A group of Republican senators on July 30 wrote to Attorney General William Barr seeking an update on the Justice Department’s (DOJ) efforts to clarify compliance obligations for businesses with respect to website accessibility under the Americans with Disabilities Act (ADA).
The letter marks another attempt by Sen. Chuck Grassley (R-IA) to obtain clarity from the DOJ; last year, lawmakers wrote to then-Attorney General Jeff Sessions raising concerns about a lack of existing guidance.
The senators noted that unclear direction from the DOJ has left businesses, including banks and credit unions, exposed to litigation risk. “We therefore urge the Department to provide further clarity, especially given that the issue of whether the ADA applies to private websites at all—or the scope of such application—continues to be subject to conflicting judicial opinions,” they wrote. “Absent further guidance, compliance will remain a matter of increasing litigation and inconsistent outcomes.”
The other senators that signed unto the letter were Thom Tillis (R-NC), John Cornyn (R-TX), Mike Crapo (R-ID), Joni Ernst (R-IA), Marsha Blackburn (R-TN) and Mike Rounds (R-SD).
Read the letter.
Tuesday, August 6, 2019
Monday, August 5, 2019
VyStar CU Acquires Citizens State Bank
VyStar Credit Union (Jacksonville, FL) on August 5 has completed its acquisition of Citizens State Bank (Perry, FL).
VyStar Credit Union has $8.9 billion in assets. Citizens State Bank has $280 million in assets.
Read more.
VyStar Credit Union has $8.9 billion in assets. Citizens State Bank has $280 million in assets.
Read more.
11 NY Lawmakers Write Regulators about Taxi Medallion Lending
Eleven New York lawmakers are calling for tougher oversight of New York City taxi medallion lending.
In a July 25 letter to federal banking regulators, the lawmakers have asked for information about:
The letter went to the heads of the Federal Deposit Insurance Corporation, Federal Reserve, National Credit Union Administration, and the Office of the Comptroller of the Currency.
The lawmakers signing the letter were Representatives Alexandria Ocasio-Cortez, Adriano Espaillat, Nydia Velazquez, Yvette Clarke, Jerrold Nadler, Carolyn Maloney, Thomas Suozzi, Gregory Meeks, Jose Serrano, Grace Meng, and Hakeem Jeffries.
Read more.
In a July 25 letter to federal banking regulators, the lawmakers have asked for information about:
- entities involved in providing taxi medallion loans;
- whether the agencies have toughened oversight of the industry;
- are the agencies cooperating with any law enforcement investigations into lending practices;
- what extent the agencies or regulated entities have provided loan modifications, repayment plans, forbearances, or loan forgiveness options; and
- what gaps in regulatory oversight should be addressed to better protect taxi drivers and similarly situated individuals.
The letter went to the heads of the Federal Deposit Insurance Corporation, Federal Reserve, National Credit Union Administration, and the Office of the Comptroller of the Currency.
The lawmakers signing the letter were Representatives Alexandria Ocasio-Cortez, Adriano Espaillat, Nydia Velazquez, Yvette Clarke, Jerrold Nadler, Carolyn Maloney, Thomas Suozzi, Gregory Meeks, Jose Serrano, Grace Meng, and Hakeem Jeffries.
Read more.
Sunday, August 4, 2019
Report Highlights Top Management and Performance Challenges Facing Financial Regulators
The Council of Inspectors General on Financial Oversight (CIGFO) released its second annual report on the top management and performance challenges facing Financial-Sector Regulatory Organizations in 2019.
This report focused on seven areas:
• Enhancing Oversight of Financial Institution Cybersecurity
• Managing and Securing Information Technology at Regulatory Organizations
• Sharing Threat Information
• Ensuring Readiness for Crises
• Strengthening Agency Governance
• Managing Human Capital
• Improving Contract and Grant Management
CIGFO members include the Inspectors General of the Department of the Treasury, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, the Department of Housing and Urban Development, the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, the Federal Housing Finance Agency, the National Credit Union Administration, the Securities and Exchange Commission, and the Special Inspector General for the Troubled Asset Relief Program.
Read the report.
This report focused on seven areas:
• Enhancing Oversight of Financial Institution Cybersecurity
• Managing and Securing Information Technology at Regulatory Organizations
• Sharing Threat Information
• Ensuring Readiness for Crises
• Strengthening Agency Governance
• Managing Human Capital
• Improving Contract and Grant Management
CIGFO members include the Inspectors General of the Department of the Treasury, the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission, the Department of Housing and Urban Development, the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, the Federal Housing Finance Agency, the National Credit Union Administration, the Securities and Exchange Commission, and the Special Inspector General for the Troubled Asset Relief Program.
Read the report.
Friday, August 2, 2019
Florida Regulator Approves Merger of Bank into Fairwinds CU
The Florida Office of Financial Regulation on July 25 approved the application to merge and consolidate the assets and liabilities of Friends Bank (New Smyrna Beach, FL) into and with Fairwinds Credit Union (Orlando, FL).
The approval order noted that Fairwinds CU's field of membership already included all persons who live and work in Volusia County. In addition, Fairwinds has a low-income designation, which permits the credit union to accept deposits from nonmembers. Therefore, all depositors of Friend Bank, even those depositors that do not not live or work in Volusia County, will be able to maintain their deposits with Fairwinds after the merger is completed.
