1: CAST SERVICE HIGHLIGHT

Branch Optimization
Effectively manage productivity, customer service and staff resource levels

As service providers aggressively expand product and service offerings, the branch delivery channel takes on new importance. Companies, particularly banks, frequently overlook the interdependencies of appropriate skill sets, staff levels, processes and physical branch configuration. The situation is further complicated in situations where multiple companies are being merged. A holistic view is essential in optimizing branch staff levels. Organizations continue to struggle with excess cost and ineffective productivity management in their branch networks.

Factors Influencing Branch Staff and Productivity Management

• Inability to effectively forecast workload and accurately schedule resources based on service delivery targets and sales opportunities
• Limited understanding of the implications of delivering new products and services
• Inefficiencies from merging disparate operations, technologies and staffing practices
• Failure to educate staff and customers on alternative processing options
• Limited understanding of the implications of newly installed technologies
• Inefficiencies resulting from recent arbitrary, across the board staff reductions
• Incomplete performance metrics

Why CAST for Branch Staffing Optimization

• Over 15 years experience reengineering branch office processes in banking, insurance and capital markets
• Superior data capture and analysis methodology
• Proven approach to developing staffing standards and performance metrics
• Comprehensive staffing models
• Demonstrated expertise in organization design
• Collaborative approach which actively involves branch personnel
• Established implementation tools and techniques
• Proven tools for monitoring and measuring benefit

If you would like additional information, please contact Tom Vleisides at (213) 614-8066 ext. 244 or email tvleisides@castconsultants.com.

2: AMERICAN BANKER - Consumers in No Rush to Hire Financial Planners

American Banker    Wednesday, July 21, 2010

By Donna Mitchell

After two years of economic and market volatility, consumers surveyed by the Certified Financial Planner Board of Standards are more concerned about their finances.

Yet they are not turning to financial planners in droves to help them manage their finances, the survey found.

Twenty-eight percent of respondents to the CFP Board's latest survey said they used a financial planner, compared with 29% in the survey the board conducted two years ago.

Nevertheless, 43% said that financial planners have grown in importance since the financial crisis started two years ago, the CFP Board said during a press call last week to announce the poll's findings.

The survey of 1,002 consumers was conducted by phone on July 7 and 8.

"There are a lot of reasons why Americans have been reluctant to hire financial advisers in the past," said Robert Glovsky, the CFP Board chairman. They tend to think financial planning services are for the wealthy, not for the middle class, and many do not know where to find an adviser they can trust, he said.

As financial products become more diverse and complex, however, it will become more necessary for investors to entrust their financial futures to a CFP, Glovsky said.

The task before the profession is to get the public to understand what CFP certificants do and what distinguishes them from a professional who does not have that designation.

Among survey respondents who began using a financial planner since the start of the financial crisis, 31% said they had done so because difficult times created more need for financial guidance.

Forty-four percent of respondents said they leaned on financial planners for reasons other than the crisis.

"A lot of people will look for a financial planner when going through a life transition," Glovsky said.

He added, though, that the financial crisis might have heightened people's concerns about having enough money to retire comfortably.

Thirty-six percent of the survey respondents reported no change in their attitude toward financial planners, and 14% thought the professionals had become less important.

They might need a professional's help, the survey found. In general, about 65% of respondents said they were more concerned about their finances today than they were at the beginning of the financial crisis two years ago.

Thirty-seven percent said they expect their personal finances improve in the next six months. Less than half, 46%, said they expect to hold on to what they have, and 16% said they expect to lose money.

Thirty-three percent of respondents 33%, said they were cautious about their finances in general, and 65% said they are more concerned about their money than they were at the beginning of the financial crisis.

Forty-four percent of respondents said they expect the U.S. economy to improve in the next six months; just 28% said they expect it to worsen; and 22% said they expect no change in that time frame.

Lawmakers did not inspire confidence in the survey respondents. Eighty percent said Congress and regulators have not done enough to manage the problems in the financial markets and their impact on investors.

3: AMERICAN BANKER - Fed Report Finds that Poor Subsidize Rewards Programs…

…for Wealthy

American Banker     Thursday, July 29, 2010

By Kate Fitzgerald

A report from the Federal Reserve Bank of Boston has quantified something that many payments executives have long suspected: that lower-income people subsidize the costs of rewards programs for wealthier consumers.

The report, released Monday, concluded that credit card interchange fees indirectly drive up the costs of products and services across the board, costing $23 per year for households that mainly use cash, checks or debit cards but that households using credit cards with rewards programs get benefits worth, on average, $756 annually.

The report called this effect an "implicit money transfer," to wealthier, rewards-card users (households earning $150,000 or more annually) from poorer consumers (those earning $20,000 or less annually).

The report concluded that reducing merchant interchange fees and card rewards programs "would likely increase consumer welfare."

Though some payments experts disputed the report's assumptions, some observers saw a good chance that the formula-laden, 57-page report could reignite discussions about legislation to regulate credit card interchange.

"The timing of this report is very interesting," said Red Gillen, a senior analyst at the Boston market research company Celent, given that the Dodd-Frank Act, which will take effect next year, includes provisions to regulate debit card interchange rates.

"This is the first time we're seeing real numbers on how much interchange costs certain types of households," Gillen said. "The formulas may be debated, but this is certainly the starting point for a new conversation on interchange's effects."

The Boston Fed's report "confirms what we've been saying, which is that credit card interchange fees drive up costs for everybody," said Mallory Duncan, a senior vice president of the National Retail Federation and its general counsel, "but it also brings out the fact that middle- and lower-class consumers who use credit cards the least are essentially subsidizing others."

Credit card interchange on average is about 2% of a sale. The federation said consumers pay about $50 billion annually in interchange. "So everybody is paying 2% more for everything at the point of sale to cover the cost of interchange, but rewards cardholders are getting some of that back," Duncan said.

But some experts dispute the report's findings.

"There are gaping holes in these economists' argument," said Megan Bramlette, a director at the New York research firm Auriemma Consulting Group. "Their underlying assumption is that, if interchange were reduced or eliminated, merchants would lower their prices across the board, and there is no evidence that such a thing would happen," she said.

The economists also ignore the fact that merchants derive many benefits from accepting cards, including selling more goods, she said, because "plastic is more convenient than cash." She also noted the unaccounted for costs of handling cash because merchants that deal in cash and checks are often subject to higher losses.

4: AMERICAN BANKER - Get Ready For Lots of New Data Requests

Bank Technology News   August 2010

By Michael Sisk

The financial regulatory reform bill is a sprawling piece of legislation that will have a profound impact. For many, focus is now on a new office that could wield enormous power and fundamentally change the way banks gather and report data: The Office of Financial Research (OFR).

John Avery, a partner in SunGard's financial services consulting business, describes the coming regulatory framework for banks and financial institutions as "a new era of regulatory oversight that is very data driven."

A central item is the creation of the Financial Stability Oversight Council to oversee systemically significant financial firms. To assist the council, the bill creates the OFR, which will be housed within the Treasury Department.

The primary purpose of the OFR will be to collect and analyze data for the council's use. But what information the OFR will collect remains to be seen. As Jim Hamilton, a principal analyst at Wolters Kluwer Law & Business, puts it: "They can demand information, but it's not clear what they will ask for. But anything with subpoena power I pay attention to."

While created to keep tabs on systemically important institutions, Jonathan Hightower, an associate at Bryan Cave, argues that the OFR's data requests are likely to include many smaller institutions:

"While the functions of the Office of Financial Research will certainly lead to enhanced reporting requirements for bank holding companies with $50 billion or more in consolidated assets...it is reasonable to expect that the office will need additional data from the financial industry as a whole in order to provide adequate context in its analysis of data collected from large financial firms.

For that reason, the conference text of the regulatory reform bill allows the OFR, after consultation with its director and the Financial Stability Oversight Council, to require the submission of periodic or other data from any financial company [which would include banks and bank holding companies of any size] in order to assess 'the extent to which a financial activity or financial market in which the financial company participates...poses a threat to the financial stability of the United States.'"

The bill's provisions are expected to phase in over several months, even years, to give banks time to implement the technologies necessary to comply with OFR data requests. Andrew Freeman, executive director of the Deloitte Banking Center, argues that since OFR's data requirements are not clear, and might evolve over time, banks need to implement flexible systems that can cope with different kinds of data requests. "Firms are at a crossroads and can't put off technology upgrades much longer," he says.

SunGard's Avery says one of the "unintended consequences of regulatory reform will be a dramatic increase in the spending on information management."

He predicts the OFR will first focus on determining what data is necessary to normalize comparisons across the industry. Once that's settled they can build tools for risk monitoring and other analytics on top of those clean data sets.

