WALTHAM, Mass., Nov. 3, 2011 /PRNewswire/ Alere Inc. (ALR), a global leader in enabling individuals to take charge of their health at home through the merger of rapid diagnostics and health management, announced today that it will attend the 2011 Credit Suisse Annual Health Care Conference being held November 9-11, 2011 at the Arizona Biltmore Resort amp; Spa.  Jon Russell, Vice President, Finance, will attend.  Mr. Russells presentation is scheduled for Wednesday, November 9, 2011 at 2:30 pm MDT (4:30 pm EST).

By developing new capabilities in near-patient diagnosis, monitoring and health management, Alere enables individuals to take charge of improving their health and quality of life at home.  Aleres global leading products and services, as well as its new product development efforts, focus on infectious disease, cardiology, oncology, toxicology and womens health.  Alere is headquartered in Waltham, Massachusetts.

SOURCE Alere Inc.

Nice guy, poor credit

An emerging trend is for companies to use credit scores as an employment screening tool, says Psych Central, but a new study to appear in the Journal of Applied Psychology shows no connection between poor credit scores and theft although some interesting connections were discovered. lsquo;With regards to personality and credit it makes sense that conscientiousness is related to good credit, but what was really interesting was that agreeableness was negatively related to your credit score, said Jeremy Bernerth, PhD, assistant professor at Louisiana State University. lsquo;That suggests easygoing individuals actually have worse credit scores than disagreeable and rude individuals, he said. Such congenial people might get themselves in trouble by co-signing loans for friends or family or taking out additional credit cards at the suggestion of store clerks, according to Bernerth.

Academic behaving badly

A prominent European psychologist has admitted committing scientific fraud by fabricating data in dozens of studies, saying he has lsquo;failed as a scientist, says United Press International. Diederik Stapel who was suspended from his post at Tilburg University in the Netherlands in September after three junior researchers alleged scientific misconduct had been responsible for a succession of attention-getting social psychology studies on topics including stereotyping and discrimination, and the effectiveness of advertising. The university released an interim report Monday concluding that dozens of papers, as well as 14 out of the 21 PhD theses Stapel had supervised, contained fabricated data.

Who gets to sleep in

For most Globe readers, the clock goes back this Sunday. A total of 74 countries observe daylight-saving time, says The Independent. Many countries near the equator dont bother changing their clocks as the length of daylight is consistent.

The malady lingers on

Recently, I have been researching a book on the ever-increasing pace of modern life, and have been staggered by how familiar some ancient diagnoses now seem, writes Robert Colvile for The Telegraph. In 1869, George Miller Beard identified a new disease, lsquo;neurasthenia, which resulted, he thought, from the exhaustion of the central nervous systems energy reserves. In his 1881 book, American Nervousness, he argued that the impact of the telegraph, railroads and steam power had caused an increase in neurasthenia, neuralgia, nervous dyspepsia, early tooth decay and premature baldness. lsquo;We are under constant strain, he wrote, lsquo;mostly unconscious, oftentimes in sleeping as well as in waking hours, to get somewhere or do something at a definite moment.

Watering blue jeans

From the cotton field in rural India to the local rag bin, says The New York Times, a typical pair of blue jeans consumes 919 gallons of water during its life cycle, Levi Strauss amp; Co. says, or enough to fill about 15 spa-size bathtubs. That includes the water that goes into irrigating the cotton crop, stitching the jeans together and washing them scores of times at home. The company wants to reduce that number any way it can, and not just to project environmental responsibility. It fears that water shortages caused by climate change may jeopardize the companys very existence in coming decades by making cotton too expensive or scarce. So to protect its bottom line, Levi Strauss has helped underwrite and champion a non-profit program that teaches farmers in India, Pakistan, Brazil and West and Central Africa the latest in irrigation and rainwater-capture techniques. It has introduced a brand featuring stone-washed denim smoothed with rocks but no water. It is sewing tags into all of its jeans urging customers to wash less and use only cold water.

Thought du jour

There is nothing more galling to angry people than the coolness of those on whom they wish to vent their spleen.

- Alexandre Dumas, pegrave;re (1802-70), French author

They may be occupying Wall Street and Westlake Park and all points in between.

But theyre also squeezed into the University Avenue branch of BECU to open new accounts.

Its a tight spot already just three desks, a managers office, an ATM and an online-banking kiosk.

For the past month, though, this credit union has been as crowded as a bus station, with everyone headed to the same place: Away from the big banks.

Its crazy, said branch manager Jennifer Hansen when I stopped in Thursday. She looked something like a new mother: ecstatic, exhausted and dealing with a new life for BECU, thanks to big banks bone-headed moves.

The last straw for consumers came recently, when Bank of America announced a $5 monthly fee for using its debit cards. Wells Fargo and JPMorgan Chase were experimenting with similar charges. Consumers balked, and the banks backpedaled, with Bank of America the last holdout.

But by then, it was too late. The credit-union lobbies had already started to fill.

Last month, BECUs University Avenue branch signed up 444 new members, who opened 1,221 accounts and loan applications.

