Life Is A Highway...July 2, 2010

Happy Independence Day!

July 4th is a day of celebration with picnics, parades, and fireworks, recognizing our independence and freedom.

The Association will be closed on Monday, July 5, in observance of the holiday. Highway will resume publication on Tuesday, July 6.

Have a safe and happy summer holiday.

NCUA Releases Guidance On Voluntary Mergers, P&As

The NCUA on Thursday released a letter to all federally-insured credit unions, providing information on how the agency selects merger and purchase & assumption (P&A) partners. The letter also includes information related to other business combination alternatives.

The letter addresses several topics involving mergers and P&As including:

• An explanation of the P&A process and the various types of mergers;
• The criteria used to evaluate mergers and P&As;
• The identification of merger and P&A partners; and
• The selection of an acquirer in the limited circumstances when NCUA is involved in making the choice.

NCUA Letter

Review Disaster Plans & Prepare For Hurricane Season

NCUA has sent a notification to credit unions as a reminder to review disaster preparedness and response plans in preparation for the 2010 hurricane season and for ongoing readiness to respond to other incidents.

The National Hurricane Center (NHC) predicts one of the most active hurricane seasons on record for the six-month season from June through November, 2010. The greater risk of storms brings greater risk of landfall.

NCUA Letter
Resources for Disaster Preparedness & Response

Payrolls Shrink, Unemployment Rate Falls, Unemployed Await Extension Of Benefits

Despite the loss of 125,000 jobs in June, the Labor Department reported this morning that the unemployment rate fell to 9.5%, its lowest level in almost a year. The numbers were worse than the 110,000-job loss economists had predicted in a Reuters survey. With today's numbers, 7.5 million jobs have been lost since the beginning of the recession more than two years ago.
The government laid off 225,000 temporary Census workers, while private employers added 83,000 workers to their payrolls, a modest improvement from May.

The unemployment rate fell as more people who are out of work gave up on their job searches and left the labor force. People who are no longer looking for work aren’t counted as unemployed.

Almost 6.7 million Americans have been out of work longer than six months, with more than half – 4.7 million – jobless for more than a year, according to the U.S. Labor Department, the highest level since the government began tracking numbers in 1948.

The U.S. House of Representatives on Thursday voted 270-153 to extend the deadline to file for federal jobless benefits. The bill would extend the deadline to file for extended unemployment benefits through November, and would retroactively pay out claims to those who saw their benefits expire in May.
The bill moves on to the Senate, which has recessed for a summer break. As a result, more than 2.1 million people are expected to have lost their unemployment benefits by the time legislators reconvene on July 12.

Newsmakers

BVA FCU, in partnership with the Greater Rostraver Chamber and Triple B Farms, will hold a Farmers Market beginning Thursday, July 15, from 3:30 to 6:30 p.m. at the credit union, 608 Rostraver Road, Belle Vernon. The market will be held July 15, 22, 29, and depending on its success, may continue through August, September, and October. Fresh produce and homemade items will be available from Triple B Farms and other local farmers and vendors. Through this effort, the credit union is pleased to support local farmers and vendors, and is encouraging the community to visit the market.

Bernice Dapp, West Branch Valley FCU’s accounting clerk, celebrated her 25th year of service on July 1. The employees surprised her with a gift card, flowers, and a luncheon.

White Rose Credit Union’s VP of Human Resources Brooke Thompson participated in Interview Day, held at Dallastown Area High School on June 10. She was one of 80 interviewers who met with more than 450 sophomores. The event gave the students the opportunity to practice their ability to present themselves successfully to gain employment. Thompson met with seven young men and women. Each interview lasted approximately 15 minutes, followed by 5 or 10 minutes of tips and suggestions on how to better prepare themselves for future interviews. Thompson said, “The whole experience was very rewarding and it was so nice to meet such inspired young people with their eye on the future.”

Friday Tidbits

Fourth Of July Trivia

In July 1776, there was an estimated 2.5 million people living in the newly independent nation. Today, the nation’s estimated population is 309.6 million.

Proudly known as the "First Family of Fireworks," Zambelli is one of the oldest and largest American fireworks companies, and is based in New Castle, PA. It detonates more than 1 million shells during Fourth of July celebrations. The company produces more than 3,500 shows annually.

There’s a 1 in 4 chance that the hot dogs and pork sausages consumed on the Fourth of July originated in Iowa. The Hawkeye State was home to 18.9 million hogs and pigs on March 1, 2010, representing more than one-fourth of the nation’s total. North Carolina (9.1 million) and Minnesota (7.2 million) were the runners-up.

Chances are good that the steaks and burgers on the grill came from Texas, which accounts for one-sixth of the nation’s total production of beef. Nebraska and Kansas rank behind the Lone Star State.

Chicken production is greatest in Georgia, Arkansas, North Carolina, Alabama, Mississippi, and Texas.
North Dakota produces about 34% of the nation’s dry, edible beans, used for baked beans.

