WesCorp Gets Two More Regional Corporates
SAN DIMAS, Calif.-Members of two regional corporates, Tennessee's Volunteer Corporate CU and Colorado's SunCorp Corporate FCU, approved the combination of the two corporates into WesCorp FCU, continuing the consolidation of the corporate network. The combination will add about $4 billion to WesCorp's $32 billion in assets, and as many as 900 new credit union members to the corporate giant's 1,200 members.
The combination is scheduled to be completed by year-end. Member approval of the two deals comes on the heels of Members United Corporate FCU's acquisition of the Central CU Fund, the nation's oldest corporate, and in front of the merger of Southwest Corporate FCU with Northwest Corporate FCU.
CCUL-Backed Data Breach Bill Still In 'Suspense'
SACRAMENTO, Calif.-Legislation designed to hold retailers responsible for protecting consumer information went through a hearing by the California State Senate's Appropriations Committee, but the committee did not make a decision.
According to Keri Bailey, lobbyist for the California CU League, the data security bill was sent to the "Suspense File," which the California legislature uses to consolidate every bill that will cost $150,000 or more for further consideration. Bailey said a vote is expected to take place Aug. 30.
The legislation, supported by the California CU League and opposed by the California Bankers Association, addresses three deficiencies the movement sees in California's existing data breach notification law.
CUs To Federal Regulator: Hands Off Our Bylaws
WASHINGTON-CUNA derided NCUA's recent proactive regulatory agenda last week and urged the NCUA board to reject a proposal to set up the regulator as the enforcer of federal credit union bylaw disputes. In a letter citing recent attempts by NCUA to increase credit union transparency, CUNA said NCUA's proposal to reestablish the bylaws as regulatory in nature-with NCUA as the arbiter-is "too undefined and inconclusive." CUNA said it supports NCUA intervention in certain instances, such as when members seek to block conversion to a mutual savings bank, but does not want NCUA to adopt broad authority to mediate all bylaw disputes.
CUNA, which also opposes NCUA initiatives to increase member access to books and records and information about management compensation, wondered whether these efforts to expand credit union transparency are an indication of a "more proactive regulatory posture." NAFCU also urged NCUA to reject the bylaws proposal, saying NCUA monitoring of bylaw disputes "can create a slippery slope to overly burdensome and ineffective regulatory oversight."
In its comment letter signed by chief lobbyist Dan Berger, NAFCU said it believes in the notion of members' rights but does not believe those rights should be federally regulated.
Ukrainian Suspect Busted in TJX Case
TURKEY-Authorities hope the recent arrest of a Ukrainian man here with information from millions of accounts stolen from TJX will help them crack the biggest data breach in U.S. history. The U.S. Postal Inspection Service said Maksym Yastremskiy was arrested several weeks ago for selling stolen credit card numbers on Internet chat rooms.
A significant number of the accounts turned out to be from TJX, which said last year hackers stole information from as many as 45.6 million accounts. The breach caused credit unions and banks all over the country to cancel and reissue millions of credit cards from people who had shopped at one of the retail giant's TJ Maxx, Marshall's, Home Sense, Homegoods and AJ Wright's stores. Yastremskiy allegedly sold card numbers through online forums hosted overseas, sometimes in Cyrillic or that were password protected.
He is likely the largest seller of stolen TJX numbers. Earlier this year, 10 individuals in Florida were charged with using TJX data, some of it purchased from Yastremskiy, to steal $8 million in transactions at Wal-Mart and other stores.
Corrections & Clarifications
Solana First FCU's address was misprinted in the Credit Union Journal Factbook & Buyer's Guide. It should be 1000 Union Ave., Fairfield, Calif., 94533.
The Connecticut Department of Banking listing in the CUJ Factbook & Buyer's Guide listed the wrong person as banking Commissioner. It should be Howard Pitkin.
