News
Carver Federal Savings Bank has announced it will be one of at least ten financial institutions accepting New York City's new IDNYC cards as a valid form of identification. The IDs, intended to provide photo identification to thousands of New Yorkers, will likely become the country's largest municipal identification program. The cards will provide legal documentation to residents regardless of immigration status, providing a new way to access banking services. The cards will be free this year, ramping up to a small fee next year. "Carver Federal Savings Bank is pleased to support the IDNYC card initiative," said Michael T. Pugh, Carver President and CEO. "Carver recognizes the IDNYC card is an important step toward access to mainstream banking services for many unbanked New Yorkers."
Antonio Weiss, a senior investment banker at financial advisory and asset management firm Lazard, has withdrawn his name from consideration as under secretary of the Treasury for domestic finance in the face of staunch liberal opposition. Weiss will instead serve as a counselor to Secretary of the Treasury Jacob Lew. Weiss' nomination ran into a wall of congressional resistance led by Sen. Elizabeth Warren (D- Mass.), who opposed the nomination of a Wall Street executive to a post that oversees Dodd-Frank regulations. Lazard’s work helping Burger King acquire the Canadian chain Tim Hortons, then move its headquarters abroad, presented the greatest obstacle to the nomination. Weiss' new Treasury post, counselor to the secretary of the Treasury, will not require confirmation hearings.
Lending initiatives run by faith-based organizations are shifting the way churches approach charity and creating a new alternative to payday lenders and pawn shops. The programs offer parishioners who have fallen deep into debt with payday lenders a low-interest path to repayment. The Virginia United Methodist Church's Jubilee Assistance Fund offers collateral so borrowers can qualify for a loan through the Virginia United Methodist Credit Union. Loans offered through the program have annualized interest rates as low as 6 percent. The program is still quite small -- just 14 loans from $500 to $8,800 in seven and a half years. But similar programs are developing in pockets across the country including Wisconsin, Texas, Missouri and Louisiana.
President Barack Obama has announced his intent to nominate City First Bank of D.C. President and CEO Brian Argrett to the Administration’s Community Development Advisory Board. Argrett currently serves as the Vice Chairman of the CDBA. He also served as President, CEO and Director of small business investment company Fulcrum Venture Capital Corporation. Previously, Argrett served as Chairman of FirstFed Financial Corp. “These fine public servants bring a depth of experience and tremendous dedication to their important roles,” Obama said. “I look forward to working with them in the months and years to come.”
Richard Shelby (R-Ala.) has been named chairman of the Senate Committee on Banking, Housing and Urban Affairs for the 114th Congress. Shelby previously served as the chairman of the Banking Committee from 2003 until 2006. Shelby is likely to make rolling back provisions of the Dodd-Frank Act a core objective for his committee. He has also spoken in favor of altering the structure of the CFPB and decreasing the power held by its director. But Shelby has also shown a populist streak that could work against big banks. He has in the past leveled criticism against Wall Street firms for their role in the financial collapse and advocated greater punishment for reckless practices.
Urban Partnership Bank is launching two new services intended to offer a lower priced alternative to currency exchanges and other alternative financial services. The first is a new check cashing service designed as a convenient way to cash a check and get money instantly. No bank account is needed to qualify. The second is a prepaid card that functions like a bank account without checks, allowing customers to load funds on the card at any Urban Partnership Bank location or ATM through direct deposit or at select retailers. “Too many people are still without traditional banking relationships, and they need an alternative to high cost currency exchanges and payday lenders,” said Urban Partnership Chief Banking Officer Levoi K. Brown.
Sen. Sherrod Brown (D-Ohio) has proposed an alternative to payday loans that would allow low-income workers to claim part of their Earned Income Tax Credits (EITC) early when they need a cash boost, rather than waiting to claim the entire credit at tax time. The EITC is a tax credit that forgives some federal and payroll taxes for low-wage workers who otherwise would fall into poverty. Brown's proposal caps the amount which may be claimed early; maximum claims will range between $133 and $500 based on number of dependents. The cap is designed to find middle ground between providing enough early claims for emergency cash boosts while also retaining the substantial tax time lump sums many recipients rely on for large one-time expenses.
President Obama has announced he will nominate community banker Allan Landon to serve on the Fed Board of Governors. Landon’s community banking experience sets him apart from other members of the Federal Reserve -- economists, policymakers and bankers who built their careers at larger firms. Landon began his community banking career as CFO of Tennessee-based First American in 1998. In 2000, Landon was hired by the Bank of Hawaii Corporation as a chief risk officer and went on to become CEO. Most recently, Landon has worked with the $50 million Community BanCapital fund, which aimed to bolster the capital position of community banks by investing in their subordinated debt.
Sunrise Banks has become one of the first Public Benefit Corporations in Minnesota. The state recently passed legislation offering the new classification, which allows corporations to elect to pursue social and environmental goals alongside shareholder profits. Although Sunrise had already received B Corp certification from B Lab, the new legislation provides legal accommodation for the status. “Our organization is full of people who are passionate about giving back and creating positive change,” says Sunrise CEO David Reiling. “Across the bank our people want to be a part of an organization that does more than just make money. That makes it not only simpler, but a priority for Sunrise Banks to become a Benefit Corporation.”
David Reiling, CEO of St. Paul, Minn. based Sunrise Banks has been named one of Trust Across America’s Top 100 Thought Leaders for 2015. The award recognizes leaders who are transforming the way organizations do business. "Trust is at the cornerstone of Sunrise Banks’ culture and in the DNA of all levels of the organization,” Reiling said. “With trust, employees are allowed to 'punch above their weight' and think outside the parameters, setting the organization up for ten times the growth compared to if hands and ideas are tied and held back. With a trust based organization, there is a much bigger future... It takes leadership and courage to insist on the consistency of open and honest communication and integrity of actions by all."