TAMPA, Fla. — Credit unions in this hard-hit center of Florida's Gulf Coast are slashing dividend rates, shuttering branches and raising loan rates conserve capital and to stay afloat in one of the worst economies in the country.

CU Keeps Spreading Its [FOM] Wings

There may be no such thing as a free lunch, but as a number of readers were all quick to point out, it can come at a pretty good discount.

Conventional wisdom dictates that a merger should be completed as quickly and painlessly as possible. This approach is neither logical nor prudent.

Converting systems and vendors of the merging credit union to those of the continuing credit union concurrent with execution of the merger is not generally the best course of action. There is no requirement to tie the two events together and there are several reasons to treat them independently.

Mystery shopping services do have a place; it's just that they are asked to serve a purpose they do not serve well. And better solutions exist.

BIRMINGHAM, Ala. – Cyber criminals are using fake messages claiming to be from the FDIC to deliver a virus capable of stealing unsuspecting victims' bank passwords and other sensitive personal information, the banking regulator warned last week.

FORT WAYNE , Ind. – The former CEO of General CU, who told authorities he manipulated loan documents to help troubled members, was sentenced Friday to two years in prison for a scheme prosecutors said drained $1.6 million form the credit union.

PLANO, Texas – EDS CU, struggling with its identity after the takeover of its corporate sponsor by Hewlett-Packard, said it is changing its name to InTouch CU.

CHILLICOTHE, Ohio – Homeland CU said it will pay its members $1 million in a special dividend and interest rebate.

BALTIMORE – MECU of Baltimore, which pays a special dividend twice a year, said last week it will pay this season’s $1.4 million payment 30 days early to help members in their holiday shopping.

BOSTON – Federal Home Loan Banks in Boston, Seattle and San Francisco announced big third quarter losses last week, based on write-downs of their private-label mortgage-backed securities holdings, in a similar way that corporate credit unions weighed down by MBS are reporting large losses.

VANCOUVER, Wash. – Columba CU announced that interim president Steve Kenny was made permanent CEO of the $770 million credit union.

LOS ANGELES – The Los Angeles City Council last week approved a plan to create so-called Banking Development Districts that will provide credit unions and banks with guaranteed municipal deposits and council district discretionary fund deposits, property tax breaks and fast-track land use approval for institutions that open branches within a district.

ALBANY, N.Y. – Federally chartered credit unions–more than 95% of the state’s 400 credit unions– are exempt from a new commuter tax assessed employers in New York City and seven surrounding counties, the state’s Tax Department ruled last week.

WASHINGTON – The FDIC Friday shut California National Bank of Los Angeles and eight smaller related banks in California, Illinois, Texas and Arizona, making a total of 115 bank failures so far in 2009.U.S. Bank of Minneapolis agreed to assume the deposits and most of the assets of the banks. The banks had combined assets of $19.4 billion and deposits of $15.4 billion at the end of September, the FDIC said.

SAN DIMAS, Calif. – WesCorp FCU, the troubled corporate credit union giant taken over by NCUA earlier this year, reported another $349.2 million in losses on Friday for the month of September.

LENEXA, Kan. – U.S. Central FCU on Friday reported additional losses of $308.5 million for the third quarter, wiping out another$320.1 million in member capital, which will trickle down to natural person credit unions in the coming weeks and months.

WASHINGTON – The main credit union lobby organizations joined the bankers Friday to fight off a bill backed by the consumer groups that would set strict new limits on overdraft protection programs.

SAGINAW, Mich. – A used car dealer who stole $89,500 belonging to Communications Family CU from the sale of repossessed cars on Wednesday was sentenced to five years probation and ordered to repay the funds to the credit union.