BILL AIMED AT STOPPING ATM
DISCLOSURE SUITS INTRO'D
WASHINGTON-A bill introduced in Congress last week would go a long way to curing the growing number of suits over ATM disclosures by eliminating the requirement that ATMs disclose fees on the outside of the machine, as well as on-screen.
Current provisions of the Electronic Funds Transfer Act require the disclosures for fees charged non-customers be disclosed two ways, prompting dozens of suits by consumers claiming ATMs do not have the disclosures posted on the outside of the machines.
The dual disclosures have prompted some consumers , known as ATM vigilantes, to file as many as two or three dozen suits claiming violation of the EFTA because of the absence of the disclosure on the outside of the ATM. Many credit unions have agreed to settle the suits, sometimes at a cost of tens of thousands of dollars.
The bill, introduced in the House Financial Services Committee by Reps. Blaine Luetkemeyer, R-Mo., and David Scott, D-Ga., is supported by CUNA, NAFCU and the banking lobby groups.
THIRD FORMER WESCORP
EXEC SETTLES NCUA CHARGES
LOS ANGELES-A third WesCorp FCU executive being sued by NCUA in connection with the huge corporate credit union failure has agreed to settle the NCUA case.
Timothy Swedberg, who was the director of human resources for the one-time $34 billion corporate, was charged in a civil suit by NCUA with manipulating the corporate's retirement plan in order to reap more money for himself and WesCorp CEO Bob Siravo. The settlement is expected to bear no financial reimbursement for NCUA and result in Swedberg agreeing to a lifetime ban from the credit union industry.
Swedberg's agreement follows recent settlements with Bob Burrell, who was WesCorp's chief investment officer, and Timothy Sidley, its chief risk officer.
Negotiations with Siravo are ongoing.
Todd Lane, who was the WesCorp chief financial officer, has vowed to fight the charges against him and is seeking a jury trial.
In its suit, NCUA claims negligence on the part of the senior WesCorp executives caused the failure of the corporate giant, which is estimated to cost NCUA and the CU movement $7 billion. Similar charges against 11 WesCorp directors, including CUNA President Bill Cheney, were dismissed by the court last year.
CU CEO TESTIFIES IN FAVOR OF
MORATORIUM ON NEW REGS
CLEVELAND-A local credit union executive decried the "flood" of new regulations being navigated by his and other credit unions last week and told lawmakers during a congressional hearing here that the industry is lobbying NCUA for a temporary halt to new rules and regulations.
"Even though natural person credit unions did not cause the financial crisis, they have been subjected to a flood of regulations that create an unnecessary burden without any measure of the effectiveness of these changes," Stan Barnes, president of $150 million CSE FCU, told members of the House Financial Services Committee during a field hearing on examination challenges facing community financial institutions.
He cited "more than 160 new rules and regulations from 27 different federal agencies since 2008." Barness added, "there are at least 27 rulemaking proposals pending at various agencies, including (NCUA), the Federal Reserve, the Consumer Financial Protection Bureau, the Department of Housing and Urban Development, the Federal Housing Finance Agency, the Financial Accounting Standards Board, the Internal Revenue Service, the Department of Treasury's FinCEN, and the Federal Trade Commission-among others."
In light of the deluge, the credit union lobby has called on NCUA to institute a six-month moratorium on new regulations so that credit unions may implement those rules already enacted and review those being proposed, said Barnes, whose credit union, the one-time Canton School Employees credit union, now represents area teachers and school employees.
The credit union executive also said many credit unions have found NCUA's examiners to be heavy-handed in light of the record losses during the financial crisis to the extent that some are "micro-managing" credit unions. "Quite simply, regulators are dictating the business of operating a credit union," said Barnes, who endorsed legislation that would give credit unions and banks a greater ability to appeal their examinations.
NAFCU HIRES DAVID CURRIER
AS NEW CHIEF ECONOMIST
ARLINGTON, Va.-NAFCU has hired David Currier, chief economist at the Appalachian Regional Commission, as its own chief economist, succeeding Tun Wai, who retired last month following 25 years with the association.
At the Appalachian commission Currier worked on economic development strategies in rural underserved areas and developed ways to measure program impact. He also worked as a senior economist at the National Rural Electric Cooperative Association.
Carrier earned his Ph.D. in economics from Notre Dame and his undergraduate degree from the University of Maryland.
