Credit Union Times Magazine May-12, 2010

League President Cheney Named To Become CUNA President/CEO

By Claude R. Marx

Reaching inside the credit union movement following the tenure of a prominent outsider, CUNA last week named California-Nevada Credit Union League President Bill Cheney as its new leader.

MBL Guarantee Removal May Expose CUs to Violations

By Michelle A. Samaad

The proposed elimination of personal guarantees could potentially cripple underwriting and punish those credit unions that have not "excessively abused their privileges," a group of 15 member business lending CUSOs recently wrote.

Losses Add $1B to Stabilization

By Heather Anderson

New losses at corporate credit unions increased the Temporary Corporate Credit Union Stabilization Fund loss provision by $1 billion during the month of March, the NCUA reported.

Executive Compensation Pros Urge Caution on Comparisons

By Heather Anderson

As executive compensation is made increasingly public, and credit union professionals become privy to what their colleagues earn, they're sharing the information with each other and the press.

NCUA Closes St. Paul Croatian FCU

By Claude R. Marx

A week after placing $250 million St. Paul Croatian Federal Credit Union into conservatorship, the NCUA on May 1 announced it was liquidating the credit union.

NCUA, Mass. Issue LUA to Tremont CU

By Claude R. Marx

The NCUA and the Massachusetts Division of Banks jointly issued a letter of understanding and agreement to the officials of the $178.9 million Tremont Credit Union, Braintree, Mass.

Mizzou Corp Drops Dividend to 0%

By Heather Anderson

Pressure from regulators to increase earnings has lead the board of Missouri Corporate CU to lower its overnight dividend rate to 0%, effective May 1.

Senate Debates Reg Restructuring and Considers Gaggle of Amendments

By Claude R. Marx

Credit unions received a reprieve on data-reporting requirements but were still waiting on amendments on interchange fees and the agency to regulate consumer financial products as the Senate began to discuss the financial overhaul bill.

No Ambac OTTIs for Corporate One

By Heather Anderson

The $3.7 billion Corporate One FCU did not record any OTTIs against $35.5 million worth of securities wrapped by monoline insurer Ambac Assurance Corp., according to its March 2010 financials.

ATM Manufacturer Triton Moves Into Private Hands

Triton of Delaware, an ATM manufacturer that makes its machines in the U.S. and was formerly a division of the Dover Corp., has been sold to private investors, the company confirmed.

Anne Cochran Assumes WOCCU Treasurer Post

World Council of Credit Unions board director Anne Cochran has been named treasurer of the group, replacing Mark Bailey.

More Funds For SBA Loans

The SBA has received an additional $80 million to support its 7(a) and 504 loan programs to keep capital flowing to small businesses.

Website Brings Michigan Credit Union Financing to Small Biz

Michigan credit unions and CUSOs are spreading the word statewide to small business owners that financing is available.

SEC Plan For Traders

Under a new SEC proposal, large traders would be issued a unique identification number so that their broker-dealers could maintain transaction records in an effort to stop illegal trading activity.

Study Finds That Shared Branching Helps Credit Unions Build Profits

By David Morrison

Members who use shared branching services are more profitable for their CUs, according to a study commissioned by CO-OP Financial Services, the parent CUSO of CO-OP Shared Branching.

Two Seattle Credit Unions Are Merging

With an August target date, two Seattle credit unions, the $228 million Prevail Credit Union and the ailing $32 million Transportation Northwest CU, are preparing to merge.

Texas League MBL Blitz

The Texas Credit Union League has managed to get the 140,000-member Texas Association of Business to join CUNA's legislative drive on member business loans.

WOCCU Honors Deceased Polish President for Movement Contributions

The World Council of Credit Unions' Board has unanimously voted to award Poland's Lech Kaczynski the 2010 Distinguished Service Award. The former president died with 95 other government officials and their spouses in an airplane crash April 10.

Elevations CU and Longs Peak CU of Colorado to Merge

The $934 million Elevations Credit Union of Boulder. Colo., is expanding its reach across the state's Front Range by making plans to merge with the $20 million Longs Peak Credit Union of Loveland.

Missouri CUs Face Closure

The task of protecting 10 small highway credit unions in Missouri from being ousted from state offices just got tougher even after lawmakers gave vigorous support to the industry cause late last month.

Two Leave Silver State

Two of the top executives at Nevada's struggling Silver State Schools Credit Union have apparently lost their jobs, it was disclosed last week.