Compare that with October 2010, when the same branch signed up 110 new members, who opened 303 accounts and loan applications.

Things have been so busy that member consultant Katie Rocha came in on her day off to help with the lunch rush.

Of the seven people waiting while I was there, four had come in to open new accounts.

Sommer-Rae Simonson, 23, has had an account at Bank of America since I was born.

That changed on Thursday, when she opened a BECU account on the recommendation of her friend, Jesse Lee, 24 a BECU member who would be getting a $25 credit for bringing her in.

I want to not have an account at BofA, Simonson said. They introduced the $5 monthly fee for using your debit card, and then canceled that. But it didnt matter to me.

I just wanted to get out.

Simonson, who is a fan of co-ops and local products and businesses, feels better about being with a local, member-owned credit union.

Theres a whole circle of giving back to Washington state and keeping your money local, she said. Now Im just going to write a personal check at Bank of America and bring it here.

And they wont charge her a fee for that. Right?

Supposedly.

There will be more like her on Saturday, which the Occupy organizers have declared Bank Transfer Day, when consumers are urged to pull their money out of for-profit banks, en masse.

Occupy Seattle will hold a rally at 11 am Saturday at Westlake Park, then a 12:30 pm march to the BECU branch at Second Avenue and Pine Street, where a group of people will go in and open accounts. The group will continue to other credit unions Sound (formerly Watermark), Seattle Metropolitan before gathering in front of for-profit bank branches.

Were here for those who are feeling frustrated and want a change and want something different, said BECU spokesman Todd Pietzsch, who said the branch would stay open as long as necessary on Saturday.

Tom Dobrowolsky, 38, a doctoral student at the University of Washington, was moving his money out of Wells Fargo on Thursday.

I feel like I constantly have to look out for a new fee, or that Im being dinged for something, he said. Theres all this red tape and some kind of scheming.

Would he say anything to Wells Fargo when he left?

I would say that its not a bad breakup, he said. But I just found something better.

Nicole Brodeurs column appears Tuesday and Friday. Reach her at 206-464-2334 or .

Shes happily hitched to Sound.

* Banks prepaid, credit card programs to expand

* Customers likely to see higher fees

By Joe Rauch

LAS VEGAS, Nov 3 (Reuters) – US banks that have lost debit
card processing revenue due to new caps on fees will likely push
customers into prepaid and credit cards and other types of account
fees, executives said on Thursday.

Executives for regional banks — including BBT Corp , SunTrust Banks Inc , Fifth Third Bancorp and Sovereign Bank — said at an industry conference
that there is no one solution for recovering as much as $8
billion in lost revenue under new caps on what banks can charge
merchants for processing debit card transactions.

Theres no one silver bullet, said Eduardo Tobon, CEO of
US cards and payments for Sovereign Bank, owned by Spains Banco
Santander .

But lenders will charge customers fees for their overall
banking accounts, rather than just debit card use, and push the
use of prepaid and credit cards not covered by new debit card
rules, executives said at the ATM, Debit and Prepaid Forum.

On Oct. 1 new rules capped what banks can charge merchants to
process debit card transactions at 21 cents, roughly half of the
previous industry average.

Known as interchange fees, the cap was a key provision of the
2010 Dodd-Frank financial reform law.

Several large banks responded by testing or introducing
monthly debit card fees on customers to recoup the lost
revenue.

But banks ended the programs over the last week amid an
intense backlash from customers, lawmakers, and US President
Barack Obama.

The industry has bristled at the response.

Whitney Stewart, SunTrusts senior vice president
overseeing the banks card programs, said the presidents
remarks were uncalled for, and said the banks debit card fee
program was going well until consumers became outraged at Bank of
America Corps proposed $5 monthly fee.

This week, SunTrust abandoned its debit card fee and provided
refunds to customers who were charged.

Instead of debit cards, executives said banks could adopt
prepaid cards and emphasize credit card use. Unlike debit cards,
those payment methods do not have their processing fees capped.

Jon Groch, Fifth Thirds senior vice president and head of
its card business, said the Cincinnati-based bank adopted a
card that can serve as a debit and credit card in part to work
around the new fee limits.

He also said the bank was examining revenue adjacencies,
like selling data to merchants on how their customers use cards.

Also, bank executives said the industry will likely adopt fees
for total accounts, rather than just for debit use.

If you think about it as just the card, you will lose,
said Scott Qualls, BBT senior vice president and manager of
the banks retail payments.

Qualls said interchange fees can only make up a part of the
fees that can be generated from a client account, and banks
should examine how customers use a banks services when
charging fees.

Several banks are adopting higher account fees or requiring
customers to maintain higher minimum balances to avoid monthly
maintenance fees.

NEW YORK, Nov 03, 2011 (BUSINESS WIRE) –
The Farm Credit System today reported combined net income of $1.008
billion and $2.994 billion for the three and nine months ended September
30, 2011, as compared with combined net income of $949 million and
$2.633 billion for the same periods last year.