5: AMERICAN BANKER - High-Touch Trumps High-Tech in B of A Merrill Poll …

…of Affluent Investors

American Banker     Monday, August 2, 2010

By Matt Ackermann

Most affluent individuals still would rather work one on one with a trusted adviser than use online tools for financial planning, a Bank of America Merrill Lynch survey found.

In B of A Merrill's quarterly survey of 1,000 affluent investors, 57% of the investors said they go to their financial advisers for advice after making a financial mistake or financially irresponsible decision -- the same percentage that turn to their spouse or partner. Forty-two percent consult an adviser before making an expensive purchase. Thirteen percent do not consult an adviser but said they feel they should.

Lyle LaMothe, the head of U.S. wealth management at the Bank of America division, said this reflects the tough economy; wealthy individuals want to deal directly with advisers whom they trust.

"I think it is fair to say that, when a financial event becomes significant, people don't turn to machines, they turn to advisers for information," LaMothe said in an interview. "They turn to people that they trust for advice and guidance when the moment is critical."

The Internet is a "good portal for information, but investors still want a level of advice," LaMothe said.

Investors want more from their advisers by way of "communication and dialogue," he said.

"When the market was healthier and the economy was more robust, perhaps meeting on a quarterly or monthly basis was enough, but now investors feel that they can trust an adviser more if they speak with them more," LaMothe said.

Affluent Americans increasingly expect they will have to delay retirement. Forty-five percent said they expect to retire later than they had originally planned, versus 31% in the first quarter and 29% in January.

"Investors are still skeptical," said Dean Athanasia, the head of B of A's global wealth and investment management and of Merrill Edge, the company's online brokerage platform.

"They are still seeking returns, but they have low tolerance for risk," Athanasia continued. "They want to be sure that they are investing and working with advisers to proceed in the best way possible. Clients feel that the economy is coming back but there are going to be some bumps along the way."

LaMothe said financial advisers will play a vital role in "educating and reeducating" young investors about the historic value in the market.

6: AMERICAN BANKER - HSBC North America's Turnaround Efforts Start to Pay Off

American Banker     Tuesday, August 3, 2010

By Jeff Horwitz

HSBC Holdings PLC's North American arm still isn't adding much to the company yet, but it has reduced its consumer finance losses to the point where it is no longer weighing down its parent.

On Monday HSBC reported a blowout first-half pretax profit of $11.1 billion, double its earnings a year earlier. Though the improvement of the company's U.S. business was among the highlights, the North American operation was the only geographic subsidiary to report a loss.

Because of more than half a billion dollars in first-half hedging losses and a sharp second-quarter jump in consumer finance writedowns, HSBC North America Holdings Inc. reported it had an $80 million loss through June, down from the $2.1 billion hit it took a year earlier. Credit provisioning in its personal financial services segment fell from $6.4 billion in the second half of last year to $4.6 billion through June 30.

But after stripping out the hedging writedowns and other one-time items, HSBC North America Chief Executive Niall Booker noted, the company produced an underlying $492 million pretax profit.

"We have a core business that makes money," said Booker, who took over after former CEO Brendan McDonagh left HSBC at the end of July, on the North American subsidiary's conference call with reporters and analysts. "We believe we have a unique capability in terms of joining up our corporate customers and our premier high-net-worth customers internationally."

On both HSBC North America's earnings call and that of its parent, executives stressed the difference in performance between the company's successful capital markets, card and commercial banking businesses and the terribly performing consumer finance business it largely acquired in a long-regretted 2002 acquisition of Household International. That business is now in runoff, dropping from $91 billion of assets a year earlier to $69 billion by midyear.

"We haven't seen much slowdown in the runoff yet, which is encouraging," Booker said. "The fact that the book is running off at a fair clip significantly reduces our risk."

The North American unit also sold off its $4.3 billion auto finance portfolio in July, HSBC said in its earnings release.

Year over year, revenue in North American dropped 28%, to $8 billion, largely because of the runoff of the personal financial services portfolio, which included some higher-yieldng assets.

HSBC North America's performance would have been weaker still without the support of the Canadian operations, which turned in a $502 million pretax profit.

HSBC executives abroad and in the U.S. made it clear that the company's misadventures in U.S. consumer finance had informed a lasting shift in strategy.

"We'll be in the U.S. as it is required for our business on a global basis. … But overall I don't see us growing domestic business in the United States, because frankly we haven't got any right to win," said Michael Geoghegan, HSBC Holdings' CEO.

Instead of competing against the largest American retail banks on price, he said, HSBC intends to focus on international trade and the affluent consumers associated with it.

Booker seconded that on the later North American call, outlining what he described as HSBC's strong position within its chosen segments of the banking industry. The company was proud to have one of the few credit card books that has remained profitable during the recession, he said, thanks to its ability to acquire and retain affluent customers. And HSBC expects to build upon its $1 billion first-half profit in its North American global banking and markets unit.

"We are not trying to be all things to all men," Booker said. "But with the government encouraging exports in the U.S., we think that's an opportunity for our commercial banking in particular."

Because of HSBC's chosen business lines, he told analysts, he was not especially worried about the impact of financial reform legislation on HSBC's business.

7: AMERICAN BANKER - In Cash Glut, Banks Try to Discourage New Deposits

American Banker    Tuesday, July 27, 2010

By Paul Davis

With attractive lending opportunities hard to come by, bankers are finding themselves doing what would have been unthinkable just two years ago: discouraging deposits.

Most large and regional banking companies are drowning in deposits, raising concern that excess liquidity could be a drag on earnings in coming quarters.

Though interest rates on deposit accounts are manageable, due in part to historically low rates, costs remain associated with handling those relationships. Banks have also seen their ability to charge certain fees, on overdrafts, for example, constrained by the recent wave of financial reforms.

"The bottom line is that it hurts your margin if you get a lot of deposits and have nowhere to put them," said Kevin Fitzsimmons, an analyst at Sandler O'Neill & Partners LLP. "The margin is the one thing banks are used to controlling, so it requires behavior modification to tone down an appetite for deposits."

Two years ago, gathering deposits was a priority as liquidity concerns contributed to the demise of big financial institutions like Washington Mutual Inc. At that time, the median loan-to-deposit ratio for the largest banking companies was above 105%, showing an imbalance where loans exceeded deposit levels, according to regulatory filings. By mid-2010, the median for the 15-biggest banking companies was 94.1%, as the pendulum has swung to deposit-heavy balance sheets.

"Consumers are reluctant to lock up their money and prefer to have cash readily available even if it means lower interest rates," said Dan Geller, an executive vice president at Market Rates Insight, a research firm that has been keeping close tabs on deposit levels. "Fear of inflation, combined with uncertainty about the prospects of meaningful economic recovery, is causing some consumers to sit on their cash."

Early this year, a large inflow of deposits benefited banks despite limited opportunities to turn around and lend the money. Instead, bankers could let higher-rate brokered certificates of deposits mature, replacing them with the lower-cost "core" deposits. They were also investing some excess funds in securities, but regulators this year warned against such a strategy due to the interest rate risk associated with hefty portfolios.

Now the primary options left for banks involve turning depositors away or housing deposits at the Federal Reserve.

In April, James Rohr, the chairman and CEO of PNC Financial Services Group Inc., said that deposits held at the Fed were "almost a nonperforming asset," given the negligible 0.08% PNC was getting for the holding. Though PNC has reduced such exposure, other executives expressed similar concern during recent quarterly conference calls.

"Excess liquidity has not dissipated as quickly as we had expected," said Beth Acton, the chief financial officer at Comerica Inc., during the Dallas company's conference call with analysts last week. Comerica had, on average, $3.7 billion parked with the Fed in the second quarter, which cost the company roughly 23 basis points on its net interest margin, she said.

"We expect that excess liquidity will remain at these levels for the rest of the year," she added.

Retail customers are not the only ones hoarding cash, as some bankers discussed how loan and deposit levels for commercial clients are also out of whack.

James Dimon, the chairman and CEO at JPMorgan Chase & Co., gave insight into such an issue with the New York company's middle-market clients. In early 2009, these clients had virtually even levels of loans and deposits, at $100 billion on each side of the balance sheet. "Now we have $90 billion of loans and $130 billion of deposits for those clients," he said during the company's July 15 call.

"You could see that start to show. They're pretty flush" with cash and have "huge unused lines" of credit, he said.

Donald Mullineaux, a finance professor at the University of Kentucky, said the issue is putting even the savviest bankers in a tough position. "The only way to get a higher yield is to take on more risk, and bankers are saying they aren't willing to do that yet," he said. "So if you are shrinking the asset side of the balance sheet, you have to reduce rates to shrink deposits."

