GRAND RAPIDS, Mich. — The 70 or so credit union owners of CU*Answers have received $400,000 in 2008 patronage dividends.
That doubles last year's patronage dividends of $200,000 and brings to $1.25 million the amount paid in the past five years, according to the Grand Rapids-based CUSO, a provider of core processing and other services to more than 165 credit unions.
"These patronage dividends, in conjunction with our other returns to our owners, resulted in over $1.14 million being returned to our owners in 2008," said Bob Frizzle, the company's chief financial officer.
"While the real power of ownership is in the collective voice of collaboration, the numbers confirm that the CUSO model promoting client ownership is viable and profitable," Frizzle said.

Geithner Faces
Host of Issues

WASHINGTON — After delays in the Senate because of mistakes he made when paying his taxes, Treasury Secretary Timothy Geithner recently started his new job and was met by array of requests from credit unions for help.
In separate letters, NCUA Chairman Michael E. Fryzel and NAFCU President Fred Becker both asked Geithner to reconsider the policies for administering the Troubled Assets Relief Program so credit unions can participate.
Fryzel wrote that he was "deeply concerned," about the "second-place status" of credit unions in the program. He urged the administration to change the Bush administration's policy of not using TARP funds to buy illiquid assets and to establish rules for credit unions to participate in the capital purchase program.
He also urged Geithner to develop a program that would enable the National Credit Union Share Insurance Fund to provide insurance for all deposits in noninterest bearing transaction accounts. FDIC-insured institutions provide this coverage, but the NCUA lacks the systemic risk authority that would enable it to do the same.
Becker made similar points on those issues but also requested that any effort to restructure the way financial services are regulations keep a separate regulator for credit unions.
"In order to preserve the credit union charter as an important choice for consumers, NAFCU urges that federal credit unions should continue to be subject to regulatory oversight by a separate independent regulator," he wrote.
Before being named to the Treasury Department, Geithner was president of the Federal Reserve Bank of New York.

N.Y. Assoc. Meets With
Congressional Delegation

WASHINGTON — The Credit Union Association of New York has been reaching out to the newest members of the state's congressional delegation and renewing its ties with one of the veterans.
Members of the association's Metropolitan chapter recently had lunch with Rep. Joseph Crowley (D) his party's chief deputy whip and a member of the Ways and Means and Foreign Affairs committees. The Ways and Means panel has jurisdiction over tax and revenue issues, including the tax-exempt status of credit unions.
Crowley urged the five credit union representatives with whom he met to step up their advocacy efforts and also updated them on Congress' recent efforts to improve the economy and help troubled financial institutions.
Also, the association's Senior President and General Counsel Michael Lanotte and Vice President of Governmental Affairs Amy Kramer met with all five freshman members of the state's congressional delegation.
Lanotte and Kramer went to Washington and discussed the association's positions on key issues during meetings with Reps. Chris Lee (R), Daniel Maffei (D), Eric J.J. Massa (D), Michael E. McMahon (D) and Paul D. Tonko.
Lee and Maffei were appointed to the House Financial Services Committee.

Velocity Names New CEO

AUSTIN, Texas — Debbie Mitchell was appointed CEO of Velocity Credit Union by a unanimous vote from the board of directors.
Mitchell's appointment comes after the passing of Larry Strong, former CEO. Mitchell has been president of the credit union since 2007 and has been at Velocity for 23 years. Prior to her appointment as president, Mitchell was the chief operating officer and led the credit union through a re-naming/re-branding campaign and branch expansion.
"Velocity's board of directors has every confidence that Debbie Mitchell is the right person to lead Velocity in today's environment. She's wise, passionate and a broad thinker," said Carl Lynch, chairman of the board. "Debbie has directed the operation of this credit union for the past five years and has already proven herself to be a strong leader, who has built an exceptional management team."

Crear Starts OCDC Term

MADISON, Wis. — Last month, Pete Crear, president/CEO of World Council of Credit Unions, started his one-year term as chair of the U.S. Overseas Cooperative Development Council.
The OCDC is an association, made of up eight member organizations, that applies cooperative techniques to help disadvantage people in developing countries. Crear has served on the OCDC board since 2005.
"OCDC is delighted that Pete is assuming the role of board chair for 2009," said Rob Nooter, OCDC's executive director. "With a new administration taking office and Congress planning to reauthorize the legislation that guides U.S. policy no foreign assistance, this is a critical time for cooperatives and credit unions to create opportunities for increased emphasis on achieving economic growth through member-owned businesses. Pete's experience judgment and leadership will be needed in addressing the challenges and opportunities we will confront this year."
In addition to WOCCU, OCDC's eight member organizations include Americas Association of Cooperative and Mutual Insurance Societies, Cooperative Communications International, CHF International, Land O'Lakes International, National Cooperative Business Association and the Natural Rural Electric Cooperative Association International.