“The Farm Credit System continued to achieve positive results during
2011 due, in part, to a favorable funding environment and stable credit
quality,” remarked Jamie B. Stewart, Jr., President and CEO of the
Federal Farm Credit Banks Funding Corporation. “We continue to have
access to well-priced debt, reflecting our strong income trend and
conservative balance sheet. The System’s profitability has allowed us to
further strengthen our capital levels. Capital as a percentage of assets
has grown from 14.5% at December 31, 2010 to 15.8% at September 30,
2011, supporting the System’s mission to provide for the financing needs
of creditworthy farmers and ranchers throughout the United States.”

Results of Operations

Third Quarter and Nine-Month 2011 Results Compared
to Third Quarter and Nine-Month 2010 Results

Combined net income increased $59 million and $361 million for the three
and nine months ended September 30, 2011, as compared with the same
periods in 2010. The increase for the three-month period resulted from
an increase in net interest income of $84 million and a decrease in the
provision for loan losses of $40 million, partially offset by increases
in net noninterest expense of $39 million and the provision for income
taxes of $26 million. The increase in net income for the nine-month
period resulted from an increase in net interest income of $373 million
and a decrease in the provision for loan losses of $122 million, offset,
in part, by increases in net noninterest expense of $88 million and the
provision for income taxes of $46 million.

Net interest income increased to $1.564 billion and $4.696 billion for
the three and nine months ended September 30, 2011, as compared with
$1.480 billion and $4.323 billion for the same periods of the prior
year. The increase in net interest income for the three- and nine-month
periods resulted primarily from a higher level of average earning
assets. Average earning assets increased $9.217 billion and $14.655
billion to $215.940 billion and $219.811 billion for the three and nine
months ended September 30, 2011, largely as a result of increases in
loan volume during the latter half of 2010.

The net interest margin increased four basis points to 2.90% and 2.85%
for the three and nine months ended September 30, 2011, as compared with
2.86% and 2.81% for the same periods of the prior year. Positively
impacting the net interest margin was an increase in the net interest
spread of six and seven basis points to 2.72% and 2.67% for the three
and nine months ended September 30, 2011, as compared with the net
interest spread of 2.66% and 2.60% for the same periods of 2010. The
increases in the net interest spread were primarily attributable to the
System Banks’ ability to more quickly reprice their outstanding debt in
the lower interest rate environment and to adjustments in loan pricing
to better reflect credit risk and market conditions in the current
agricultural economic environment. Since September 30, 2010, the Banks
have called debt totaling $52.8 billion, of which $42.3 billion was
called during the first nine months of 2011, and, as a result, the Banks
were able to lower their cost of funds relative to their assets, which
did not reprice as quickly. Over time, as interest rates change and as
assets prepay or reprice in a manner more consistent with historical
experience, the positive impact on the net interest spread that the
System has experienced over the last several years from calling
Systemwide Debt Securities will likely diminish.

The System recognized provisions for loan losses of $118 million and
$352 million for the three- and nine-month periods ended September 30,
2011, as compared with provisions for loan losses of $158 million and
$474 million for the three- and nine-month periods ended September 30,
2010. The decreases reflect a lower level of probable and estimable
losses recognized during the current periods. However, the loan
portfolio continues to be impacted by volatility in certain agricultural
sectors and weakness in the general U.S. economy. The provisions for
loan losses recorded during the first nine months of 2011 and 2010
reflected credit deterioration primarily in those agricultural sectors
that continue to be impacted by the volatility in commodity prices, such
as the livestock, ethanol and dairy sectors, as well as those sectors
affected by the overall downturn in the general U.S. economy, such as
forestry, nurseries and wineries. In addition, the provision for loan
losses in 2011 reflected more recent credit stress in the poultry sector
and a higher level of average loan volume and commitments to
agribusiness customers.

Net noninterest expense increased $39 million to $377 million for the
three-month period and increased $88 million to $1.153 billion for the
nine-month period ended September 30, 2011, as compared with the same
periods of the prior year. The increases were due to increases in
noninterest expense of $64 million and $160 million, partially offset by
increases in noninterest income of $25 million and $72 million for the
three- and nine-month periods ended September 30, 2011, as compared to
the corresponding periods of 2010. Noninterest expense for the three-
and nine-month periods ended September 30, 2011 reflected increased
salaries and employee benefits of $26 million and $83 million and
increased losses on other property owned of $16 million and $50 million,
as compared with the same periods of the prior year. The increases in
noninterest income for the three and nine months ended September 30,
2011 were primarily due to decreases in net other-than-temporary
impairment losses of $21 million and $28 million. Also contributing to
the increase in noninterest income for the nine month period were
increases in loan-related fee income of $15 million, in net gains on
derivative and other transactions of $16 million and in mineral income
of $9 million.

The provisions for income taxes were $61 million and $197 million for
the three and nine months ended September 30, 2011, as compared with $35
million and $151 million for the three and nine months ended September
30, 2010. The effective tax rate increased to 6.2% for the nine months
ended September 30, 2011 from 5.4% for the nine months ended September
30, 2010. The increase in the effective tax rate was principally due to
increased earnings at taxable System institutions.

