Changes Ahead

Consumers are Spending, Legislation is Agreed Upon, and FDIC Sits Tight

 
 

More changes are ahead for the financial services world. Consumers resumed spending in May, as indicated by the 0.2% uptick from April’s consumer spending report. The rise came in conjunction with a 0.4% increase in personal income.

Over the weekend, the House and Senate approved a compromised version of financial legislation, giving all a new picture of how the government will oversee the nation's financial system in the future.

Last week, the FDIC announced it will hold off on raising premiums until it has a clearer economic outlook. The federal banking insurer said it doesn’t want to assess its institutions if the economy is going to pick up -- which macro indicators suggest is already happening. The NCUA is taking the opposite view. On Thursday it announced it will assess a premium of 13.4 basis points—totaling $1 billion—for corporate stabilization. The NCUA says the premium is necessary to deal with seasonal liquidity issues, but its reasoning doesn’t add up.

Some changes were foreseen, others are more shocking. We at Callahan are saddened by the passing of industry leader Dave Serlo. As CEO of PSCU Financial Services, Serlo spent almost 30 years building a card payment and financial services cooperative that was critical to credit unions’ competing in today’s evolving payment systems marketplace.

As the financial services world changes, we understand your needs also change. That’s why we are rolling out a new look for CreditUnions.com. We strive to bring you strategies, tools, and best practices in the industry today . We want to make those resources more easily accessible through articles, blogs, and our video hosting platform, CUtv. Take a look around, and let us know how we can make it easier for YOU to use creditunions.com.

 
 

June 29, 2010


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