The CU Journal Daily
US Bank To Acquire Genpass
MINNEAPOLIS-US Bancorp has agreed to acquire the Genpass Inc. electronic funds network and all of its subsidiaries, making US Bank the nation's third-largest, third-party ATM processor, in addition to having the second-largest bank-owned ATM network in the country.
Genpass, is the owner of MoneyPass, MoneyMaker and MONEY BELT ATM networks and has extensive operations with credit unions, both in processing transactions and accessing the company's surcharge-free ATM networks.
Genpass, which provides funds transfer services to 1,000 credit unions and banks, is owned by buyout firm GTCR Golder Rauner LLC. Financial terms of the deal were not disclosed.
New Investment CUSO Launched
PALO ALTO, Calif.-Addison Avenue Financial Partners, a wholly owned CUSO for Addison Ave. FCU (formerly H-P FCU), is restructuring its CUSO to be the first to offer investment advisory services separate from its broker-dealer services.
The $1.5-billion credit union, like all other credit unions, is bringing its broker-dealer in-house because of the impending Securities and Exchange Commission rule encouraging it to do so, but will create a new advisory service in the CUSO, to serve members with more than $1.3 billion in investments under management, according to Scott Davis, president of the CUSO.
The credit union has become one of the first to undergo SEC registration as an investment advisor, and has contracted with a third-party, Houston-based US Fiduciary, to provide advisory services, Davis told The Credit Union Journal. This way, the CUSO will be able to earn commissions on the investment advice, instead of having all of the commissions go to the broker-dealer/advisor.
AACU Gets Airport Concession
FORT WORTH, Texas-American Airlines CU said it and New Mount Zion Baptist Church CU, a small community development credit union start-up, have won the contract to take over the ATM concession at Dallas/Fort Worth Airport beginning in June 2005.
The contract involves 21 ATMs spread across five different DFW Airport Terminals and other airport facilities, and will serve the more than 20-million airline passengers who pass through the airport each year.
The five-year contract requires that 70% of surcharge revenues be paid to the airport. The $740,000, 3,000-member New Mount Zion Baptist Church CU primarily serves minorities and has a 5% participation in the contract.
Trust Services To Be Unveiled
MANHATTAN BEACH, Calif.-Kinecta Financial & Insurance, a wholly owned CUSO of Kinecta FCU, said it plans to introduce its own trust department "within the next 30 days."
The trust department will offer the writing of trusts, investing of assets, and third-party fiduciary services, according to Leonard Gzesh, chief operating officer for the CUSO.
The third-party fiduciary services will be provided by the CUSO's investment advisor, Linsco Private Ledger and its Private Trust Co. subsidiary, Gzesh told The Credit Union Journal.
FMLA Lawsuit OKd To Proceed
PHILADELPHIA-A federal judge rejected a plea to dismiss a suit by a former executive at American Heritage FCU under the Family and Medical Leave Act, whose job was eliminated in a corporate restructuring.
Dennis Heron, former vice president of marketing, claims he was demoted the day he returned in October 2001 as punishment for taking a three-month leave for depression. Lawyers for the credit union claim Heron took the leave due to work-related stress.
Heron claimed when he returned he was given 24 hours to decide whether to accept the newly created position of marketing manager at a $20,000 pay cut, so he refused the demotion.
The credit union claims the job of vice president for marketing was eliminated as part of a restructuring of the marketing department. U.S. District Court Judge Petrese Tucker said in order to succeed in an FMLA claim Heron must prove he suffered an "adverse employment decision" and that the adverse decision was "causally related" to his leave.
Fox Community CU In High School Sponsorship
NEENAH, Wis.-Fox Communities CU said it has agreed to pay $15,400 for a new scoreboard at the local high school baseball field.
Under the deal, the credit union will be allowed to have its name and logo displayed on an advertising panel hung on the scoreboard.
Several other area credit unions are also looking at school sports sponsorships, including Community First CU, which has proposed paying $14,000 to fund a scoreboard at a local middle school football field.