Sequester appears on track for Friday

February 28, 2013

Sequester appears on track for Friday

Barring an agreement between Congress and the White House, it appears that a sequestration of billions in federal budget dollars is set to commence Friday, and administration officials, lawmakers and finance experts say it will have a sobering economic impact.

With little time left to find an agreement – though Congress is no stranger to 11th-hour action – personal finance experts are urging consumers to look at their finances now and see what expenditures can be put off and what debt can be reduced until a better economic time.

Briefly, the spending cuts from this event would be split 50-50 between defense and the rest of federal government operations. Observers say this would reach beyond the direct recipients of federal dollars – the military, other federal workers, government contractors and recipients of federal recurring benefits, etc. – since it would reduce the dollars those individuals would have to spend on other services and products.

The Congressional Budget Office says a sequester would reduce real GDP by an estimated 0.5 percent.Federal Reserve Chairman Ben Bernanke warned of the impact of a sequester in testimony this week before the Senate Banking Committee and House Financial Services Committee.

NAFCU is reaching out to credit unions whose members would be affected by a sequester. It also remains in contact with defense and other federal offices on the sequester and on the continuing resolution that expires March 27.

The C.R., in place due to lack of agreement on 2013 appropriations, keeps federal operations funded at 2012 levels. If another C.R. follows, it could be used to also modify the distribution of spending cuts that could begin this Friday.

The White House has been in contact with constituents, industry and others on the sequester. NAFCU regulatory staff participated in an invitation-only call with the White House Tuesday. The president is also meeting with congressional leaders Friday.

A breakdown of how the sequester will unfold and affect particular states is on the White House website.

Related Resources

April 24, 2024 Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public

Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage

preferred partner

LendKey

Webinar

April 23, 2024 Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public

Monitoring the Latest Litigation Risks

Credits: NCCO, NCRM

Webinar

April 23, 2024 Add to Calendar 2024-04-23 09:00:00 2024-04-23 09:00:00 Operational Agility: Key Factors for Success in 2024 and Beyond Listen On: Key Takeaways: [02:34] A lot of people think of fraud losses and they are very mindful of what that means for their organization and their bottom line but we are thinking about it from a cost perspective beyond that. [06:38] When you should engage has a lot to do with how long it would take to potentially replace your current service provider. [10:45] Sidecar is not your primary core solution but it is something that allows you to go to market maybe under a different brand or different set of technology. [15:21] Focus on the tech stack maybe a little bit more than you used to. Enable that tech stack to allow you to be agile going forward and you will be able to focus a lot more on the member than running an IT shop Download SRM's Focus on Operational Agility to Achieve Success in 2024 Report Web NAFCU digital@nafcu.org America/New_York public

Newsroom