WASHINGTON – In yet another government study issued Friday, the Government Accountability Office recommended that the NCUA Board be expanded to five members, from the current three, in order to diversify points of view and to ensure continuity when the Board has one or more vacancies. NCUA objected to the expansion of the board to five members, saying the estimated expense of more than $1 million a year would not justify it. The GAO also cited significant influence by CUNA, with four of the agency’s seven political appointees recent CUNA employees, a far greater presence than any trade group among the banking regulators. Only one of the four banking agencies has as many as two political appointees from the industry it regulates, and each of those is from different trade associations. GAO recommended that NCUA adopt additional independence and objectivity standards as other regulators, including those requiring an arms length relationship with the regulated industry.

WASHINGTON – The new government study showing credit unions shifting their focus from people of modest means is expected to give rise to a renewed effort by the bankers to bring credit unions under the Community Reinvestment Act, as a condition to any broad regulatory relief bill, like CURIA. In fact, the advent of a Democratically controlled Congress, with its strong support for the credit union tax exemption, is historically favorable to CRA, with some members suggesting in the past bringing credit unions under the act. “Remember, in 1998, credit unions almost got CRA,” Keith Leggett, senior economist for the American Bankers Association told The Credit Union Journal. “I think you’re gong to see renewed interest in that, in light of the study.” In fact, there is some evidence the bankers have shifted their anti-credit union lobby from the tax exemption and to CRA. “It plays better with Democrats,” said CUNA lobbyist Dean Sagar. “It’s a tactic switch.” Signs of this new strategy have emerged in Missouri, where the Missouri Bankers Association have made a CRA-like requirement a condition to settling a decade-long fight over field of membership. If credit unions get into a legislative contest over CRA it could alienate some traditional allies, like the Woodstock Institute, and other community groups that have also called for CRA for credit unions. Complicating matters even more is the ongoing efforts by credit unions to return to the good graces of the consumer lobby, which split with credit unions over the long and emotional battle over bankruptcy reform.

* Argonne Credit Union, Romeoville, Ill., opened its new main office with a ribbon cutting ceremony.

With final briefs in hand, Madison Equal Opportunities Commission Hearing Officer Clifford Blackwell must now decide whether former CUNA SVP Mike Miller was an "immature" and "disgruntled" employee who lashed out at his new boss after being denied a promotion, or the target of retaliation for complaints against two senior employees for alleged racist, homophobic and sexist comments.

ATLANTA - You've raced to meet the financial regulators' deadline to implement multi-factor authentication, so now you're safe, right? Not necessarily.

CU Pitches In After Tornado

* Argonne Credit Union, Romeoville, Ill., opened its new main office with a ribbon cutting ceremony.

Members of Keesler FCU were ready and flush with cash when the stores opened on Black Friday-thanks to their CU.

Three Texas credit unions were among the top ten performers in the third quarter, scoring high return-on-assets in a very tough period for credit unions. The highest ROA in the third quarter among credit unions over $25 million was reported by Park Side FCU, in White Fish, Montana. The $75-million CU reported net income of $2.5 million for the quarter for an ROA of 4.78%, according to Callahan & Associates. The rest of the top ten are: Leyden CU, Franklin Park, Ill., $1.7 million and an ROA of 4.34%; Southern FCU, Houston, $765,000 and 4.15%; Bridgeton Onized FCU, Vineland, N.J., $832,000 and 4.14%; Nizari Progressive FCU, Houston, $796,000 and 3.77%; West Texas CU, El Paso, $1.5 million and 3.76%; Progressive CU, New York, $8.1 million and 3.59%; First Capital FCU, York, Pa., $2.3 million and 3.58%; Mendo Lake CU, Ukiah, Calif, $1.8 million and 3.37% and Florida State Employees FCU, $626,000 and 3.34%. The overall average ROA for third quarter was just 0.88%.

DEARBORN, Mich. - Though no new hearing date has been set in the DFCU Financial Credit Union lawsuit over the CU's ill-fated conversion, petitions were expected to be submitted to the CU late last week that could place seven new candidates on the February ballot for board seats.

Prison Term for Series of Kidnap-Robberies

America First Credit Union, Ogden, Utah, announced that Kara England received the Charlie Clark Memorial Award, Greg Taylor was named Brickyard Harmons branch manager, Nancy Marcias was named Olympus Hills Dan's branch manager, Camille Cassity was named Provo Macey's branch manager and Jennifer Davis was named manager-member relationship center.

BILOXI, Miss. - Members of Keesler FCU were ready and flush with cash when the stores opened on Black Friday-thanks to their CU.

Both Fannie Mae and Freddie Mac said they will maintain the same limits on all conforming loans, that is, the ones they will buy for the secondary market, despite the first drop in average home prices in 13 years.

Madison, Wis. - Representatives from India's National Federation of Urban Co-operative Banks & Credit Societies, Ltd. visited the United States and Canada to expand their knowledge of the credit union system and explore the possibility of becoming a World Council member.

WASHINGTON - Some of the key players responsible for the growing conversions of credit unions to mutual savings banks denied last week that top managers and directors were motivated by greed.

The sky was the limit-literally-for youth members who attended Universal Federal Credit Union's 7th Annual Club Education Day.

Intuit's acquisition of Digital Insight is an arrow aimed at the heart of how small businesses manage their financial operations through the Internet-and how credit unions will serve them.

The consumer lobby met here last week to set a financial services agenda for the next Congress and left a new opening for credit unions to regain some of the lost comity they had with the groups over the bankruptcy reform bill.

The Escambia County Sheriff's Office is back to full strength, thanks to Gulf Winds FCU.