e-Weekly
February 11, 2009
House Panel OKs Bill with Permanent Insurance Increase
February 4, the House Financial Services Committee approved H.R. 786, a bill designed to make permanent the $250,000 deposit and share insurance increase enacted as part of the Emergency Economic Stabilization Act of 2008.
During consideration of the bill, the committee accepted an amendment offered by Representative Paul Kanjorski (D-Pa.) to extend the amount of time National Credit Union Administration (NCUA) has to restore the National Credit Union Share Insurance Fund (NCUSIF) to its statutorily required levels. Under current law, the fund must be replenished in the calendar year during which it drops below the required level. The Kanjorski amendment would extend this period to five years.
The Credit Union National Association (CUNA) strongly backs H.R. 786 and specifically sought such a modification to the NCUSIF restoration period, among other modifications.
CUNA also backed a plan to increase NCUA's borrowing authority from the U.S. Treasury Department. Representative Luis Gutierrez (D-Ill.) offered an amendment to increase NCUA's borrowing power from $100 million to $6 billion. The amendment was approved by voice vote. CUNA believes the increased borrowing authority should give the NCUA additional resources to manage the NCUSIF and deal with problems that may arise.
The bill next must be considered by the full House.
CUNA Site Compiles NCUA Stabilization Program Info
The Credit Union National Association (CUNA) has compiled information that may be useful to credit unions regarding the National Credit Union Administration's (NCUA) Corporate Stabilization Program. A page on the CUNA website provides credit unions with links to the NCUA's proposed rulemaking for the program, frequently asked questions and additional publications on the matter.
CUNA also has provided analyses of the cost of the program as it is currently designed on the credit union movement. Credit unions can see how the program will impact the movement as a whole and use a calculation template to see how the costs will affect individual credit unions.
The cost estimates are provided to give credit unions a general feel for the impact of the NCUA's initial plan. The estimate uses September data--the latest CUNA has--so it ignores any growth or changes in financials that occurred, or that will occur subsequently, according to Mike Schenk, CUNA senior economist. "It also assumes the NCUA's initial plan is the one that credit unions will end up with. That is uncertain because NCUA's $3.7 billion guarantee cost was estimated and CUNA, the state leagues, and credit unions are doing everything possible to change the financial equation and make this much more palatable," Schenk said.
The page also includes links to recent News Now stories on the program. News Now will continue to tag stories about the stabilization program with the keyword, "NCUA Corporate Stabilization Program," which will be placed into an archive accessible to credit unions.
For more information and to access the page, use the resource link below.
The Great New England Credit Union Show is coming!
On April 21, the Massachusetts and New Hampshire Credit Union Leagues, the Credit Union Association of Rhode Island, and The Warren Group will host the debut of The Great New England Credit Union Show in the Parade Exhibition Room at the Holiday Inn in Boxborough, Massachusetts. This one-day credit union event will present a showcase of services, equipment and technology, as well as seminars of particular relevance for credit unions.
The Great New England Credit Union Show will bring a host of experts in the financial services field to present the newest breakthrough products and services in the credit union marketplace. “We’re delighted to partner with The Warren Group to produce this important event for the credit union community,” said Rob Kimmett, SVP, public relations and marketing of the Association. “Together we can provide exposure to a broader range of resources for credit unions than either organization could do singly.”
Industry consultants will be available to meet with attendees to discuss their credit unions’ specific needs. According to Vincent Valvo, group publisher and editor in chief of The Warren Group, over 80 suppliers are expected to present their latest resources and technology for the credit union industry.
The Great New England Credit Union Show was designed for credit union management, mortgage experts, and other financial services professionals as a central forum to learn about new services and technology and industry trends in an easily accessible location. “We chose the Boxborough site for several reasons, its central location, the size of the exhibit hall and the availability of convenient meeting space for seminars – all with plenty of free parking,” Valvo added. “All in all, it’s a nice fit.”
There is a registration fee of $25.00 per each credit union staffer and official or $495.00 for non-credit union attendees. However, credit union employees who are registered through an exhibitor are complimentary.
For more information or to register for The Great New England Credit Union Show, complete details are available by clicking the icon on the Association’s website www.cuassociationri.org.
CUDL Joins “Invest in America” Effort
CUDL (www.cudl.com) announced a new partnership with credit unions nationwide to further advance credit union and member awareness of the “Invest in America”program. CUDL will be promoting awareness of “Invest in America” to its 700 credit union partners and 20 million members, as well as to its more than 9,000 dealers nationwide.
“We are very excited to be teaming with CUcorp in the promotion and advancement of the ‘Invest in America’ program,” said Tony Boutelle, president and CEO of CUDL. “Our goal is to help the program through CUDL’s ability to facilitate member loans at the dealership and to further advance credit union auto lending growth and market share.”
CUDL will increase member awareness of, and access to, the “Invest in America” discounts through its CUDL AutoSMART program. The participating credit unions will be able to promote the program through their co-branded AutoSMART websites, which provide members the ability to research automobiles and find deals through CUDL’s inventory of 500,000 vehicles. In tandem with the CUDL partnership, CUcorp is working with GM and Chrysler to more effectively promote“Invest in America” through the extensive network of dealerships nationwide.
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