HARRISBURG, Pa. – Lawmakers in the Keystone State–ground zero in the field of membership wars with bankers–are seeking support for potential legislation that would reign in community charters. The effort comes as several FOM cases are scheduled to be heard by the state Supreme Court challenging Pennsylvania’s community chartering rules, as well as the tax-exempt status of state charters. The proposed bill is similar to a measure that died in the last legislative session which would severally restrict state chartered credit unions community chartering powers, according to Michael Wishnow, spokesman for the Pennsylvania CU Association. “It would make it very, very difficult for state charters to get community charters in Pennsylvania,” Wishnow told The Credit Union Journal. The initiative, apparently backed by the state’s community banks, comes as the state’s high court is scheduled to hear separate cases on the tax exemption for state charters; the rules governing community FOM; and the state banking department’s authority to apply the FOM rules. Pennsylvania, with two other FOM cases pending in federal court, has become ground zero for the FOM battles, especially with the passage of legislation in Missouri ending a 10-year-fight over the issue.

ALBANY, N.Y. – In what can described as a long-shot bid for a credit union tax, a bill was introduced in the State Senate that would apply a state tax on federally chartered credit unions. In introducing his bill, Sen. Thomas Morahan, R-Westchester, explained, “Many federal credit unions have become very large with hundreds of million of dollars in assets, often equal in size to regular banks. However, credit unions are not required to pay the same taxes that regular banks are. This bill includes insured federal credit unions among the financial institutions which must pay taxes.” However, all federally chartered credit unions are exempt from state taxes under the Federal CU Act, therefore, even if the bill passes it would like be found inapplicable.

NEW ORLEANS – A local pastor pleaded guilty in federal court Wednesday to stealing more than $13,000 from ASI FCU in the weeks following Hurricane Katrina, one of thousands of members of the community development credit union who made offline cash withdrawals in the days following the ruinous storm. Aaron Frazier, a 43-year-old pastor at Temple of Christ Church, pled guilty to bank larceny and is scheduled to be sentenced August 8. Frazier was able to withdraw because a computer crash after the massive hurricane allowed members of the credit union to withdraw unlimited cash from ATMs. ASI said as many as 10,000 members overdrew their accounts as a result of the computer problems in the days after Katrina. About a dozen credit union members have been charged, those who allegedly took the most from the ATMs. Frazier had only $150 in his ASI account at the time, but was able to withdraw almost $13,000 over two weeks after the storm hit.

HAVERHILL, Mass. – City officials rejected a bid by a commercial developer to raze the historic Kenoza Avenue armory and accepted a proposal by the Haverhill Fire Department CU to preserve the structure and continue to operate at the site. The $14 million credit union was up against great odds, as the developer, King Weinstein, bid $500,000 for the property, to the $257,235 offered by the credit union, which has leased the building since 2002. But the City Council recognized the $350,000 in improvements the credit union has put into the building, and the historic nature of the armory when it awarded the building. The former home of the Army National Guard had been vacant for decades when the credit union moved in, at a rent of $1 a year. In saving the credit union home, the city fathers are also preserving the local Fire Fighters Museum, which is also located in the armory building. The developers had planned to raze the structure and build a commercial development.

FORT WORTH, Texas – Subprime auto lender AmeriCredit said yesterday that earnings for its fiscal third quarter rose 20% to $103.7 million, or 80 cents a share, fueled by a $10 million gain from the sale of its investment in DealerTrack Holdings, the provider of online services to the auto finance industry.

WASHINGTON – Commercial companies, like Wal-Mart and Home Depot, would be barred from owning industrial loan companies, so-called back-door banks, under a bill approved yesterday by the House Financial Services Committee. The measure now goes for a vote by the full House but has dubious prospects because of lack of interest in the Senate. The bill was prompted by the controversy over Wal-Mart’s unsuccessful effort to obtain an ILC charter, but was passed by the panel even though the retail giant ended its quest two months ago. The measure would require all owners and operators of ILCs to have a preponderance of their business, at least 85%, in financial services.

WINSTON-SALEM, N.C. – Winston-Salem City Employees CU said yesterday it has selected TRC Interactive Inc. to provide it with online training systems through its CreditUnionTrainingOnline system. The credit union will have full use of Training Central, the training program’s learning management system. TRC is based in Harrisburg, Pa.

PORTLAND, Me. – Synergent, a CUSO owned by the Maine CU League, said yesterday it has expended its Check 21 offerings through VSoft Corp. to include ATM Image Capture. VSoft’s ATM Image Capture interfaces with any image-based ATM, allowing members of Synergent’s credit unions to deposit checks directly into the ATM. Once the image is captured at the ATM, the software sends it to the central check processing site. VSoft Corp., one of the leading providers of Check 21 services, is based in Atlanta.

BIRMINGHAM, Ala. – EPL, a core processor owned by the Alabama CU League, said yesterday it has signed processing deals with 11 credit unions in Hawaii. The Hawaiian credit unions are preparing to convert to i-POWER's open architecture platform by the 4th of July this year, with the first one already converted as of April 15th. Among the Hawaiian CUs are: Lihue CU and MediCredit FCU.

PURCHASE, N.Y. – MasterCard Inc. shares soared 12% yesterday as the credit card giant reported yesterday that growth in cardholder transactions pushed first quarter earnings up 69% to $215 million, or $1.57 a share. Revenues for the card giant rose 24% to $915 million for the quarter, compared to the same period last year. MasterCard shares closed at $127 yesterday, more than triple the $39 a share price they opened at last May’s initial public offering. Fueling the first quarter earnings growth were a 16% rise in the gross dollar volume of transactions for the first quarter; a 19% increase in the number of transactions; and a rise in cross-border transactions fees, which contributed 5% to revenue growth. The bank-owned cards network went public a year ago in a hugely successful IPO, prompting cards competitors Visa USA and Discover to also plan IPOs.