Third Quarter 2011 Compared to Second Quarter 2011

Net income increased $26 million to $1.008 billion for the third quarter
of 2011, as compared with net income of $982 million for the second
quarter of 2011. The increase in net income was principally due to
decreases in the provision for loan losses of $8 million, in net
noninterest expense of $12 million and in the provision for income taxes
of $5 million.

Loan Portfolio Activity

Gross loans decreased $4.736 billion or 2.7% to $170.615 billion at
September 30, 2011, as compared with $175.351 billion at December 31,
2010, primarily due to a decrease in agribusiness loans offset, in part,
by an increase in real estate mortgage loans. The decrease in
agribusiness loans resulted from seasonal decreases in borrowings by
agribusiness customers. The increase in real estate mortgage loans was
primarily due to strong demand for cropland, particularly in the
mid-western part of the United States.

Credit Quality

Overall, the System’s credit quality improved during the first nine
months of 2011. Accruing loan volume was $167.544 billion at September
30, 2011, as compared with $172.122 billion at December 31, 2010.
Nonaccrual loans decreased $158 million to $3.071 billion at September
30, 2011, as compared with $3.229 billion at December 31, 2010. The
decrease in nonaccrual loans was primarily due to charge-offs and loan
repayments. At September 30, 2011, 52.2% of nonaccrual loans were
current as to principal and interest, as compared with 49.7% at December
31, 2010.

Nonperforming loans (which consist of nonaccrual loans, accruing
restructured loans, and accruing loans 90 days or more past due)
decreased $71 million to $3.315 billion at September 30, 2011, as
compared with $3.386 billion at December 31, 2010. Nonperforming loans
represented 1.94% of the System’s loans at September 30, 2011 and 1.93%
at December 31, 2010.

Other credit quality indicators further reflected the improvement in the
credit quality of the System’s loan portfolio during the first nine
months of 2011. Loans classified under the Farm Credit Administration’s
Uniform Loan Classification System as “acceptable” or “other assets
especially mentioned” as a percentage of loans and accrued interest
receivable were 95.8% at September 30, 2011 and 95.4% at December 31,
2010. Loan delinquencies (accruing loans 30 days or more past due) as a
percentage of accruing loans declined to 0.37% at September 30, 2011, as
compared with 0.49% at September 30, 2010.

The allowance for loan losses was $1.392 billion at September 30, 2011
and $1.447 billion at December 31, 2010. Net loan charge-offs of $332
million were recorded during the first nine months of 2011, as compared
with net loan charge-offs of $406 million for the first nine months of
2010. The charge-offs recognized for these periods primarily related to
loans made in the ethanol, livestock, dairy and poultry sectors, as well
as those sectors impacted by the overall downturn in the general U.S.
economy, such as forestry and nurseries. The allowance for loan losses
decreased an additional $75 million, primarily due to the transfer of
$59 million to the reserve for unfunded commitments during the nine
months ended September 30, 2011.

The allowance for loan losses as a percentage of total loans was 0.82%
and 0.83% at September 30, 2011 and December 31, 2010. The allowance for
loan losses was 42% of the System’s total nonperforming loans and 45% of
its nonaccrual loans at September 30, 2011, as compared with 43% and 45%
at December 31, 2010. Risk funds (total capital and the allowance for
loan losses), which is a measure of risk-bearing capacity, totaled
$37.331 billion at September 30, 2011 and $34.698 billion at December
31, 2010, and increased to 21.9% of System loans at September 30, 2011,
as compared with 19.8% at December 31, 2010.

Liquidity and Capital Resources

Cash and investments increased $2.138 billion to $48.420 billion at
September 30, 2011, as compared with $46.282 billion at December 31,
2010. The System’s liquidity position was 200 days at September 30,
2011, as compared with 173 days at December 31, 2010.

Total capital increased $2.688 billion during the first nine months of
2011 to $35.939 billion. The System’s surplus increased $2.306 billion
to $29.442 billion during the first nine months of 2011 due to net
income earned and retained. Total capital as a percentage of total
assets increased to 15.8% at September 30, 2011, as compared with 14.5%
at December 31, 2010.

About the Farm Credit System

The Farm Credit System is a federally chartered network of
borrower-owned lending institutions and related service organizations.
The System specializes in providing financing and related services to
borrowers in the agricultural and rural sectors through the five System
Banks and 84 affiliated Associations. Unlike commercial banks, the Banks
and Associations are not authorized to accept deposits and they
principally obtain their funds through the issuance of Systemwide Debt
Securities.