BB&T Corp. is among those doing just that, which is ironic given the bank's 2006 finding that 75% of its economic profit came from deposit-gathering. The bank made numerous internal adjustments to focus more on deposits and had maintained a policy with commercial borrowers that it would not make a loan unless the applicant agreed to bring over a deposit relationship.

It has since changed its strategy. The Winston-Salem, N.C., company attributed a portion of its margin expansion, which rose 24 basis points from the first quarter, to reduced deposit levels.

Other banks have failed to keep depositors away. "I've had a couple of CEOs tell me that they were deliberately trying not to grow them and they're coming in anyway," Fitzsimmons said.

Observers said a key part of deposit accounts' profits had come from associated fees, which are under pressure from recent legislative and regulatory changes. A major headwind blew in when banks were required to let customers opt out of overdraft charges. The Dodd-Frank Act, which was signed into law last week, also requires the Fed to set debit interchange fees that are proportional to the cost of processing the transactions.

Geller of Market Rates Insight and others said that, in the long term, deposits are likely to regain value, especially as lending opportunities resurface. The upside is the deposit mix -- lower-rate money market account balances rose 11.6% during the first half of 2010, compared to "negligible" increases in mid- to long-term CD balances that are more expensive for banks. Over time, banks "can make up some of the revenue loss from fees," he said.

Mullineaux, however, warned that the greater risk for banks is not margin compression but rather lost potential revenue tied to deposit relationships that might get turned away. "You wonder if they can get those customers back when they want them back," he said.

8: AMERICAN BANKER - Investor Day a Big Moment for Regions and New CEO Hall

American Banker     Thursday, August 5, 2010

9: AMERICAN BANKER - Moving to a New Core Can Carry Some Big Risks

American Banker     Tuesday, August 3, 2010

By Andrew Johnson

The decision to install emerging technology is an expensive one. And as a recent failed business deal between two vendors shows, it's also fraught with risk when the systems they are promoting don't have long track records -- especially for their customers.

The latest case in point involves a move by a core systems vendor to convert several community banks to new processing software, a million-dollar-plus investment, by yearend.

On Thursday, executives of Rurban Financial Corp., the Defiance, Ohio, bank holding company that owns Rurbanc Data Services Inc., announced they were scrapping a plan to spin off the technology subsidiary into a separate public company and merge it with New Core Holdings Inc.

Rurbanc, which goes by RDSI Banking Systems, encountered several problems in trying to deploy a new core processing system developed by New Core, a Birmingham, Ala., company operating as New Core Banking Systems, according to filings with the Securities and Exchange Commission.

State Bank and Trust Co., also a Rurban subsidiary, in March converted to Single Source, the system that New Core developed, but determined it needed "further enhancements to operate in a number of complex areas," a recent filing stated. The bank subsequently decided to migrate back to its previous core system.

At May 14, 53 of RDSI's 74 core processing customers had notified it of their plans to move to a new core provider rather than migrate to Single Source.

"A lot of risk was taken here, and banks, in the end, are the ones that are suffering," said Paul Schaus, the president and managing partner of the bank consulting firm CCG Catalyst in Phoenix, who is familiar with the situation.

That number continues to grow because RDSI will stop offering core processing at the end of the year.

"New Core will continue to develop its proprietary software, Single Source, and pursue its own strategy," Mark Klein, the president and chief executive of Rurban, said in an interview Friday. "RDSI under the (Rurban) umbrella will continue to market the services that they have core competence in."

Those include item processing, image exchange, network services and information technology consulting, Klein said, adding that it is exploring other core processing options.

A vendor's track record typically is a major factor in determining to migrate to a new core system, said Eric Weikart, a senior director with the bank consulting firm Cornerstone Advisors Inc. in Scottsdale, Ariz.

"We look at things like have they ever converted a bank from the core system that the bank is on" and the number of banks that are operating on the system in question, he said.

RDSI's struggles seem to be the result of both technical issues with Single Source and timing. Before announcing plans to join forces with New Core, RDSI was licensing a core system from Information Technology Inc., now Fiserv Inc., and selling it to its own clients.

In April 2009, RDSI entered a reseller license agreement with New Core to become the exclusive provider of its Single Source software and announced the merger plans.

Subsequently, Fiserv notified RDSI that it planned to terminate their license agreements and sued RDSI in U.S. District Court, accusing it of breach of contract.

The companies settled the suit in July 2009, agreeing to phase out the licensing agreement by Dec. 31, 2010. After that date, RDSI is no longer able to offer Fiserv's Premier core software system to clients. As a result, RDSI clients were forced to decide to migrate to the Single Source system by the end of this year, go to Fiserv directly to license its core system or seek an entirely new vendor.

In a statement provided by a Fiserv spokesman, the Brookfield, Wis., vendor said based on RDSI's plans and "our analysis of the effect those plans would have on Fiserv, we determined that the relationship between Fiserv and RDSI was no longer viable."

"It was determined that a suit was the best way to protect the interests of our clients and business at that point in time," the company said.

Most clients decided not to stay with RDSI but a handful did sign agreements to adopt Single Source, including several community banks in Ohio.

Messages left for executives at three of the banks were not returned as of deadline. An executive at a fourth declined to comment.

Klein declined to discuss the status of those agreements but said RDSI will not be offering the Single Source system to banks as planned.

The problems resulted in a $10 million pretax loss in the second quarter, including $8.6 million in impairment charges and writedowns of hardware, software and development costs, Rurban reported Thursday. Rurban also announced a significant management shuffle for RDSI, including the replacement of several board members and the appointment of a new president for the subsidiary.

In the case of Rurban's $650 million-asset State Bank and Trust, Klein said it encountered "gaps" when running the Single Source system that needed to be addressed and decided it made the most sense to revert back to the Fiserv software it previously used.

Klein would not go into detail about what the specific issues were, but in an SEC filing the company said "significant challenges" occurred "due to the fact that the Single Source core system is untested in a bank environment of the size and complexity of State Bank."

New Core already had a handful of agreements with banks to use Single Source before the merger plan announcement with RDSI, including at least one bank with $350 million of assets and 16 banking locations that had been running the software since February 2008, according to the filing.

A call and e-mail to New Core's president, John Aranowicz, was not returned as of deadline Monday.

Fiserv and other major core banking vendors have said interest in upgrading systems has increased this year as financial conditions for banks firm up. In recent years small startups have jumped into the fray, hoping to attract smaller banks with systems that aim to consolidate multiple functions often handled by separate programs that were bolted together, such as loan origination and Internet banking, onto a single technology platform.

While some of the systems have shown promise, experts say the risk of adopting such new programs are high because the providers may lack sufficient financial backing or have little to no experience in actually converting banks from a legacy system to a new one.

"The bank has to weigh the risk and do that risk analysis," CCG Catalyst's Schaus said. He said that when he is consulting with banks on technology projects, he recommends they include provisions in their contracts that grant them access to source code for new programs in the event that a company encounters problems.

Because of the potential for disruptions, just deciding whether to change core systems is often a long, drawn-out process.

"For smaller institutions, it can take on average about six months from the point of initially starting to put together the RFP and talking to the vendors and analyzing the different solutions and doing the needs assessment," said Christine Barry, a research director with Aite Group LLC in Boston.

The actual physical deployment of a new system can take multiple years depending on a bank's size and number of locations, she said.

10: AMERICAN BANKER - Regions Sets Gradual Course for Return to Profitability

American Banker    Friday, August 6, 2010

By Paul Davis

Executives of Regions Financial Corp. preached gradual change in describing their plans to make the company profitable again.

O.B. Grayson Hall, Regions' president and chief executive, and his lieutenants did not offer any sweeping solutions during presentations to analysts and investors Thursday. But they outlined a series of tactics they said will help the Birmingham, Ala., company make more loans and replace revenue threatened by regulatory reforms.

Hall, who said he was encouraged by better-than-expected second-quarter revenue, emphasized that it would take time to right the ship. "We need more than one quarter to make a statement," he said. Regions posted its fifth consecutive quarterly loss in the April-to-June period despite some promising signs.

The most insight from executives involved plans to alter Regions' commercial loan mix over the next two years and to attach strings to free checking.

John Asbury, who oversees commercial lending, predicted that Regions' commercial book would be evenly split between commercial real estate and commercial and industrial loans by December 2013. At June 30, CRE made up 60% of that portfolio. Asbury also said the company would strike more balance between owner-occupied CRE, which analysts generally see as more resilient to economic downturns, and investment properties.

