Archive July 2009

What should the credit union approach be to the economic downturn? I believe it is very simple: give us the tools and we will continue to lead America’s economic recovery. The tool involves only a three-word change in the Federal Credit Union Act’s definition of net worth.

By striking the current definition of “retained earnings balance” and replacing this with the word “capital” or “member capital” as determined under generally accepted accounting principles, the credit union model is complete.

Why focus on member capital?Read More

When the White House announced its intention to nominate Deborah Matz to the NCUA board and appoint her Chairman, a whole new world of possibilities was created. These include actions responding to the current crisis as well as whatever might accompany a change of leadership at NCUA.
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The incoming NCUA
Chair faces many challenges. Restoring financial integrity to the call
report process is an immediate one. In a dramatically increased
uncertain world, the new Chair can be sure of two things: first, losses
and therefore asset values, will be hard to estimate for quite some
time; and second, capturing these elusive values thru the call report
process will continue to be problematic.

New approaches and better action steps to handle both valuation andRead More

Deborah Matz testified before the Senate Banking, Housing and Urban Affairs Committee regarding her nomination to NCUA Chair. Here are excerpts from her submitted and oral testimony on what she considers some key issues the industry is facing.Read More

The news cycle is dominated by the multiple efforts in Washington DC to tackle the critical issue of health care. At present, health care costs represent 16% of our nation’s economy. As the President, different factions within Congress, and private companies continue to wrestle with an ever-growing list of solutions, one lawmaker continues to push for the alternative of a cooperative model.
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On May 22, 2009, President Obama signed the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 into law. This law developed as a Credit Cardholders’ Bill of Rights, was intended to protect consumers from unsavory practices in credit card programs. This act protects consumers from confusing or misleading terminology, retroactive interest rate increases on existing card balances, prepayment penalties, greater advance notice of changes in credit card terms, and fewer penalties and late charges.
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