Additional Information

Copies of this press release, as well as other information regarding the
System, including its annual and quarterly information statements, are
available on the Federal Farm Credit Banks Funding Corporation’s website
at
www.farmcredit-ffcb.com .
For further information and copies of annual and quarterly information
statements, contact:

Daniel M. Bienz, Vice President
Financial Analysis and Disclosure
Federal Farm Credit Banks Funding Corporation
10 Exchange Place, Suite 1401
Jersey City, NJ 07302
(201) 200-8070
E-mail – DBienz@farmcredit-ffcb.com

----

Forward-Looking Statements

Any forward-looking statements in this press release are based on
current expectations and are subject to uncertainty and changes in
circumstances. Actual results may differ materially from expectations
due to a number of risks and uncertainties. More information about these
risks and uncertainties is contained in the System's annual and
quarterly information statements. The System undertakes no duty to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.

FARM CREDIT SYSTEM
COMBINED FINANCIAL STATEMENT DATA
(in millions)
STATEMENT OF CONDITION DATA
September 30, December 31,
2011 2010
------------------ ------------------
(unaudited)
Cash and investments $ 48,420 $ 46,282
Loans 170,615 175,351
Less: allowance for loan losses (1,392) (1,447)
------- ---- ------- ----
Net loans 169,223 173,904
------- -------
Accrued interest receivable 2,182 1,881
Other assets 4,513 4,680
Restricted assets 3,356 3,226
------- -------
Total assets $ 227,694 $ 229,973
==== ======= ==== =======
Systemwide Debt Securities:
Due within one year $ 66,460 $ 68,067
Due after one year 116,901 120,706
------- -------
Total Systemwide Debt Securities 183,361 188,773
Subordinated debt 1,650 1,650
Other bonds 1,195 802
Other liabilities 5,549 5,497
------- -------
Total liabilities 191,755 196,722
------- -------
Preferred stock 2,146 2,125
Capital stock 1,585 1,542
Additional paid-in-capital 401 393
Restricted capital 3,356 3,226
Accumulated other comprehensive loss (991) (1,171)
Surplus 29,442 27,136
------- -------
Total capital 35,939 33,251
------- -------
Total liabilities and capital $ 227,694 $ 229,973
==== ======= ==== =======

STATEMENT OF INCOME DATA
For the For the
Quarter Ended Nine Months Ended
September 30, September 30,
--------------------- ---------------------------
(unaudited)
2011 2010 2011 2010
----- ----- ------ ------
Interest income $ 2,205 $ 2,215 $ 6,696 $ 6,599
Interest expense (641) (735) (2,000) (2,276)
----- - ----- - ------ -- ------ --
Net interest income 1,564 1,480 4,696 4,323
Provision for loan losses (118) (158) (352) (474)
Net noninterest expense (377) (338) (1,153) (1,065)
----- - ----- - ------ -- ------ --
Income before income taxes 1,069 984 3,191 2,784
Provision for income taxes (61) (35) (197) (151)
----- - ----- - ------ -- ------ --
Net income $ 1,008 $ 949 $ 2,994 $ 2,633
= ===== = ===== == ====== == ======

FARM CREDIT SYSTEM
COMBINED FINANCIAL STATEMENT DATA
(in millions)
Statement of Condition Data - Five Quarter Trend
September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
------- ------- ------- ------- -------
(unaudited) (unaudited) (unaudited) (audited) (unaudited)
Cash and investments $ 48,420 $ 48,262 $ 46,010 $ 46,282 $ 42,900
Loans 170,615 173,798 177,599 175,351 168,484
Less: allowance for loan losses (1,392) (1,447) (1,456) (1,447) (1,403)
------- ---- ------- --- ------- --- ------- ---- ------- ----
Net loans 169,223 172,351 176,143 173,904 167,081
------- ------- ------- ------- -------
Accrued interest receivable 2,182 1,831 1,730 1,881 2,282
Other assets 4,513 4,234 4,155 4,680 5,089
Restricted assets 3,356 3,316 3,269 3,226 3,193
------- ------- ------- ------- -------
Total assets $ 227,694 $ 229,994 $ 231,307 $ 229,973 $ 220,545
==== ======= === ======= === ======= ==== ======= ==== =======
Systemwide Debt Securities:
Due within one year $ 66,460 $ 67,302 $ 67,968 $ 68,067 $ 64,737
Due after one year 116,901 119,994 121,673 120,706 114,365
------- ------- ------- ------- -------
Total Systemwide Debt
Securities 183,361 187,296 189,641 188,773 179,102
Subordinated debt 1,650 1,650 1,650 1,650 1,650
Other bonds 1,195 961 863 802 771
Other liabilities 5,549 5,024 5,037 5,497 5,975
------- ------- ------- ------- -------
Total liabilities 191,755 194,931 197,191 196,722 187,498
------- ------- ------- ------- -------
Preferred stock 2,146 2,123 2,129 2,125 2,143
Capital stock 1,585 1,553 1,522 1,542 1,525
Additional paid-in-capital 401 401 413 393 381
Restricted capital 3,356 3,316 3,269 3,226 3,193
Accumulated other
(991) (992) (1,146) (1,171) (1,065)
comprehensive loss
Surplus 29,442 28,662 27,929 27,136 26,870
------- ------- ------- ------- -------
Total capital 35,939 35,063 34,116 33,251 33,047
------- ------- ------- ------- -------
Total liabilities and capital $ 227,694 $ 229,994 $ 231,307 $ 229,973 $ 220,545
==== ======= === ======= === ======= ==== ======= ==== =======