The $135.3 billion-asset company plans to start offering short-term loans with a duration of three months or less, along with prepaid credit cards. It also plans to return to indirect auto lending through 500 dealerships by yearend.

John Owen, who handles consumer operations, said Regions is moving away from free checking. It raised the minimum balance and minimum level of monthly transactions in April, which would affect about 1.1 million customers. "The vast majority of those customers continue to be free," Hall said. "The hurdles are still really low."

Executives discussed specific markets they are targeting for growth, including Midwest markets that analysts have described as prime for divestiture. Keith Herron, a regional president, also discussed efforts to hire bankers in St. Louis, where the company has 4.5% deposit market share, and Indianapolis, where it holds 4% of area deposits.

11: AMERICAN BANKER - Want Paper? BofA Says Pay Up.

Bank Technology News   August 2010

By Daniel Wolfe

A quick read of the tea leaves surrounding one of Bank of America's latest initiatives suggests the bank prefers its customers avoid parchments of any kind.

The institution is charging some customers to receive their monthly statement in the mail, the industry's most aggressive move yet to encourage paperless banking. For now, the $8.95 monthly fee applies to just one type of account, and only in Georgia. But BofA plans to roll out the product in other markets soon as a replacement for its popular student checking account, which has no monthly fees when opened online.

While some banks might be reluctant to impose a fee for such a basic service, anything Bank of America does will draw followers. "When you have banks like BofA ... do something that's different, it's quite natural for the rest of the market to strongly consider and pursue that type of option," says Jacob Jegher, a senior analyst for the Boston market research firm Celent.

Though BofA would not be the first U.S. bank to nudge customers away from paper statements, it is the biggest to start charging a fee for them. The Charlotte company's new eBanking account is offered online to Georgia residents. It is pitched as a self-service account, and the monthly $8.95 fee is waived for people who agree to receive their statements only online and who do not visit a teller for any transactions that can be handled by an automated teller machine or online, such as balance inquiries and deposits.

A person familiar with Bank of America's plans says that the company is planning to replace its CampusEdge student account with eBanking in other markets in the near future. BofA spokeswoman Tara Burke said Wednesday that it is "testing a lot of products." She would not provide any details about the eBanking account.

Many banks encourage customers to shut off their monthly statements, though few have reported significant success.

Consumers often say they want the paper records to keep track of their finances and to document payments and other transactions, such as when checks clear. Jegher says some banks have had better results with the carrot approach-rewarding consumers for turning off paper-than with Bank of America's stick.

Toronto-Dominion Bank, for example, provides some services, including check images, for free to its paperless customers in Canada, but charges a per-item viewing fee to those who receive mailed statements. Other institutions to try to eliminate paper statements for some accounts include American Express, Frost National Bank and PNC.

Jegher says Bank of America's new account terms could indicate that the company is not satisfied with its efforts to persuade customers to shut off paper statements. "Clearly they have some room to grow."

Cathy Graeber, the founder of the consulting and research firm Swimming Upstream, says Bank of America is wise to pitch eBanking as a replacement for its student account for people who are already comfortable interacting online and might not have developed specific habits for managing their finances. The eBanking account "is, from a business standpoint, a very smart way to train new customers," Graeber said.

Graeber compared Bank of America's statement fee to First National Bank of Chicago's decision in 1995 to charge customers for visiting a teller, another fundamental banking service. Consumers were livid over the $3 teller fee, and First National dropped it from most accounts a year later.

However, Graeber says Bank of America might not get the same reception. "They have more channels and they're giving customers the choice" to perform the same activity without a teller or without a paper statement to avoid the fee, she says.

Nicole Sturgill, the research director for delivery channels at TowerGroup, says that by only attaching a fee to statements for a new account type, the bank could avoid the backlash it would face if it were to change the rules for existing accounts. She agrees that other banks are eager to move customers away from paper statements and will likely follow, but adds they are more apt to take their cue from PNC, which did not offer even the option of a paper statement.

12: ANNOUNCEMENTS - Chase to Open 22 Branches in Albertsons Stores in California

First branches open in Kern, San Diego, Riverside, Orange and Los Angeles Counties

Chase announced today it will open new full-service bank branches in 22 Albertsons stores in Southern and Central California this year. The first branches are now open in Kern, San Diego, Riverside, Orange and Los Angeles Counties as Chase expands to more than 800 branches in the state by yearend.

13: ANNOUNCEMENTS - Jack Henry & Associates Introduces…

…Online Financial Management (OFM) Solutions

MONETT, Mo., July 20, 2010  -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading provider of integrated technology solutions and data processing services for financial institutions, today announced two strategic partnerships that will support its bank and credit union customers with proven, functionally distinct online financial management (OFM) solutions. Jack Henry & Associates is now remarketing the FinanceWorks™ solution provided by Intuit Financial Services and the OurCashFlow solution provided by Lodo Software, Inc. Jack Henry & Associates also signed a remarketing agreement with CashEdge who provides the standard aggregation service for the OurCashFlow solution.

14: ANNOUNCEMENTS - New York Life's Top Ratings Affirmed…

…By All Four Major Rating Agencies

Agencies Cite Very Strong Capital and Earnings in Issuing Highest Ratings and Stable Outlook

NEW YORK, N.Y., July 15, 2010 -- New York Life Insurance Company, America's largest mutual life insurer, today announced that all four of the major ratings agencies have affirmed the company's highest possible ratings for financial strength with stable outlooks.  New York Life remains one of only three life insurers with the highest financial strength ratings from all four of the major rating agencies, out of more than 1,000 life insurers in the United States.  Further, the company is one of only two of the highest-rated life insurers with stable outlooks from all four of the ratings agencies.

15: ANNOUNCEMENTS - The Hartford Mutual Funds Reduces Fees on 36 Funds…

…including Institutional, Retirement and Retail Share Classes

Lower fees aim to make funds more competitive, more attractive to consultants and financial advisors

SIMSBURY, Conn.--(BUSINESS WIRE)--The Hartford Mutual Funds announces permanent mutual fund expense reductions effective July 1, 2010. The changes impact 36 funds covering institutional and retirement share classes as well as the retail share classes of six funds.

16: ANNOUNCEMENTS - U.S. Bancorp Announces Strategic Alliance with Nuveen Investment

Strategic Alliance to Include the Long-Term Asset Management Business of U.S. Bancorp's FAF Advisors

MINNEAPOLIS--(BUSINESS WIRE)--U.S. Bancorp (NYSE: USB) today announced that it will receive a 9.5 percent stake in Chicago-based Nuveen Investments and cash consideration in exchange for the long-term asset management business of FAF Advisors (FAF). FAF, an affiliate of U.S. Bancorp, is advisor to the First American Funds family of mutual funds. This transaction will add approximately $25 billion of long-term assets under management, which are currently managed by FAF Advisors, to Nuveen Asset Management, which manages $75 billion in municipal fixed income assets and serves as the advisor of the Nuveen funds. Upon completion of the transaction, Nuveen Investments, which currently manages $150 billion of assets across several high-quality affiliates, will manage a combined total of $175 billion in institutional and retail assets.

17: BANKINSURANCE.COM - Annuity and Life Insurance Sector Upgraded To Stable

NEWS IN BRIEF - JULY 19 - 25, 2010

The U.S. annuity and life insurance sector has earned a ratings upgrade to “stable” from “negative,” according to A.M. Best.  While the real estate sector remains troubled, unemployment rates are high, interest rates are low, consumer spending is muted, credit defaults are rising and the European debt crisis continues, A.M. Best said, trends pertaining to credit spreads, asset impairments, balance sheet and product derisking, access to capital and risk management are increasingly favorable.  Investment portfolios have recovered, and insurers are raising capital through debt and equity issuances and reducing their reliance on short-term funding.  This has resulted in a 20% plus increase in absolute capital for the industry overall, prompting the improved outlook to “stable,” A.M. Best said.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

18: BANKINSURANCE.COM - B of A’s Balboa Insurance Up For Sale

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

Charlotte, NC-based, $2.3 trillion-asset Bank of America Corp. (B of A) has put Irvine, CA-based Balboa Insurance Group up for sale.  B of A acquired the insurance group when it purchased Countrywide Financial Corp., its parent, in 2008.  In 2009, Balboa helped B of A generate $2.3 billion in insurance underwriting earnings, which comprised 3.67% of the company’s noninterest income, according to the Michael White-Prudential Bank Insurance Fee Income Report.  Bank of America Corporation (NC) earned $355.0 million in P&C underwriting net income in 2009, up 532.3% from $56.1 million in 2008.  B of A CEO Brian Moynihan said, however, “One of the reasons we’re getting rid of these non-core activities is a restructuring that not only has a value of capital, but also has a value of a more straightforward company.”  Balboa is a leading provider of forced-place creditor coverage on foreclosed and distressed homes and offers voluntary home, auto and life insurance products as well as reinsurance to mortgage guarantors, bloomburg.com reports.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

19: BANKINSURANCE.COM - Bank Annuity Fee Income Drops 20.7% in First Quarter

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

Annuity fee income earned by U.S. bank holding companies (BHCs) in the first quarter dropped 20.7% to $582.6 million, down from $734.5 million in first quarter 2009, and slid 6.8% from $624.8 million earned in fourth quarter 2009, according to the Michael White-ABIA Bank Annuity Fee Income Report.  About 40% (39.9%) of all large top-tier U.S. BHCs sold annuities in the first quarter, led by BHCs with over $10 billion in assets (72.7%) and trailed by BHCs with $500 million to $1 billion in assets (29.8%), the lowest participation rate among asset classes.  Among all BHCs, annuity commissions and fees comprised 10.2% of combined mutual fund and annuity fee income of $5.7 billion or 14.9% of combined insurance brokerage and annuity fee income of $3.9 billion.

