November 20, 2013
Wednesday Edition
NCUA to receive $1.4 billion in settlement case

On Tuesday, a number of government agencies, including the NCUA,were named in a $13 billion settlement with JP Morgan Chase. The NCUA will receive $1.4 billion that will resolve four lawsuits filed by the agency as liquidating agent against JP Morgan Chase, Bear Sterns, and Washington Mutual. The lawsuits were filed as the result of corporate credit unions purchasing faulty securities.

“Today's (Tuesday's) announcement by the Justice Department is extraordinary and an incredible win for credit unions,” NCUA Board Chairman Debbie Matz said. “In fact, we might have been considered audacious or even out of touch with reality had we suggested five years ago that such a settlement was possible. This resolution, combined with the $335 million already recovered, will enable NCUA to greatly reduce the assessments that all
credit unions have to pay.”

"The League is pleased with the NCUA's settlement," said LSCU & Affiliates President/CEO Patrick La Pine. "The NCUA has been very diligent in pursuing accountability from the firms who sold the faulty securities. I would urge the agency to plow the settlement back into the Corporate Stabilization Fund, either directly or in the form of repayment of Treasury borrowings."  

The NCUA is using net proceeds from the settlement to reduce the total Temporary Corporate Credit Union Stabilization Fund assessments charged to federally insured credit unions to pay for the losses caused by the failure of the five corporate credit unions. The NCUA has litigation pending against several other financial institutions, including Barclays Capital, Credit Suisse, Goldman Sachs, RBS Securities, UBS Securities, and Morgan Stanley, alleging the banks sold faulty mortgage-backed securities to five corporate credit unions.

You can read the full news release on the NCUA's website

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First piece of Senate tax reform released

The long awaited Senate tax reform language is starting to take shape. On Tuesday, Sen. Max Baucus (D-MT)  released the first piece of tax reform in regards to international taxes. As expected credit unions are clear for the time being.

Credit union concerns could become more relevant as tax reform moves to the domestic arena. No timetable has been set to when the next pieces of language of tax reform will be released.

To read the Washington Post article click here

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This week in Alabama politics: candidacy announcements for HD 46 and SD29

Three announce intentions to run for HD 46
Within weeks of State Rep. Paul DeMarco (R-Homewood) announcing his plans to run for Congress, three people have announced their intentions to run for his now open house district. The first, and probably most familiar name in rac,e is former State Sen. Steve French. French lost the Republican Primary for his Senate seat three years ago to Sen. Slade Blackwell (R-Mountain Brook). French is currently a senior vice president of business development at Sterne Agee. Also in the race is former Mountain Brook Chamber of Commerce president David Faulkner. Faulkner is a practicing attorney and has run for political office before, but has never served in an elected position. Finally, the third candidate to announce is Homewood attorney Justin Barkley. Like Faulkner, Barkley has never served in public office and is likely the least known of the candidates to announce so far.

McClendon eyes SD 29
Current Houston County Commissioner Melinda McClendon has officially announced her candidacy for Senate District 29, the seat currently held by State Sen. Harri Anne Smith (I – Dothan). McClendon’s campaign has primarily been focused on attacking the Affordable Care Act. Smith, the only independent in the Alabama Senate, has been a target of Republicans for the past several elections. While Smith began her political career as a Republican, there was a falling out between her and the party following a failed Congressional bid. So far, Republicans have been unable to defeat Smith and it is too early to tell whether McClendon could be the person to finally succeed.

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LEVERAGE's National Cooperative Purchasing program grows stronger

LEVERAGE and Office Depot’s National Cooperative Purchasing program just got stronger! Office Depot’s acquisition of Office Max will give credit unions more efficient choices when it comes to purchasing office supplies.

The most recent developments will not change how the program operates. Credit unions will still be able to purchase office supplies on-line via the Office Depot BSD website or at retail locations and will continue to receive National Cooperative Purchasing program pricing, regardless of the method of purchase.

Office Depot has made improvements to the core pricing list by refining the deeply discounted product matrix and offering maximum discounts on the products credit unions use the most. Now, credit unions of any size can customize items on their own core list to ensure they receive the deepest discount on specific products.

Announcements will be coming soon with more details of the Office Depot-Office Max merger. In the meantime, be assured that the program--offered to credit unions for more than 10 years--will continue to provide the same great savings and convenience when it comes to purchasing office supplies.

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In This Issue
Wednesday Edition
NCUA to receive $1.4 billion in settlement case
First piece of Senate tax reform released
This week in Alabama politics: candidacy announcements for HD 46 and SD29
LEVERAGE's National Cooperative Purchasing program grows stronger
LSCU & Affiliates Media

Happy National Philanthropy Day from NCUF
A special message from Gig Hyland, executive director of the National Credit Union Foundation, on National Philanthropy Day 2013.

Part one: NCUA Consumer Protection Update
In part one of this three-part installment,
Office of Consumer Protection Director Gail Laster covers the Remittance Transfer Rule, Escrow Requirements for Higher Priced Mortgages, and High Cost Mortgage Homeownership Counseling Rule.

Upcoming League Events
Nov. 21 1099 Reporting/Vendors/Foreclosures
Nov. 22 5 Definitions of a Qualified Mortgage
Nov. 26 Compliance Updates/Nonresident Accts
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