CUs Cut Out Of Calif. CRA Bill
SACRAMENTO, Calif.-The state Assembly's Banking Committee eliminated credit unions from a bill that would have applied the Community Reinvestment Act (CRA) to state charters.
The panel held a hearing late last Monday on the measure which would require all financial institutions to have satisfactory CRA ratings in order to be eligible to receive state funds' deposits.
The committee was also held a hearing on a privacy bill which would, among other things, require financial institutions to obtain all consumers' permission before sharing their confidential information with third parties.
NYCE Buys New England Network
WOODCLIFF LAKE, N.J.-NYCE Corp., the nation's second largest regional electronic funds transfer (EFT) network, said it has agreed to acquire X-Press 24, a small EFT network owned by Fleet-Boston.
X-Press 24 serves 53 Massachusetts financial institutions, including 23 credit unions. The deal furthers the consolidation among EFT networks and gives NYCE almost 2,400 financial institution members, including about 1,200 credit unions.
As part of the deal, NYCE pledged to honor Fleet-Boston's agreement to give X-Press 24 customers surcharge-free access to the 1,500 New England ATMs owned by BankBoston before its merger with Fleet Financial last year.
AFFN Seeks Easy Cash Access
TAMPA, Fla.-AFFN, the Armed Forces Financial Network jointly owned by credit unions and banks, is working to circumvent the rising surcharges assessed at on-base ATMs by trying to convince the Department of Defense (DOD) to allow on-base exchanges, or department stores, to allow military personnel to receive cash on their debit cards.
The practice is already allowed at on-base commissaries, or supermarkets, but exchanges are not currently authorized to accept debit cards. LeRoy Collins, head of AFFN, told The Credit Union Journal, the ability of enlisted personnel to access cash at the exchanges will reduce their need to withdraw cash from ATMs, many of which are increasing the surcharges they assess for non-customers.
The AFFN initiative comes as the DOD has agreed to delay indefinitely a proposal to ban ATM surcharges on all military bases.
CUNA Double Dips For Sen. Lott
WASHINGTON, D.C.-CUNA continued to expand its political fundraising last month with dual contributions to political action committees (PAC) controlled by Senate Majority Leader Trent Lott, R-Miss.
CUNA's contributions of $1,500 to Lott's campaign committee and of $2,500 to the New Republican Majority Fund controlled by Lott, makes separate totals of $5,500 and $3,500, respectively, contributed by CUNA to the two Lott PACs.
Even though federal election rules limit contributions to $10,000 to a single PAC, the rules allow lawmakers to operate second so-called leadership PACs which they can use to infuse other campaigns with funds.
Lott's isn't the first time CUNA has contributed to a leadership PAC. Earlier this year CUNA contributed to a second leadership PAC controlled by Rep. Charles Rangel, D-N.Y.
John Hancock Targets CU Market
BOSTON-John Hancock Financial Services Inc., one of the nation's largest insurers, said it has signed an agreement to sell term insurance over Answer Financial's Internet portal, used by more than 30 credit unions. Hancock, which currently markets term, long-term care insurance and variable annuities over its own web site, has also signed to market long-term care insurance over QuickenInsurance.com. Answer Financial markets a variety of insurance products over its answercenter.com site through 110 providers, including more than 30 CUs.
High Court Gives Banks A Win
WASHINGTON, D.C.-The Supreme Court said it won't hear an appeal of a lower court ruling striking down the state of Iowa's rregulations preventing out-of-state banks from locating ATMs in the state without having an in-state branch.
The High Court declined to hear an appeal of the decision filed by the Iowa banking commissioner who was challenging the U.S. appeals court ruling that federal regulation of nationally-chartered banks preempts state authority over such issues.
The successful challenge to the state's rules was brought by Bank One, which is involved in a similar case in which it has successfully challenegd the state's ban on ATM surcharges.
Mich. CUs Support Candidate
EAST LANSING, Mich.-Credit unions raised $10,000 for the congressional campaign of Michael Rogers, a state senator (R-Brighton) running for the open seat vacated by credit union champion Debbie Stabenow.
Stabenow is opposing Sen. Spencer Abraham, R-Mich., another credit union friend instrumental in the passage of HR 1151, the CU Membership Access Act.
Rogers, a supporter of credit union issues in the state legislature, received $5,000 from CUNA and another $5,000 from the Michigan CU League.
Sikorsky FCU To Switch Charters
STRATFORD, Conn.-Sikorsky FCU, the state's third largest credit union with $310 million in assets, has applied to state regulators to convert to a state charter. Officials with the state Department of Banking said they have yet to act on the application, filed April 20.
The switch, which awaits NCUA approval, is noteworthy as the 46,000-member credit union was the first to obtain approval for a new SEG under NCUA's new FOM rules in January 1999.
The 52-year-old credit union currently serves 200 SEGs, including its main sponsor group Sikorsky Aircraft.
Virginia CU To Double FOM
WAYNESBORO, Va.-DuPont Community CU has requested permission from state regulators to more than double its field of membership (FOM) by adding Rockingham County, Va., and its 75,000 residents to its FOM.
The $300 million credit union, formerly known as Waynesboro DuPont Employees CU, currently serves employees of the local DuPont Chemical as well as the 60,000 residents of Augusta County, Va.
Hoosier CU In Name Change
INDIANAPOLIS-Indiana Telco CU, the state's fourth largest credit union, said it will change its name to FORUM CU May 1.
The $435-million credit union started out as Hoosier FCU, chartered in 1941 to serve telephone company employees and added more than 1,000 select employees groups (SEGs) over the years before switching to a state charter in 1998.
Stanford FCU Names New CEO
PALO ALTO, Calif.-Stanford FCU, a pioneer in online banking, named John Davis, its vice president since 1996, as its new president and CEO. Davis will replace Warren Marshall who left earlier this month to head CyberBranch Corp., the credit union's Internet banking CUSO being spun-off into an independent company. Davis formerly served as CEO of Golden Bay FCU, Mountain View, Calif.
