WASHINGTON - (04/19/06) -- Congressional hearings into creditunion conversions to mutual savings banks will be aimed atencouraging NCUA to reform its own conversion rules, according toone congressional critic of the agency. Rep. Patrick McHenry,R-N.C., chief sponsor of a bill to ease NCUA's power overconversions, conceded Tuesday his bill is unlikely to be passedthis Congress but he said he hopes next month's hearings willencourage NCUA to amend its conversion rules to, among otherthings, allow greater communication between credit union managementand members prior to the vote. "I'm hopeful with a full (NCUA)Board they will be able to deal with this in a regulatory manner,"McHenry told The Credit Union Journal, referring to last year'sclash with NCUA while it had only one sitting member, ChairmanJoAnn Johnson. "Otherwise, it may require a legislative remedy."McHenry said he has been watching the controversy over DFCUFinancial closely and believes much of the acrimony anddivisiveness over the failed conversion could have been avoided bya greater ability of the DFCU board and management to freelyexplain their plans to members. McHenry's bill, among other things,would eliminate a requirement that NCUA approve all communicationswith members on conversions, thereby speeding up and expandingcommunications, he said. "It enables the credit union to speakfreely to their members and the general public about the benefitsof the conversion." NCUA is preparing amendments to its conversionsrule that would facilitate greater communications between membersand allow credit unions to hold informational meetings to discussthe plans before a board votes to proceed with a conversion tomutual savings bank.
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Beth Johnson, a self-described math geek, is driving the bank's ESG strategy and training its employees to keep pace with industry trends.
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The Cleveland-based bank is projecting steady growth in net interest income even as credit losses remain manageable. But Chairman and CEO Chris Gorman also said that he thinks a recession is likely.
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The first-quarter increase involved commercial real estate loans, including some problematic multifamily loans and an office credit, but none of the criticized loans were to consumers, officials at the Dallas company say. Further CRE deterioration is anticipated.
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The Detroit-based company is exploring ways to make more consumer auto loans without running afoul of stricter capital standards that are expected from the Federal Reserve. Possible approaches include more securitizations and the use of credit risk transfers.
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The House Financial Services Committee also sent to the full House two bipartisan bills, including one that would prevent large banks from opting out of having to recognize Accumulated Other Comprehensive Income in regulatory capital.
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Charge-offs and nonperforming loans rose at the Georgia bank in the first quarter. But it blamed the problem on one large client and said the matter has been resolved.
April 18