WALL STREET -- Morgan Stanley, which announced plans to spin off its Discover Financial Services unit to shareholders in December, will issue one Discover share for every two Morgan Stanley shares held. Based on that ratio, Discover estimates there will be roughly 527 million Discover common shares, according to a filing with the Securities and Exchange Commission. Discover did not set a price range for the shares. Discover is the parent of PULSE EFT, the electronic funds transfer network serving 5,000 financial institutions, including 2,000 credit unions. In December, Morgan Stanley announced it would issue 100% of Discover stock to its shareholders in a tax-free spin-off that is expected to take place in the third quarter. Discover, which is joining cards competitor Visa USA in planned IPOs, hopes to imitate the success of last year’s IPO by MasterCard, in which the share price has almost tripled.

ROSELAND, N.J. – Financial ailing Bisys Group, a provider of back-office services to credit unions, banks and insurers, said yesterday it has agreed to be acquired by Citigroup for $12 a share, or a total of $1.45 billion. Simultaneously, JC Flowers, a private equity fund in the process of acquiring Sallie Mae, will acquire Bisys’ Insurance Services Group and Retirement Services from Citigroup. Bisys, which provides mutual fund and insurance services, has been on the market since it reported a 36% decline in net income for its fiscal second quarter ended December 31. In October, Bisys agreed to pay shareholders $66 million to settle civil fraud claims over the misstatement of earnings, and in September the company agreed to pay $21 to the Securities and Exchange Commission to settle fraud charges that it made illegal kickbacks to brokers that were recommending its mutual funds to customers. JC Flowers is part of a group that includes bank giants Bank of America and JP Morgan Chase that has agreed to acquire student loan giant Sallie Mae for $25 billion.

WEST PALM BEACH, Fla.–If you’re content in your career at the credit union and even safe in your job, is there any reason to update your resume? Yes, according to one expert, who believes that even when not searching for a job a resume can “play a key role in all phases of career development.” “The self assessment process involved in writing a resume helps you plan and prepare for each job move you might consider,” the expert added. This career advice and others, along with a host of available positions within credit unions, is now available free to Credit Union Journal subscribers by visiting this link: http://news.careerzone.cujournal.com/ITEM_FR/newsItemId-100359.

WESTBROOK, Me. – A new statewide television ad campaign touts the benefits of credit union membership with the tag line, ‘I Save’. The $400,000 media campaign, organized by the Maine CU League, is focused around four commercials airing in all three of the state’s main markets, Portland, Augusta and Presque Isle. As part of the campaign, the Maine League has unveiled a new web site that helps consumers find a credit union they are eligible to join. The site will be used in additional media initiatives, including radio ads, the Maine League plans to introduce later this year.

JACKSONVILLE, Fla. – VyStar CU will take financial literacy training a step further and announced it will invest $100,000 to sponsor an academy of business and finance at the local Bartram Trail High School. The academy, which will provide real-life lessons in business and finance, will be known as the VyStar Academy. The sponsorship will allow the credit union giant to put a branch in the high school and to train students, at $15 an hour, to become student managers during the school year.

FITCHBURG, Ma.. – In an effort to boost lagging savings growth, IC FCU boosted the introductory rates on its new savings and checking accounts to regional highs of 6% and 5%, respectively. The credit union hopes to attract as much as $10 million in new deposits under its IC Direct program. The high rates are available through Sept. 1, when the rates return to the 5% for regular savings and 2% for checking accounts.

RALEIGH, N.C. – State Employees CU said yesterday it has introduced a savings account tied to the returns of the stock market, one of the first of its kind. SECU’s Bridge Account will pay dividends based on the quarterly return of the Standard & Poors 500 Index. SECU said the accounts, which are fully insured by the NCUA, promote savings and educate members on stock market investing. The maximum quarterly dividend on the accounts will be 3%, or a 12% (12.55% compounded) annual percentage rate. If the S&P Index declines for the quarter, then no dividends will be paid and there will be no losses. The Bridge Accounts feature a low minimum deposit of just $25, and a maximum balance of $3,000. SECU returns for the new accounts have been positive so far, with 1,174 Bridge Accounts opened in the first month generating $1.7 million in deposits.

MINOT, N.D. – A suspect in January’s armed robbery at Ray Cooperative CU pleaded guilty yesterday to charges of robbery and carrying a firearm while committing a crime of violence. Justin Rieniets, 23, admitted to pointing a gun at a teller then making off with $7,500—escaping on a snowmobile. An alleged accomplice is scheduled to go on trial later this year.

BALTIMORE – State Employees CU of Maryland announced yesterday it has joined the credit union-owned CO-OP Financial Services. That gives the 250,000 members of the credit union access to 490 surcharge-free CO-OP ATMs in Maryland and 25,000 in the U.S. Officials with the $1.6 billion credit union said CO-OP’s partnership with 7-Eleven convenience stores was the major selling point, with 304 7-Elevens in Maryland connected to the CO-OP.

FORT WORTH, Texas – Subprime auto lender AmeriCredit said yesterday that earnings for its fiscal third quarter rose 20% to $103.7 million, or 80 cents a share, fueled by a $10 million gain from the sale of its investment in DealerTrack Holdings, the provider of online services to the auto finance industry. AmeriCredit also reported a 35% surge in third quarter revenues to $606.2 million, as auto loan originations soared by 56% to $2.52 billion for the period, compared to the same quarter last year.