LSCU eSignal Weekly
LSCU eNews Weekly June 14, 2010
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LSCU eNews Weekly
In This Issue
League Headlines
Joint conference underway to reconcile the House and Senate financial overhaul bills
Independent group finds areas of concern on interchange amendment
Rep. Wasserman Schultz distributes conferee letter on interchange
Geithner supports MBL hike
Follow the 1st LSCU AC&E on the LSCU website!
Yolles named Region III Temporary Director
LSCU Compensation Survey deadline extended to June 21
Signal, the LSCU's quarterly magazine is online
Harrell named to CUSC board
Governmental Affairs News
Fundraiser held for Dennis Ross
CUNA News
Free economic webinar from CUNA June 29
LSCU Education News
AC&E, conferences, webinars - check out what's going on at LSCU education update
Compliance Corner
League InfoSight has two security channel updates
Compliance calendar and training schedule
LEVERAGE News
Melissa Hamner, auditor for CU-ACE, earns CUCE designation
News from You
Army Aviation Center Federal Credit Union donates $20,000 to Ft. Rucker's Emergency Relief Fund
Family Security Credit Union is "Rocking for a Cure"
Employment
Credit union employment opportunities posted online
Calendar
Schedule of upcoming educational events
In This Issue
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League Headlines

Joint conference underway to reconcile the House and Senate financial overhaul bills

Sixteen members of the House were chosen this past Wednesday to take part in the House/Senate conference to reconcile the financial overhaul bill. The House and Senate each passed a version of the bill that has differences, including the interchange amendment. Rep. Spencer Bachus (R-AL), ranking Republican on the House Financial Services Committee, leads the group of six Republicans. Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, leads a group of 10 Democrat conferees. The conference held opening statements Thursday, with deliberations on aspects of the two bills beginning this week. The list of Representatives is below:

Democrats

Barney Frank, Chairman
Paul Kanjorski (D-PA)
Maxine Waters (D-CA)
Luis Gutierrez (D-IL)
Mel Watt (D-NC)
Carolyn Maloney (D-NY)
Gregory Meeks (D-NY)
Dennis Moore (D-KS)
Mary Jo Kilroy (D-OH)
Gary Peters (D-MI)

Republicans

Spencer Bachus
Judy Biggert (R-IL)
Shelley Moore Capito (R-WV)
Scott Garrett (NJ)
Jeb Hensarling (R-TX)
Ed Royce (R-CA) [ Return to Top ]

Independent group finds areas of concern on interchange amendment

The House and Senate conference committee met Thursday to begin discussions to reconcile the differences between the two financial reform bills. While the conference was making opening statements, an independent group released a closer look at the interchange amendment in the Senate bill. The Mercator Advisory Group found five areas of concerns and five false assumptions with the amendment.

The five areas of concern:

  1. The cost of financial services will rise for consumers across a wide range of economic levels.
  2. The largest issuers will have less of an incentive to promote debit related products and services and will either shift activities toward credit-based services or will cover their costs differently by fee-based approaches to debit accounts.
  3. The smaller financial institutions, though exempt from portions of the amendment, are unlikely to escape undamaged. This is evident as wide government mandated pricing discrepancies between large players whose fees are price-controlled and smaller exempt issuers would be difficult to sustain from a network perspective. This problem is recognized in major public statements by smaller issuers expressing concern over the loss of their customers to those institutions mandated to charge artificially low rates. Examples of the concerns of smaller institutions include the following press releases: “Consumer choice imperiled by interchange amendment: CUNA/ICBA” (5/28/2010), and “NAFCU to CUs: Keep up interchange fight “ (5/28/2010).
  4. State and federal agencies that have recently migrated public benefit payments from paper checks to prepaid card programs are growing increasingly alarmed at the impact this legislation would have on these programs and their ability to continue supporting them without additional funding sources.
  5. Merchant benefits may not be as robust as anticipated. While direct debit interchange costs may be lower (depending on the current rates which vary widely), merchants may see a shift in consumer usage toward credit products, a decline in average ticket size as fewer cardholders opt for debit in an environment with lower promotional activities, or more transactions.

