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Special Plans Made For Automatic Deposits

WASHINGTON-Credit unions and banks in Louisiana, Alabama, and Mississippi have implemented contingency procedures in the wake of Hurricane Katrina that meant a normal payday for millions of Americans along the Gulf Coast expecting automatic deposits from the military on Sept. 1, the Department of Defense announced last week.

Electronic funds transfers have been provided to the Federal Reserve banks, and Treasury checks have been mailed. The Fed, FDIC, and banking and credit union associations have implemented procedures to pull the electronic funds transfer files into alternate banking and credit union sites where possible, officials said.

MasterCard Planning To Raise $1B Through IPO

PURCHASE, N.Y.-MasterCard Inc., the No. 2 card company, beleagured over the last two years by legal setbacks, said last week it plans to raise more than $1 billion in new capital with an initial public offering. The card association, which is owned by 1,400 banks and credit unions, plans to sell 59% of the company to the public in a new stock issuance. The public offering will be part of a corporate restructuring that will entail appointment of a new board of directors, a majority of which will be independent members, and the creation of a charitable foundation. The move comes as MasterCard and Visa USA are paying off a combined $3-billion antitrust settlement and face new lawsuits filed by American Express Corp. and Discover Financial Services seeking damages stemming from anti-competitive practices.

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