p>To register go to: http://event.on24.com/.</p><p> </p><p><strong>NCUA Issues Prohibition Against<br>Former CU Employees, Volunteers</strong></p><p>ALEXANDRIA, Va. -- NCUA has banned eight people from participating in the affairs of federally insured financial institutions because of their activities while they were affiliated with credit unions. Violations of prohibition orders are felony offenses, punishable by imprisonment and a fine of up to $1 million The people banned are:</p><p>Aaron Bell, a former board member of the Burlington Northern Santa Fe Railroad Credit Union, Cicero, Ill., was convicted of laundering criminal property by committing dishonest acts against the credit union and sentenced to two years of supervised release.</p><p>Ann Bryson, a former employee of Good Samaritan Employees Federal Credit Union, Cincinnati, consented to a prohibition order, without admitting or denying fault.</p><p>Betty J. Hargrave, a former manager of Kellogg Memphis Employees Federal Credit Union, Syracuse, N.Y., consented to a prohibition order, without admitting or denying fault.</p><p>Pranee Kolesar, a former employee of Boeing Helicopters Federal Credit Union, Ridley Park, Pa., pleaded guilty to misapplication of credit unions funds and bank fraud, She was sentenced to one day in prison, five years of supervised release and ordered to pay $14,500 in restitution.</p><p>Linda Mattina, a former employee of Long Island State Employees Federal Credit Union, Hauppauge, N.Y., consented to a prohibition order, without admitting or denying fault.</p><p>Elizabeth Montedoro, former teller of Patriot Federal Credit Union, Chambersburg, Pa., pleaded guilty to one count of bank fraud and was sentenced to 21 months in prison followed by four years of supervised release, and she was ordered to pay $182,777 in restitution.</p><p>Patricia H. Sherman, a former teller of Obelisk Federal Credit Union, New Albany, Ind., was convicted of embezzlement and sentenced to 97 months imprisonment, five years of supervised release and ordered to pay $7 million in restitution.</p><p>Josette L. Williamson, was convicted of petty larceny in connection with the failure of WIT Federal Credit Union, Rochester, N.Y., and sentenced to 120 hours of community service.</p><p> </p><p><strong>NAFCU Webinar on Red Flags Rules</strong></p><p>ARLINGTON, Va. -- Credit union employees who want help in devising their plans to combat identity theft can attend NAFCU's Oct. 1 Webinar on the subject.</p><p>The event, which features NCUA attorney Regina Metz, is designed to help credit unions comply with the Nov. 1 deadline for developing and implementing an identity theft prevention program both for new and existing accounts. The program must include reasonable policies and procedures for detecting, preventing and mitigating identity theft.</p><p>Metz, who has been with the agency since 1998, will discuss how easily criminals gain access to member information and detail the requirements credit unions' identity theft programs must meet to comply with the new law.</p><p>The Webinar is scheduled for 2:00 p.m.-3:30 p.m. EDT.</p><p>For further information or to register, go to: www.nafcu.org/octoberwebcast.</p><p>For additional information on the regulation go to: http://www.ftc.gov/bcp/edu/pubs/.</p><p> </p><p><strong>Kansas Study Calls for Consolidation<br>Of Financial Service Regulators</strong></p><p>TOPEKA, Kan. -- Merging the offices that regulate banks and credit unions would "result in reduced costs and greater efficiencies,'' according to report by the Kansas Legislature's Legislative Post Audit Committee.</p><p>The consolidation would "more closely align agencies with similar broad missions.'' The money saved could be used to finance increased automation, improve oversight and enforcement as well as reduced fees to the regulated industry, the panel concluded. The report noted, however, that officials of the Department of Credit Unions "expressed concerns that their functions would be diluted if consolidation occurred, or that the services and protections they provide to the Kansans they serve might be diminished.''</p><p>The committee recommended that the agency that regulates trusts, the Office of the Securities Commissioner, remain separate.</p><p>Marla Marsh, president/CEO of the Kansas Credit Union Association, said consolidation would decrease the chances that the issues unique to credit unions would receive adequate attention.</p><p> "Kansas credit unions want and need a regulator that understands the unique regulatory challenges faced by not-for-profit financial institutions. This report fails to recognize the philosophical and structural differences between credit unions and banks. Combining agencies and homogenizing the regulatory process could result in the loss of the fundamental differences between the two regulatory organizations. As such, Kansas credit unions cannot support the recommendation that the agencies should be combined," she said in a statement.</p><p> </p><p><strong>NCUA Establishes Insurance<br>Call Center and Tool Kit</strong></p><p>ALEXANDRIA, Va. -- In an effort to calm the nerves of consumers during the current economic crisis, the NCUA has established a call center and created a tool kit about its share insurance fund.</p><p>"With the well-publicized turmoil in the financial markets, consumers need assurance that the federally insured funds in their credit unions are safe up to the insured limits," said NCUA Chairman Michael E. Fryzel. "I call upon credit union volunteers and professionals to employ these resources to the greatest extent possible." </p><p>The NCUA Insurance Call Center, operating from 8 a.m. to 6:30 p.m. (EDT) Monday through Friday, has insurance experts available to answer questions about the coverage provided by the NCUSIF. The toll-free Insurance Call Center number is 1-800-755-1030, extension 1.</p><p>The NCUA electronic tool kit, online at http://www.ncua.gov/ShareInsurance/Index.htm, contains a variety of useful information on share insurance coverage to use and disseminate, including:</p><p>-NCUA Share Insurance 101 Webinar is scheduled Oct. 7, 2008; </p><p>-Insurance estimator enables calculating an estimate of share insurance coverage; </p><p>-Your Insured Funds brochure details insurance coverage, with many examples; </p><p>-How Your Accounts Are Federally Insured brochure provides basic insurance information; </p><p>-Special Bulletin explains increased retirement account coverage in addition to basic insurance protection; and </p><p>-Letter to Credit Unions 08-CU-18, Educating Members on Share Insurance Coverage.</p><p>--cmarx@c</p>