Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois Community Bankers Association of Illinois
 
     A Bi-Weekly News Bulletin for CBAI Members           January 13, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • TIB Buys IBB Bridge Bank
  • Community Bank Influence Grows
  • Obama to Propose Fee on Largest Banks
  • FDIC Seeks Comments on Compensation Structures
  • New York AG Seeks Big Bank Compensation Data
  • Too-Big-To-Fail Must End
  • Glass-Steagall Should Be Restored
  • Community Bank Advocate Tim Johnson Likely Next Senate Banking Chair of Senate Banking
  • Baker Market Update
  • Index Forecasts Slow Economic Growth in 2010
  • Regulators Release New IRR Advisory
  • Register for CBAI’s 26th Annual Capital Conference on February 24
  • Top 10 Fraud Predictions for 2010
  • Tips on Reducing Rising Check Costs
  • Understanding Social Media – Facebook, Linked In, and Twitter
  • REWARDChecking from BancVue Features CheckingFinder
  • CBAI Spring Group Meeting Schedule Announced
  • USDA Will Resurvey Farmers on Crop Yields
  • 2010 BKD Award for Excellence and Innovation in Community Banking: Entry Form Now Available
  • What is Corporate Account Takeover?
  • Golf Outing at CBAI’s 36th Annual Convention & Expo Announced
  • CBAI Compliance for Lenders Scheduled for January 25-27


  • TIB Buys IBB Bridge Bank

    The Texas Independent Bank (TIB) has announced its acquisition of the IBB Bridge Bank. The purchase includes the deposit relationships and operational services but not the loans, distressed assets, or trust services.
    See Release.

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    Community Bank Influence Grows

    The growing influence of the community banking lobby was featured this week in
    The Hill, a major political publication in Washington, which identified the ICBA campaign called, “My Community, My Bank.” In addition, this week an article in American Banker cited the increasing political clout of community banks and the growing popularity of community banks among the public. In an effort to bolster CBAI’s federal grassroots lobbying influence, David S. Schroeder was recently hired as Vice President of Federal Government Relations. See Release.

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    Obama to Propose Fee on Largest Banks

    President Obama is expected to impose a fee on more than 20 of the nation’s largest banks to raise about $120 billion over up to 10 years. The goal is to help recoup taxpayer bailout money and cut the federal budget deficit. CBAI and ICBA believe that community banks should be exempted from any new fees.
    More information.

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    FDIC Seeks Comments on Compensation Structures

    On January 12, 2010, the FDIC
    released a notice of proposed rulemaking to make employee compensation another factor in how it determines risk-based assessments. Although the proposal does not seek to limit compensation, it could require banks to pay higher assessments if they rely on potentially risky pay practices.

    The comment period will be 30 days after publication in the Federal Register. In a November comment letter, ICBA told the Federal Reserve it should focus any compensation guidance on the large, complex banks and not impose any new regulatory burdens on community banks. See FDIC Proposal. See ICBA Comment Letter.

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    New York AG Seeks Big Bank Compensation Data

    Earlier this week New York’s Attorney General Andrew Cuomo sent a
    letter to eight large banks that received TARP funds seeking information on their compensation practices. He noted that full disclosure and transparency are essential given the fact that the banks took on a new responsibility to taxpayers when they received TARP funds.

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    Too-Big-To-Fail Must End

    ICBA officials told the Financial Crisis Inquiry Commission today that TBTF banks and shadow banks were the main cause of the financial crisis, and community banks are aiding economic recovery through small business lending.
    More.

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    Glass-Steagall Should Be Restored

    CBAI and ICBA have long advocated that investment banking and commercial banking should be separate. When that restriction was repealed in 1999, it set off a wave of consolidation that contributed to the current financial crisis. Just last month, Senators Maria Cantwell and John McCain proposed a measure to revive vital sections of the Glass-Steagall Act that would once again separate commercial from investment banking. CBAI and ICBA will aggressively pursue adoption of this provision during 2010.
    More information.

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    Community Bank Advocate Tim Johnson Likely Next Senate Banking Chair of Senate Banking

    ACs a result of Senator Chris Dodd’s announcement that he will not seek re-election, the next Chairman of the U.S. Senate Banking Committee will likely be Senator Tim Johnson (D-South Dakota), who is a champion of community banks. CBAI and ICBA have long been supporters of Senator Johnson and would welcome his ascendancy to the chairmanship.
    More information.

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    Baker Market Update

    The Labor Department releases its December report, the Fed reports on its December meeting, the Treasury Department to auction this week, and
    more.

