WASHINGTON - (04/14/05) -- The nation's chief accountingstandards-setter told Congress Wednesday he sees nothing wrong withproposal to amend the Federal CU Act to allow credit unions toskirt new rules on accounting for mergers. The proposal, whichwould redefine the concept of 'net worth' for credit union to allowthem to continue pooling their capital mergers "will not legislateaccounting standards," Robert Herz, chairman of the FinancialAccounting Standards Board, assured lawmakers during a hearingbefore the panel of the House Financial Services Committee. NCUAChairman JoAnn Johnson told the panel the change in definition isnecessary because the FASB's new prohibition on the pooling methodof accounting will dilute a credit union's net worth after amerger, threatening some credit unions with a brush with minimumcapital rules, and thereby discouraging mergers. More importantly,noted Johnson, it could discourage some credit unions fromacquiring troubled institutions in assisted mergers, therebyrequiring that those institutions be liquidated instead at a costto the National CU Share Insurance Fund. Rep. Spencer Bachus,R-Ala., chairman of the panel, noted the accounting fix appears tobe on the fast track to passage, as no one has come forward tooppose it and it has broad bipartisan support.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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