BHCs with over $10 billion in assets generated 94% of all BHC annuity fee income earned during the quarter, despite recording a 21.4% drop in this revenue to $547.8 million, down from $697.1 million in first quarter 2010.  In contrast, annuity earnings among BHCs with $1-$10 billion in assets slipped only 3.2% to $29.7 million, down from $30.7 million, but comprised only 4.6% of all BHC annuity earnings in the quarter.  BHCs with $500 million to $1 billion in assets saw a similar annuity earnings drop to BHCs with over $10 billion in assets, as their annuity earnings skidded 23% to $5.15 million, down from $6.69 million in first quarter 2009.

San Francisco, CA-based, $1.2 trillion-asset Wells Fargo & Co. recorded the highest annuity earnings among all U.S. BHCs in the first quarter, posting a 4.52% decline in this revenue to $169 million.  New York City-based, $819.7 billion-asset Morgan Stanley ranked second, bolstered by a 121.6% spike in annuity earnings to $82 million.  New York City-based, $2.13 trillion-asset JPMorgan Chase ranked third, despite a 33.3% drop in annuity income to $60 million, and Charlotte, NC-based $2.3 trillion-asset Bank of America Corp. ranked fourth with a 60% tumble in annuity revenue to $44.5 million.  In contrast, Birmingham, AL-based, $137.3 billion-asset Regions Financial posted a 4.7% slide in annuity earnings to $24.3 million to rank fifth, and Cleveland, OH-based $94.3 billion-asset Key Corp. generated 6.62% growth in annuity fee income to $16.6 million to rank sixth.  The remaining top-ten producers recorded drops in annuity earnings, with Atlanta, GA-based, $171.8 billion-asset SunTrust Banks’ annuity revenue down 46.6% to $13.9 million; U.S. Bancorp’s down 40% to $12 million, Huntington Bancshares’ down 16.9% to $11.08 million and BB&T Corp.’s annuity earnings down 13.2% to $10.7 million, the  Michael White-ABIA Bank Annuity Fee Income Report reveals.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

20: BANKINSURANCE.COM - DC Appeals Court Panel Vacates SEC Indexed Annuity Rule 151A

NEWS IN BRIEF - JULY 19 - 25, 2010

A DC Circuit Court of Appeals three-judge panel has vacated Securities and Exchange Commission (SEC) Rule 151A, which classified indexed annuities as securities to be regulated by the SEC.  Judges David Sentelle, Douglas Ginsburg and Judith Rogers said the SEC “cannot justify a particular rule based solely on the assertion that the existence of a rule provides greater clarity to an area that remained unclear in the absence of any rule.”  This SEC assertion, the judges said, “is not helpful in assessing the effect Rule 151A has on competition.”  Old Mutual General Counsel Eric Marhoun, attorney for the insurer that asked for the hearing on SEC Rule 151A, said, “We are very pleased by the court’s action because it wipes the slate clean and clarifies that Rule 151A is null and void.”  To read the court’s ruling, click here.  To read the court’s revision of the July 2009 Appeals Court decision on Rule 151A, click here.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

21: BANKINSURANCE.COM - FDIC’s $250,000 Insurance Signs Ready For Posting

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

The Federal Deposit Insurance Corporation (FDIC) has sent out a letter encouraging all insured depository institutions to acquire and post the updated FDIC official sign which makes clear that FDIC insurance covers $250,000 per depositor, per each account ownership category, per insured depository institution.  These official signs may be acquired free of charge by clicking here.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

22: BANKINSURANCE.COM - Fixed Annuity Sales Tumble 61% at U.S. Banks

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

Fixed annuity sales at U.S. banks and other depository institutions tumbled 61% in the first quarter to $4.26 billion down from $10.92 billion in first quarter 2009, impacted by lower rate advantages over bank certificates of deposit (CDs), according to survey estimates compiled by Evanston, IL-based Beacon Research.  Houston, TX-based Western National Life led as the number one fixed annuity provider in the bank channel ($1.1 billion), followed by New York Life ($800.9 million) and trailed by Des Moines, IA-based Principal Financial Group ($246.7 million), Cincinnati, OH-based W & S Financial Group Distributors ($245.4 million) and Radnor, PA-based Lincoln Financial Group ($188.4 million).

Book annuities dominated fixed annuity products sold in the first quarter, replaced only in 8th place by an indexed annuity and in 10th place by an income annuity.  Regarding overall fixed annuity sales, Beacon Research CEO Jeremy Alexander said, “For the remainder of 2010, bank sales of fixed annuities will rise of their rate advantage over CDs grows.”  He added, “Certainly the demand for conservative investments for bank customers will continue to be strong.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

23: BANKINSURANCE.COM - Former Prudential PLC CEO Named AIA Head

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

New York City-based American International Group (AIG) has named former London-based Prudential plc CEO Mark Tucker as CEO of Hong Kong-based American International Insurance (AIA).  Prudential plc’s planned $35.5 billion acquisition of AIA under current Prudential CEO Tidjane Thiam fell apart in June when British regulators questioned Prudential’s capital position.  AIG said it now plans to seek approval to list AIA on the Hong Kong stock market and issue an initial public offering on the company before the end of 2010, Reuters reports.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

24: BANKINSURANCE.COM - LPL Financial To Expand Retirement Business...

...with NRP Acquisition

NEWS IN BRIEF - JULY 19 - 25, 2010

Boston, MA-based LPL Financial Holdings, parent of San Diego-based LPL Financial Corp., has agreed to acquire San Juan Capistrano, CA-based National Retirement Partners (NRP), which offers group and individual retirement plan products and services and comprehensive financial services to high net worth individuals.  NRP’s advisors and staff will join LPL Financial and form within the corporation LPL Financial Retirement Partners, a new division that will be led by current NRP President and CEO Bill Chetney.  LPL Financial expects the deal to “enhance its capabilities and presence” in the group retirement plan market, when it closes in the fourth quarter, pending regulatory approval.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

25: BANKINSURANCE.COM - Obama Signs Financial Reform Bill into Law,...

...FDIC’s Bair Sees Pluses

NEWS IN BRIEF - JULY 19 - 25, 2010

U.S. President Barack Obama has signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act passed earlier by both Houses of Congress.  Federal Deposit Insurance Corporation (FDIC) Chairman Sheila Bair said the legislation addresses what she views as the three key pillars needed for financial reform: resolution authority, systemic oversight and consumer protection.  The law, she said: (1) gives the FDIC receivership authority to close and liquidate systemic firms in an orderly manner; (2) creates a Systemic Risk Council charged with identifying and addressing emerging systemic risks; (3) gives regulators oversight over derivatives markets; (4) creates uniform consumer protection rules for both banks and non-bank financial firms; (5) strengthens capital requirements for the U.S. banking system, subjecting bank holding companies to the same standards as insured banks for Tier 1 capital; and (6) improves the FDIC’s ability to manage its Deposit Insurance Fund and build stronger reserves.

While Bair said, “no set of laws, no matter how enlightened, can forestall the emergence of a new financial crisis somewhere down the road,” she said the new legislation will “help limit the incentive and ability for financial institutions to take risks that put our economy at risk, … and it will give regulators the tools to contain the fallout from financial failures so that we never have to resort to a taxpayer bailout again.” For more information on the legislation, click here for commentary by the Independent Community Bankers of America (ICBA).   Click here for analysis prepared by Dechert LLP for the American Bankers Association (ABA).

