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Credit Union Times

MAY 10, 2017 | VOL. 28 | NO. 16 | CUTIMES.COM

Taxi
Troubles
Deepen
PETER STROZNIAK

pstrozniak@cutimes.com

he New York City taxi industry dropped to a new low in March when the Taxi and Limousine Commission reported a medallion sold for $241,000.

The medallions — tin plaques affixed to yellow cabs giving operators the right to drive a NYC taxi — were purchased for $1 million or more in 2014 and 2013. But since the ridesharing app called Uber rolled into town, taxi medallions declined by 50% and more.

If taxi medallion values continue to drop and competitive pressures from Uber, Lyft, Gett and Via intensify, credit unions with taxi medallion loan portfolios and those that invested in taxi medallion participation loans will likely see their losses mount. Moreover, the potential for National Credit Union Share Insurance Fund losses and write-downs means the entire industry will be impacted.

According to the NCUA, the $2.9 billion in total taxi medallion loans represent about three tenths of 1% of the credit union’s overall lending of $869.1 billion. About $2 billion is carried on the balance sheets of seven credit unions and $900 million in participations loans were sold.

Marvin Umholtz, president/ CEO of Umholtz Strategic

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POLITICS

Credit Union PACs

Some 18 months before the 2018 House and Senate elections, credit union Political Action Committees are already filling the campaign coffers of congressional candidates.

“Early giving is always better than late money,” Trey Hawkins, CUNA’s vice president of political affairs, said.

A key NAFCU official agreed.

“The 2018 election cycle is in
full swing and providing support
to candidates is what our PAC is
built to do,” Dan O’Brien, NAF-
CU’s director of political affairs,
said. “We plan our PAC support
throughout the election cycle
and it allows us to get involved
early and make an impact.”
And the numbers confirm
those comments.

CULAC, the political arm of CUNA, had contributed more than $537,000 to candidates and related committees by the end of March, according to records on file with the Federal Election Commission. The committee had almost $721,000 on hand on March 31.

NAFCU’s political arm has been active as well, contributing more than $94,000 to federal candidates and PACs by the end of March. The association’s PAC had more than $386,000 on hand on March 31.

The two committees are look-
ing to match their 2016 success
rate, when some 97% of the can-
didates supported by the two
committees were elected
housands of American
companies including
credit unions that do
business with Euro-
pean customers need to reckon
with EU’s General Data Protection
Regulation, which goes into full
effect a year from now.

The GDPR changes the han-
dling of personal and corporate
data particularly in terms of per-
sonally identifiable information.

The regulation, slated for a May 25, 2018 rollout, already weighs heavily on the European business community, but come as a surprise to many U.S.-based enterprises.

Nevertheless, the financial ser-
vices industry is beginning to
evaluate how to tackle the incom-
ing data protection regulation
because many expect financial-
institutions to wear the biggest
bull’s-eyes when GDPR finally
comes into play. Financial insti-
tutions have a little over a year to
come up with a comprehensive
approach and plan for managing
and securing European consumer
data.
“If you are a credit union in the
U.S. you are likely going to have to
comply with this law if you have
any members who moved to Eu-
rope or live in Europe.” Michael S.
Edwards, vice president and gen-
eral counsel for the World Council
of Credit Unions, said.
TECHNOLOGY

Yes, EU Data Regs Will Impact CUs

ROY URRICO rurrico@cutimes.com

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