The five areas of falsehoods:

  1. The amendment falsely assumes that debit cards and checks are a functionally equivalent, or similar, payment scheme which implies that a common cost structure exists under which these forms of payment are processed.
  2. Proponents of the amendment incorrectly assert that small financial institutions are protected from harm.
  3. The amendment also appears to assume, contrary to prevailing evidence, that regulation of payment schemes operating in the U.S. economy will improve market conditions and benefit consumers.
  4. Proponents of the amendment incorrectly assume that imposing price controls would not have broad, sweeping unintended consequences for key stakeholders.
  5. The amendment incorrectly assumes that all debit card value chains are the same and so failed to identify that prepaid cards, which run under the debit scheme, will cost more for both government and low/moderate income (LMI) citizens.

Read the full report by clicking here or going to the LSCU Political Action page that has a full array of interchange resources.
 

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Rep. Wasserman Schultz distributes conferee letter on interchange

Rep. Debbie Wasserman Schultz

At the same time credit unions were in Washington D.C. to let lawmakers know of the detrimental effects of an interchange amendment, Rep. Debbie Wasserman Schultz (D-FL) and Rep. Kenny Marchant (R-TX) were asking their fellow members of Congress to sign a letter to members of the House and Senate conference on regulatory reform. The letter let conferees know of the "grave concern" some lawmakers have about the interchange amendment.

The letter was just being circulated on Capitol Hill when the LSCU contingent was in Washington last week. The contingent asked its delegation to consider signing the letter that will be given to conferees before the bill is discussed. Rep. Barney Frank (D-MA) continues to look at a quick turnaround on regulatory reform by asking for the legislation to be discussed June 15 and done by June 30.

To date more than 85 members of Congress have signed the letter, including some from LSCU districts:

Rep. Bill Posey (R-FL)
Rep. Jeff Miller (R-FL)
Rep. Alcee Hastings (D-FL)
Rep. Debbie Wasserman-Schultz (D-FL)
Rep. Suzanne Kosmas (D-FL)
Rep. Ileana Ros-Lehtinen (R-FL)

To read the conferee letter, go to the LSCU Regulatory Reform resource area by clicking here . [ Return to Top ]

Geithner supports MBL hike

Treasury Secretary Timothy Geithner

Treasury Secretary Timothy Geithner wrote a letter to House Financial Services Committee Chairman Barney Frank (D-MA) in which he indicated the Obama administration put its support behind raising the cap on member business loans (MBL) to as much as 27.5 percent of assets. This new support also raises the cap another 2.5 percent higher than credit unions had been asking for.

Geithner said the administration favors an approach that would maintain the current limit of 12.25 percent of assets for most credit unions but increase the cap for those that meet certain higher standards. He said his department "could support proposals to increase credit union member business lending provided safety and soundness issues are addressed."

These higher standards would include credit unions that: have been at 80 percent or more of its MBL limit for four consecutive quarters, are well-capitalized (above seven percent), have at least five years of experience of doing member business lending, have "strong policies and experience" in managing member business loans, and satisfy other standards set by the NCUA.

So far the 27.5 percent cap has not been inserted into any legislation.  
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Follow the 1st LSCU AC&E on the LSCU website!

The LSCU is planning to have quality coverage of the 1st AC&E on is website and through Twitter. The LSCU will "tweet" during the conference and also send photos through Twitter as the conference is happening. On a daily basis during the AC&E, check out www.lscu.coop for the latest news, photos and stories from the convention.  The LSCU will also offer a wrap-up video the following week on the AC&E with interviews with the key speakers and credit union folks. If you can't make it to Orlando, this will make you feel like you are there. 

To follow the LSCU on Twitter, click here or sign up for an account and click back to follow the 1st AC&E from Orlando June 16 - 18.  [ Return to Top ]

Yolles named Region III Temporary Director

Herb Yolles

The National Credit Union Administration (NCUA) announced that Herb Yolles has been selected to serve as temporary Regional Director of Region III through the remainder of 2010.

