Links in “Credit Unions”

Former CEO Kenneth Williams of $268 million Infinity FCU was fired after 30 years when an audit found substantial evidence of his use of corporate funds for personal use. The credit union is now suing him stating that his $66,000 in charges in the past two years on his corporate credit card among other expenses constitutes conversion, unjust enrichment, breach of fiduciary duty and fraud. Williams claims that the action is in retaliation for an age discrimination claim he filed prior to his dismissal. [12/6]

Here’s why it is so important to perform thorough due diligence before purchasing loan participation interests. $20 million Northern Piedmont FCU in Culpeper, VA, has filed a $1.7 million civil lawsuit against three former employees of the now-liquidated Lynrockten FCU. Northern Piedmont purchased loan participations from Lynrcten FCU in loans that were later determined to be fraudulent. The majority of the funds from the loan participation purchases allegedly ended up in the personal accounts of the former employees. [12/5]

NCR recently purchased Digital Insight, an online banking provider to banks and over 300 credit unions. According to NCR, this purchase could enable credit unions that use the NCR software to run their mobile banking, online banking and ATMs to use the ATMs to send funds to other people who are not credit union members. [12/5]

One prognosticator anticipates a huge increase in spending on cloud computing technology as banks become more comfortable with the practice, one of four predictions for technology in banking for 2014. [12/5]

Boards of directors always want to see more marketing to members. They just don’t want to pay for it. This article provides useful tips for how to make the most of a small marketing budget. [12/4]

Amazon CEO Jeff Bezos, in a recent 60 Minutes segment, talked about his three fundamentals for success. These fundamentals are equally important to credit union leaders. [12/4]

NCUA’s third quarter report shows increases in loans, membership and net worth for the nation’s 6,620 federally-insured credit unions. In particular, total loans grew by 2.9% causing NCUA Chair Debbie Matz to again caution credit unions to plan appropriately for interest rate risk. [12/3]

First Data, a debit and credit card processor for hundreds of credit unions, has been restructuring operations since a leveraged buyout in 2007. A company spokesman said the layoff of over 500 employees in its Denver location is one of many steps being taken to return the company to profitability. [12/3]

A review of the National Fair Housing Alliance's claims against banks alleging racial discrimination in failure to maintain foreclosed homes in predominantly minority neighborhoods raises doubts about the data used by the group. [12/3]

Reminder that the SAFE Act renewal period expires on 12/31/13. [12/2]