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Southeastern Wisconsin financial service industry news
Tuesday, April 30, 2013
Neighborhood Stabilization fund replenished
April 30, 2013 10:00 AM
Five banks with a local presence have contributed $2.5 million in capital to a loan pool that will fund the City of Milwaukee’s Neighborhood Stabilization Program efforts.

The program, which is in its third round of financing, provides low interest loans to developers to refurbish and resell the city’s foreclosed homes. PNC Bank, Guaranty Bank, BMO Harris Bank, Deutsche Bank and U.S. Bank have contributed.

Minneapolis-based U.S. Bank contributed $500,000 to the newest fund, which was started in 2008 when the city received an American Recovery and Reinvestment Act grant. Milwaukee has since received two more grants to fund the NSP, totaling more than $34 million.

But there are 1,600 bank owned foreclosures and 1,100 city owned foreclosures in Milwaukee. So the program needed additional rehabilitation funds, said Maria Prioletta, redevelopment and special projects manager for the City of Milwaukee.

“NSP2 officially now in terms of our grant funds, we’ve spent all of them,” she said. “This gives us an ongoing source of funding or financing to continue our foreclosure activity.”

The additional capital will allow the NSP to continue its work in funding foreclosure rehabilitation. To date, the organization has helped fund the acquisition, construction or rehabilitation of 14,000 housing units.

The loan fund has a three year term, during which time the NSP plans to make 40 to 50 loans to qualified developers.

The loan pool expedites the redevelopment of foreclosed properties while spreading the risk among banks.

“It took a lot of cooperation and a lot of private-public collaboration to make it happen,” said Lisa Glover, executive vice president of community affairs at U.S. Bank. “We took a leadership role in helping the city just figure out how to do this.”

U.S. Bank launched a $1 million Community Restoration Fund in 2011 to dovetail with the NSP funding by providing short-term capital for foreclosure work in heavily affected neighborhoods. U.S. Bank has committed $15 million in mortgages to qualified borrowers in the NSP target area through 2015.

Milwaukee-based Maures Development Group LLC is putting the finishing touches on the first home refurbished with a loan from the fund.

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Cleary Gull completes recap
April 30, 2013 10:00 AM
Milwaukee-based investment banking firm Cleary Gull Inc. has advised Vanguard Graphics International LLC in its recapitalization by Kansas venture Capital Inc., Capital for Business, Jefferson Capital Partners and key members of management.

St. Paul, Minn.-based Vanguard is a prepress solutions provider for the short-run printing industry.

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U.S. Bank opens Walmart branch
April 30, 2013 10:00 AM
U.S. Bank has opened a new branch in the Walmart store at 4140 W. Greenfield Ave. in Milwaukee.

This is the fourth Walmart U.S. Bank branch in the Milwaukee area. The others are at the Greenfield Walmart, Waukesha South Walmart and the Milwaukee Silver Spring Drive Walmart.

The branch will be managed by Christopher Slayton. It will offer all the services of a regular branch and will be open from 9 a.m. to 7 p.m. on weekdays and 10 a.m. to 3 p.m. on weekends.

“We are pleased to offer this convenient banking option for our customers,” said Scott Beyer, vice president and district manager for U.S. Bank. “U.S. Bank has the largest in-store branch banking network in the country, with nearly one-third of all offices located in non-traditional locations including grocery stores, corporate campuses, universities, airports and hospitals.”

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FIS to close Milwaukee facility, lay off 300 employees
April 30, 2013 10:00 AM
Jacksonville, Fla.-based FIS notified the Wisconsin Department of Workforce Development that it will close its facility at 1515 N. Rivercenter Drive in Milwaukee and lay off about 301 employees.

The company, which was formed when Fidelity National Information Services Inc. acquired Brown Deer-based Metavante Technologies Inc. in 2009, is one of the world's largest providers of banking and payment technologies. It serves more than 14,000 financial institutions and businesses in more than 100 countries.

FIS plans to begin the lay off process on or after July 1, and continue eliminating positions in phases until it closes permanently on November 1.

According to the WARN notice, "The closure has been prompted by the company's decision to consolidate services with other FIS locations."

The 285 hourly and 16 salaried employees were notified of the closure yesterday. They are not represented by a union and none of them will have bumping rights to other positions.

Most of the jobs being eliminated are call center and customer service positions.

Employees will be paid earned wages and agreed upon benefits when terminated. Regular full-time employees will receive severance payments.

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GDP grew 2.5% in first quarter
April 30, 2013 10:00 AM
The U.S. gross domestic product grew at a 2.5 percent rate in the first quarter, up from 0.4 percent in the previous quarter, as consumer spending surged.

The U.S. Commerce Department said businesses restocked warehouses shelves at a faster clip and consumer spending posted the biggest gain in more than two years.

However, government spending sank 4.1 percent with another deep cut in defense spending, and imports surged in part because of a spike in oil prices.

The GDP fell short of most economists' expectations for the quarter.

