For affected institutions, Hurricane Sandy ushers in old fashioned banking.

November 5, 2012 at 7:31 am Leave a comment

Proving that there is humor in even the worst of situations, and in blatant violation of federal copyright law, here is a hysterical parody of a Michael Bloomberg’s Hurricane Sandy press conference, courtesy of Saturday Night Live.

Hurricane Sandy hit a week ago but the full extent of its impact on the financial system is still being felt.  In an excellent article in today’s Wall Street Journal, the paper describes how at least one community bank in New Jersey has virtually no electricity and is using an old-fashioned ledger to record transactions.  Not only are banks forced to live without technology, but members put a high priority on having cash in their wallet as they need funds to pay for everything from gasoline to tree removal while debit and credit cards are not being accepted.

Just one quick thought.  Larger banks were, of course, damaged as well.  But given their size, they have a built-in network of other branches on which to fall back.  In contrast, a storm like this literally knocks credit unions and community banks out of operation.  When the debris settles, we should really consider leveraging our cooperative network to develop an emergency response infrastructure consisting of not just credit unions but interested community banks, as well.  We already have a model with our shared branching networks.

Informing NCUA of storm damage

I know that  those of you trying to get your credit unions up and running again face more pressing concerns, so consider this a friendly reminder:  pursuant to NCUA regulations, credit unions have five days to report a catastrophic act to the regional director.  A catastrophic act is any disaster, natural or otherwise, resulting in physical destruction or damage to the credit union or causing an interruption in vital member services, projected to last more than two consecutive business days.  In addition, within a reasonable time after the catastrophic act, your credit union should submit a record of the incident to the NCUA.

NCUA releases National Examination Manual

NCUA released a public version of its national supervisory manual.

I’ll be saying more about this document in a future blog, but NCUA deserves credit for its release.  One of the major complaints Chairman Matz has heard from the industry is that there is inconsistency among examiners.  The release of the manual is part of NCUA’s effort to standardize examination practices.

Entry filed under: Compliance, New York State, Regulatory. Tags: , , .

Playing the Cards We’re Dealt. And the election winner is…Big Data!

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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