FASB Seeking Comment On 'Public Entity' Proposal
FAIRFIELD, Conn.-The Financial Accounting Standards Board (FASB) last week issued a request for comment on a proposal to allow nonpublic business entities, such as credit unions, to use accounting and reporting alternatives under U.S. GAAP. Those entities would then be able to use more flexible accounting standards, although FASB acknowledged those standards would likely ultimately be determined by respective regulators. The proposal includes a revised definition of "public entity" and according to FASB is aimed at reducing the costs and complexity involved in preparing financial statements under GAAP. Comments are due to FASB by Sept. 20.
Durbin Pushes For Swipe Cap On Debit Fees
WASHINGTON-Sen. Richard Durbin, the architect of the Federal Reserve's cap on debit fees, last week called on the Fed to enact new ceilings on swipe fees similar to a 2%-of-transaction maximum the European Commission has proposed. "We recognize that the multi-trillion dollar financial industry is fiercely resistant to any interchange reform that might reduce their lucrative revenue stream," the Illinois Democrat said in a July 26 letter to Fed Chairman Ben Bernanke. "But we are encouraged by the strength the European Commission has demonstrated in the face of this industry pressure."
Durbin's letter followed a court ruling striking down the Fed's 2011 debit rule as flouting the intent of Congress, when lawmakers added it to the 2010 Dodd-Frank Act. That court ruling means the Fed will have to rewrite the rule, probably with even lower debit caps.
Durbin said a straight 2% cap such as the one the EU has proposed would prevent Visa and MasterCard from increasing interchange rates on smaller transactions, as happened after the October 2011 enactment of the Durbin amendment's 24-cent-per-transaction cap. Durbin noted that Visa and MasterCard have already adopted the cap voluntarily for many transactions within the EU.
Berger Officially Takes Helm
ARLINGTON, Va.-NAFCU marked the end of one era and the beginning of another with Dan Berger taking over as president of the national trade association from the retiring Fred Becker. Berger set three key priorities for NAFCU: Manage the association with financial prudence; continue to aggressively serve as credit unions' chief advocate with NCUA, the CFPB, key members of Congress and the White House, and invest in state-of-the-art technology, and expanding education and training programs for credit unions.
CCFCU CEO Gary Bell Dies
BERKELEY, Calif.-Gary Bell, president of $105 million Cooperative Center FCU and a member of the Consumer Financial Protection Bureau's inaugural Credit Union Advisory Council, died last week at 54 from a bacterial sinus infection. Bell, who served as CEO of Cooperative Center FCU from 2000 to 2002, then again from 2008 onward, was elected a year ago to the Richmond City Council but resigned before being sworn in because of his illness.
Bell had a long career in politics, as one of the first African-American City Council members in Wichita, Kan., before moving to California, then on the Richmond City Council from 2001 to 2004, before being re-elected again last year. He was also an unsuccessful candidate for mayor of Berkeley.
Navy FCU Expansion Continues
WINCHESTER, Va. - Navy FCU opened a second building at its member service center here, a short distance from its Vienna, Va., headquarters, where it plans to add as many as another 450 jobs. The campus, which opened in 2006, currently has 680 employees. Navy Federal, which plans to add a variety of jobs over the next five years, mostly MSRs and managers, owns the largest market share in greater Washington of any FI. The expansion includes a second, two-story, 56,000-square-foot building, in which the $54 billion credit union has invested about $20 million.