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Baker Tilly merges with New York firm
April 30, 2013 10:00 AM
Chicago-based accounting, tax and advisory firm Baker Tilly Virchow Krause LLP will merge with New York-based Holtz Rubenstein Reminick LLP on June 1.

Baker Tilly has 11 locations, including five in Wisconsin. The company has an office in the U.S. Bank Center in downtown Milwaukee.

Holtz Rubenstein Reminick has offices in Manhattan and on Long Island. It will serve as the New York practice platform and help expand Baker Tilly's presence on the East Coast.
The combined company will be called Baker Tilly Virchow Krause LLP.

"We've been looking for the right merger partner in New York and we found that partner in Holtz Rubenstein Reminick," said Timothy Christen, chairman and CEO of Baker Tilly. "They have a strong reputation, considerable technical excellence and a record of success. The combination of these two well-respected firms will result in a $300+ million firm with more than 1,600 professionals, deepening our capabilities to better serve our clients."

Ed Offterdinger, executive managing partner at Baker Tilly, will lead the integration of the firms.
"We are very excited about this expansion of our east coast practice," Offterdinger said. "With anchor offices in (Washington, D.C.) and New York, the merger will allow us to better serve existing clients and pursue strategic growth opportunities in the highly active corridor that connects our nation's capital with the largest commercial market in the United States."

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CoreLogic Acquires Case-Shiller
April 30, 2013 10:45 AM
Irvine, Calif.-based CoreLogic, a residential property information, analytics and services provider, announced the acquisition of Case-Shiller from Brookfield-based Fiserv Inc.

In addition to the widely recognized Case-Shiller Indexes, CoreLogic will continue to offer its CoreLogic HPI, which represents the most geographically comprehensive and current set of home price indexes available.

The CoreLogic HPI and the Case-Shiller Indexes are complementary measures of home price trends utilizing the same baseline methodology of repeat home sales.

The Case-Shiller Indexes will be renamed the CoreLogic Case-Shiller Indexes. The S&P/Case-Shiller Home Price Indices will retain their brand name. The CoreLogic HPI, CoreLogic Case-Shiller Indexes, and S&P/Case-Shiller Home Price Indices reports will continue to be published and distributed on their customary time schedules and in their current formats.

David Stiff, chief economist for Case-Shiller, will continue to supervise the preparation of the CoreLogic Case-Shiller Indexes and comment on the findings of those indexes. Mark Fleming, chief economist for CoreLogic, will continue to supervise the preparation of the CoreLogic HPI reports and comment on the findings of those reports.

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Bill would create state-backed investment fund
April 30, 2013 10:00 AM
A bill that would create a state-leveraged “fund of funds” to invest in some of Wisconsin's most promising early stage companies was introduced last week by a bipartisan group of state legislators.

The Investment Capital legislation will set the stage for a $25 million state investment in a fund that would require a 2-to-1 private investment match over time.

The venture capital legislation is being proposed by Rep. Mike Kuglitsch (R-New Berlin), Assembly Majority Leader Scott Suder (R-Abbotsford), Senator Alberta Darling (R-River Hills), Rep. Fred Clark (D-Sauk City) and Senator Tim Cullen (D-Janesville). The legislation enjoys the support of Assembly Speaker Robin Vos (R-Rochester).

"Wisconsin has the basic ingredients needed to create a more vibrant startup economy – ideas, innovation, intellectual property and talent," Kuglitsch said. "What's needed now is more capital targeted to companies that are likely to grow and create jobs over time."
Modeled after similar funds in other states, the fund will spur company creation and job growth while building safeguards to protect the interests of taxpayers.

"This legislation will help make sure good ideas stay in Wisconsin," Darling said. "It also makes sure taxpayers are protected by providing accountability and transparency."

The fund would add to Wisconsin's successful Act 255 investor tax credit program, which was launched with bipartisan support in 2005, and which has sparked company and job creation in Wisconsin while serving as a national model.

"I am very pleased that this bill requires the non-partisan State of Wisconsin Investment Board play a majority role in selecting a funds manager," said Cullen. "I think SWIB's role will go a long way in ensuring a firewall between investment decisions and politics."

The bill follows up on actions by Gov. Scott Walker, who earmarked $25 million for a state fund-of-funds in his 2013-15 state budget bill and invited legislators to craft language to create the program. Governor Walker's budget also proposes to lift a cap on total angel investment tax credits available through the Act 255 program, which helped to create 1,500 Wisconsin jobs in 2010 and 2011 alone.

The Ewing Marion Kauffman Foundation, the world's largest foundation devoted to entrepreneurship, has reported that all net new jobs in the United States are created by young companies – usually five years old or younger. In its 2012 Index of Entrepreneurial Activity, Kauffman reported that entrepreneurial activity in Wisconsin remains relatively low compared to the U.S. average.

