ALBANY, N.Y. – Alternatives FCU received a $60,000 grant from the Empire State Development agency which the community development credit union will use to help women and minority businesses. The funding, part of $360,000 awarded to three CDCUs, can be used for new loans only, not refinancing, and is not available for non-profits. The maximum allowable loan is $25,000 and the terms are up to three years with a fixed rate of 6% and a rate subsidy of 6%. Borrowers must receive technical assistance related to their business.

WASHINGTON – Several Hedge Funds are apparently scouting out credit union conversions and attempting to obtain membership in the converting credit union in order to get in on the ground floor of a future stock offering. In a phone conversation with The Credit Union Journal on Friday one Hedge Fund representative said his fund had made deposits in at least two converting credit unions and was seeking to establish membership in Lafayette FCU as it was switching to a mutual thrift. The inquiry came as an NCUA review of the Lafayette balloting uncovered as many as a dozen professional investors, speculators, who were able to establish membership in Lafayette through one of its select groups that have liberal membership standards. The speculators reportedly include a former president of one of the Federal Home Loan Banks, sources told The Credit Union Journal. Credit unions that convert to a mutual savings bank, then sell stock to the public usually give their former credit union members first crack at the stock before selling to the public at large, giving the former members the initial chance at any profits from a run-up in the stock price.

WASHINGTON – The credit union community has pledge $2 million to help build and maintain a memorial to the Rev. Martin Luther Kind that is being built in Washington. Members of the African-American CU Coalition have pledged to raise half of that, $1 million. The Coalition has already received pledges for about $280,000 for the project, which is slated for completion in 2008. Plans call for a statute and memorial to be built on the National Mall, near the Lincoln Memorial. The credit union contribution is expected to be contributed to a $34 million trust fund that will pay for maintenance of the memorial.

KENSINGTON, Md. – Last week’s withdrawal of an application to convert to bank may not be enough to save directors and management of Lafayette FCU who are the target of a recall initiative by angry members. Scott Stiens, one of the members opposed to the bank bid, said his group will continue a petition drive to force a vote on the recall of the board, and afterwards, they hope a new board will oust the management for their pursuit of the conversion. “Absolutely. We have nearly 670 people who have signed this petition and we owe it to them to pursue this,” Stiens told The Credit Union Journal. “These people don’t deserve to remain at the head of a credit union if they’re not interested in running a credit union, if they depart from the credit union values and philosophy.” Lafayette bylaws require the board to call a special meeting by a petition of 750 members. Stiens said his group is approaching the necessary petition signatures. Faced with a federal investigation over alleged irregularities during the close member ballot, Lafayette said last Friday it is withdrawing its petition to convert to a mutual savings bank. The conversion was approved by the narrowest margin–just 18 votes out of almost 5,100 cast. The $330 million credit union had planned to convert to a mutual savings bank, then sell stock to the public in an initial public offering.

PASADENA, Calif. - CU Card Association, a division of Wescom Central Credit Union, in December purchased the credit card portfolios of two credit unions.

Events

LENEXA, Kan. - Expansion by credit unions into business lending is no secret to anyone who reads the trade press. But one person is noting the daily mass media also provide plenty of examples why business lending and business services have become such a market opportunity.

McLEAN, Va. - Secondary mortgage market giant Freddie Mac reported a 50-basis-point drop (0.5%) in long-term interest rates caused it to lose $550 million for the third quarter, and the second-largest purchaser of home mortgages expects to report a loss for its fourth quarter, too. The shift in long-term rates caused the company to write-down the fair market value of its derivatives and guarantee transactions.

* Mutual Savings Credit Union, Birmingham, Ala., was a corporate sponsor for the March of Dimes' Blue Jeans for Babies Day and helped raise more than $2,500 for the charity.

If you have attended a recent national conference, or have read from credit union trade periodicals, it is no surprise to you that business services and loans have captured the attention of credit unions nationwide. I consider these products the greatest opportunity since home banking/bill payment services were launched many years ago.

CU: Los Angeles Firemen's CU

WASHINGTON - CUNA made its annual contributions to the two major political parties this month, including the senate and congressional campaign committees, a total of $90,000 to both the Democrats and Republicans.

NEW YORK - On the morning of September 11, employees of XCEL FCU were right where they were every other morning, riding the subway to the station in the cavernous base of the World Trade Center, exiting across the crowded platform and riding some of the world's busiest elevators to the 39th floor and preparing to serve members.

In our planning sessions we hear, We can't be all things to all people.' And then Monday morning comes and it's "All things to all people."

In one of the finest pieces of oratory ever delivered by an American, civil rights leader Martin Luther King, Jr. famously proclaimed, "I have a dream." But were Dr. King a credit union executive, he likely would have been forced to add, "And I'm prepared to wait. And wait. And wait."

WEST PALM BEACH, Fla. - The good news? In 2003, Americans said that losing their job wasn't a primary concern. The bad news? More Americans said losing their identity was.

MARION, Ind. - Marion School Employees FCU shared its 70th anniversary with the community, with $55,000 in donations to seven community groups. The credit union agreed to match up to $70 for each $100 in donations; members and employees raised $30,800 and the credit union provided 70% of that, or $24,200. Recipients included the community foundations of Grant and Blackford counties; United Way of both counties, and scholarship funds for Indiana Wesleyan University, Taylor University and Ivy Tech Community College. (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

Desert Schools FCU Designs Account To Help Immigrants Have A Safe Place To Keep Money Page 2

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WASHINGTON - Congress was in the process of a restructuring last week that included the addition of two new subcommittees to the key House Appropriations Committee, part of a renewed effort to control spending.