Recent News
The shuttered Urban Partnership Bank building in Chicago's South Shore neighborhood will become a canvas for artists until it is redeveloped. The art installations are part of a partnership with The Neighborhood Foundation, a local nonprofit that helps improve vacant buildings with public art. The organization plans to paint a tableau of the neighborhood’s landmarks on the building's boarded up windows, including a bike trail and southbound train. The bank closed on March 22 and many community groups expressed interest in using art to beautify the building. Urban... Read more
The discovery of the Heartbleed computer bug has led regulators to raise alarms over the effect of cybersecurity threats on consumer confidence. The Financial Stability Oversight Council's 2013 annual report highlighted that in the prior year more than a dozen financial institutions "were subject to sustained and persistent cyberattacks." Thomas Curry, head the Office of the Comptroller of the Currency, noted the financial sector is one of the most attractive targets for cyberattacks. It is increasingly dependent on technology--often provided by third-party vendors, creating additional... Read more
Opponents of payday lending worry that a recent Supreme Court decision has removed class-action lawsuits from their arsenal. In the April 2011 case AT&T Mobility v. Concepcion, the Supreme Court upheld the ability of cellular service providers to insert fine-print provisions banning participation in class-action lawsuits into their contracts with customers. Payday lenders often use similar clauses to evade class-action suits. Before the Supreme Court Ruling, lower courts in North Carolina and California ruled those provisions unlawful. In North Carolina, that ruling allowed for a class... Read more
Virginia Community Capital Vice President of Community Investments and Impact Teri Lovelace and Small Business Manager Wayne Waldrop were keynote speakers at the Colonial Beach Virginia Chamber of Commerce Annual Membership Dinner and Awards Ceremony. Waldrop explained that Virginia Community Capital is willing to take on more risks than a traditional bank in order to serve the needs of the community. Ms. Lovelace stressed that VCC believes, “Small businesses are the economic engine of a community,” which is why the bank is committed to providing advisory services which... Read more
Urban Partnership Bank partnered with Mercy Hospital and Roseland Senior Center in support of Money Smart Week, a nationwide event aimed at helping consumers learn to better manage their personal finances. Information Security Manager Donna Pfeil was on hand at the Mercy Hospital event, sharing information about identity theft. Marcus Bennett, Urban Parnership's Pullman Financial Center Manager, spoke with members of the Roseland Senior Center about recovering from financial disasters. The bank also provided a document disposal service, inviting community members to shred... Read more
CDFI data and analysis nonprofit CARS Inc. is launching a financial reporting system for CDFI loan funds. The nonprofit intends the ratings to simplify CDFI finances for investors, including banks looking for credit under the Community Reinvestment Act. CDFI loan funds are unregulated and investors often struggle to gain timely and accurate data, a major obstacle to attracting non-philanthropic capital. CARS currently has ratings and data available for institutions that manage 55% of all CDFI assets. Jeannine Jacokes, CEO of loan fund Partners for the Common Good (and CDBA Senior Policy... Read more
Chicago Mayor Rahm Emanuel has announced a new $26 million loan pool led by Community Investment Corp. and backed by lenders including First Eagle Bank. The fund seeks to increase the supply of affordable units in Chicago communities by enticing local investors to buy abandoned rental buildings. Community Investment Corp. will vet developers with proven track records to take on projects in which renovation costs far outweigh property value. When the rehab is complete the... Read more
Senate Banking Committee leaders may delay the April 29 vote on their mortgage finance reform bill as they struggle to secure additional votes. Chairman Tim Johnson (D-S.D.) and Ranking Member Mike Crapo (R-Idaho) are said to be trying to attract as many as four more votes. The situation has even sparked rumors about whether the original coalition of committee members from both political parties remains intact. Johnson and Crapo's bill would eliminate Fannie Mae and Freddie Mac and create a new housing finance system. But the bill, which would preserve a government guarantee for the... Read more
Facebook is readying itself to provide financial services in the form of remittances and electronic money in Europe. The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook, using it to pay and exchange money with others. Facebook would issue units of stored monetary value that represent a claim against the company. This e-money would be valid throughout Europe. Facebook has also discussed potential partnerships with at least three London start-ups that offer international money transfer... Read more
Regulators' recent signals that they are planning changes to Community Reinvestment Act exams have reignited speculation about possible alterations. Comprehensive refor appears unlikely, but observers see potential for limited action. Changes may include crediting community-related activities done outside a bank's market and broadening the section of the exam focused on branch offerings. Regulators may also heighten the focus on products that specifically benefit low income borrowers and expand the list of community service activities eligible for CRA credit. Other reforms may include... Read more
Finance & Commerce has named Sunrise Banks among the recipients of their Progress Minnesota Award. The award recognizes Minnesota businesses that have shown exemplary creativity, drive and commitment to their causes. Sunrise focuses on economic development in the Twin Cities’ underserved communities with a concentration on Hmong and Somali neighborhoods. “Our brand, from that standpoint, has grown from specifically serving a geographic area to more of a people-based and place-based strategy,” said Sunrise CEO David Reiling.
