ALEXANDRIA, Va. - (05/03/06) The NCUA Board is being facedwith a proper dilemma in drafting proposed amendments to itsunderserved expansions policy, currently under challenge in thecourts. In its vote later this month, the panel is expected toformalize a rule that will restrict its underserved expansions tomultiple group credit unions. But the question is: will the morethan 200 community charters already allowed to add underservedcommunities be allowed to retain the 1.5 million members andbillions of dollars in new loans and deposits they have addedthrough the challenged policy? The American Bankers Association,which has been negotiating with NCUA to drop its Utah suit, hasindicated that it will not accept a grandfathering of theexpansions, which the bankers assert violates provisions of theFederal CU Act restricting underserved expansions to multiple groupcredit unions. The bankers, who have challenged a singleunderserved expansions granted America First FCU In Utah, couldchoose to challenge the legality of every one of the expansionsgranted 200 or so community charters, too. Compounding the dilemmais the fact that the federal judge in Utah, Dale Kimball, is thesame judge who ruled NCUA violated the law in granting a six-countycommunity charter to four different credit unions.
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The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
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Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
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The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
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In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.
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To build their executive presence in meetings and on video calls, junior employees should embrace flexible schedules — and possibly media training, Michelle Young of Worldpay and Anna Greenwald of MoneyGram International said at American Banker's Payments Forum.
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Liberty Bank in Salt Lake City had been "structurally unprofitable" since 2008, according to its regulators. Experts criticized the FDIC for allowing the bank's demise to play out in slow motion.
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