BLOOMINGTON, Ill. – The launch of State Farm Bank in 1999 will not impact the proposed merger of the 12 credit unions that serve State Farm Insurance Co. employees, a company spokesperson said. State Farm Bank opened in May 1999 after being granted a federal savings bank charter from the Office of Thrift Supervision on Nov. 12, 1998-prior to the 1999 Gramm-Leach Bliley Act. The bank’s deposit insurance certificate with the Federal Deposit Insurance Corp. was granted Nov. 17, 1998. Since its opening, State Farm Bank has sought clarification from the OTS regarding the applicability of state licensing and registration requirements to its agents who market exclusively State Farm Bank products. Some states have also required State Farm agents to be state licensed/registered in order to market the bank’s jumbo certificates of deposits and mortgage products. On Oct. 25, 2004, the OTS issued an opinion stating these requirements are not applicable to State Farm agents when marketing State Farm Bank products. In essence, agents do not have to be dually licensed to sell certain products, said Fraser Engerman, spokesperson, State Farm Insurance. Two dozen states had required agents to be licensed to sell jumbo CDs, he added. The company is currently in litigation in other states over the dual licensing. Meanwhile, the proposed merger of the 12 State Farm federal credit unions has nothing to do with State Farm Bank, Engerman said. “They’re two totally different entities,” he said. State Farm Bank has 485,000 active accounts and $5 billion in assets, according to State Farm Insurance’s Web site. -firstname.lastname@example.org
The disruption could introduce new risks into the system by compelling banks to loosen lending standards and take on greater risk.
The CDFI awards support to developers, renters and buyers.
Without email authentication standards, hackers don’t need to compromise accounts to send emails that impersonate FIs.
Sponsored by Epic River
Learn how your credit union can onboard new sources of deposit revenue from hospital systems and healthcare providers in your community with the strategy outlined in this white paper.
Sponsored by Finastra
Taking the first step towards a complete digital mortgage experience can be the hardest. Learn six strategic steps to start your credit union’s journey today.
Credit Union Times
Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!
- Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
- Exclusive discounts on ALM and Credit Union Times events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.