Payday lenders say big banks are denying them service at the behest of federal regulators. The banks, they contend, are threatening to cut them off unless they stop offering payday loans. In one e-mail publicized by Sen. David Vitter (R-La.), a banker cited regulatory action in a decision to deny credit to a payday lender: “Based on your performance, there’s no way we shouldn’t be a credit provider. Our only issue is, and it has always been, the space in which you operate. It is the scrutiny that you, and now that we, are under.” Federal regulators deny compelling banks to sever ties with... Read more
A newly discovered security bug nicknamed Heartbleed has exposed millions of usernames, passwords and credit card numbers — a major problem that hackers could have exploited during the more than two years it went undetected. Unlike most security breaches, which affect a single website or organization, this flaw affects code used across the web to keep servers secure. The bug could affect thousands of websites including online banking portals, marketplaces and social media sites. A fix has been circulated, but it is unclear how quickly and widely it was being implemented. Use ... Read more
A new report by Pew Charitable Trusts finds that nearly half of banks, including four of the nation’s five largest, still "reorder" checking account transactions -- a practice that can dramatically increase overdraft fees by processing larger withdrawals first, leaving smaller transactions to pile up fees. The practice is particularly onerous for low-income consumers who are unable to maintain high average balances. The study also found that an increasing number of banks are imposing new limits on... Read more
The White House is reviewing individuals with community banking experience for an open seat at the Federal Reserve Board. Administration officials have mentioned Ann Marie Mehlum and Rebeca Romero-Rainey as potential candidates. Ms. Mehlum, who currently works for the Small Business Administration, previously served as the chief executive of Summit Bank in Eugene, Ore. Ms. Romero-Rainey is the chief executive of the Centinel Bank of Taos in New Mexico. Senate Banking Committee members from both sides of the aisle, including Sens. Heidi Heitkamp (D-N.D.) and Mark Kirk (R-Ill.), have also... Read more
A new study by the FDIC found steadily improving trends for small community banks. According to the report, the number banks with assets between $100 million and $1 billion in assets has actually increased since 1985, but the number of banks with under $100 million has declined. Much of that decrease was due to consolidations and mergers. The pace of consolidation has steadily increased since 2010, when Congress passed the Dodd-Frank law.... Read more
Regulators from the FDIC and the Oregon Division of Finance and Corporate Securities have terminated the consent order issued against Albina Community Bank. The regulators determined the bank has met all the conditions of the consent order by reducing problem loans and maintaining higher capital levels. A stock purchase transaction with One PacificCoast Bancorp allowed Albina to return its regulatory capital ratios to the level required by regulators. “Having our regulatory consent order lifted is a very positive and significant step for the bank... [We]... Read more
Virginia Community Capital has deployed a new loan to Glade Green Grocer, a whole foods retailer and food cooperative located in Glade Spring, Virginia. The new store will provide retail shelf space, marketing and commercial canning for local growers throughout the year, responding to increased demand for fresh foods by consumers. This loan is the latest in Virginia Community Capital's comprehensive revitalization effort in Glade Spring, Virginia as well as the first loan deployed by their Virginia Fresh Food Loan Fund, a $10 million fund earmarked for addressing the unmet... Read more
Sen. Sherrod Brown (D-Ohio) predicted the plan to revamp the U.S. housing finance system sponsored by Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) would not become law this year. The proposed legislation would phase out Fannie Mae and Freddie Mac in five years and replace them with a government re-insurer. The bill requires support from key Democrats on the banking panel, including Brown, before moving on to the Senate, where it will need to attract broad backing among Democrats to persuade Majority Leader Harry Reid (D-Nev.) to schedule a vote. Brown said the current bill is too... Read more
Warren Buffett has released his latest annual letter to Berkshire Hathaway shareholders. Since 2012, Berkshire has not repurchased shares at a price higher than 1.2 times book value. According to former investment banker Harvard Winters, this implies that banks and thrifts with ROE far below that of Berkshire buying shares at that book value multiple or higher are acting recklessly. Winters finds three takeaways for banks from the Buffett letter: care deeply about the price of an investment, don’t be overly-optimistic about... Read more