WASHINGTON — The Federal Deposit Insurance Corp.’s growing involvement in efforts to rescue the financial system is raising concerns that its core mission may be blurred. The agency’s role has greatly expanded as the Treasury Department has turned to the FDIC to run a critical piece of a plan to remove toxic assets from bank balance sheets, according to American Banker, an affiliate of Credit Union Journal.

CHICAGO–The recession is driving greater usage of prepaid cards as many leading many issuers to raise their underwriting standards on credit and debit cards and yank or reduce consumers’ lines. The trend has also created an opportunity for prepaid providers to sign up a different type of consumer.

DECATUR, Ga. – A man who dressed up as Dracula to rob CDC Federal Credit Union has been sentenced to 20 years in federal prison. Nathaniel Little, Jr., 43, also was ordered to pay $14,669 in restitution after pleading guilty in 2008.

SAN DIMAS, Calif.–WesCorp has cancelled its annual Future Forum and CFO Forum conferences, and also plans to replace its annual meeting with a town hall meeting scheduled for the Sheraton Fairplex Hotel in Pomona, Calif. on May 18.

CLEARWATER, Fla.– Card Services for Credit Unions (CSCU), Visa Inc. and Fidelity National Information Services (FIS) said they are joining to donate $100,000 to National Credit Union Foundation (NCUF). “Each year we team together because we believe it is critical to support NCUF objectives in serving the underserved,” said CSCU President Robert Hackney.

ORLANDO, Fla.–Dr. Barry Asmus, a well-known free-market economist, is giving the thumbs up to the recent changes in mark-to-market accounting rules by FASB, “I like mark to market, but not when there is no market to mark to,” Asmus told PSCU’s annual meeting here. “Mark to market makes no sense. I can’t tell you how I’m breathing a little easier having this asinine rule revoked. Mark to market was the biggest liquidity bubble on earth.”

SARASOTA, Fla.–The $235-million Sarasota Coastal Credit Union said it will be absorbed via merger by the $1.4-billion MidFlorida Federal Credit Union, based in Lakeland, Fla.

POWAY, Calif.–Credit unions should start preparing for loan modifications to begin showing up in members’ credit reports. Noting that the Treasury Department’s Home Affordable Modification Program will soon have more lenders working with homeowners seeking to salvage distressed mortgages, an analysis by First American CREDCO here notes that in addition to interest rate reductions, amortization term extensions and even principle forbearance, short sales and distressed refinances will also soon begin appearing consumer credit report files, as a result of the new federal guidelines.

WASHINGTON — Though the Federal Reserve Board remains the leading candidate to assume oversight of systemically risky firms, two Senate votes last week demanding that the central bank hand over details about its activities demonstrated its waning political support.

LAS VEGAS – Just because the audience consisted of human resources and training specialists, rather than CFOs, does not mean the buzz at the CUNA Human Resources/Training and Development Council conference here focused less on the ongoing economic downturn compared to other credit union gatherings.

Standard & Poor's Corp. downgraded four corporate credit unions that had to write down their stakes in the failed U.S. Central Federal Credit Union and withdrew its credit ratings for two others.

PLAINWELL, Mich. –Robert Tran, who formerly headed up Plainwell Community FCU before pleading guilty to embezzlement and money laundering, has been sentenced to nearly four years in prison.

WASHINGTON – The Treasury Department has unveiled a coordinated plan to thwart loan modification fraud schemes that are cropping up around the country. The Treasury is acting along with the Federal Trade Commission, the Department of Housing and Urban Development, the Justice Department and state officials to prosecute or disable businesses that claim to be able to secure loan modifications from lenders for up-front fees.

ORLANDO, Fla.–A simple review can save many credit unions at least $20,000 annually.

WILKES-BARRE, Penn.–In a reverse of the trend at many U.S.-based company, Sallie Mae reported that over the next 18 months it will return to the United States some 2,000 call center jobs that it had earlier moved overseas.

LANSING, Mich. – Invest in America will soon provide credit union car-buying support to Ford, and is expanding its agreements with General Motors and Chrysler.Kim Irwin, VP of Invest in America, told Credit Union Journal that Ford has agreed to conduct a pilot with the credit union-led auto buying and financing program later this year. General Motors has extended its participation though Dec. 31, 2009, and Chrysler may be close to extending its agreement with Invest in America for an additional six months.Irwin declined to provide details on the Ford agreement, but said that Invest in America’s results continue to catch the attention of the carmakers.“GM’s No. 1 metric is new customers that have not bought GM vehicles in the past,” Irwin said. “And over 60% of the customers that have bought through Invest in America are new to GM. That has well exceeded their expectations.”That has prompted GM to not only extend beyond its original June 30 cutoff, but to also discuss expanding the Invest in America partnership into used cars, leasing, and other offers, Irwin shared. Chrysler’s participation is set to end June 30, 2009, but “they are fully anticipating an extension through the end of the year,” Irwin said.One of the reasons is impressive Invest in America sales numbers, with the program, posting more than 73,000 car sales through March. Irwin explained that figure includes both GM and Chrysler sales through February, but only GM’s March totals. Chrysler’s March figures have not been added. “Both GM and Chrysler did not anticipate how much loyalty credit union members have when their CUs market an offer,” Irwin noted.

SAN DIEGO–Credit Union Journal’s Grow Show remains a Go Show, and numerous discounts are being offered on both registration and travel to ensure as many people as possible can attend.

SAN FRANCISCOSeveral consultants, including well-known former Alternatives
 FCU CEO Bill Myers, have created the Credit Union Funding Access Team to 
help credit unions take advantage of the Community Development Financial 
Institution (CDFI) Fund.

WASHINGTON–As banks look to clear toxic assets as part of the Treasury Department’s new program, a new question is rising over whether they will also be buyers.

ARLINGTON, Va.–NAFCU is pressing NCUA for clarification on accounting issues should Congress pass legislation creating a Corporate Credit Union Stabilization Fund.