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

26: BANKINSURANCE.COM - Retirement Replaces College as Prime Savings Goal

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

Savings for retirement (43%) has replaced saving for a child’s college education (41%) as a priority among adult Americans, according to a Country Financial survey.  Last year 47% prioritized saving for college while 41% looked to their retirement savings first.  Country Financial Vice President Keith Brannan said of the switch, “You can always borrow to pay for college, but you can’t borrow for retirement.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

27: BANKINSURANCE.COM - SEC Abandons Indexed Annuity Fight

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

Securities and Exchange Commission (SEC) Chairman Mary Schapiro said she will not revisit or rewrite an indexed annuity rule attempting to place indexed annuities under the purview of the SEC.  HR 4173, which was signed into law on July 21, classifies indexed annuities as insurance products to be regulated by state insurance regulators.

The Financial Planning Coalition (FPC) is unhappy with the newly legislated classification and regulatory oversight.  FPC Assistant Director for Government Relations said, “Under the present law, there may be some unsuitable sales.”  He added, “The legislation takes away the opportunity to present its case before the court,” BestWire reports.  Two weeks ago a three-judge panel threw out the SEC Indexed Annuity Rule.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

28: BANKINSURANCE.COM - SEC Adopts Changes to Investment Advisor Disclosure Document

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

The Securities and Exchange Commission (SEC) has adopted changes to Form ADV-Part 2, the principal disclosure document that SEC-registered investment advisors must provide their clients and prospective clients.  Under the new rules, which take effect 60 days after their publication in the Federal Register, the narrative brochures must be uniformly organized and disclose in plain English the advisor’s business practices, fees, methods of analysis, investment strategies, code of ethics, conflicts of interest and disciplinary information.  Brochure supplements must disclose in plain English the educational background, business experience and any disciplinary action regarding the employees who provide advisory services to clients.

The brochures must be delivered to prospective clients before or at the time they become clients, and advisors must provide clients with annual summaries of material changes to the brochures and create, provide or offer to provide clients with updated brochures.  All brochures must be filed electronically with the SEC, which will make them available to the public at its website.  To read the detailed description of the new rules, which SEC Chairman Mary Schapiro said “help transform the brochure into a plain English narrative that is well-suited to serve investors’ need,” click here.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

29: BANKINSURANCE.COM - SEC Proposes New Mutual Fund Marketing and Sales Rules

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

The Securities and Exchange Commission (SEC) has proposed new rules to replace current rules regarding the way mutual funds are marketed and sold to investors.  SEC Chairman Mary Schapiro said, “Many investors do not understand what 12b-1 fees are.  Our proposals would replace rule 12b-1 with new rules designed to enhance clarity, fairness and competition when investors buy mutual funds.”  The proposed rules, she said, limit fund sales charges, improve fee transparency, encourage retail price competition, and revise fund director oversight duties.

The proposed rules: (1) limit “ongoing sales charges” to the highest fee charged by the fund for shares with no ongoing sales charges; (2) allow funds to pay 0.25% per year out of their assets for advertising, sales compensation and services; (3) require funds to disclose “ongoing sales charges” and “marketing and service fees” in their prospectuses, shareholder reports and transaction confirmations, where the total sales charge rate must be displayed; (4) allow funds to sell shares through broker-dealers that determine their own competitive compensation rate and prevent funds sold in this manner from deducting other sales charges from fund assets; (5) eliminate the need for fund directors to approve fund distribution financing plans, since the rules set automatic limits on fund fees and charges; and (6) require directors to oversee sales charges and marketing and service fees as a general fiduciary duty.

The SEC is asking for commentary on its proposed rules regarding mutual fund distribution fees and disclosures within 90 days of their publication in the Federal Register.  To read the Proposed Rules, click here.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

30: BANKINSURANCE.COM - SunTrust to Sell Money Market Assets to Federated Investors

NEWS IN BRIEF - JULY 19 - 25, 2010

Atlanta, GA-based, $171.8 billion-asset SunTrust Banks has agreed to sell $17 billion in money market assets managed by SunTrust’s RidgeWorth Capital Management and its subsidiary StableRiver Capital Management to Pittsburgh, PA-based Federated Investors.  The money market assets will be transitioned into Federated money market mutual funds through a series of closings that will occur through the end of 2010, pending regulatory approvals.  Federated manages about $350 billion assets in its 137 funds.

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

31: BANKINSURANCE.COM - Treasury Names Walsh Acting Comptroller Of...

...The Currency Come August

NEWS IN BRIEF - JULY 26 - AUGUST 1, 2010

The Office of the Comptroller of the Currency (OCC) Chief of Staff John Walsh has been named to serve as Acting Comptroller of the Currency when Comptroller of the Currency John Dugan leaves that position in August.  Walsh joined the OCC in October 2005, and earlier served on the Senate Banking Committee and as an International Economist in the Treasury Department.  The Treasury Department, which named him to his new position, said, “Mr. Walsh’s experience in OCC management and the international arena made him a strong fit for this role … as the OCC moves forward to implement the Dodd-Frank legislation and works to establish new international bank capital standards.”

BankInsurance.com News in Brief' is provided each Thursday courtesy of Michael White Associates @ www.BankInsurance.com.

32: IT/SYSTEMS - BNY Mellon Corporate Trust Launches Innovative eVault Service

BNY Mellon Corporate Trust has introduced an eVault service that will allow it to receive, process and store electronic mortgage documents on behalf of its clients, significantly improving all stages in the life-cycle of a loan.

eVault is an industry-changing innovation that enables the company to provide certification, safekeeping and status reporting for electronically created and signed mortgage documents.  By transforming the current paper-based process into one that is completely electronic, eVault boosts efficiency, creates transparency by making it easier for participants to see data and exchange information and, since the need for couriers and manual entry have been eliminated, allows faster delivery to the secondary market.

LINK TO FULL ARTICLE:  http://www.mortgagemag.com/news/2010/0716/1000019582070.htm

33: IT/SYSTEMS - DTCC Releases New ISO Messages…

…To Help Automate Corporate Actions Processing

New York, July 26, 2010 -- The Depository Trust & Clearing Corporation (DTCC) today announced the release for public comment of the first drafts of its new corporate actions messages to support the processing of the entire lifecycle of a corporate action including entitlements, elections and payments. In 2009, DTCC processed more than $3 trillion in corporate actions, and the release of these draft messages is a key element in DTCC's plan to automate and streamline corporate actions processing.

DTCC, working closely with SWIFT, a global provider of secure financial messaging services and the ISO 20022 (International Organization for Standards) Registration Authority, has defined how it will implement new extensible corporate actions messages using the new ISO 20022 standard.  ISO 20022 provides the financial services industry with a common platform for the development of messages in a standardized syntax and defines a number of key elements used in messaging.  Additional data fields can be included by using what are called 'extensions.'  DTCC has defined what additional information will be included in these extensions and how they will be formatted for corporate actions messaging.

34: IT/SYSTEMS - U.S. Bank Introduces ScoreBoard, an Online Payment Management Tool

…for Small Business

U.S. Bank is helping small businesses make smarter decisions about the financial operations of their business with an online reporting tool, called ScoreBoard. The tool provides trending and reporting data that allows customers to monitor their own credit card spending and also compare their card sales data to industry trends.

ScoreBoard is an application available to U.S. Bank's small business credit cardholders and merchant customers who process credit, debit and electronic check transactions through U.S. Bank Merchant Services.

LINK TO FULL ARTICLE:  http://www.businesswire.com/news/home/20100722006087/en/U.S.-Bank-Introduces-ScoreBoard-Online-Payment-Management

35: K@W – Finance and Investment - Mid-life Crisis? Venture Capital Acts Its Age

The venture capital community is showing signs of middle age -- moving more slowly and cautiously than before, and hitting fewer home runs than it did in younger, leaner days. As a result, experts say, the sector is having trouble producing the robust performance long associated with it. This means investors need to look at venture capital, and its impact on their portfolios, in a new way.

LINK TO FULL ARTICLE:  http://knowledge.wharton.upenn.edu/article/2552.cfm

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

36: K@W – Will the Economic Recovery Run Out of Steam?

After a year of solid gains, the economic recovery is beginning to slow. Demand is trailing off as inventory levels have been restored and emergency stimulus measures withdrawn. Continued high unemployment and a downtick in housing are weighing on consumer confidence and spending. Add unexpected shocks from Europe and a slowdown in China, and forecasters are now ratcheting down their expectations for growth over the next year. While many still expect economic expansion to continue in the longer term, "we have definitely hit a soft patch," one Wharton faculty member notes.

