Six Things You Need To Know From Last Week

Because of a tight schedule at CUNA GAC and some wrath-of-God weather at the end of the week, yours truly was only able to get out one blog last week. I have a lot to get off my chest and the following is a list of topics I reserve the right to follow up on in the coming days and weeks.

More Taxi Medallion Fallout

In case you missed it, First Jersey Credit Union was shut down by state regulators and the NCUA on Wednesday. Its assets were assumed by USAlliance Federal Credit Union based in Rye, New York. The credit union was done in by an excess of medallion loans. Medallions are currently valued well under $200,000. According to its website, the credit union is open to “Anyone who lives, works, worships or attends school in Bergen or Passaic County, areas of Essex, Hudson, or Union County and family members of existing members, is eligible for membership.”

CFPB Requests Information On Its Information Collection Processes

As someone who has been harshly critical of the CFPB’s use and publication of consumer complaints, this announcement warms my heart. “The Bureau of Consumer Financial Protection (Bureau) is seeking comments and information from interested parties to assist the Bureau in assessing potential changes that can be implemented to the Bureau’s public reporting practices of consumer complaint information.” The Bureau will be accepting comments for 90 days after publication in the Federal register.

Another CU ADA Lawsuit Dismissed

Let’s face it. Judging by the constant discussion of the issue in Washington last week, the industry is in a foamed-mouthed frenzy over ADA website lawsuits. So I’m happy to report that the argument that anyone seeking to sue a credit union must demonstrate they could become a member gained steam recently with another case out of Federal Court in Virginia, dismissing a lawsuit on standing grounds.

Study Calls For Review of BSA “Derisking” Practices

Are the risks of non-compliance with the Bank Secrecy Act severe enough that it is actually making it difficult for persons who live in high risk money laundering areas to obtain banking services? That is the suggestion of this GAO report which analyzed the availability of banking services along the Southwest border. In the coming months, if you see FinCEN reexamining some of its requirements, or regulators taking a closer look at financial institutions which choose not to provide banking services rather than comply with the BSA, this is why.

As Interest Rates Rise So Do Banker Complaints About Municipal Deposits

That is the gist of this article in the American Banker, which reports that banks are bracing for Municipalities to demand more deposit interests now that interest rates are on the rise. It seems to me that states like New York could benefit from increasing the number of institutions that municipalities could turn to for placing their money. After all, if banks truly don’t want municipal business, I’m sure we could find some credit unions that do.

And The Oscar Goes To…

 If you get a chance, you should watch the frontline documentary “Abacus: Small Enough To Jail,” which was nominated for an Oscar. It details the aggressive efforts of the Manhattan DA to prosecute the alleged malfeasance of a small community bank while doing nothing to take on the larger institutions responsible for the mortgage meltdown.