WASHINGTON – After a five-year debate, the Securities and Exchange Commission finally proposed a rule yesterday that will exempt credit unions and banks from registering as brokers when offering investment services and products. If adopted by the SEC, the rule will free thousands of credit unions and CUSOs from the time-consuming and costly process of registration. The proposed rule will define exactly which activities credit unions and banks can engage in without registering with the SEC as brokers. The proposal, which has the support of the credit union lobby, was issued for a 90-day comment period. The proposal seeks to address provisions of the 1999 Gramm-Leach-Blilely Act, which left the SEC to determine how to regulate securities activities by banks.

DALLAS – Southwest Corporate FCU announced yesterday it has promoted John Cassidy from chief financial officer to CEO.

ATLANTA – InfiCorp, the credit card bank that has been buying up smaller credit union cards portfolios, announced yesterday it has signed to issue cards for banking giant SunTrust Bans. InfiCorp., a unit of First National (Bank) of Nebraska, will begin issuing SunTrust-branded credit cards in the first quarter of 2007. SunTrust had issued its cards through MBNA, but that credit card bank was acquired by Bank of America in January. InfiCorp., which is headed by Keith Floen, the former head of CUNA Card Services, has been one of the leading acquirers of credit union card portfolios over the past five years.

CHICAGO – Authorities are offering $45,000 in rewards for information leading to arrest of a heavily armed masked man they believe is responsible for as many as 16 bank and credit union robberies over the past year. The robber, believed to have hit Health Care CU, among other local institutions, is being called the ‘Wheaton Bandit’ because seven of the branches he held-up were in that western suburb of Chicago. The bandit always brandishes a semi-automatic handgun and wears body armor under his clothes, as well as a mask or hood to conceal his face. He has been featured on ‘America’s Most Wanted’ and ‘Chicago’s Most Wanted’ as authorities seeks public assistance in his capture.

ELIZABETHTOWN, Ky. – iPay Technologies, a provider of electronic bill payment services to credit unions and banks, announced yesterday that two private equity funds, Bain Capital Ventures and Spectrum Equity Investors, have acquired control of the company in exchange for an undisclosed capital infusion. A spokesperson for the company would not disclose the terms of the deal, but that iPay founders Dane Bowers and Michael Bowers will retain a stake in the company and continue to serve on its board. Investment bank William Blair & Co. advised iPay on the deal. Debt financing was provided by CIT Lending Services.

WALNUT CREEK, Calif. – Pacific Service CU is teaming up with a variety of organizations in order to provide holiday meals, toys and Christmas trees to needy families. The $1 billion credit union donated $22,500 to the Salvation Army. Pacific Service CU employees are also contributing to the Contra Costa Food Bank, Salvation Army and the Bay Area Crisis Nursery.

ANCHORAGE – A man who was shot twice as he was fleeing an armed robbery at the Alaska USA FCU branch last year was sentenced yesterday to 13 years in federal prison. Christopher Charles, 23, was convicted of one count of bank robbery and one count of brandishing a firearm during the robbery, which occurred at the credit union’s branch inside a Fred Meyer store. Charles made off with more than $7,000.

NEW YORK – the New York Stock Exchange issued a delisting notice to Fannie Mae on Monday because of the ongoing failure of the secondary mortgage market giant to file its financial statements, amidst the massive restatements for the past three years. In its delisting notice the NYSE cited Fannie’s failure to file its annual report for 2005. The company said it has agreed to file its financials for 2005 by the end of 2007 to forestall formal delisiting proceedings. Until all of its quarterly and annual financial statements for the past three years are filed with the SEC, the NYSE will continue to identify Fannie Mae as a scofflaw on its consolidated tape, the electronic ticker. Separately, Fannie said yesterday it filed suit against its former auditors, KPMG, claiming negligence in audits the firm conducted the company that required a restatement of $6.3 billion in earnings. The accounting giant applied more than 30 flawed principles and cost the company more than $2 billion in damages, Fannie stated in its complaint.

DALLAS – Southwest Corporate FCU announced yesterday it has promoted John Cassidy from chief financial officer to CEO. Cassidy will succeed Jody Beck, who served as interim CEO since Francis Lee was hired to head U.S. Central CU last December. Beck will resume her old position overseeing item processing, electronic payments and information services for the $10 billion corporate. Cassidy has been at Southwest Corporate since 1992, when he moved there from Police and Fire FCU in Philadelphia, where he served as chief financial officer.

SAN FRANCISCO – Visa USA announced yesterday it will begin fining participating merchants up to $25,000 a month for non-compliance with its Payment Card Industry Data Security Standard, which sets minimum security requirements for card using and storing card data. Those who storing prohibited data will be fined up to $10,000 a month. The storage of consumer card data where it can be stolen by hackers has been identified as one of the greatest risks to identity theft. The world’s largest payments company also said it is creating a $20 million fund which it will reward to acquiring banks and credit unions who have or will validate compliance with the PCI rules by August 31, 2007 and have not been involved in a data breach. The program, which targets the largest 1,200 merchant users of Visa, aims to eliminate the storage of full-track data, CVV2 and PIN data, and expand PCI compliance with the merchants, who account for two-thirds of all Visa transactions in the U.S.

