HOUSTON - (09/12/05) -- A huge scrip-like emergency reliefplan was abandoned Friday, almost as fast as it appeared in thewake of Hurricane Katrina, providing vast new opportunities forcredit unions and banks. The Federal Emergency Management Agencyquickly suspended the disbursement of as many as 600,000MasterCard-branded debit cards with $2,000 stored on each one, asthe initial disbursements to 20,000 New Orleans refugees living inthe Astrodome nearly resulted in rioting. FEMA said instead it willdisburse as much as $1 billion in emergency payments throughtraditional accounts at credit unions and banks, and urged as manyas one million refugees from the Hurricane to register to receivedirect deposits from the emergency agency. The advent of the hugefederal assistance program--the largest ever for an emergency--poses potential opportunities for the financial institutions whichserve them. The stored value card program went awry almost from thestart. First, refugees living outside of Houston where the cardswere to be distributed were angry they were not being given thecards at the same time. Then the Red Cross began passing out itsown debit cards at the Astrodome, confusing many people andangering others who waited for hours in high temperatures. Policehad to be brought in for crowd control. In Houston, poor people whoheard of the government payments tried to get into the Astrodome.The cards were to have gone to allow refugees from Katrina to buyfood, clothing, shelter and other necessities.
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The top five banks and thrifts have combined total assets of nearly $13 trillion.
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The JPMorgan Chase CEO took aim Tuesday at the proposed Basel III endgame rules, hindrances to mergers and bureaucratic burdens. "I would love to have a more productive relationship with regulators, but I think it takes conversation," Dimon said.
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Many legal experts think the Supreme Court will rule in favor of the Consumer Financial Protection Bureau in a case challenging its funding. Such a ruling would unleash a flurry of litigation that has been on hold pending the outcome of the constitutional challenge.
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Lawmakers including one of the original sponsors of the Corporate Transparency Act have filed an amicus brief in the appeal against an Alabama court ruling that the law is unconstitutional, which would throw into question Treasury's newly-established beneficial ownership structure.
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The Connecticut bank —a regional traditionally regarded as a cautious lender — said nonperforming loans and leases rose 53% year-over-year. The uptick was in mostly the commercial-and-industrial loan space, although there was one nonperforming commercial real estate loan, executives said.
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The two regional banks are anticipating that borrower demand will increase in the back half of the year. High interest rates and economic uncertainty have been muting the appetite for borrowing.
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