Calif. CU Stands Ready To Assist State Employees
SAN DIEGO-The $850-million USE Credit Union last week said it was prepared to help any state employees whose paychecks may be temporarily cut because of the California budget stalemate. Gov. Arnold Schwarzenegger signed an executive order on July 31 potentially reducing the rate of pay for thousands of state employees to the federal minimum wage. Other workers-those not covered under the Fair Labor Standards Act--will receive no pay at all should the state proceed. USE reported that if pay cuts take effect, state employees will be eligible to request financial assistance, including non-members.
State employees who are members will be eligible to receive interest-free budget payroll loans covering the shortfall in monthly paychecks-including employed state workers whose paychecks are eliminated as a result of the budget crisis. State employees accessing this benefit will receive the net amount of their last regular paychecks less $1,000, which is the estimated federal minimum monthly wage workers are expected to receive under the governor's order. Employed state workers who are not covered by The Fair Labor Standards Act, but who have a payroll direct deposit relationship with USE, can receive a budget payroll loan covering the entire paycheck amount.
Michigan Merger The ‘Genisys' For $1.2B CU
OAKLAND, Mich.-Members of T&C FCU approved the merger of the one-time General Motors credit union with Auburn Hills-based USA CU, creating the state's fourth-largest CU with more than $1.2 billion in assets. Nearly 91% of those voting favored the merger. T&C has been campaigning for member approval, with employees wearing T-shirts every Friday that say, "Ask me about Genisys." The Genisys name is a nod to the roots of both CUs-Gen, coming from T&C's ties to General Motors, and "isys" a reference to USA's ties to Burroughs Corp./Unisys Corp. The new CU will adopt USA CU's state charter, which enables it to serve nine surrounding counties and more than three-million people.
Township Moving Into CU
SPRING TOWNSHIP, Penn.-Town supervisors voted to relocate the township's administrative offices to the Utilities Employees CU building next door. The move will give the police department more space in the municipal building. The move is temporary while town officials explore a permanent site for all town offices.
Risk Summit Draws Full House
CHICAGO-NCUA Vice Chairman Rodney Hood drew a full house to his second annual Risk Mitigation Summit here at the Federal Reserve Bank of Chicago. Government and industry leaders discussed the latest and most effective techniques for risk mitigation.
"Safety and soundness and consumer empowerment are closely related concepts," said Hood. "My interest in hosting today's Risk Mitigation Summit stems from my core belief that credit unions must have regulatory flexibility and empowerment to dynamically manage their balance sheet to respond to the challenges of the current economic stresses." Donna Gambrell, director of Treasury's Community Development Financial Institutions (CDFI) Fund, delivered the keynote address.
For more info: www.ncua.gov.
Woman With 8 IDs Is Arrested
PHILADELPHIA-A 27-year-old woman was charged with using eight different identities in a fraud that targeted nine area institutions, including five credit unions. Tierney Brown, aka Tierney Moon Brown and Tiaranay M. Brown, tried to kite checks between the institutions and also attempted to borrow more than $38,000 to buy a new Mercedes through the scheme, according to a grand jury indictment handed up in federal court here.
Among the credit unions hit by Brown were: Philadelphia FCU, American Heritage FCU, Police and Fire FCU, SB1 FCU and TruMark CU, as well as Wachovia bank, Sovereign Bank, Bank of America and Harleysville Bank. Losses at the institutions were in the thousands, but were limited because some of the checks were not honored.(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com/ http://www.sourcemedia.com/