DEARBORN, Mich. – Dissident members of DFCU Financial, fighting to oust directors who voted for the ill-fated attempt to convert the credit union to a bank, were stunned yesterday by the credit union’s announcement it will pay a record $17.5 million dividend to members–just three days before a state court is scheduled to hear the dissidents’ case for recalling the board. “It’s like they’re trying to buy back the loyalty of the members,” one of the dissidents told The Credit Union Journal, of the record payout scheduled for just weeks before members are scheduled to vote whether to retain some of the board members. This is the first special dividend paid by the credit union in 20 years. The dissidents, DFCU Owners United, will ask a state court Friday to enforce a credit union bylaw requiring a special meeting where members will vote to recall the board for their support of the failed conversion. Robert Chapman, the newly appointed chairman of the Board, said the huge payout was part of the credit union’s extraordinary success this year in the depressed Michigan economy, which enabled it to also build new branches, introduce several new services, and provide $10 million in subsidized loans to help the area’s auto workers transition to new careers. Chapman was appointed chairman two months ago after the mysterious resignation of Harold Lowman, the main target of the members’ suit for his role in the failed conversion. The $17.5 million payout is by far the largest ever paid by a credit union, dwarfing the previous high of $12 million paid by Clark County CU, in Las Vegas, last January. Later this week, Arizona FCU is scheduled to announce a $10 million special dividend.

DEARBORN, Mich. – DFCU Financial, the credit union giant that sought greener pastures as a bank earlier this year, said today it is rewarding its members for its best year ever with a $17.5 million dividend, the largest ever for a credit union. Robert Chapman, newly appointed chairman of the DFCU Board, said the record payout was made possible by the millions of dollars in savings enacted over the last six years. This is the first special dividend DFCU has paid in 20 years. Chapman was named chairman in recent weeks after the mysterious resignation of Harold Lowman, the long-time chairman who is the target of a members’ lawsuit for his role in the ill-fated conversion to mutual savings bank. The $2 billion credit union will pay every member 0.5% on their average loan and savings balance for 2006, with every member receiving at least $50. The dividend will be paid into members’ accounts on January 8. Members of the credit union who successfully fought to defeat the conversion to bank are suing in state court to force a special meeting where they hope to recall all of the directors who voted for the conversion.

DEARBORN, Mich. – DFCU Financial, the credit union giant that sought greener pastures as a bank earlier this year, said today it is rewarding its members for its best year ever with a $17.5 million dividend, the largest ever for a credit union. Robert Chapman, newly appointed chairman of the DFCU Board, said the record payout was made possible by the millions of dollars in savings enacted over the last six years. This is the first special dividend DFCU has paid in 20 years. Chapman was named chairman in recent weeks after the mysterious resignation of Harold Lowman, the long-time chairman who is the target of a members’ lawsuit for his role in the ill-fated conversion to mutual savings bank. The $2 billion credit union will pay every member 0.5% on their average loan and savings balance for 2006, with every member receiving at least $50. The dividend will be paid into members’ accounts on January 8. Members of the credit union who successfully fought to defeat the conversion to bank are suing in state court to force a special meeting where they hope to recall all of the directors who voted for the conversion.

DES MOINES – Democrats, who won control of the state legislature last month, plan to introduce a bill to limit the interest rates credit unions, banks and other lenders can charge on so-called ‘car title loans.’ The state Senate endorsed a 21% limit on car title loans in each of the past two years, but the Republican-led Iowa House failed to take up the measure. Proponents of the bill say some lenders charge as much as 360% APR on car title loans. The Democratic leadership, which won control of the House and Senate, has also pledged to consider limits on payday loans.

MUSKEGON, Mich. – The second of two men arrested while plotting a hold-up at Muskegon Governmental Employees FCU last March was sentenced Friday to up to 20 years in prison. Demont Alexander, 30, was arrested with his would-be accomplice, 51-year-old Rodney Monroe, who was carrying a gun, as they were preparing to rob the credit union on March 31. Monroe was sentenced earlier for a variety of charges in connection with the case.

SAN DIEGO – Miramar FCU said yesterday it will be offering its members free identity theft prevention and resolution services through Identity Theft 911. The services include ongoing fraud monitoring of more than 1,000 databases; direct assistance with filing police reports and other claims; notification to all credit bureaus, creditors and collectors and a year of follow-up to determine the effectiveness of the service.

FORT WORTH, Texas – American Airlines FCU said yesterday it has signed with Direct Marketing Network of Houston to manage its direct marketing. The company will design a strategy for direct marketing of products and services and execute the strategy. DMN, one of the largest direct marketers in the Southwest, designs comprehensive campaigns that encompass the Internet, email, direct mail, search engine optimization, print advertising, multi-cultural marketing, brand management and corporate communications. American Airlines FCU is one of the biggest credit unions in the country, with $4.2 billion in assets and 210,000 members.

ANDOVER, Mass. – Genalytics, a provider of on-demand targeted data solutions, announced yesterday it has received a patent for a gene-based system for use in marketing and fraud detection. The Genalytics On-Demand Targeting system uses genetic algorithms to develop models and scores to predict behavior. Ganalytics has applied the technology to financial services, helping to detect fraud and manage credit risk. The system is also used to create targeted mail lists for direct marketing.

LAS VEGAS – Silver State Schools CU announced yesterday it has signed with Axium Technologies to implement the company’s total security and surveillance system at its 18 locations in and around Las Vegas and three new locations opening next year. The system allows for local or centralized monitoring of each location. The Axium system allows for 90 days of storage of images. The contract is expected to cost between $1 million and $1.2 million over the next year.

PHILADELPHIA – PNC Bank is introducing a different kind of online authorization that will require customers to choose an image than describe it in writing–in order to gain access to their online account. The bank’s new system will also require customers logging on from computers other than their home PC to answer a preselected question, like their mother’s maiden name, to gain access. The new system went live Sunday. The system will comply with the new federal regulation requiring multifactor authentication.