Statement of Income Data - Five Quarter Trend (unaudited)
For the quarter ended: September 30, June 30, March 31, December 31, September 30,
2011 2011 2011 2010 2010
----- ----- ----- ----- -----
Interest income $ 2,205 $ 2,233 $ 2,258 $ 2,251 $ 2,215
Interest expense (641) (670) (689) (684) (735)
----- ---- ----- --- ----- --- ----- ---- ----- ----
Net interest income 1,564 1,563 1,569 1,567 1,480
Provision for loan losses (118) (126) (108) (193) (158)
Net noninterest expense (377) (389) (387) (445) (338)
----- ---- ----- --- ----- --- ----- ---- ----- ----
Income before income taxes 1,069 1,048 1,074 929 984
Provision for income taxes (61) (66) (70) (67) (35)
----- ---- ----- --- ----- --- ----- ---- ----- ----
Net income $ 1,008 $ 982 $ 1,004 $ 862 $ 949
==== ===== === ===== === ===== ==== ===== ==== =====

SOURCE: Federal Farm Credit Banks Funding Corporation

Federal Farm Credit Banks Funding Corporation
Daniel M. Bienz, Vice President
Financial Analysis and Disclosure
201-200-8070
DBienz@farmcredit-ffcb.com

Copyright Business Wire 2011

New technology usually comes with its share of consumer concerns. Its no surprise that urban legends and myths have proliferated about the new EMV chip credit cards. Here are a few of the most common, along with our expert opinion as to their veracity:

1. PINs dont matter.

True.

Researchers from the University of Cambridge discovered that a fraudster with access to the right equipment could fool a merchant terminal into thinking that any PIN is valid. In the United States, merchants wont be required to collect PINs. Overseas travelers will still have to comply with local customs, and that means setting up a PIN for your American credit card before traveling abroad.

2. Thieves can scan EMV credit cards from a distance.

False.

Late night infomercials hawk aluminum wallets and other gadgets that claim to block thieves from zapping your account details right from your purse or pocket. You dont need those to protect your credit card information. Unlike other, stronger chips based on RFID technology, EMV chips in contactless credit cards work only in very short range from payment terminals.

Even if a thief managed to nab your cards contents with a suitcase-sized mobile scanner, he or she would only have access to its raw codes, not your actual account details. Trying to use a copied code would result in a declined transaction and a fraud investigation from your card issuer.

3. Skimmers can copy EMV card data from a compromised payment terminal.

True, but unlikely.

When New York police busted a 111-member identity theft ring, they learned that the crew got most of their compromised credit card numbers from skimmers at restaurants and retail stores. By passing account authorizations directly to payment gateways without storing credit card numbers, merchants reduce the risk of internal theft of customer data.

4. EMV cards will make online shopping harder.

False.

Merchants still determine their own risk tolerance for online and phone orders, but a series of payment platform initiatives can help retailers make remote transactions even more convenient. Some banks have experimented with online cardholder verification using free USB readers that verify an attached EMV card. Visa and MasterCard have launched their own online verification services, while Google and PayPal intend to woo merchants with highly secure online wallet services.

Ready or not, EMV is coming

Merchants reluctant to update their point-of-sale equipment to read EMV will soon face the same economic incentive European businesses have known for years. In August, Visa set an October 2015 deadline for merchants to install EMV payment terminals or risk absorbing the cost of all disputed credit card transactions.

By the end of 2017, gas stations with pay at the pump terminals will have exhausted their industrys exemption. Within six years, American merchants, like their European counterparts, will have little or no reason to keep accepting credit cards with magnetic stripes.

Visa advances fraud prevention

Visa took an early stance favoring EMV credit cards overseas, and stands ready to advance new card technology in the United States. A Visa spokesperson familiar with the companys fraud prevention program told CardRatings.com, on condition of anonymity, that merchant and bank losses due to credit card fraud remain below 6 cents for every hundred dollars transacted on Visa cards.

Thanks to these investments in advanced fraud-fighting technologies, not only at the card level but also at the network level where transactions are analyzed for fraud risk, fraud remains at historic lows. Additionally, cardholders are protected from fraudulent Visa purchases with zero liability protection, adds the spokesperson.

Check your wallet

Because American banks mostly issue the contactless version of EMV-enabled cards, you might already have a next-generation payment device in your wallet. How can you tell? If you havent traveled outside the US recently, odds are you probably havent had occasion to do anything with your card other than swipe it through a reader. Thats because merchants are not yet obligated to install the new readers.

But its not only the merchants who are putting off wholesale adoption of the new cards. According to industry analysts at Corporate Insight, banks could be doing better at promoting the convenience of their new cards. However, leading national card issuers such as American Express, Chase, Citi, Discover and Wells Fargo have had EMV cards on the street for some time. As merchants get closer to their 2015 deadline, you can anticipate seeing a lot more education about how to wave and pay or tap and go.