Yolles joined NCUA in 1978. His NCUA career has featured a variety of roles ranging from Chief Financial Officer, Deputy Director of Examination and Insurance, President of the Central Liquidity Facility, and Inspector General. Most recently he was Associate Regional Director of Operations in Region II.  [ Return to Top ]

LSCU Compensation Survey deadline extended to June 21

Every credit union's report is important to the success of the LSCU Compensation Survey. More credit unions are needed for an accurate portrayal of credit union compensation and benefits in Alabama and Florida.The new deadline for submission of surveys is June 21.

The online survey, conducted by HR Value Group, should take about 30 to 45 minutes to complete depending on the size of your credit union. To access the survey online, click here or cut and paste the following link into your browser: https://vovici.com/wsb.dll/s/1d74g44de7. Click here to download a PDF of the survey to work on at your convenience before entering the data into the online survey.

Every credit union that completes the survey will receive a complimentary PDF copy of the finished LSCU 2010 Compensation and Benefits Report. 

The detailed report summarizing results will be available in September and will outline salaries paid to management and non-management positions, analyze the salaries separately by asset size and chapter, and summarize responses to the benefits questions.

No one outside of HR Value Group will see any individual responses; all information is kept confidential.  Credit unions from both states use this data as one source to help determine how to structure salary and benefits packets.

If you have any questions or problems accessing the survey, contact LSCU HR Manager Liz Aperauch at 866.231.0545, ext. 1142.  [ Return to Top ]

Signal, the LSCU's quarterly magazine is online

The LSCU's Signal magazine, is full of timely, thought-provoking articles. This issue includes:

  • feature article on signs of an economic recovery
  • profiles of CEO of floridacentral Credit Union Laida Garcia, and legislators Bill Posey and Marcel Black
  • advocacy and regulatory information, including how to get involved in PAC fundraising
  • a brand campaign for Alabama and Florida credit unions

It is AVAILABLE NOW online. Go to the LSCU website, click on Communications then Press Room . The printed copy will be mailed out later this week. Copies will also be available at the AC&E.

  [ Return to Top ]

Harrell named to CUSC board

The Credit Union Service Centers (CUSC), Inc. announced that new Guardian Credit Union CEO Heath Harrell has been appointed to its board. Harrell fills the unexpired term of former Guardian CEO Landel Casey. At the CUSC board meeting last week in Birmingham, Casey resigned his position with the board. Casey announced earlier this year that he is retiring from Guardian at the end of the month. Casey recommended that Harrell take his position on the board. He will serve until the term expires in April 2012. [ Return to Top ]

Governmental Affairs News
Fundraiser held for Dennis Ross

A credit union fundraiser for Dennis Ross, who is running for Congress from Florida's 12th District, was well received with more than 20 people present. Total contributions were more than $2,500. Ross had an opportunity to visit with a group of seven credit union CEOs.

Credit union CEOs who attended a fundraiser for Dennis Ross, fifth from left.

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CUNA News
Free economic webinar from CUNA June 29

The CUNA is offering a free webinar June 29 on the state of the economy and its impact on credit unions. CUNA is also offering several other economic-related events, including a conference for credit unions.

The webinar, "Economy & Its Impact on Credit Unions," will be offered from 2 pm to 3 pm CT. Credit unions will receive an update on current events, issues, and statistics to help plan for the future. Participants also can comment in an open forum on local conditions and how they're affecting the organization. Feedback from credit unions will help shape the CUNA Economics and Investments Conference in August.

The Economics and Investments Conference will be Aug. 8-11 in Boston. Attendees will learn key factors shaping the U.S. economy, obtain practical tools for managing credit union finances, gain investment strategies to stay competitive, develop asset-liability management techniques, and understand regulatory issues affecting credit unions.

CUNA also is offering the Pressing Economic Issues Series, featuring Bill Hampel, CUNA senior vice president of research and policy analysis and chief economist; Mike Schenk, CUNA vice president of economics and statistics; and Steve Rick, CUNA senior economist. The series has 12 sessions in a 30-minute update during the first week of each month. Credit unions can purchase one subscription to attend all sessions or purchase individual recordings of the sessions.

