White Paper Estimates Total Corp. Losses At $12-$15B
WASHINGTON-CUNA has released a white paper that seeks to provide an overview of all of the estimates related to potential losses on corporates' "legacy assets." NCUA's current plan for those legacy assets entails placing them in a trust and issuing NCUA Guaranteed Notes to fund. The white paper, titled, "Estimating the Value of Legacy Assets: What We Do and Don't Know About the Ultimate Cost to Credit Unions of the Corporate Stabilization Fund," seeks to examine "how large are the remaining losses to be paid" over the next 11 years of the program. In part, notes the paper, that depends on the economic recovery. CUNA is estimating the ultimate cost may likely be closer to $12 billion than $15 billion.
Savings Lottery Bill Dies In Iowa; CUs Blame Banks
DES MOINES-A bill that would have allowed raffles tied to campaigns to help consumers bolster their savings accounts and which had the support of Iowa's credit unions has died in the state legislature. In the week leading up to a vote, the Iowa CU League had sponsored newspaper ads asking Iowans to contact their legislators and urge passage. The ads attacked the state's banks for opposing the bill. Justin Hupfer, VP-government affairs with the ICUL, was quoted in local media saying, "The banks have killed a bill that we believe would help people save and manage their financial futures." The Iowa Bankers Association had earlier stated that using raffles as an incentive for saving is "counterintuitive to our state's financial literacy efforts."
NCUA Plans $200K In Fin Ed Grants
ALEXANDRIA, Va.-NCUA last week said it will be awarding a total of $200,000 in small grants for financial education under a new Financial Education and Financial Literacy program. The start of the Financial Education and Financial Literacy Initiative's application process in April coincides with Financial Literacy Month. Funding for the grants comes from the NCUA Community Development Revolving Loan Fund's Technical Assistance Grant Program. Under the initiative, low-income designated credit unions may apply for up to $5,000 to create, enhance or expand financial education efforts.
Michigan Regulator Steps Down
LANSING, Mich.-Ken Ross, commissioner of Michigan's Office of Financial and Insurance Regulation, which regulates state-chartered, announced last week he is leaving the post, almost a year ahead of the end of his term. Ross, who had once served as VP-regulatory and legal affairs for the Michigan league, did not disclose the reason. "(Ken) has listened to credit union issues and has been a fair regulator for our industry, and we wish him well in his future endeavors," said Michigan CUL CEO David Adams.
2 Banks To Issue EMV Cards
NEW YORK--JPMorgan Chase & Co. and Wells Fargo & Co. said last week they will issue EMV credit cards to U.S. customers beginning as early as June. The so-called chip and PIN cards are considered more secure than traditional magnetic stripe cards. Currently, United Nations FCU is one of the few Fis in the country issuing EMV cards.
CU To Close 2 Branches
TOLEDO, Ohio-The $525-million Directions CU said it will shutter two under-performing branches next month, one in Mount Vernon and one in Mansfield. Four employees in the Mount Vernon branch, which opened in 1937 as part of the American National Can CU, will lose their jobs in the move. Directions reported net income of $1.1 million for 2010 and net worth over 8% at year end.
Report Calls For Changes
WASHINGTON-Sens. Carl Levin (D-MI) and Tom Coburn (R-OK) released a bipartisan report last week calling for 19 changes to rectify banker, regulator and rating agency errors that led to financial crisis. After a two-year investigation, the Senate Permanent Subcommittee on Investigations released a 635-page. Recommendations made by the lawmakers focused on four areas: high-risk mortgage lending, regulatory failure, inflated credit ratings and investment banks and structured finance.
Corrections & Clarifications
Ent FCU has promoted Randy Bernstein from COO/EVP to the position of president. Charles Emmer remains CEO. The titles were incorrectly reported in the March 28 issue.