The original article can be found at CardRatings.com.

LONDON (Reuters) – Oswald Gruebel could have entered history as the German who pulled both big Swiss banks back from the brink of a deep crisis. A $2.3 billion blow-up in a supposedly sleepy corner of UBSs trading floor meant he didnt.

Gruebel, who started his own career as a trader, stepped down from the helm of the bank on Saturday, shocked by the unauthorized deals over which 31-year old trader Kweku Adoboli has been charged with fraud in London.

That it was possible for one of our traders in London to inflict a multi-billion loss … shocked me, as it did everyone else, deeply, Gruebel said in a note to staff.

Kaspar Villiger, the banks chairman, said on Saturday that Ossie had still had the confidence of the board when quit, and that the decision had come only after several long conversations between the two men.

Now 67, Gruebel was brought back from retirement in 2009 when UBS was creaking under the weight of vast losses on toxic assets racked up during the credit crisis and a damaging scandal about bankers helping rich clients dodge taxes.

By then, he was a veteran best known for his tenure as head of UBSs arch-rival Credit Suisse, which used to be the accident-prone bank of the two but which he left in good shape in the hands of his protege Brady Dougan.

In 2007, Dougan inherited a bank that had sold its insurance unit and rid itself of a tradition of nasty surprises around quarterly earnings, and that is now seen as one of the few to have emerged strongly from the global crisis.

In contrast, UBS has given up the ambition for its investment bank to compete with the worlds strongest. Its new head Sergio Ermotti said it would in the future offer only those products its rich private banking clients needed.

A war orphan brought up by his grandparents, Gruebel was the archetypical trader, plunging straight into banking when he was just 17 by taking an apprenticeship at Deutsche Bank without having been to university.

He was also a control freak, according to a long profile in Switzerlands Tages-Anzeiger in 2010, who would personally call a trader if they had made an error so that they could not hide and know they were themselves responsible.

He was always a trader at heart. People were in awe of him, and he didnt suffer fools gladly, a former Credit Suisse colleague told Reuters earlier this year.

While heading Credit Suisse, he showed up on the trading floor almost daily and quizzed traders about what they were betting on.

The market is your friend, you always have to remember that, Gruebel told traders, adding that if you thought the market was your enemy you wouldnt do well.

He had a reputation for speeding down back roads in the UK in his sports car in the 1980s and bought a yellow Ferrari when he came to London in his thirties.

Sometimes gruff and known for a dry wit, he could equally well mesmerize a business audience when — speaking without notes — he would veer off the official program and start sounding off about where markets might be heading.

His love for the money-guzzling Formula One circuit took on an acerbic edge this week when the board meeting that ushered in his departure took place amid preparations for an event to entertain the banks clients at the glamorous racetrack in Singapore.

Winding down may not be so easy for the lover of Spanish wines — Ribera del Duero is a favorite — who told friends that he liked to think about markets to relax.

I get to do everything too little. The days are getting longer and the nights shorter. But it is fun, or else I would have given up a long time ago, he told the Swiss magazine Bilanz in an interview in May.

In September he indicated he hadnt given retirement much thought. He didnt have a garden, he said, and he would probably still spend time in front of the trading screens. And from time to time I will also read an exciting thriller.

But still. Dressed casually, Gruebel was seen strolling with his partner through the lobby of the Ritz-Carlton in Singapore late on Friday, amid the noise of wailing Formula One cars outside, and chuckled while chatting to a colleague.

He then disappeared to the lift — looking relieved.

(Additional reporting by Edward Taylor in Singapore, Martin de SaPinto and Emma Thomasson in Zurich and Jed Horowitz in New York; Editing by John Stonestreet)

WATERVILLE

September 24

Credit union robbery yields few new details
Police reviewing credit unions surveillance video

By Scott Monroe smonroe@mainetoday.com
Staff Writer

WATERVILLE — Few new details emerged Friday as police continued to investigate the Thursday armed robbery of a city credit union.

Waterville police did further specify that the suspect displayed a large hunting knife during the robbery. No one was injured during the robbery, which occurred about 3:30 pm at HealthFirst Federal Credit Union at 9 Quarry Road. Police said the robber escaped with an undisclosed amount of money.

Joseph Massey, Watervilles police chief, said that Detective David Caron has been poring through police department records to identify possible suspects with prior criminal records and is reviewing the credit unions surveillance video.

Massey said police also consulted with other area police agencies, such as those covering Augusta, Unity and Winslow, where unsolved bank robberies have occurred during the last two months.

It hasnt pointed us in any direction, Massey said late Friday afternoon. We all sat down once we cleared the scene last night and we brainstormed to come up with different scenarios on how he might have left and why.

The small credit union is surrounded by a vast network of wooded trails and is next to MaineGeneral Medical Centers Thayer Campus on North Street.

The robber was described as a white man, about 6 feet tall, weighing 145 to 160 pounds, with blue or hazel eyes, wearing a dark blue hooded sweatshirt, jeans and white sneakers. He had the teller put the money in a tan drawstring bag with indiscernible lettering on it, police said.