Fairwinds CU stated that it does not intend to acquire and retain Friends Bank stock or power to conduct commercial banking business under Friends Bank charter.
Within six months after the merger is consummated, Fairwinds will need to verify whether depositors and borrowers had opted-in to becoming members of Fairwinds Credit Union, did not opt-in but maintain nonmember deposit accounts with Fairwinds, or whose loans have been transferred to another financial institution, closed, or paid off their loans.
Fairwinds will need to divest any nonconforming activities based upon a time established by the regulator.
Before the merger is consummated, the merger must be approved by the National Credit Union Administration and the Federal Deposit Insurance Corporation.
To read the final approval order, go to the Florida Office of Financial Regulation website and click on Final Administrative Orders, which is under Our Services.
The approval order noted that Fairwinds CU's field of membership already included all persons who live and work in Volusia County. In addition, Fairwinds has a low-income designation, which permits the credit union to accept deposits from nonmembers. Therefore, all depositors of Friend Bank, even those depositors that do not not live or work in Volusia County, will be able to maintain their deposits with Fairwinds after the merger is completed.
Fairwinds CU stated that it does not intend to acquire and retain Friends Bank stock or power to conduct commercial banking business under Friends Bank charter.
Within six months after the merger is consummated, Fairwinds will need to verify whether depositors and borrowers had opted-in to becoming members of Fairwinds Credit Union, did not opt-in but maintain nonmember deposit accounts with Fairwinds, or whose loans have been transferred to another financial institution, closed, or paid off their loans.
Fairwinds will need to divest any nonconforming activities based upon a time established by the regulator.
Before the merger is consummated, the merger must be approved by the National Credit Union Administration and the Federal Deposit Insurance Corporation.
To read the final approval order, go to the Florida Office of Financial Regulation website and click on Final Administrative Orders, which is under Our Services.
Thursday, August 1, 2019
3Rivers FCU to Acquire West End Bank
3Rivers Federal Credit Union (Fort Wayne, IN) has entered into an agreement to acquire West End Bank (Richmond, IN).
West End Bank has $298.8 million in assets and operates 4 offices in Indiana.
3Rivers Federal Credit Union has $1.1 billion in assets with 16 offices in a seven county area in northeast Indiana and northwest Ohio.
Under the terms of the purchase and assumption agreement, West End Bancshares estimates that its stockholders will receive between $34.91 and $36.81 in cash consideration from the all-cash deal for each share of West End Indiana Bancshares common stock they own.
The transaction has been unanimously approved by the board of directors of both institutions and is expected to close in the first quarter of 2020, subject to customary closing conditions, the approval of West End Indiana Bancshares’s stockholders, West End Bank’s depositors and regulatory approvals.
The price of the bank's stock is up 22 percent on the news.
Read the press release.
West End Bank has $298.8 million in assets and operates 4 offices in Indiana.
3Rivers Federal Credit Union has $1.1 billion in assets with 16 offices in a seven county area in northeast Indiana and northwest Ohio.
Under the terms of the purchase and assumption agreement, West End Bancshares estimates that its stockholders will receive between $34.91 and $36.81 in cash consideration from the all-cash deal for each share of West End Indiana Bancshares common stock they own.
The transaction has been unanimously approved by the board of directors of both institutions and is expected to close in the first quarter of 2020, subject to customary closing conditions, the approval of West End Indiana Bancshares’s stockholders, West End Bank’s depositors and regulatory approvals.
The price of the bank's stock is up 22 percent on the news.
Read the press release.
Policy Advocate Calls for Illinois CUs to Pay Their Fair Share of Taxes
Peter Prickett, President of Council for Sound Tax Policy, has called for credit unions, especially the largest, to pay their fair share of the tax burden in Illinois.
Prickett stated that most consumers don't see any differences between banks and credit unions. Credit unions offer the same products and services as banks. And the largest Illinois credit unions tower over the majority of community banks they compete with.
In an opinion letter, Prickett pointed out that if the 16 largest Illinois credit unions had paid their fair share in 2018, this would have resulted in $20 million to $27 million in additional tax revenues to the state.
Prickett noted that 3 of Illinois largest credit union have bought naming rights to sports stadiums and signed exclusive sponsorship deals with sports teams, but paid nothing in income taxes.
Pricket wrote that "Illinois taxpayers should consider whether now is the time to ... end the antiquated income tax exemption for credit unions in Illinois."
Read the Op-Ed.
Prickett stated that most consumers don't see any differences between banks and credit unions. Credit unions offer the same products and services as banks. And the largest Illinois credit unions tower over the majority of community banks they compete with.
In an opinion letter, Prickett pointed out that if the 16 largest Illinois credit unions had paid their fair share in 2018, this would have resulted in $20 million to $27 million in additional tax revenues to the state.
Prickett noted that 3 of Illinois largest credit union have bought naming rights to sports stadiums and signed exclusive sponsorship deals with sports teams, but paid nothing in income taxes.
Pricket wrote that "Illinois taxpayers should consider whether now is the time to ... end the antiquated income tax exemption for credit unions in Illinois."
Read the Op-Ed.
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