Florida, California, Georgia, Washington, and New York account for 66% of the fresh market sweet corn.

Half of the nation’s potatoes are produced in Idaho and Washington state.

Florida leads the nation in watermelon production, at approximately 818 million pounds. Other leading producers of this popular fruit included California, Georgia, and Texas, each with more than 500 million pounds.

Source: U.S. Census Bureau

Other July 4th Happenings

The Statue of Liberty was presented to the United States in Paris in 1884.

In 1895, Katharine Lee Bates published America the Beautiful.
In 1939, Lou Gehrig, stricken with ALS, made his farewell appearance at Yankee Stadium.

National News

Frank again emphasizes interchange exemption

WASHINGTON (7/2/10)--Speaking before the House following the passage of financial regulatory reform legislation on Wednesday, Rep. Barney Frank (D-Mass.) repeated earlier assurances that credit unions and other small institutions would be exempted from the terms of recently added interchange fee legislation.

Language in the interchange amendment would ensure that credit unions with under $10 billion in assets were held exempt from the Fed interchange changes. The interchange fee amendment, which was offered by Sen. Richard Durbin (D-Ill.) and ultimately agreed to by the recently completed regulatory reform conference committee, would allow the Federal Reserve to intervene in the setting of those fees.

In his remarks, Frank said that credit unions and other small issuers would also continue to be permitted to issue their debit cards without any market penalties.

Frank earlier this week expressed similar sentiments in a letter to his colleagues. Following that release, the Credit Union National Association (CUNA) said that Frank's memo and more recent comments serve as excellent notice of the Congress's strong intent to exempt credit unions and community banks from the reaches of the provision that requires the Fed to set interchange fees.

Mica said the memo gives the Fed strong guidance to follow in the event that the provision is enacted and the Fed is called upon to implement it.

The regulatory reform package passed the House 237 to 182 on Wednesday, and it is not known when the Senate will take up the legislation. The Senate on Thursday was essentially closed for business in observance of Sen. Robert Byrd (D-W.Va.), who died earlier this week.

CUNA continues to urge legislators to oppose the bill unless the interchange changes are removed from the final version of the bill.

NCUA files notice for possible U.S. Central claims

ALEXANDRIA, Va. (7/2/10)--The National Credit Union Administration (NCUA) announced Thursday it has filed a "notice of claim" with Travelers Casualty & Surety Co. to "preserve NCUA's right to the full amount of coverage provided under U.S. Central's Directors and Officers Liability policy."

The NCUA announcement noted that there was a June 30 deadline to file the notice of the claim with U.S. Central's liability insurer in order to preserve the agency's right to seek recoveries under the policy. The procedural move does not mean the agency will necessarily pursue action against individuals.
The agency acknowledged the filing is a preliminary step. "NCUA will take the time necessary to complete its investigation and decide at a later date whether or not to initiate civil litigation against any individual directors or officers," the agency release said.

Individual notices, called "demand letters," were sent by the NCUA to 18 former U.S. Central directors and officers. The former board included now-incoming Credit Union National Association (CUNA) President/CEO Bill Cheney (then CEO of the California/Nevada Credit Union Leagues), CUNA Chief Operating Officer-Madison John Franklin, and Missouri Credit Union Association President Roshara Holub.

"I am confident the record will show that, throughout Bill Cheney's service on the board of U.S. Central, as well as throughout the tenure of John Franklin and Rosie Holub, they took their duties very seriously and participated in meetings of the board out of a dedication to the best interests of the corporate credit union's members," noted CUNA President Dan Mica. Cheney and Holub served on the board in their capacity as representatives of the American Association of Credit Union Leagues (AACUL) and Franklin as a representative of CUNA.
The NCUA Inspector General also is required by law to conduct an independent Material Loss Review of the circumstances surrounding the losses at U.S. Central. The review is being done to determine the causes of U.S. Central's losses absorbed by NCUA's Corporate Stabilization Fund; and assess NCUA's supervision of U.S. Central.

A full report will be issued by the Inspector General when the review is complete. U.S. Central was placed under conservatorship on March 23, 2009.

Overdraft statement stuffer offered by CUNA

MADISON, Wis. (7/2/10)--Changes in overdraft protection laws effective Aug. 15 have prompted the Credit Union National Association (CUNA) to offer customizable "opt in" statement inserts.

Credit unions can customize the insert to reflect the credit union's terminology--courtesy pay or overdraft privilege--call to action, logo, phone number and Web address.

Besides the new "opt in" insert, "Opt In For Protection," CUNA is offering stuffers about credit union auto loans--"What Beats 0% Financing?"--and switching to paperless monthly statements--"Going Green? Go Paperless."

Opt In For Protection Custom Statement Insert
Going Green? Go Paperless Custom Statement Insert
What Beats 0% Financing? Custom Statement Insert

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