Newsflash Apr. 11, 2013

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April 11, 2013


Member News

United Bank Restructures; Promotes Three Senior-Level Executives

Three senior-level officers with United Bank in Atmore have been promoted to newly created executive vice president positions.Gwen Braden will now serve as executive vice president and chief operations officer; Mike Vincent will serve as executive vice president and chief credit officer; and Casey Gay Zito will serve as executive vice president and chief retail officer. “As we continue our momentum and focus our vision beyond 2013, each will play a critical role in the direction of the bank and in shaping our future,” Robert R. Jones III, president and chief executive officer of United Bank, said of the promotions already approved by the bank’s board of directors. 

Of Interest

Bailed Out Banks Haven't Met Goals of Small Business Lending Program, Report Says

Washington Post

Banks used billions from a small-business lending program to repay government bailout funds, rather than for its intended purpose — making more loans to mom-and-pop operations, according to a watchdog report released Tuesday. The Small Business Lending Fund dished out more than $4 billion to 332 community banks, credit unions, and community development financial institutions to lend to Main Street businesses. By signing up for the lending program, banks could convert their TARP obligations into a lower-interest loan and escape restrictions on executive compensation. But in return, the banks were supposed to increase their lending to small businesses. Instead, 132 TARP recipients participating in the small-business program used about $2.1 billion they were awarded to exit TARP, rather than increasing lending, according to the report from the TARP special inspector general. “For some TARP banks, SBLF turned out to be little more than a TARP exit strategy,” said Christy Romero, special inspector general for TARP.

Six Ways Banks Can Defeat Hackers and Reduce Data Breaches


When it comes to dealing with hackers and data breaches, small banks have more to lose than big banks: They face an uphill battle to win back customer trust once it’s gone, and customer trust is a core value proposition for small and mid-sized banks. They also have fewer resources at their disposal than larger financial institutions. So how can small and regional banks reduce the risk of breach? Consider these six steps to jumpstart your bank’s security plan: 1) Manage information assets like all other assets; 2) Perform a security assessment; 3) Appoint a Security Officer; 4) Educated employees about security best practices; 5) Monitor social media exposure, and 6) Limit data access to only those who need to know.

Bluebird Gains FDIC Insurance

CU Times

Skeptics who saw the seeds of an eventual bank charter in the advent of American Express and Walmart had a change of heart and last week announced that the jointly sponsored Bluebird prepaid card will carry FDIC deposit insurance. Dan Schulman, group president, enterprise growth at American Express, said, “Bluebird is designed to help make their everyday financial lives easier, more convenient, and less expensive. [This] announcement, which reflects feedback from consumers, advocacy groups, and government officials, represents the next set of enhancements that further distinguish Bluebird from other financial services options.” In another change, the company announced that Bluebird cardholders would be able to obtain checks for their accounts that the company will pre-authorize in order to prevent overdrafts.

PayDay Lending Drains Nearly $1 Billion from Communities

Washington Informer

One of the worst ironies of the nagging economic recession is that consumers with the fewest financial resources have lost the most. Now, a new report finds that payday loans not only strip much-needed income from low-income families, but harms the economic viability of the communities where they operate, draining nearly $1 billion a year. Written by the Insight Center for Community Economic Development (Insight Center), it also reveals other net negative impacts of these small-dollar, high cost loans on economic growth and personal bankruptcy filings. The Insight Center examined the net economic impact of the $3.3 billion in interest that borrowers paid to non-bank payday lenders in 2011. The study found that if consumers collectively had an additional $3.3 billion in discretionary spending, it would have resulted in $6.34 billion in economic activity and created 79,000 jobs. In comparison, payday lending activity added $5.56 billion to the national economy and created 65,000 jobs. Combining these figures shows a net loss from payday lending of $774 million in economic growth and more than 14,000 jobs. That's in addition to $169 million lost through Chapter 13 bankruptcies.


Innovations for Poverty Action - Director U.S. Household Finance Initiative (New Haven, CT or Washington, DC)
Innovations for Poverty Action (IPA) seeks a qualified applicant for the position of U.S. Household Finance Initiative Director. The position offers an opportunity to manage and lead a growing research initiative which supports cutting-edge development research. The position will be based out of New Haven, CT and will travel frequently within the United States. The position reports to the Deputy Executive Director for Research and Policy and works closely with the researchers that lead the initiative.

NCB Capital Impact - Community Engagement Associate (Arlington, VA)
The Cornerstone Partnership, an initiative of CSG/NCB Capital Impact, supports local and state homeownership programs that preserve long-term affordability and community stability. Since 2010, it has grown to over 700 members located across the U.S. The partnership  engages with its members through a variety of communication and programming activities, including monthly e-newsletters, bi-monthly webinars, and program assessments. The Community Engagement Associate will help coordinate member programming activities by supporting communications, marketing, and member engagement activities for Cornerstone Partnership. Cornerstone is seeking a strong self-starter with the ability to manage many responsibilities in a fast-paced, creative environment.

Mission Housing Development Corporation - Director of Housing Development (San Francisco, CA)
Mission Housing Development Corporation develops high-quality, well-managed, affordable, sustainable homes and communities that promote the self-sufficiency of low and moderate income families, seniors, and persons with diverse needs. The Director of Housing Development is responsible for the completion of permanent affordable housing projects, the preparation and completion of affordable housing project applications, and the research and securing of future sites for permanent affordable housing.

ACCION Texas - Loan Officer (Dallas/Fort Worth, TX)
ACCION Texas seeks two Loan Officers in the Dallas/Fort Worth area. LO will be responsible for development and growth of ACCION Texas small business lending in the DFW Market by interfacing with banks, borrowers, and business community to identify small businesses that do not have access to loans from commercial sources.

Thursday, April 11, 2013