LINK TO FULL ARTICLE:  http://knowledge.wharton.upenn.edu/article/2556.cfm

Reproduced with permission from Knowledge@Wharton (http://knowledge.wharton.upenn.edu), the online research and business analysis journal of the Wharton School of the University of Pennsylvania. All materials copyright of the Wharton School of the University of Pennsylvania. http://knowledge.wharton.upenn.edu

37: M&A - Hewitt Associates to Acquire...

...Leading U.S. Investment Advisory Firm, EnnisKnupp

Combination Makes Hewitt One of the Largest Investment Advisors in the U.S. and Significantly Strengthens Its Global Capabilities

LINCOLNSHIRE, Ill.--(BUSINESS WIRE)--Hewitt Associates, a global human resources consulting and outsourcing company, today announced it entered into a definitive agreement to acquire EnnisKnupp, a trusted and leading provider of investment advisory services to large institutional investors. This acquisition will significantly boost Hewitt's existing investment consulting capabilities in the U.S. and support its global growth plans. Under the terms of the agreement, Hewitt will acquire EnnisKnupp, which provides a wide range of investment consulting services to corporations, public funds, endowments, foundations, non-for-profits and Taft-Hartley plans. Once this transaction is complete, Hewitt will be one of the largest providers of investment consulting services in the U.S. and in the world, with nearly $3 trillion in assets under advisement.

38: MISCELLANEOUS - Bank of America Completes 160,000 Mortgage Modifications…

…in First Half of 2010, More Than 72,000 Through Government's Home Affordable Modification Program

Through the first half of 2010, Bank of America has completed mortgage modifications providing homeownership retention solutions for about 160,000 homeowners who face difficulties in making their monthly payments due to economic conditions. That brings the bank's total of modified home loans to 650,000 since January 2008.

The upcoming Home Affordable Modification Program (HAMP) performance report from the Department of Treasury is expected to show Bank of America continues to lead all servicers with more than 72,000 permanent HAMP modifications completed through June, up from 63,000 reported by Treasury the month before.

39: MISCELLANEOUS - Bank of America Earns $3.1 Billion in Second Quarter

Credit Quality Continues to Improve, Especially in Credit Card

Capital Ratios Strengthened

Investment Bank Moves up to No. 1 in U.S. Investment Banking Fees

Strong Asset Management Fees and Brokerage Income Drive Wealth Management

Average Retail Deposit Balances Rise 3 Percent

CHARLOTTE, N.C.--(BUSINESS WIRE)--Bank of America Corporation today reported second-quarter 2010 net income of $3.1 billion, compared to net income of $3.2 billion a year ago. After preferred dividends, earnings were $0.27 per diluted share, compared to $0.33 in the second quarter of 2009.

40: MISCELLANEOUS - Bank of America Extends $45.4 Billion in Loans to...

...Small and Medium - Sized Businesses in First Half of 2010

In its ongoing commitment to small and medium-sized businesses and their efforts to create jobs, Bank of America today announced that it loaned $45.4 billion to these businesses in the first half of 2010. This amount represents an increase in lending of nearly $9 billion over the same period last year.

Last December, Bank of America pledged to increase lending to small and medium-sized businesses by $5 billion in 2010. The company loaned $81.4 billion to those businesses in 2009, and this year it loaned $19.4 billion in the first quarter and more than $26 billion in the second quarter.

41: MISCELLANEOUS - Bolder Giving Lauds Giving Pledge Success…

…While Challenging Ordinary People to Also Take Leaps in Their Giving

Giving Pledge is for Billionaire Families, but Next Door Philanthropists Give Big Too reports Bolder Giving

New York, NY  8.04.2010 -- Generosity hit new heights today with 40 of the wealthiest U.S. families committing 50% or more of their assets to charity. But a broader story is that it's not just the wealthy that boldly pledge a remarkable percentage of their income or assets. Bolder Giving, reports that everyday philanthropists are making similarly extraordinary commitments to give in what NYU professor and Bolder Giving's director Jason Franklin calls a "rising tide of philanthropic activity".

42: MISCELLANEOUS - Four Troubling Things You Didn't Know About Financial Reform

The following is a post by John Wasik, a columnist for Reuters.com and author of "The Audacity of Help: Obama's Economic Plan and the Remaking of America." The opinions expressed are his own.

On its surface, the financial reform package looks tough on banks and Wall Street. Yet for individuals, the protections are much less pronounced and highly diluted.

43: MISCELANNEOUS - TIAA-CREF's Chief Investment Strategist Co-Authors Book…

…on Investing Using Endowment Model Approach

NEW YORK--(BUSINESS WIRE)--"The Endowment Model of Investing," a newly published book co-authored by TIAA-CREF's Chief Investment Strategist, Brett Hammond, discusses the ability of the endowment approach to help long term investors harness the power of diversification for portfolio risk management.

44: MISCELLANOUS - Top 10 Reasons to Choose a Credit Union Over a Bank…

…from CO-OP Financial Services

As Banks Struggle with Declining Reputations and Consumer Mistrust, More People are Selecting Credit Unions as Their Primary Financial Institution

RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--When it comes to personal financial security, a recent Zogby Interactive survey of consumers rated bankers less popular than politicians. But consumers don't have to rely on big banks as their primary financial institutions (PFI). There's an army of 8,000 credit unions representing 90 million members in the United States alone, ready to offer a convenient, secure alternative.

45: MISCELLANEOUS - Wells Fargo Private Bank Extends Elder Services Program…

…to East Coast

Provides Unique Wealth and Life Management Services for Clients from Florida to Connecticut

SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo Private Bank, a business within Wells Fargo & Co. (NYSE:WFC), has expanded its Elder Services program to the East Coast. The program is a premium wealth and life management solution of Wells Fargo Private Bank. It combines wealth management services with life management assistance to help aging adults with everything from loss of a spouse to mobility and health challenges as well as investment management, ultimately helping clients maintain their independence and quality of life.

46: PERSONNEL CHANGES - American Express Announces...

...Executive and Board of Directors Appointments

American Express Company today announced executive and Board of Directors appointments to help drive innovation, digital strategy, new online/mobile products and fee-based revenue streams. Daniel H. Schulman will join American Express from Sprint Nextel to head a new Enterprise Growth Group. Separately, American Express has elected Ted Leonsis to its Board of Directors and will name him Chairman of a new Innovation and Technology Committee of the Board.  

Daniel H. Schulman to join American Express from Sprint Nextel to Head Enterprise Growth Group

Daniel H. Schulman will join American Express Company next month as Group President -- Enterprise Growth, a newly created position and business unit.

47: PERSONNEL CHANGES - Harris Names Randall Raup Head of Retail Lending

Harris today announced Randall Raup as its new senior vice president and head of Retail Lending. Raup will be responsible for leading a team of professionals to deliver Harris' retail credit lending products and services, including mortgage, home equity, and consumer loans. He will be based out of Harris' Consumer Lending Center in Rolling Meadows.

A 23-year veteran of the banking industry, Raup has served in leadership roles at HSBC, Household International, and KPMG, LLP. As head of Harris' Retail Lending, Raup will be responsible for driving profitable direct consumer credit growth through business development, effective risk management, strategic market initiatives and exemplary customer service.

48: PERSONNEL CHANGES - HSBC Names Cards Executive Patrick Burke…

…as HSBC Finance CEO

Brian Hughes Promoted to Head of Card and Retail Services

METTAWA, Ill.--(Business Wire)-- Patrick "Pat" Burke has been appointed Chief Executive Officer (CEO) of HSBC Finance Corporation, to lead the U.S. consumer finance division. Burkes`s appointment was effective July 12, 2010. He succeeds Niall Booker in this role; Booker was recently named CEO of HSBC North America Holdings, Inc. with effect from August 1, 2010.

Burke, age 48, currently serves as Senior Executive Vice President and Chief Executive Officer of Card and Retail Services for HSBC Finance Corporation. He is responsible for the U.S. operation of the HSBC credit card and retail business, as well as providing significant leadership and strong collaboration with parent HSBC Holdings plc in building a global cards business.  

LINK TO FULL ARTICLE: http://insurancebroadcasting.com/insurance-news-072910-h7.htm

49: PRODUCTS - AXA Equitable Introduces Athena Indexed Universal Life Insurance

New Product Offers Lifetime Coverage with Protected Exposure to Equity-linked Growth Potential

NEW YORK, July 14 /PRNewswire-FirstCall/ -- AXA Equitable Life Insurance Company, a leading U.S. life insurer with a 150-year history, has introduced Athena Indexed Universal Life (Athena IUL), a new permanent life insurance policy with enhanced cash-value accumulation potential and downside protection. Athena IUL offers interest crediting linked to the movement of three major market indices (up to a cap) with a built-in guaranteed floor to help protect against index declines.

