Data Breach Legislation Moves Forward In Calif.
SACRAMENTO, Calif.-Legislation designed to hold retailers responsible for protecting consumer information was approved by a 3-1 vote by the California State Senate's Judiciary Committee during a June 26 hearing.
The bill next will go to the Senate Appropriations Committee. It probably will be voted on in August.
The data security bill began in the California State Assembly, which approved it June 5 by an overwhelming, 55-2 vote.
The legislation is supported by the California Credit Union League and is opposed by the California Bankers Association and other groups.
The CCUL said the bill addresses three deficiencies the credit union movement sees in California's existing data breach notification law.
Fidelity National Wins eFunds Bidding
JACKSONVILLE, Fla.-Fidelity National Information Services has agreed to acquire electronic funds processor EFD, formerly known as eFunds, which was put on the auction block two months ago. Fidelity National will pay $36.50 a share, or $1.8 billion for EFD, which processes transactions for the credit union-owned CO-OP Financial Services. It was the second acquisition last week by Fidelity National, coming on the heels of the announcement it had acquired Applied Financial Technology, a provider of advanced analytics for the mortgage securities market. EFD has been on the market since April when the company announced it was exploring a variety of options to maximize shareholder value. At least four other companies, including Fiserv, are believed to have submitted bids to acquire the company.
Franklin Mint Forms Foundation
BROOMALL, Penn.-Franklin Mint FCU said it has formed a non-profit foundation, which is committed to helping children, families, and others attain strong personal finance skills; and support youth education and charitable causes within the community. The foundation will provide funding for post-secondary scholarships, in-school financial literacy programs, educational field trips, educator awards and grants.
Countrywide Execs Plead Guilty
LOS ANGELES-Three former executives at countrywide Financial Corp. agreed to plead guilty to criminal insider trading charges in a scheme that netted each of them tens of thousands of dollars.
The three used inside information that the company would not meet profit forecasts for the third quarter of 2004, then sold short shares that they earned in advance of the public announcement of third quarter financials. The three executives: Alan Cao, 38, of Woodland Hills, Calif.; Quan Zhu, 43, of Santa Monica; and Jun Shi, 43, of Moorpark, were all vice presidents and have since been fired. The three former executives have also agreed to settle civil charges brought by the Securities and Exchange Commission.
Visa, Wells Pilot Pay-by-Cell Phone
SAN FRANCISCO-Visa USA is teaming up with Wells Fargo & Co. to test a mobile payment platform that will allow consumers to use their cell phones to pay for products and services at the checkout line.
Going mobile is a high priority for Visa and banks and credit unions that issue its cards because increasingly sophisticated wireless phones are opening up new opportunities to increase the frequency of revenue-generating electronic payments. Visa and its biggest rival, MasterCard Inc., have been laying the groundwork for mobile payments by enabling contact-less transactions that enable consumers to simply wave a card or key fob over a reader instead of swiping it through a machine.
Up to 50 Wells Fargo employees soon will begin paying for some products and services with specially equipped phones instead of credit and debit cards, under a test pilot, which will advance to as many as 500 Wells customers later this year.
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