CU Welcomes Bank Customers

By Michelle A. Samaad

In an unusual move to expand its business services footprint, Anheuser-Busch Employees' Credit Union has signed an agreement to serve the existing retail and business customers of Stifel Bank and Trust.

Eastern Financial Florida Becomes Relic

By Michelle A. Samaad

Eleven years after the now-defunct Eastern Airlines first flew the skies from its Miami-based hub, a credit union chartered to serve the carrier's employees made its debut.

Experts on Excellence

CUES has tapped nine industry experts as advisers to the new Center for Credit Union Board Excellence.

Save the Earth Launched

Indiana Members Credit Union is doing its part for the environment with the launch of its "Save And Value Earth" program, called $AVE.

Michigan CU Offers Online Vehicle Help

Michigan State University Federal Credit Union has teamed up with CarQuotes Corporation to offer its members a vehicle research website, free pricing reports and buying advice

Stanford FCU CEO Retires

After 14 years of service, Stanford Federal Credit Union CEO John R. Davis will retire effective May 14.

Conn. Students Attend Financial Reality Fair

Sikorsky Financial Credit Union of Stratford, Conn., held a "Financial Reality Fair" for over 200 students.

Payments Conference Tries to Blaze a Bright Trail Through Dark Times

By David Morrison

WAILEA, Hawaii -- The meeting planners at PSCU Financial Services, the payments CUSO for more than 500 of the nation's credit unions, wanted to emphasize the positive at their annual Member Forum this year.

Credit Unions Are Gaining Stature as Card Issuers, Visa Exec Says

By David Morrison

WAILEA, Hawaii -- Bill Sheedy, president of North America for Visa Inc, said credit unions have grown in stature with the No. 1 card brand.

Around the Beltway and Over the River in 90 Seconds

By Sarah Snell Cooke

As everyone knows by now, CUNA selected Bill Cheney as its next president/CEO. While I touted a month ago the strength of choosing an industry insider (Editor's Column, April 7), I really wasn't sure CUNA would follow that line of thinking.

Can't Blame the NCUA That CUs Jumped Into Regflex With Both Feet

I recently attended the NAFCU Chief Executive Officers Conference in Savannah, Ga., and the last speaker on the agenda was NCUA General Counsel Robert Fenner.

What CUs Can Learn From Wachovia

When Wachovia Bank agreed to a settlement with the U.S. government, it became the financial institution with the unfortunate distinction of having paid the largest penalty, $160 million, for a violation of the Bank Secrecy Act.

New Reg Z Rules Deadline Looming

As credit unions are well aware, Regulation Z's new open-end lending rules under the Truth-in-Lending Act take effect July 1, 2010. Regulation Z establishes (among other things) uniform methods for disclosing credit terms.

Additional Consumer Protection Strategy Is Launched by Visa

In what may be a controversial move, Visa announced it is clamping down on a retail policy it said sometimes hurts consumers.

The CARD Act Is an Industry Game Changer and Gives CUs Chance to Shine

It is not an understatement to say that the CARD Act has turned the credit card industry on its ear. But, credit unions, by maintaining their focus on offering the best card product available to members, can still be true to who they have always been.

Better Serving Your Members' Credit Needs With Sophisticated Analytics

In this economy, credit unions are justifiably conservative in their lending practices.

CUs Find Media Glare and Web Spotlight Favor Their Card Programs

By David Morrison

Credit unions that have their credit card programs listed on the Credit Card Connection are reporting increased attention thanks to the listings.

Catching Up on Card Payments

Information from the largest card issuers suggests that more Americans are moving from economic stress to greater prosperity.

PNC Bank Finds Cash in Surcharge-Free ATMs

Credit unions are not the only ones familiar with the benefit of offering consumers surcharge-free access to ATMs.

Target Dumping Visa

In a move that may signal a broader trend reversal, the Target shopping chain has announced it will stop issuing its Target branded credit card with a Visa logo and will instead issue only its in-house Target branded card.

Credit Union Credit Cards Are No Longer the Orphan Assets of the Industry

The charts and graphs below bring home both how far credit cards have moved from being almost an orphan asset in the credit union industry toward having a place far closer to the head of the table.

Community Events

Genisys Credit Union, Auburn Hills, Mich., announced plans to partner with Palace Sports and Entertainment and sponsor the 20th annual "Walk for Warmth."

Awards

CU Members Mortgage, Dallas, recognized five credit union partners who made great achievements in their mortgage departments based on the scorecard process.