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CURRENT Newsletter

December 11, 2014

Headline News

Compliance/Regulatory Affairs News

Governmental Affairs News

News From Credit Unions

News About The Competition

Technology News

Headline News

CU Parity Bill Now Ready for President's Signature

The U.S. Senate just passed the Credit Union Share Insurance Fund Parity Act, which would direct the National Credit Union Administration to extend share insurance coverage to trust accounts, such as Interest on Lawyer Trust Accounts (IOLTAS) and other similar accounts, opened and managed by credit union members.
 
The Credit Union National Association, an early and prominent supporter of the IOLTA bill, immediately sent a letter to President Barack Obama urging him to sign the bill into law.
 
The insurance-parity bill is the second CUNA-supported regulatory relief bill to pass recently. Last week, the House voted a resounding 422-0 House vote in favor of The Regulation D Study Act.

[READ MORE]

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League to Host Congressional Reception on March 10

The U.S. House of Representatives' planned recess the week of CUNA's Governmental Affairs Conference is forcing your League to revamp our plans. As you know, we have traditionally hosted our Congressional Luncheon during the week of the GAC. With the planned recess, we've decided instead to invite lawmakers to a March 10 reception at the national Credit Union House.

We'll invite Sens. Mark Warner and Tim Kaine and our congressional representatives. We hope the NoVA-based House contingent will attend, including Reps.-elect Barbara Comstock and Don Beyer, as well as credit union champion Gerry Connolly, along with legislative aides for those not in Washington that week.

We plan to hold the reception from 5:30 p.m. until 8 p.m. Invitations to the event will go to all GAC registrants from Virginia, but there will be room for those not attending the GAC. If you don't plan to register for the GAC, but would like to attend to the League's March 10 reception, drop an email to your League's Cathy Baldwin at cbaldwin@vacul.org.

CUNA: Senator's Tax Report Just 'Wrong, Uninformed' on CUs

Retiring Sen. Tom Coburn (R-Okla.) released a report Tuesday--one he says "decodes" the U.S. tax code. In it he calls for the elimination of the credit union tax status, which applies to credit unions because of their cooperative, not-for-profit operating model. 
  
Protecting the credit union tax status is a top priority of the Credit Union National Association and your League.

"This is not the last time a lawmaker will take aim at credit unions' tax status," said League President Rick Pillow. "But Sen. Coburn's report should serve to remind us of the need for vigilance in Washington and should motivate us to continue hammering home our message on the benefits of our member-owned, not-for-profit cooperative structure."

 [READ MORE]

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VACUPAC Deadline Is Dec. 17!

Please forward your Virginia Credit Union Political Action Committee (VACUPAC) contributions to us by Dec. 17 in order for them to be counted toward our 2014 goal. We are running ahead of last year’s total which is great. But we need  another $17,000 to match last year’s annual total of $125,000. Will we make it? Only with your help!

Send contributions to your League c/o Cathy Baldwin, PO Box 11469, Lynchburg 24506.

And a big "thank you" to everyone who has or will contribute to VACUPAC this year!

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Let’s Tailor the CU Day Packets To Your Lawmaker!

We want to make the packet of information we distribute to lawmakers during our Credit Union Day at the General Assembly events as relevant and compelling as possible. We need your help to do that. 

We’re asking credit unions to complete the survey found at this link: [COMPLETE THE SURVEY HERE]

We’ll compile the information for the packets destined for your lawmakers!

Thank you for your help on this project. We know it’s a lot of work at a busy time of year, but it’s the information that will make the biggest impact on the lawmakers from your districts.

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Compliance/Regulatory Affairs News

McWatters Supports Supplemental Capital Provision in RBC Proposal

National Credit Union Administration board member J. Mark McWatters supports including supplemental capital in the agency's risk-based capital (RBC) proposal set to be issued for a 90-day comment period at the Jan. 15 NCUA board meeting. 
  
McWatters confirmed that to the Credit Union National Association Wednesday.  He also raised this issue with members of the New Jersey Credit Union League Tuesday at the NCUA's headquarters. The NCUA board member said he would support a provision within the RBC proposal that would allow credit unions to access more sources of capital. 

