MADISON, Wis. - (05/05/05) -- Credit unions, which are notoriouslyslow to react to market rates, have begun pushing up rates inresponse to the Federal Reserve's repeated hike in short-termrates. CUNA reported that 52% of credit unions raised rates theypay on one-year CDs and 25% raised their money market rates lastmonth after the Fed increased the target rate for overnight fundsby 25 basis points to 2.75% Another 9% of credit unions raisedtheir regular share rates. Short-term loans rates were alsoaffected, with 19% of credit unions lifting new rates for new carloans and 10% raising unsecured loan rates, while 7% increasedtheir rates for credit card loans. Observers expected more creditunions to follow suit in the coming weeks after the Fed movedTuesday to lift the overnight target rate by another 25 bps to 3%."The pressure to raise their cost of funds will continue," JeffTaylor, a NAFCU economist, told The Credit UnionJournal.
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Synovus Financial demonstrated at an industry conference how it is using Microsoft's Copilot to help its staff address customers' concerns.
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The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
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Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
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Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
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