CUNA Projects Return To The Black For 2003
RENO, Nev.-CUNA, which has been battling red ink each of the last two years, is on track to break into the black for fiscal 2003.
CUNA Treasurer Don Larsen, president of Community CU, Tacoma, Wash., told The Credit Union Journal the group should see a net income of between $300,000 and $400,000 for the year, barring any unexpected expenses.
CUNA is no longer incurring losses on its former Washington offices, having subleased the space, and it has also recently sold off its Corporate Network Services unit to Liberty Enterprises, which is eliminating significant overhead expenses, said Larsen. During 2002 CUNA reported a loss of $2.3 million.
CDCU Leader Urges Congress To Help
WASHINGTON-A leader among community development credit unions called on Congress last week to help credit unions to reach out to low-income and other "unbanked" Americans and immigrants by allowing them to provide certain services to non-members.
John Herrera, chairman of Latino Community CU, Durham, N.C., asked lawmakers to approve legislation which would allow credit unions to provide wire transfers and check cashing to non-members within their fields of membership, an allowance being sought in several states.
This allowance, Herrera told the House Financial Services Subcommittee on Financial Institutions, can help the unbanked by helping them to open depository accounts as well as facilitating the multi-billion-dollar business in cross-border money transfers for U.S.-based migrant workers.
Herrera also called on Federal Reserve officials to work with their counterparts in Mexico to facilitate international money transfers, known as remittances.
Not Bondable? Can't Serve
ALEXANDRIA, Va.-A director of an FCU who has his or her fidelity bond cancelled or removed is automatically disqualified from serving on the board, unless they are able to obtain other bond coverage, according to NCUA.,NCUA's rules and regulations require that all directors have bond coverage and failure to qualify for bonding constitutes the director's failure to perform a required duty, the agency said in a new legal opinion letter.
Survey: Cooperatives Trusted
WASHINGTON-A survey conducted for the National Cooperative Business Association and the Consumer Federation of America found that consumers trust cooperative-structured businesses more than they do publicly owned corporations.
The survey of 2,100 adults found that two-thirds found that co-ops are more trustworthy than investor-owned corporations, while 68% said businesses with a consumer on its board is more trustworthy. A majority of respondents said they were more likely to do business with an entity if they know it is a co-op, with 71% saying they were more like to use a credit union if they know it is a cooperative.
NCUA Bars Four People
ALEXANDRIA, Va.-NCUA said it barred Theresa Palumbo, former manager of Matteawan FCU from the credit union industry for embezzling $153,000 from the Beacon, N.Y., credit union. Palumbo was convicted of embezzlement charges and sentenced to 18 months in jail and ordered to pay $152,906 in restitution.
Also banned was Judith Wilcox, former manager of Penobscot County FCU, for embezzling $10,400 from the Bangor, Maine, CU. She was convicted of fraud and sentenced to a month in jail. Also banned were: Jane Allen, former manager of Haverhill Municipal Employees CU, Haverhill, Mass., and Donna Dupuy, former treasurer of Louisiana Health Workers FCU, Metairie, La.