e-Weekly
February 18, 2009
Webcast: NCUA assesses impact of corporate plan
During a recent 90-minute webcast, National Credit Union Administration (NCUA) Chairman Michael Fryzel underscored that the agency continues to examine alternate approaches to funding the corporate stabilization program the agency announced in January. In introductory remarks, Fryzel said the agency is working with stakeholders to determine if there are other approaches that are "responsible and realistic" and meet statutory requirements.
The program provided $1 billion in capital to U.S. Central Federal Credit Union and a guarantee for all corporate deposits through February; the guarantee will be provided through December 2010 for corporates that sign an agreement with NCUA. NCUA said it would fund it through an insurance premium to federally insured credit unions and a partial replenishment of their 1% National Credit Union Share Insurance Fund (NCUSIF) deposit.
The NCUA's formal presentation focused largely on accounting issues and its insurance fund reserving methodology, with most of the session reserved for questions. Not surprisingly, the regulator's session on one of the credit union system's hottest current topics drew broad interest. At the end, NCUA Executive Director Dave Marquis noted the agency had received 1,200 questions from 3,800 webcast listeners.
Marquis said that after considering the available options, the NCUA elected the stabilization program that it believed would be least expensive for credit unions while offering the most flexibility for a future dividend. The NCUA, he said, evaluated the impact of the corporate stabilization plan on the net worth of the credit union system. With an average net worth of 11.1%, the NCUA estimates that less than 175 credit unions will be "significantly impacted" by the impairment to the NCUSIF.
The Credit Union National Association (CUNA) continues to urge the NCUA to consider alternate funding options. CUNA has maintained that there is no "silver bullet" approach—no single answer—to the challenge of providing adequate money for the agency's corporate liquidity program. CUNA has warned that the current plan to assess a 2009 share insurance premium on credit unions could put too much pressure on a system that is already coping with tough economic conditions.
Marketer’s Network March 12
This year’s first Marketer’s Network meeting is going to address one aspect of the biggest issue facing the credit union movement today, the National Credit Union Administration’s (NCUA) action to inject capital into U.S. Central Federal Credit Union and to guarantee all deposits in the nation’s corporates. This situation will have an enormous and wide impact on credit unions. The financial, legal, and marketplace implications are vast.
One of the most immediate tasks that marketers must be prepared to deal with is how to best communicate with their members and the public through the course of this situation. Marketers must be prepared to analyze information, interpret opinion, and communicate effectively. Also, they must be ready to serve as the CEO’s and senior management’s primary resource when dealing with the media. All of this work requires a careful and thoughtful plan; one which incorporates a definition of responsibilities, procedures, and timeframes.
This current swirl of events and messages necessitates prompt, positive action. Therefore, this meeting of the Marketer’s Network will be a workshop designed to give each attendee the template necessary to develop a communications plan that will help to work efficiently and expertly, able to be launched in an instant when a news story takes on a life of its own. The goal will be to develop a template that is a multi-dimensional tool that the credit union can employ to address any fast moving public relations event.
Become part of the solution on Thursday, March 12, when marketers will roll their sleeves up and get to work on this important project. As usual, the meeting will start at 9:30 a.m. with registration and coffee at 9:00 a.m. The workshop will conclude with lunch at 12:00 p.m. The cost is $45.
To join the Marketer’s Network, please contact Kelly Macjewski at the League office kmacjewski@cucenter.org or 1-800-842-1242.
New League Business Partner: Verafin helps credit unions with BSA compliance, fraud detection
The New Hampshire Credit Union League recently announced a new business partnership with Verafin, one of North America’s leading BSA/AML compliance and fraud detection software providers. The trend to automate Bank Secrecy Act (BSA) compliance and fraud detection is clearly growing in the credit union industry. With a large credit union customer base that spans a broad range of asset sizes and operates on more than 20 core processing systems, Verafin is endorsed by 42 state credit union leagues nationwide. Also, it is the Credit Union National Association’s exclusive strategic alliance partner for BSA/AML compliance, FACTA red flags, and fraud detection.
Verafin’s solution allows credit unions to achieve operational efficiencies in their BSA/AML compliance processes; reduce fraud losses; and helps ensure compliance with BSA regulations. Its comprehensive functionality includes member risk scoring; suspicious activity detection; automated BSA reporting; electronic report submission; watch list and 314(a) checking; fraud detection; and case management. Many of its AML features directly mirror the requirements as specifically outlined in the FFIEC BSA/AML Examination Manual.
Download high level information about Verafin’s solution, which includes some feedback from credit union peers. If you are interested in learning more about Verafin, please contact Dean Martino, League director, business development, to set up an online demo or contact Verafin directly at 877-368-9986 or info@verafin.com with any questions. | 
