March 06, 2020

4 things CU leaders need to know

regulationNAFCU's widely-read NAFCU Today is credit union leaders' go-to source for the latest on issues impacting the credit union industry. For those short on time, here's a roundup of this week's top need-to-know news bits:

What's new with CECL?

The Financial Accounting Standards Board (FASB) is set to meet next week to discuss the current expected credit loss (CECL) standard. According to its agenda, the board has received two technical inquiries related to CECL implementation that it will discuss, and it will also give an update on the CECL workshops it has hosted throughout the past year.

NAFCU is leading efforts to obtain more relief and guidance for credit unions under CECL and had requested the NCUA consolidate all official information related to CECL in a single source. The NCUA at its February board meeting – where it also finalized the interagency policy statement – indicated it would create a dedicated webpage with more guidance for credit unions. The website is expected to be finished by the end of the month and will include links to FASB materials, more on the interagency policy statement, and webinars.

T-Mobile, J. Crew customers should monitor accounts…

T-Mobile announced this week that a "sophisticated attack" against its email vendor led to unauthorized access to some employee email accounts, which potentially exposed customer account information. In a notice to consumers, the company says names, addresses, Social Security numbers, financial account information, government identification numbers, phone numbers, and billing and account information could have been accessed as a result.

Clothing company J. Crew also revealed this week it experienced a data breach in April 2019. The company explained in a filing with the California attorney general that an unknown number of customers' online accounts were hacked and potentially exposed some card data stored in those accounts and billing addresses. The company believes the hacker accessed the accounts through credential stuffing, which takes already exposed usernames and passwords and tries to match them to other websites.

Wells Fargo feels wrath of Waters

House Financial Services Committee Chairwoman Maxine Waters, D-Calif., released an investigative report Wednesday looking into consumer abuses and compliance breakdowns at Wells Fargo. Waters described the big bank as "reckless…with an ineffective board and management that has exhibited an egregious pattern of consumer abuses." Following the reports release, Waters called on the bank's top board members to resign for having "clear dereliction of their duty."

The committee next week is set to hold two hearings focused on Wells Fargo's abuses and lack of oversight; the bank was recently fined $3 billion for its fraudulent account scandal.

And one feel-good story

In case you missed it, Make-A-Wish of Central and Northern Florida and Orlando Credit Union teamed up to make Wish Kid Gaige feel like a superhero as he worked with the Orange County Sheriff's Office to stop a "bank heist" in progress. Watch Gaige catch the bad guys here!