50: REGULATORY - Banks Laud Basel Compromise on Capital Rules as Stocks Surge

Banks worldwide applauded changes to proposed capital and liquidity standards that relaxed aspects of the rules and gave lenders as much as eight years to comply.

Lobbying groups in Europe and the U.S. praised the changes announced July 26 by the Basel Committee on Banking Supervision as steps in the right direction, while firms including Deutsche Bank AG and UBS AG welcomed the softening of rules proposed by the committee in December. European and Japanese bank stocks surged.

51: REGULATORY - Factbox: Long To-Do List Ahead For Financial Regulators

Below is a list of some of the key actions that need to be taken and a timeline for some of the key regulations.

REGULATORS

• Office of Thrift Supervision is shut down immediately and its authorities transferred to the Comptroller of the Currency.
• The heads of all the major financial regulators and the Treasury secretary will form the Financial Stability Oversight Council to monitor risk in the financial system. Effective immediately.
• Federal Deposit Insurance Corp has authority to liquidate or unwind all large troubled financial firms. Effective immediately.

52: REGULATORY - Factbox: Winners and Losers In The U.S. Financial Bill

Below are some of the likely winners and losers under the regulation bill:

CREDIT RATING AGENCIES - WIN AND LOSE

• Credit rating agencies -- such as Moody's Corp, Standard & Poor's and Fitch Ratings -- will be subject to greater liability.
• Rating agencies could be sued if they "recklessly" failed to review key information in developing a rating.

53: REGULATORY - Federal Agencies Issue Final Rules to Implement S.A.F.E. Act…

… Requirements for Registration of Mortgage Loan Originators

Federal agencies issued final rules today requiring residential mortgage loan originators who are employees of national and state banks, savings associations, Farm Credit System institutions, credit unions, and certain of their subsidiaries (agency-regulated institutions) to meet the registration requirements of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). The final rules are being issued by the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of Thrift Supervision, Farm Credit Administration, and National Credit Union Administration (the agencies).

54: REGULATORY - Financial Regulatory Rewrite Becomes Law

The Dodd-Frank bill is now the Dodd-Frank Act, after President Barack Obama signed the 2,300-page financial reform package into law.

Nearly two years after the events that began the dramatic failures and near-failures of the U.S. financial crisis, Congress and the White House have now set down their attempt to prevent another such crisis. And in his speech, Obama was quick to again raise the specter of American International Group Inc.'s financial products division. "Firms like AIG placed massive risky bets with borrowed money," he said, adding that this act will "put a stop to taxpayer bailouts, once and for all."

55: REGULATORY - New Financial Regulatory Law to Impact the Debt Collection Industry

Final Bill Includes Both Wins and Losses Says ACA International

(MINNEAPOLIS -- July 23, 2010) -- With the financial regulatory reform bill now signed into law by President Obama, the debt collection industry braces for the anticipated impact of this broad and complex legislation.

"We are disheartened by provisions in the financial regulatory reform bill that are all-inclusive without a clear understanding by lawmakers of the impact of their actions," said ACA International CEO Rozanne M. Andersen. "Collection agencies do not sell or offer financial products and services. In our opinion, all financial services industries are not created equal and to include the debt collection industry in this new law is overreaching."

56: REGULATORY - The Group of Governors and Heads of Supervision Reach Broad…

… Agreement on Basel Committee Capital and Liquidity Reform Package

The Group of Governors and Heads of Supervision, the oversight body of the Basel Committee on Banking Supervision, met on 26 July 2010 to review the Basel Committee's capital and liquidity reform package. Governors and Heads of Supervision are deeply committed to increase the quality, quantity, and international consistency of capital, to strengthen liquidity standards, to discourage excessive leverage and risk taking, and reduce procyclicality. Governors and Heads of Supervision reached broad agreement on the overall design of the capital and liquidity reform package. In particular, this includes the definition of capital, the treatment of counterparty credit risk, the leverage ratio, and the global liquidity standard. The Committee will finalize the regulatory buffers before the end of this year. The Governors and Heads of Supervision agreed to finalize the calibration and phase-in arrangements at their meeting in September. 

57: REGULATORY - The More We Read About Dodd-Frank, The Less We Like It

New horrors of the Dodd-Frank bill seem to come to light every day. The latest I've learned of is the concept of the "qualified mortgage" the bill codifies into law.   

58: REPORTS - Bank Annuity Fee Income Down 21% in 1Q 2010

Income earned from the sale of annuities at bank holding companies fell 20.7 percent to $582.6 million in first quarter 2010, down from $734.5 million in first quarter 2009, according to the Michael White-ABIA Bank Annuity Fee Income Report™.  First-quarter annuity commissions were 6.8 percent less than the $624.8 million earned in fourth quarter 2009.

Compiled by Michael White Associates and sponsored by American Bankers Insurance Association, the report measures and benchmarks the banking industry's performance in generating annuity fee income.  It is based on data from all 7,177 commercial and FDIC-supervised banks and 951 large top-tier bank holding companies operating on March 31, 2010.

59: RETIREMENT - Retirement Benefits for U.S. Workers Declined 19% between 1998…

…and 2008, Towers Watson Analysis Finds

Increase in Defined Contribution Benefits Partially Offsets Overall Decline

NEW YORK--(BUSINESS WIRE)--U.S. workers saw the value of their employer-sponsored retirement benefits -- as measured by percentage of pay -- decline by double-digit levels over a 10-year period ending in 2008, according to an analysis of eight major industries conducted by Towers Watson (NYSE, NASDAQ: TW), a global professional services company. A decrease in the value of defined benefit (DB) plans fueled the overall drop, although an increase in the value of defined contribution (DC) plans somewhat offset the total decline.

60: STUDIES - Banks Anti-Fraud Measures a Top Concern for U.S. Customers

Detica NetReveal® and Ipsos MORI survey illustrates account-fraud as top-of-mind for nearly 50%

MCLEAN, Va.--(BUSINESS WIRE)--According to a survey conducted by Detica NetReveal® and Ipsos MORI, 65 percent of U.S. respondents desire more insight into the preventative measures their banks have implemented for detecting and combating fraud.

"Customers are frequently unaware of the impact fraud can have on their lives until it happens to them"

The survey polled a representative sample of more than 1,000 U.S. residents between the ages of 18 and 64. Participants were asked to rate their concerns on a number of fraud-related retail banking issues, including personal fraud risk, previous fraud experience and perceived responsibility. Among the respondents, 48 percent indicated they were fairly or very concerned that their bank accounts could be at risk of fraud. A majority, 61 percent, felt the responsibility for protecting their accounts from fraud fell predominantly with their banks.

61: STUDIES - Majority of Americans Believe the U.S. Economy and...

...Their Personal Financial Situations Have "Bottomed Out"

Still, MetLife 2010 Study of the American Dream Finds Many Americans Feeling the Stress of Living Close to the Financial Edge

NEW YORK--(BUSINESS WIRE)--According to The 2010 MetLife Study of the American Dream, released today, a significant number of Americans believe the U.S. economy and their personal financial situations have "bottomed out." One in four (26%) of Americans believe it will be worse this year than last -- a significant decline from 44% who said the same in 2009. Forty-one percent believe the U.S. economy will stay the same and one-third (33%) of Americans believe it will be better this year than last year.

62: STUDIES - New Study Demonstrates Americans Are Outliving Retirement Savings...

...Money Resource Bills.com Outlines Eight Retirement

SAN MATEO, CA, Jul 27 (MARKET WIRE) --  A recent study by the Employee Benefit Research Institute (EBRI) found that nearly one-half of Baby Boomers and Generation Xers are at risk for not having enough savings to cover basic retirement living expenses(1). Personal finance resource Bills.com recommends creating more realistic and aggressive savings strategies to close this anticipated retirement cash gap.

63: STUDIES - With a Looming Shortage of Financial Advisors, Succession Planning…

…is a High Priority for Industry

Genworth Taps Matthew Matrisian for Expertise in Building Transferable Advisor Businesses

RICHMOND, Va., July 26 /PRNewswire-FirstCall/ -- A recent study reveals that nearly half of today's financial advisors plan to leave the industry in the next few years*. At the same time, fewer young professionals are entering the profession each year. With these factors in mind, Genworth Financial Wealth Management (GFWM), a subsidiary of Genworth Financial, Inc. (NYSE: GNW), has hired an industry expert to build out a suite of succession planning tools, resources and services and deliver them to advisors in person, through events and online.  

LINK TO FULL ARTICLE: http://www.insurancebroadcasting.com/insurance-news-072110-1.htm

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