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CBAI ACTION ALERT - Please Sign BASEL III Petition Urging Community Bank Exemption!

August 27, 2012

The Independent Community Bankers of America (ICBA) is circulating a petition urging the federal banking regulators to exempt community banks from the proposed implementation of Basel III in the United States and to allow community banks to continue operating under Basel I capital regulations.

The joint proposed rules would extend stricter capital standards to banks of all sizes, not just the large and complex financial institutions that caused the financial crisis. This one-sized-fits-all regulatory approach represents a significant regulatory burden, could limit lending in main street communities, and could also threaten the very existence of many community banks.

Please follow this link and encourage all of your directors, employees, customers, and family members to sign the petition today!

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CBAI ACTION ALERT - Extend Basel III Comment Period

 

CBAI ACTION ALERT - Extend Basel III Comment Period

 

August 3, 2012

Dear Illinois Community Banker: CBAI urges you to contact your primary regulator to request a 90-day extension of the public comment period for the joint-agency Basel III capital standard proposal. We have attached a copy of CBAI's comment letter for you to use as a guide. CBAI strongly opposes subjecting community banks to the same capital standards as the nation's largest too-big-to-fail financial institutions. We are actively engaged with the various banking regulators in representing your interests and protecting your franchise value. Your cooperation is needed to extend the comment period which expires on September 7th. We recommend that your personalized comment letter be organized as follows.

1. Introduction
        o An introductory sentence should include your name, title, the name of your bank, and a statement that the Fed/FDIC/OCC is your primary regulator.
        o Next should be a brief description of your bank's location, asset size, and business model or area of concentration (i.e.,
        agriculture, small business lending, residential mortgage lending).
        o You should express your concern for the impact of the proposed NPRs on your bank’s capital position and thus your ability to serve your community.
        o The paragraph should conclude with your request for a 90-day extension to the comment period to properly assess the impact of the NPRs on your bank.

2. Body Paragraph
        o The body paragraph should detail the areas of Basel III that most concern you (based on the information you have read
         so far) and the difficulty in analyzing the impact of the proposed NPRs on your bank within the comment period that expires on September 7th.

3. Concluding Paragraph
        o The final paragraph should restate your request for a 90-day extension and provide your contact number and e-mail address for questions or additional information.

Please do not personally sign the letter, or reveal confidential data, as letters will be posted by the regulators for anyone to view. Use the e-signature convention /s/ instead of your actual signature.

Comments may be submitted within the body of your e-mail or as an attached letter. CBAI's letter was sent as a PDF attachment.

Please make sure to include the Docket or RIN Numbers in the subject line so the regulators can properly direct the comments to the appropriate area. Here are the detailed instructions for each of the three primary regulators:         • FDIC-supervised banks: Send comments to comments@FDIC.gov. Include “Basel III FDIC RIN 3064-AD95, RIN 3064-AD96, and RIN 3064-D97” in the subject line.        

 • Federal Reserve-supervised banks: Send comments to regs.comments@federalreserve.gov. Include “Basel III Docket No.1442” in the subject line.        

OCC-supervised national banks: Send comments to regs.comments@occ.treas.gov. Include “Basel III OCC Docket ID OCC-2012-0008, 0009, and 0010” in the subject line. Thank you very much! Click here to access CBAI’s comment letter.

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CBAI Action Alert - Urge Congress to Extend Full Transaction Account FDIC Insurance Coverage

February 16, 2012

During the depths of the financial crisis in 2008, the FDIC established full deposit insurance coverage for non-interest-bearing transaction accounts to support community bank liquidity and stability and to prevent the sudden withdrawal of bank deposits which could have disrupted the entire banking system. In 2010, Congress modified and extended this FDIC insurance coverage through 2012. Because the banking system and the economic recovery remain fragile, a continuation of this FDIC insurance coverage is necessary to avert the risk of an abrupt dislocation of deposits for community banks. If the expanded insurance coverage is not extended, insurance coverage will revert to $250,000.00. An important political point is that this insurance coverage is not a government bank bail-out and that FDIC insurance is fully paid for by banks with their deposit insurance premiums.

Congress must act to extend insurance coverage by year-end and community bankers must make their voices heard. Leaving this important issue unaddressed will create a disruptive uncertainty for community banks and result in an additional regulatory burden to draft contingency plans in the event of significant reductions in deposits.

Please click here to urge your members of Congress to support a five (5) year extension to the TAG program.

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CBAI ACTION ALERT - Tell Congress to Block Credit Union Expansion of Powers

March 16, 2012

Nearly 5,000 credit union representatives will be in Washington D.C. March 18th -24th to lobby for a drastic increase in their member business lending authority contained in H.R. 1418 and S. 2231. CBAI strongly urges Illinois community banks to contact their Members of Congress today to oppose this credit union plan. H.R 1418 and S. 2231 currently have 123 bipartisan co-sponsors in the House and 22 bipartisan co-sponsors in the Senate. Seventeen members of the Illinois delegation have not co-sponsored this legislation. The four House members who have co-sponsored are Congressman Bobby Rush (D-1st), Jesse Jackson (D-2nd), Dan Lipinski (D-3rd), and Congresswoman Jan Schakowsky (D-9th). To urge your Member of Congress to block the credit unions' unwarranted power grab CLICK HERE.

CLICK HERE to sign the online petition opposing credit unions' expansion of powers.

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CBAI Action Alert - Urge Congress to Extend Full Transaction Account FDIC Insurance Coverage

During the depths of the financial crisis in 2008, the FDIC established full deposit insurance coverage for non-interest-bearing transaction accounts to support community bank liquidity and stability and to prevent the sudden withdrawal of  bank deposits which could have disrupted the entire banking system.  In 2010, Congress modified and extended this FDIC insurance coverage through 2012.  Because the banking system and the economic recovery remain fragile, a continuation of this FDIC insurance coverage is necessary to avert the risk of an abrupt dislocation of deposits for community banks.  If the expanded insurance coverage is not extended, insurance coverage will revert to $250,000.00.  An important political point is that this insurance coverage is not a government bank bail-out and that FDIC insurance is fully paid for by banks with their deposit insurance premiums.

Congress must act to extend insurance coverage by year-end and community bankers must make their voices heard.  Leaving this important issue unaddressed will create a disruptive uncertainty for community banks and result in an additional regulatory burden to draft contingency plans in the event of significant reductions in deposits.   Please click here to urge your members of Congress to support a five (5) year extension to the TAG program.