The targeted growth sectors of the new funds include agriculture, information technology, engineered products, advanced manufacturing and medical devices and imaging.
Wisconsin Manufacturers & Commerce (WMC) president and CEO Kurt Bauer said, "State assistance in venture capital is critical to growing our economy and jobs, particularly in the science and technology sectors. WMC will be working with lawmakers of both parties to pass venture capital legislation that fosters start-up businesses to help turn ideas and innovation into jobs."

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New hires and promotions
April 30, 2013 10:00 AM


Mortgage Guaranty Insurance Corporation has promoted Paul Spiroff to vice president assistant treasurer. Spiroff joined MGIC, the principal subsidiary of MGIC Investment Corporation, in 1987. He holds a bachelor’s in biochemistry from University of Wisconsin-Parkside and a master’s in economics from Marquette University. Spiroff most recently served as assistant treasurer and portfolio manager.

Foundations Bank has hired Amy Rydeski as vice president/controller. She is responsible for management of the bank’s accounting functions and financial and regulatory reporting. Rydeski has a bachelor’s and master’s from Marquette University.

Northern Trust has named Marybeth Cottrill a wealth strategist in the Milwaukee office. She will cultivate relationships with business executives, their families and foundations to help them attain financial goals. Cottrill has 19 years of financial services experience, most recently in a management and business development role at The PrivateBank.

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Money events
April 30, 2013 10:00 AM


Summit Credit Union will host a Free Homebuyers Seminar on Wednesday, May 1, from 6 to 8 p.m. at 2159 Miller Park Way in West Milwaukee. The seminar is open to the public, and will help people make a decision about whether buying a home is right for them. For more information or to register, visit http://www.summitcreditunion.com/community/events.html.

The Make A Difference-Wisconsin investment Conference will be held on Wednesday, May 8, at 2:30 p.m. at the Pfister Hotel, 424 E. Wisconsin Ave. in Milwaukee. Rick Rieder, managing director of New York-based global investment management firm BlackRock, will serve as keynote speaker. Three Milwaukee investment professionals will also provide market insights. Cost is $300 per person. For more information or to register, visit www.makeadifferencewisconsin.org.

Weiss Berzowski Brady LLP will host an Estate Planning Conference on Wednesday, June 5, from 3 to 5 p.m. at the Wisconsin Club, 900 W. Wisconsin Avenue in Milwaukee. The free event will include information about the most recent changes to estate and gift tax laws, drafting estate plans that take the American Taxpayer Relief Act into account and how life insurance fits into estate planning. It will be followed by a reception. For more information or to register, visit www.wbb-law.com by May 28.

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Register now for 2013 BizExpo
April 30, 2013 10:00 AM
BizTimes Media LLC is accepting registrations for business executives to attend the 2013 BizExpo, the largest business-to-business conference in the state.

This year's BizExpo will take place Thursday, May 16, at the Potawatomi Bingo Casino in Milwaukee.

The one-day event will feature 150 business exhibit booths, 20 business seminars and more than 3,000 attendees. To register to attend the BizExpo, visit www.biztimes.com/bizexpo. Admission to walk the BizExpo floor and attend the seminars is free, but pre-registration is required.

For a list of the business seminars, which range from sales and information technology (IT) to health care reform, website design and innovation, click here.

For a list of the companies with exhibit booths at the BizExpo, click here.

BizTimes readers also are invited to attend the premium events at the BizExpo. The conference will open with the Women in Business Breakfast, which will include a panel discussion featuring:


  • Deborah Allen, owner of Mac Allen Partnership.
  • Tonit Calaway, vice president of Harley-Davidson Inc. and president of The Harley-Davidson Foundation.
  • Jennifer Eastman, controller at Merchants Moving & Storage.
  • Cathy Jacobson, president and CEO of Froedtert Health.

The panel discussion will be moderated by Kimberly Kane, president and founder of Kane Communication Group.

The panelists will discuss an array of subjects relative to success, including innovation, team-building, marketing, leadership, mentorship and strategic vision. The panel discussion will be followed by the presentation of the BizTimes 2013 Woman Executive of the Year Award to Maria Monreal-Cameron, president and chief executive officer of the Hispanic Chamber of Commerce of Wisconsin (HCCW).

To register to attend the Women in Business Breakfast, visit www.biztimes.com/women.

The BizExpo will continue with the presentation of the BizTimes Bravo! Entrepreneur Awards and the I.Q. (Innovation Quotient) Awards Luncheon. The awards honor some of the most dynamic corporate leaders and companies in the region. The event will include a keynote conversation with entrepreneur and philanthropist Michael Cudahy, who will receive the BizTimes Lifetime Achievement Award. To register to attend the luncheon and view the impressive list of winners, visit www.biztimes.com/bravo.

The day's festivities will conclude with the BizExpo After Hours reception. To register to attend, visit www.biztimes.com/afterhours.

To register to attend all of the day's BizExpo activities, get a VIP pass by clicking here.

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Molly Newman This exclusive news bulletin is compiled by BizTimes Milwaukee reporter Molly Newman. This bulletin is published every Monday morning. Send manufacturing industry news and tips to molly.newman@biztimes.com or call her at (414) 336-7144.

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