Take advantage of the free webinar and get additional information at the Economics and Investments Conference, or by purchasing the Pressing Economic Issues Series.

For more information, contact Kevin Smith at ksmith@cuna.com. [ Return to Top ]

LSCU Education News
AC&E, conferences, webinars - check out what's going on at LSCU education update

The AC&E is going on this week.  The LSCU will miss you this week if you’re not with us in Orlando, but there will be a recap of the convention on the website and a video wrap up, as well.

Here are a few upcoming conferences and webinar opportunities for credit unions:

Date: June 29, 2010
Time: 8:30 a.m. - 4:00 p.m. EST

Price: $229 per attendee
City: Ft. Lauderdale (Plantation)
Location: Renaissance Ft. Lauderdale
Contact: Becki Payne
Phone: 866-231-0545 x2129
Email: becki.payne@lscu.coop

Agenda:
8:30 - 9:00 a.m. EST - Registration / Continental Breakfast

9:00 a.m. - 4:00 p.m. EST - General Session
12:00 - 1:00 p.m. EST - Group Luncheon

Speakers:
National Hurricane Center Miami Representative
Ken Schroeder, CBCP, VP Business Continuity, Southeast Corporate
Bill Berg, VP Regulatory Affairs, League of Southeastern Credit Unions

Date: July 13, 2010
Time: 9:30 a.m. - 5:00 p.m. EST

Price: $189 per attendee
City: Mobile, Alabama
Location: University of South Alabama - Humanities Building
Contact: Becki Payne
Phone: 205-437-2129
Email: becki.payne@lscu.coop

Agenda:
8:30 - 9:00 a.m. CST Registration/ Continental Breakfast
9:00 a.m. – 12:00 p.m. CST Program
12:00 - 1 p.m. CST Group Luncheon
1 - 4 p.m. CST Program

Speakers:
National Hurricane Center Miami Representative
Ken Schroeder, CBCP, VP Business Continuity, Southeast Corporate
Bill Berg, VP Regulatory Affairs, League of Southeastern Credit Unions

Overview of the conferences: recent natural disasters, accidents, and attacks have directly disrupted business operations and shown that an organization’s resilience to a disaster and ability to resume business is directly related to it’s preparedness to respond to unforeseen events. Having a definitive response plan is essential to remain viable, especially in today’s rough economic climate.

 LSCU Supervisory Committee Conference

August 1-4, 2010
Grand Hotel Marriott Resort, Point Clear, AL

Whether you are a new Supervisory Committee or Board Member; or you are a ‘seasoned’ volunteer; attendance at this event will most definitely enrich your contributions to your credit union.  We’ll have a full agenda of the latest information and updates regarding credit union auditing, compliance, and fraud.   With a wide variety of speakers and topics, you’ll better your knowledge to help keep your credit union secure and strong.  Although designed with Supervisory Committee Members and Board Members in mind, this conference is also a perfect fit for credit union mangers and compliance officers. If you are a CPA- Continuing Education Credits are also applicable. 

We are in the process now of finalizing all topics and speakers, but the agenda, location, and pricing are all detailed online for your planning purposes.  Visit:  insert link here

You may register for the conference and make your hotel accommodations NOW. Check back often for more details or contact Brandy Norvell, LSCU Event Coordinator at brandy.norvell@lscu.coop. We look forward to having you with us!

Webinars on tap for the remainder of the month. Can’t seem to get out of the office for training? Let us come to you. We have several scheduled webinars in June:

[ Return to Top ]

Compliance Corner
League InfoSight has two security channel updates

Security of its members’ records is the responsibility of each credit union. Part 748 of the NCUA Rules and Regulations requires each federally insured credit union to develop a comprehensive written security program (including administrative, technical, and physical safeguards appropriate to their size, complexity, and the nature and scope of their operations) within 90 days of the date it is insured by the National Credit Union Share Insurance Fund.

