On a scale of 1-10, the tax threat in Michigan is about a five. In December, the governor signed the Michigan Credit Union Act (MCUA) modernization bill into law. Even with this monumental passage, credit unions must remain vigilant against any type of tax threat from the banking industry. Although there has been no indication that state lawmakers intend to re-examine Michigan's state-chartered credit unions' tax-exempt status, the governor has expressed the desire to review the state's entire tax structure as a means to create additional revenue for the state. The motive behind this initiative is largely due to the state's changing economy and the phase-out of the single business tax, scheduled for 2010 (state-chartered CU's do not pay the SBT). While this objective seems to focus mainly on business taxes, State Treasurer Jay Rising, who is leading the effort, has expressed the possibility of expanding sales tax on certain services, including financial services.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
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Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
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