Former WesCorp To Go By United Reources FCU
SAN DIMAS, Calif.--Western Bridge Corporate Credit Union, the former WesCorp, has become the latest to unveil a new name: United Resources FCU. The new name is part of the effort to relaunch and recapitalize the new corporate, which was placed into conservatorship by NCUA in 2010. It is the second bridge corporate in as many weeks to introduce a new name, with the former Members United selecting Alloya (see story, page 4).
NCUSIF Reports 2nd Month With No Asset Losses
ALEXANDRIA, Va.-NCUA reported it did not write off any National Credit Union Share Insurance Fund (NCUSIF) assets as insurance loss expenses during March, the second time in as many months. The agency had budgeted $54.2 million to cover March's projected losses, but those did not materialize.
According to NCUA CFO Mary Ann Woodson, the NCUSIF's equity ratio at March 31 was 1.29% as of March 31. Woodson said that $140 million of the NCUSIF's $1.2 billion in reserves remain allocated for expected losses related to specific, troubled natural-person CUs.
NCUA further reported that the number of CUs identified as CAMEL Code 4 and 5 were up by six in March, for a total of 366, and represent 5% of all insured shares ($37 billion). Credit unions classified as CAMEL 3 declined by five, but still represent some 1,798 CUs, or 17% of all insured shares ($132 billion).
Supreme Court Decision May Be Offset By Dodd-Frank
WASHINGTON-A Supreme Court decision last week limiting class-action lawsuits was a win for financial institutions and other corporations, but the victory may prove to be short-lived. In a 5-to-4 decision, the high court ruled that businesses may require customers to sign binding arbitration agreements that prohibit them from joining class-actions.
However, a provision in the Dodd-Frank Act allows the Consumer Financial Protection Bureau to revisit the issue, and potentially decide to limit arbitration agreements in the future.
The CFBP is to study and provide a report to Congress concerning the use of mandatory arbitration agreements in connection with consumer financial products. It also allows the agency to issue rules that may "prohibit or impose conditions" on the use of arbitration agreements if the study finds that it would be in the public interest and would protect consumers.
FSCC Cuts Fees On Text Banking
ONTARIO, Calif.-Financial Service Centers Cooperative said last week it is reducing fees on its MyCUAnywhere text banking transactions to 35 cents per transaction. The shared branching network said credit unions pay no set-up fees, no monthly maintenance fees and no minimum monthly usage fees.
MyCUAnywhere offers mobile text banking capability to credit union members. Credit unions only pay per member transaction.
Texas League To Pay 10% Rebate
FARMERS BRANCH, Texas-The Texas Credit Union League is paying its affiliated credit unions a 10% rebate on 2011 league dues. The rebate, according to TCUL CEO Dick Ensweiler, is possible due to strong financial performance by league subsidiary Credit Union Resources, which has returned a $550,000 check to the league.
Visa Makes Investment In Square
SAN FRANCISCO-Visa said last week it has invested in Square, a mobile payments start-up founded by the Twitter co-founder Jack Dorsey that turns phones and iPads into credit card readers. Square is a tiny magnetic card-reader that plugs into a device, such as an iPhone or Google Android phone, to transmit payments through the Visa network.
Officials at Square and Visa said Square could convert the 27 million businesses that don't accept credit cards into Visa customers. Square is trying to become more mainstream through a new partnership with Apple to sell Square devices in its stores.
12 People Charged In Scheme
HACKENSACK, N.J.-A former loan officer at Paragon FCU, two real estate consultants, an appraiser and eight others were charged last week with falsifying loan applications as part of a multi-million mortgage fraud. The 25-count indictment names Dawn Woolbert, a former officer at Paragon, who is accused of filing fraudulent loan applications from 2007 to 2009.
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