Pennsylvania Supreme Court Hears FOM Case
HARRISBURG, Penn.–The Pennsylvania Supreme Court heard oral arguments in Pittsburgh last week in an FOM lawsuit bankers have filed against the Pennsylvania Department of Banking on its community chartering rules.
The bankers are appealing a 2006 court ruling that the department did not follow procedural due process requirements when it did not conduct hearings or make records available to banking interest groups, who oppose field of membership expansions, the Pennsylvania CU Association said.
First Basin Officially End Bid To Convert To Bank
ODESSA, Texas–First Basin CU, which last month terminated its 90-day balloting on converting to a mutual savings bank, made it official last week and ended its bid to switch to a bank.
The $112-million CU told members it is withdrawing its application for a mutual savings bank charter. Officials said they suspended the vote, just days before the process was scheduled to culminate in a special meeting of the members, because they believe members were receiving phone calls making false accusations that they would lose their deposits if the bank conversion went through.
Officials of First basin did not return phone calls from the Credit Union Journal.
Utah First CU Robber Caught Red-Handed
PROVO, Utah–A man who allegedly robbed Utah First CU last week was caught red-handed–literally– after a dye pack exploded inside a bag of cash he took from the credit union.
The suspect, who got the red dye on his hands and clothes, was pulled over a short while later in a getaway van where police also found red-stained cash from the credit union.
The suspect, identified as 33-year-old Christopher Mollen, was arrested along with the driver of the van, 34-year-old Ira Wakefield. A year-old infant was discovered in the getaway van and was placed in child custody services.
CO-OP FS Adds Home Deposit
RANCHO CUCAMONGA, Calif.–CO-OP Financial Services is adding home deposit capabilities to its suite of check imaging products, which will allow members to deposit checks from their home computers or small businesses. CO-OP My Deposit requires only a desktop scanner and Internet access. Once the check image is captured and displayed on a computer, members can click “continue” to submit it for processing and clearing. Users will be able to see the deposit instantly added to their current account balance and can void the original check, file it or destroy it.
Earnings Declined 48% At Mo. CUs
JEFFERSON CITY, Mo.–Missouri CUs had a tough year in 2007 with a 48% decline in earnings, caused mainly by a 43% rise in expenses, the state regulator reported. The main culprit was a rise in average cost of funds to 2.79% of assets, from 2.39% at year-end 2006, according to a report by the Division of CUs. Loans increased just under 2% (1.8%) for the year, while deposits grew by just over 2% (2.1%). As a result, profitability was halved to just 0.33% return-on-assets for the year, from 0.64% for 2006. The number of CUs in Missouri declined by 5% last year to 139, while membership declined by 0.3%.
Murder At The ATM
KNOXVILLE, Tenn.–A 35-year-old man was charged with running over and killing his wife at an ORNL FCU ATM last week. The wife’s body was found in the parking lot of the CU branch here by emergency workers who were called to the scene. The husband, identified as Carlos Cornwell, is being held on $150,000 bond in the death of his wife, Leoned Cornwell, 42. Police said a preliminary investigation found the couple were arguing in the car and when the woman exited the car her husband ran over her.
Action On Student Loans Urged
WASHINGTON–Lawmakers renewed efforts to get the Bush administration to pump liquidity into the student loan market–as major lenders continue their departure. U.S. Rep. Paul Kanjorski urged the Administration to use its financing tools to shore up the market, where tightening credit has eliminated several funding sources in recent weeks. Kanjorski suggested the Bush administration could have the Federal Financing Bank purchase federally guaranteed loans, modify rules to allow Federal Home Loan Banks to accept federally guaranteed student loans as collateral for advances from CUs and banks, or allow guaranteed student lenders to access funding through the Federal Reserve’s discount window.
