NCUA Predicts Its 2009 Spending Up By 15%
ALEXANDRIA, Va.-Increased supervision over troubled CUs and other actions related to the ongoing financial crisis will push up spending by NCUA approximately 15% next year, the agency said at its annual budget briefing last week.
NCUA, which will propose a $182.9 million budget for fiscal 2009, plans to expand examiner staff, implement a 12-month examination cycle and develop a national examiner team to conduct high-risk exams, the agency's Executive Director Len Skiles, said last week during NCUA's annual budget briefing. The budget includes $12.8 million to hire and train 100 new examiners, five problem case officers, five risk management officers and additional support staff. The spending hike will mean increases in the annual operating fees paid by federal credit unions, but no one know how much at this point.
Skiles said NCUA believes it's important to expand its examiner staff and develop a team of well-trained experts during a time CUs are faced with unprecedented liquidity pressure, increased interest rate risk and additional government oversight.
The agency also announced it will consolidate the process to charter a new federal credit union into a centralized office in its Alexandria, Va. headquarters effective Jan. 1. "It is my belief that centralizing the function will result in a more efficient and effective process," said NCUA Chairman Michael Fryzel. "It will be no less thorough, but it should present a more reasonable set of conditions whereby consumers can form a viable cooperative financial institution."
Litigation Costs Put A Check On Visa's Profits
SAN FRANCISCO-Cards giant Visa Inc. said swelling legal reserves set aside to settle numerous antitrust suits pushed it into the red for its fiscal fourth quarter to the tune of $356 million.
The company set aside an additional $1.1 billion in the fourth quarter for litigation costs, wiping out more than $1 billion in net income. For the prior 12 months Visa set aside $2.6 billion for litigation, creating a huge $1.7 billion loss for the year.
Visa announced it has agreed to pay Discover Financial Services $2.5 billion to settle Discover's antitrust suit claiming Visa and MasterCard conspired to keep banks and credit unions from issuing Discover cards.
Earlier this year, Visa agreed to pay American Express $2.7 billion to settle a similar case.
The funds set aside in the litigation will be used to pay those settlements. Otherwise, Visa said fourth quarter revenues rose 17% to $1.7 billion, and fiscal year revenues rose almost 21% to $6.3 billion.
CU Doubles Credit Card Rewards
OREM, Utah-Family First Federal Credit Union is putting more money in its members' wallets this holiday season by offering double rewards points on purchases made with a Family First VISA credit card during the months of November and December.
To get the most money back, Family First is suggesting members charge everyday monthly expenses to their credit card, including regular bills.
If a member's household expenses come to $5,000 per month, members could earn $50 cash back per month or $600 a year.
Family First is encouraging its members to stay within their monthly budget when using their rewards cards.
The CU said members should earn points responsibly and pay off their credit card every month. This will help avoid any interest charges and will get members into the habit of maintaining a monthly budget.
CU Raises $250,000 For UW
MADISON, Wis.-A matching fund-raising effort by University of Wisconsin CU has raised $250,000 for the University's need-based scholarships program.
The credit union, which has pledged to match individual donations, hopes to raise as much as $1 million, part of a drive by the University to raise as much as $40 million.
UW CU joined the effort as part of their affiliation with the University campuses they serve.
Greylock Pledges $90K To Charity
PITTSFIELD, Mass.-Greylock FCU has committed $90,000 over a five-year period to assist one local organization that supplies fuel assistance, and another that provides nutrition for senior citizens.
The $900 credit union will provide $65,000 over the next five years to the Berkshire Community Action Council's fuel assistance programs, and $25,000 to Elder Services of Berkshire County for its "Meals on Wheels" initiative, which provides hot lunches for seniors.
