WASHINGTON - (09/08/04) -- Credit union efforts to gain accessto secondary capital took a major blow Tuesday with the release ofa study by the Government Accountability Office concluding there is"no compelling need for secondary capital" among credit unions. Thestudy, conducted in response to credit unions' legislativelobbying, found that credit unions have maintained capital levelswell above the minimum standards required under prompt correctiveaction enacted in the CU Membership Access Act, and the enactmentof the minimum capital standards has not hindered credit unionsgrowth, with growth rates exceeding those of other depositoryinstitutions over the past three years. The study also found thatto allow credit unions to issue secondary capital would raiseseveral serious issues, including the dilution of ownership rightsof credit union members. The GAO, formerly known as the GovernmentAccounting Office, suggested that the new system of PCA needs moretime for observers to determine its long-term affects on creditunions. Bill Hampel, chief economist for CUNA, said while fewcredit unions are in danger of violating the 6% minimum capitalunder PCA, there are as many as 1,500 well managed credit unionswhose capital level hovers just above the 7% level, many of them,intentionally holding minimum capital. Some of those credit unions,he said, are purposely restraining growth because they fear fallingnear the PCA limits. "Those credit unions still have to look overtheir shoulders," Hampel told The Credit Union Journal, of theirneed for additional sources of capital.
-
The bank is launching KeyVAM, a virtual account management offering it designed with fintech Qolo. Both companies said the nature of the relationship was as important as the technology it produced.
3h ago -
The top five bank holding companies have combined total credit card loan portfolios of more than $705 billion.
7h ago -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 -
Ally Financial ended a six-month search for its next chief executive by hiring Discover CEO Michael Rhodes. The move adds a new wrinkle to Discover's pending sale, though Discover said that Rhodes hadn't been expected to have a long-term role at Capital One following the merger's completion.
March 27 -
The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
March 27 - Yahoo Finance Feed
The banking giant has launched an online platform that links small-business owners and entrepreneurs in need of capital to community development financial institutions. The platform was developed in partnership with Community Reinvestment Fund USA.
March 27