CUNA's Bill Cheney Denies Role In WesCorp Meltdown
WASHINGTON-CUNA's new president Bill Cheney said he was disappointed to be named a defendant in a negligence suit NCUA is pursuing against directors of WesCorp FCU and denied culpability in the failure of the one-time $34-billion corporate.
Previously, Cheney also denied culpability in the failure of U.S. Central FCU, where he also served as director.
"I am naturally disappointed that NCUA has chosen to pursue this action with regard to my service on the WesCorp board, which ended in February 2006," said Cheney in a prepared stated released by CUNA. "I am confident my record of service will be made clear during the course of this legal process and I fully expect a positive outcome."
Cheney, who served on the WesCorp board while he was CEO of Xerox FCU (now Xceed Financial FCU), was among 15 officers and directors named by NCUA in an amendment to a suit brought by seven credit union members of WesCorp, which NCUA has taken over as conservator of the failed corporate. Earlier, Cheney, who later served on the U.S. Central board representing the American Association of CU League Executives as president of the California CU League, was targeted in that corporate failure by NCUA, which said it is pursuing potential negligence claims against officers and directors of U.S. Central.
Cheney asserted his innocence in the WesCorp case, in which NCUA claims the board allowed management to put a staggering 95% of its investments in private label mortgage-backed securities, and 37% of it in risky subprime Option ARM securities.
DCUC Honors 3 Military CUs
WASHINGTON-The Defense CU Council has presented three Distinguished Service Awards. Winners were:
* Fort Sill FCU in Oklahoma for "outstanding commitment to provide quality products and efficient service" to soldiers and their families.
* Navy FCU's Souda Bay Branch in Crete, Greece, with the Navy/Marine Corps Award for its "dedication, attention to detail, extraordinary performance, and outstanding command support."
* Harborstone in Washington with the Air Force Award for its "steadfast support of Joint Base Lewis-McChord, including ongoing fundraising efforts.
TCUL Intro's Facilities Assistance
FARMERS BRANCH, Texas-The Texas CU League has created a "Facilities Assistance Program" it says has been designed to provide credit unions a forum to discreetly obtain or dispose of a CU facility. The confidential service, to be offered online to TCUL-affiliated CUs, requires CUs to register and sign a confidentiality agreement. When properties are offered for sale or lease, TCUL said it will match the offering(s) with CUs that have indicated interest in acquiring facilities in the general vicinity of the offering. Credit unions interested in acquiring a property will be notified by TCUL that a facility has become available in their area of interest and provided with basic information, without disclosing specifics. If the potential buyer is interested in more information, the league will then help to bring the two parties together.
Insurance Deposits Allowed In NY
ALBANY, N.Y.-Insurance companies and credit unions can now do business in New York as Governor David Paterson signed legislation last week that ended the ban on insurance firms deposition funds with CUs. Non-life insurance companies are now allowed to invest up to $250,000 in share certificates thanks to the new law, which was unanimously supported in both chambers of the state legislature.
SRFCU Holds $10K Video Contest
MOSS POINT, Miss.-Singing River FCU is offering $10,000 in prize money to students at two high schools, who produce their own "Singing River Shuffle" hip-hop dance videos.
Videos will be posted on Singing River Federal's website for public voting to determine the winning school. The first-place school will be awarded $7,500 and the second-place school will be awarded $2,500.
The competition is coupled with a financial literacy program, in which Singing River employees visit every economics class at both schools. These class presentations will include information about budgets, credit cards and current data about what salaries are available to students who finish high school and pursue a college education.