Executive Summary - 15 May 2008

By Christian Mullins

Executive Summary:

The National Credit Union Administration (NCUA) has determined that Father Burke FCU in New York City, New York is insolvent and has ordered the credit union to close. The credit union currently has about $1.3 million in deposits but $1.4 million in liabilities. The NCUA has stated that they will issue checks to members within the next week. Father Burke FCU was originally chartered in 1971.

Election year politics are in full swing, with the first salvos being fired regarding The Credit Card Fair Fee Act. If passed, the legislation would change the methods determining interchange fee rates. CUNA placed a full page ad in Politico, a D.C. based daily political journal, urging the Legislature to vote against the bill. Today, retailers and consumer groups, largely supportive of the legislation, will voice their opinions to the House Antitrust Panel. Not surprisingly, Visa and MasterCard oppose the bill.

Robbed:

• Nothing to report today.

Arrested, Arraigned, Charged, or Sentenced:

• Two men, Shawn Owens, 27, and Joshua Brooks, 20, of Los Angeles, California, have been arrested in connection with the robbery of an Orange County CU on Tuesday. The men, using a takeover style robbery, were arrested within 10 minutes of the crime while still on foot. CU employees visually identified the men as the perpetrators.
• Derek Christiansen, 34, of Salem, Massachusetts, pleaded not guilty at his arraignment hearing Wednesday. Christiansen is accused of robbing St. Jean’s CU four times from February 7 through March 24.