According to a video security photo released by police, the robber appeared to be wearing a dark cloth that covered most of his face, except for his eyes.

The robber, according to police dispatch logs, approached a woman teller who was by herself at the counter and told her, Put the money in the bag. Faster. That drawer, too.

Police said the robbery was over in a minute or so and that officers were scouring the area within minutes. They searched trails connecting the credit union with Home Depot and Walmart near Interstate 95, as well as nearby trails, parking lots and roads. Maine State Police tracking dog units arrived on scene as well, but the dogs couldnt pinpoint the robbers escape route.

It remains unclear whether the robber escaped on foot or in a vehicle, Massey said.

We tried to put ourselves in the position of someone at the outskirts of the city, Massey said. Would you walk out there? It doesnt seem likely, but we cant discount it. Unfortunately, once he left no one at the bank saw what way he went.

The bank robbery was the fourth in central Maine in the last two months, all of which remain unsolved. The Down East Credit Union at 58 School St. in Unity was robbed July 29, the Winslow Community Federal Credit Union at 12 Monument St. was robbed Aug. 11 and the Bangor Savings Bank on Capitol Street in Augusta was robbed Aug. 22.

Police asked that anyone with information on the robbery to call the Waterville Police Department at 680-4700.

Scott Monroe — 861-9239

smonroe@centralmaine.com

Contributed photo

Fifth Third Bank is offering a combined debit and credit card, called the DUO Card.

NEW YORK — Credit card issuers are offering some of their biggest sign-on bonuses ever.

As the competition to attract customers intensifies, banks are promising an extra helping of rewards when new customers spend a set amount in the first three months. The Chase Freedom card, for example, is offering $200 cash back for customers when customers spend $500. British Airways is offering 50,000 miles — the equivalent of two domestic flights — when customers spend $2,500. The Citi ThankYou Premier card offers $250 in gift cards after customers spend $1,500.

These are some of the biggest incentives weve ever seen, said Andrew Davidson of Mintel Comperemedia, which tracks card offers.

The generous deals come as banks step up their courtship of customers with good to excellent credit records. These cardholders are especially prized in uncertain economic times because they tend to spend big yet pose little risk of default.

So if youre looking for a card ahead of the holiday shopping season, its worth checking those offers in your mailbox.

Heres how to weigh your options:

REWARDS

As tempting as it is to simply cash in on the most generous sign-on bonus, you want to be sure youre getting a card that works best for you over the long haul. For many, that means finding the card with the richest rewards.

The good news is that rewards programs have become so commonplace that card issuers are trying to distinguish themselves by offering new or faster ways to rack up miles or points. But this has also made comparison shopping a bit trickier.

Take the most popular type of rewards card, the cash back card. A common rewards rate for many cards is 1 percent back for every $1 spent. But many card issuers now tout accelerated rewards on select spending categories.

As a point of reference, a study by Bankrate.com earlier this year found that more than a quarter of the cash back cards on the market offered higher payouts for spending at certain places, such as at gas stations or supermarkets. But the caps on those accelerated rewards can vary significantly, so be sure you understand exactly how much youll be able to earn when comparing cards.

For example, the Chase Freedom and Discover More cards both give 5 percent cash back on select categories that rotate every three months.

The Chase card caps its accelerated rewards in each three-month period to $1,500 in purchases, which translates to $75 cash back.

Discovers caps, by contrast, ranged from $300 and $800 in purchases this year, depending on the categories. That translates to a maximum of $15 to $40 cash back every three months. Even with the lower cap, however, you may prefer the cards schedule of accelerated rewards categories.

In other cases, there may be a spending threshold you have to meet before you start earning the advertised rewards rate. For example, cards may give back just 0.25 percent cash back until you spend at least $3,000.

Another key term to watch is the amount of time you have to redeem your rewards; about half of cash back cards impose an expiration date, according to the Bankrate.com study. Another 31 percent give cardholders five years to redeem rewards. In some cases, card issuers may also erase or withhold rewards when customers are late on a payment.

So in addition to having a clear sense of how much you could earn with a card, be realistic about your own spending and payment habits.

FEES amp; TERMS

The majority of rewards cards dont charge an annual fee. The exceptions are airline loyalty cards or rewards cards marketed to frequent travelers, which offer perks that customers may feel are worth paying for.

For $125 a year, for example, the Citi ThankYou Premier card offers an array of benefits designed to appeal to globe-trotters. The benefits include an accelerated 1.2 points for each dollar spent in certain categories year round and one complimentary domestic airline ticket for a companion each year. The card also waives the foreign transaction fee, which is usually 3 percent of any purchase made overseas.

But as dazzling as the bells and whistles on a card may sound, be realistic on how many of them youll end up using. Otherwise, you might be better off with a reward card that doesnt charge a fee.

The other types of cards that come with annual fees are co-branded airline or hotel rewards cards. The competition in this space has been heating up as well.