SALT LAKE CITY - (01/26/05) -- Four commercial players in thecredit union market have joined together to offer an agent programto credit unions that no longer want to manage their own creditcard program, or for small credit unions looking to issue their owncards. The new company, Union Financial Services Corp., hasacquired an industrial loan company (industrial bank) charter inUtah and will acquire credit union card portfolios or enter intoagent relationships, much like industry leaders MBNA, InfiCorp, andmore recently, TNB Card Services, have done in recent years. Thestate chartered bank will be majority owned by Card Services forCUs, with minority stakes owned by CUNA Mutual Group, Certegy CardServices and Corporate One FCU, the Columbus, Ohio, corporatecredit union. The operation has been capitalized with $10 millionand has acquired the ILC charter, old offices and technologyinfrastructure of Sears Commercial Card operations, which was soldto Citibank for $3.5 billion last year in one of the biggest carddeals ever. The inclusion of the credit union entities is expectedto give the new operation fast entry into the credit union market,according to Wally Jensen, a long-time credit card banker who willhead the operation. "We don't think we're too late for the market.We still think there's room for us," Jensen told The Credit UnionJournal.
-
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.
5h ago -
The New York-based bank says it will push its concentration of commercial real estate loans below 400% of risk-based capital over the next two years and focus more on C&I.
7h ago -
The San Francisco-based firm's Anchorage Digital Trusted Liquidity and Settlement network, better known as Atlas, will allow clients to settle a range of cryptocurrency transactions.
9h ago -
Consumer spending slowed and charge-offs rose during the first quarter, but Bread Financial said a pending late-fee rule may not be as devastating to its revenue as the Columbus, Ohio-based firm initially feared.
11h ago -
Artificial intelligence models are energy hogs. Climate First Bank and UBS are among the very few trying to solve this problem.
11h ago -
The FDIC board debated and ultimately withdrew two separate proposals to address asset managers' control over banks, but acting Comptroller of the Currency Michael Hsu said he couldn't support either and called for more research and debate about how asset managers' control over banks impacts safety and soundness.
April 25