InfoSight keeps you up-to-date on safeguarding against security risks inherent in new technologies. The Security channel was recently updated with two new topics: copier security and Facebook security. Review these topics today, and become familiar with the security risks—and be armed to take steps to prevent a security breach.

League InfoSight additionally has information about the new Federal Financial Institutions Examination Council (FFIEC) updated Retail Payment Systems IT Examination Handbook published in February. 

The updated handbook includes revised examination procedures that will be used by state and/or federal examiners to review institutions. A major component of the revised procedures is a new section (Section N) that focuses specifically on managing remote deposit capture risks.

View the League InfoSight newsletter by clicking here. It is a password-protected area. Member credit unions that do not have a password, may click here to sign up for one. An active email account and a password are required. To log in to InfoSight, enter your email and password in the InfoSight login block (see graphic below) located in the upper right of any of the LSCU web pages.


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Compliance calendar and training schedule

Calendar

June 18
ACH Risk Management and Assessment Rule - Effective Date

ACH Direct Access Registration Rule - Effective Date

June 30
PCI DSS - All WEP Implementations discontinued

July 1
NCUA Regulation Part 706 - Unfair or Deceptive Credit Card Practices - Effective Date

Regulation Z - Open-End Credit Rule - Effective Date

Regulation E - Overdraft Protection Rule - Effective Date

FACTA Section 312 (Accuracy and Integrity) Effective Date

Training

June 16
NCUA Requirements & Guidance - webinar
2:00–4:00 p.m. CT

June 23 & 30
Deposit Account Regulations - webinar
2:00–4:00 p.m. CT

June 24
Pressing Credit Union Compliance Issues – audio conference
1:00–2:30 p.m. CT [ Return to Top ] [ Return to Top ]

LEVERAGE News
Melissa Hamner, auditor for CU-ACE, earns CUCE designation

Melissa Hamner, auditor for CU-ACE, is a new Credit Union Compliance Expert (CUCE). CUNA’s Regulatory Training & Certification Program is the credit union movement’s premier training and certification program. To earn the CUCE certificate and designation a student is required to pass a proctored exam for each of the first five modules in this six module series offered through RegTraC.

Hamner celebrated her one-year service anniversary with CU-ACE on June 4, 2010. She works primarily with credit unions in central Alabama. [ Return to Top ]

News from You
Army Aviation Center Federal Credit Union donates $20,000 to Ft. Rucker's Emergency Relief Fund

Army Aviation Center Federal Credit Union (AACFCU) presented a donation of $20,000 to Ft. Rucker’s Army Emergency Relief (AER) Fund at the 2010 AER Campaign Closing Ceremony on May 24. Funds were primarily raised during AACFCU’s Annual Golf Tournament that is held each year at Silver Wings Golf Course at Ft. Rucker.

“This is such a vital organization to our community, so we’re proud to be able to support our military in this way,” said AACFCU’s Ken Long.

Army Emergency Relief provides emergency financial assistance to soldiers and their families in times of need. Loans, grants, or scholarships may be used for things such as groceries, car repair, bills, or even medical expenses that other programs will not cover.

AACFCU’s Ken Long presents a check for $20,000 to Col. Yvette Kelley, Ft. Rucker AER Campaign Chairman.

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Family Security Credit Union is "Rocking for a Cure"

Family Security Credit Union, based in Decatur, Alabama, reports another successful year of support for the America Cancer Society. Through various fundraising efforts such as a horse trail ride, cookbook sales, raffles, and employee and member contributions, Family Security raised $65,788.

Family Security participates in many “Relay for Life” events throughout the state of Alabama. This year’s fundraising campaign culminated at the “Relay for Life” event in Decatur where Family Security could be found “Rocking for a Cure.” Family Security employees, friends, and family members helped create a Hard Rock Café themed booth that inspired donations and support for the cause.

Family Security Credit Unions raised money by "Rocking for a Cure"

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Employment
Credit union employment opportunities posted online
Click here to view credit union-specific job opportunities in Florida and Alabama. [ Return to Top ]

Calendar
Schedule of upcoming educational events
[ Return to Top ]

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