CUNA has urged the NCUA to allow any federally insured credit union to use supplemental capital to meet RBC requirements, which could be permitted without statutory changes.

[READ MORE]

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Summary of NCUA Board Meeting Available

At today’s NCUA Board meeting (Dec. 11), Chairman Matz announced the development of two new working groups: one to explore issues associated with NCUA’s field of membership rules and the other to address supplemental capital.

CUNA and your League view today’s announcement as a significant and welcome development in these two key areas, and CUNA is ready and willing to help however we can to move regulatory improvements forward. We have been informed that CUNA representatives will be involved with the working groups. We will keep you posted on the work of these two groups.

[READ MORE]

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Governmental Affairs News

Senate Banking Panel Tees Up Future Action on Cybersecurity

Senate lawmakers pressed government officials about whether they’re doing enough to protect the financial system from cyberattacks on Wednesday, warning that more must be done next year to help financial institutions defend themselves.

The issue has gained considerable traction over the past year since the data breach at Target last fall and subsequent attacks at a host of retailers and banks.

Congress failed to pass legislation to strengthen information sharing on cyberthreats across different industries and government this year, but the issue is likely to remain on the legislative agenda even after Republicans take control of the Senate in January.

[READ MORE]

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News From Credit Unions

Justice FCU Stands Ready to Offer Special Assistance for Members

Justice Federal Credit Union announced that it is ready to offer special assistance in the form of unsecured, low interest rate loans and deferred payments to all Members of the Department of Justice and the Department of Homeland Security in the event of a Federal government shutdown or furlough.

Members confronted with a shutdown or furlough may apply for a special unsecured loan up to $10,000 at an annual rate of 0% for the first 60 days. After that time, the rate will convert to 4.90% for a term of 24-months.The loan amount is based on the Member’s net pay deposit, with direct deposit required. In addition, Members may defer their first loan payment for up to 60 days.

[READ MORE]

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Langley Federal Credit Union Announces New Foundation to Focus Charitable Giving on Local Family Issues

Langley Federal Credit Union has formed the Langley for Families Foundation to establish focused charitable giving on family issues in the Greater Hampton Roads area. The Foundation will operate outside of the credit union’s existing charitable giving structure and will complement the organization’s continued charitable giving efforts.

The Foundation will concentrate on supporting organizations that serve the needs of families. Specific ‘areas of focus’ will include healthcare, housing and human services, safety and security, and more. The Foundation will be self-funded and run solely by a volunteer Board of Directors as a 501c(3) thereby maximizing dollars distributed in the community.

[READ MORE]

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News About The Competition

With New Capital Rule, Fed Nudges Big Banks to Shrink

The Federal Reserve, fearing complacency six years after the financial crisis, moved on Tuesday to preserve the efforts that have strengthened large banks.

The Fed proposed a rule that would increase capital requirements for the nation’s eight largest banks, including JPMorgan Chase and Goldman Sachs. By increasing the requirements, the Fed aims to make large banks more resilient to shocks.

The Fed’s push to increase capital may also reduce the chances that a large bank’s problems may weigh on the wider economy.

Janet L. Yellen, the Fed’s chairwoman, said on Tuesday that the proposed rule might persuade banks to shrink. The rule, she said in a statement, “would encourage such firms to reduce their systemic footprint and lessen the threat that their failure could pose to overall financial stability.”

Most of the affected banks have raised billions of dollars of new capital since the crisis, so they will most likely not find the proposed rule onerous to comply with.

[READ MORE]

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Technology News

15 Mind-Blowing Stats About Mobile Payments

Mobile payments are far from mainstream, according to recent stats. While consumers typically gravitate toward convenience--especially so during the busy holiday-shopping season--security concerns are still a major issue, studies find. 

That said, adoption of mobile payments is on the rise, especially within mobile-wallet products from well-known, trusted companies, such as PayPal, Apple, and Google. Read on for the state of mobile payments, and what to expect in the next few years. 

[READ MORE]

[RELATED: FBI Warns of Mobile Banking Risks]

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