Judge Rejects S&P Request To Dismiss Corporate Suit
LOS ANGELES-A federal judge has rejected Standard & Poor's bid to dismiss a Justice Department suit claiming the Wall Street rating agency intentionally ignored its own standards rating risky investments sold to WesCorp FCU and Eastern Financial Florida CU and others, moving the landmark case closer to trial. In a 19-page ruling issued by the U.S. District Court for the Southern District of California, Judge David Carter said the Justice Department has sufficiently pleaded an intent to defraud investors who were fooled by their ratings (see related story at left).
Bid To Tax Oregon's CUs Dies With Adjournment
SALEM, Ore.-The state legislature adjourned last week without acting on bill that would have applied the state's excise tax to some credit unions, one of several legislative tax threats around the country. The bill, developed by the Oregon Bankers Association, would have imposed the corporate excise tax on state-chartered or interstate CUs that hold more than $50 million in loans; or hold one or more municipal deposits over $250,000; or hold member business loans exceeding 10% of its assets.
Shooting Suspect's Records Obtained From Credit Union
AURORA, Colo.-Prosecutors gained access to the credit union account records of theater shooting suspect James Holmes before obtaining legal authority from a court, according to documents filed in court last week. The records were obtained from Point Loma FCU in California, one of two institutions where Holmes had accounts, according to court records. The court order for production of the records was signed by a notary but not by a judge. That document was used to compel the CU to turn over the records. The records could be useful at trial in verifying purchases Holmes is alleged to have made before the shooting.
Prosecutors are seeking the death penalty against Holmes, who is accused of killing 12 people and wounding 58 others with gunfire in an attack on the Century Aurora 16 movie theater last summer.
NAFCU: Extend Two-Day Hold
WASHINGTON-NAFCU called on the Consumer Financial Protection Bureau last week to extend the two-day hold period on personal checks for another day, in order to better detect fraud. In a letter to CFPB Director Richard Cordray, NAFCU asked that the terms of the Expedited Funds Availability Act, known as Reg CC, be amended to allow for increased check holds. The CFPB is working with the Fed on amendments to Reg CC, which are expected to be finalized in August.
Online Analysis Of Failed Investments
WASHINGTON-Co-ops for Change has released a new analysis offering insights into the now-liquidated Constitutional Corporate and its investment securities/losses on its website at coops4change.org. It is the first of five analyses it says will be posted and follows in real time the actual losses on legacy assets of the NCUA-seized corporates.
TruStage Enhances AD&D App
BOSTON-TruStage has enhanced its application process to allow CU members eligible for accidental death and dismemberment (AD&D) insurance coverage in three minutes or less at no cost. The new functionality, available to as many as 43 million members who are eligible, is available online through TruStage's new FastApply AD&D. The application takes about three minutes, TruStage said. For info: TruStage.com/FastApply."
NAFCU Board Officers Elected
BOSTON-NAFCU last week announced its 2013-14 executive committee and board. Newly elected to the board were Jan N. Roche, CEO of State Department FCU and Daniel Weickenand, CEO of Orion FCU. Board officers are: Chair Michael J. Parsons, CEO of First Source FCU; Vice Chair Ed Templeton, CEO of SRP FCU; Treasurer Richard L. Harris, CEO of Caltech Employees FCU; and Secretary Jeanne Kucey, CEO of JetStream FCU.
'Banana Lady' Files Suit
MADISON, Wis.-Catherine Conrad, a family entertainer who performs health and wellness videos for a variety of sponsors, filed suit against CUNA Management School, CUNA Mutual, Midcoast FCU and the defunct AM Community CU, which she is alleging used her copyrighted "Banana Lady" video without her authorization. In her suit, Conrad says Todd Streeter, who was CIO at AM Community CU (now a part of TruStone Financial CU), posted photos and videos of her copyrighted and trademarked character without her permission.
