News

The economic crisis and bank departures from rural areas were giving credit unions in eight states new hope last week their legislative proposals for deposit of public funds might stand an improved chance of passing this year.

Community development credit unions plan to pay close attention to the Obama administration's stated intention to freeze much of the federal budget.

Meeting the state's economic doldrums head-on, the $460 million First Credit Union is closing five Arizona branches next month in a move reflecting both declining activity and a shift in consumer preference for online services.

Since discussions to settle a case involving an $11.8 million loss from the defunct New London Security Federal Credit Union fell through, the NCUA has moved forward with a suit to recover the misappropriated funds.

The U.S. Treasury Department will make money from the Troubled Asset Relief Program available to credit unions, banks and thrifts that have been recognized as community development financial institutions by the Department's CDFI Fund.

Of the five corporates that have posted unaudited December and year-end figures, three reported net losses and two net profits. However, all are anticipating better bottom lines than those recorded in 2008.