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    Index Forecasts Slow Economic Growth in 2010

    The USA Today/HIS Global Insight Economic Index for December forecasts slow growth in the first half of 2010 as the inventory cycle turns, credit conditions remain tight, and consumer spending loses the support of the government stimulus programs.
    More information.

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    Regulators Release New IRR Advisory

    On January 8, 2010, the federal banking agencies released an
    advisory that reminds banks of their expectations for managing interest-rate risk. In this current low-interest rate environment, the advisory cites the importance of maintaining effective policies and procedures regarding IRR exposures, especially when funding longer-term assets with short-term liabilities.

    The advisory encourages banks to use a variety of measurement methods that capture all material on and off-balance sheet positions and identify and quantify IRR exposure and potential problem areas.

    For more than 25 years, CBAI has recommended the portfolio management tools offered by The Baker Group. Hundreds of community bankers across America are satisfied Baker clients. For more information regarding Baker’s suite of management and compliance software solutions, contact Terry McElwee, Managing Director of The Baker Group, at 888/333-7704, or click here.

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    Register for CBAI’s 26th Annual Capital Conference on February 24

    Early Bird Registration is $150 per Bank, available through Friday, February 5, 2010. One registration fee covers the cost for ALL -- bring as many of your officers, directors, and employees as you can!!! All meal functions, transportation to and from the Capitol, and materials are included.

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    Top 10 Fraud Predictions for 2010

    For nine straight years, identity theft has topped the charts in number of consumer complaints according to the FTC. And, from looking at the 2010 predictions, the crime will continue to grow. As the new year begins, the time for a comprehensive identity theft solution for your account-holders is now.
    More.

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    Tips on Reducing Rising Check Costs

    One method of keeping control of price increases is to negotiate a price-increase cap. That's exactly what Community BancService Corporation, Inc. (CBSC) did on behalf of the 450 CBAI member banks that purchase check products from Harland Clarke. In 2008, CBSC negotiated a new check-printing agreement that provided CBAI members with minimum discounts on certain check products and marketing programs. It also included a four percent (4%) cap on all future price increases, and a commitment that prices can only increase in conjunction with a national price increase.

    "Considering that check printers have raised their check-product prices approximately eight percent (8%) in 2008 and 10% in 2009, a four percent (4%) price increase cap can provide a significant savings for member banks" said Pam Lowrance, CBSC vice president. Harland just announced an 11% increase effective April 1, 2010. "Our members receive price increase protection for the lives of their contracts," Lowrance said.

    For more information on the CBSC-Harland Check Printing Program, contact Pam Lowrance at 800/736-2224 or George Parthenios, Harland Clarke senior account executive at 815/670-6291.

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    Understanding Social Media – Facebook, Linked In, and Twitter

    This webinar is all about social media: the market opportunity, the basics of implementation, as well as the risk considerations about compliance. Interactive marketing staff will
    join compliance experts to help you understand the world of social media, how it can be a beneficial communication tool for your financial institution, and help get you started implementing a social media plan that works for your organization.

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    REWARDChecking from BancVue Features CheckingFinder

    Community banks that offer REWARDChecking from BancVue have access to
    CheckingFinder, a revolutionary search engine that allows customers to find, compare and open a free, high-interest checking account in minutes. CheckingFinder recently announced a set of new tools that make it even easier for accountholders to switch from the big-fee, high-minimum-balance megabanks to a community bank where they can start earning the interest they deserve.

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    CBAI Spring Group Meeting Schedule Announced

    CBAI leaders and executive staff are visiting 11 locales on the
    2010 Group Meeting tour. The objective of Group Meetings is to learn more about the needs of CBAI members, as well as share information on key community-banking issues and activities. Consisting of an optional golf outing meal, and informational meeting, Group Meetings also provide an excellent opportunity to catch up with friends and peers. Mark your calendars now for an enjoyable and informative event just for community bankers!

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    USDA Will Resurvey Farmers on Crop Yields

    Due to the late harvest in 2009, the USDA will re-contact respondents who previously reported acreage not yet harvested. The updates will be reported in its March 10 report.
    More.

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    2010 BKD Award for Excellence and Innovation in Community Banking: Entry Form Now Available

    What sets your bank apart? Maybe it’s an innovative product or service – perhaps it’s a community or philanthropic effort. Let CBAI know with a nomination for the BKD Award, co-sponsored by CBAI and BKD, LLP.

    Click here for Award brochure.
    Click here for Entry form.

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    What is Corporate Account Takeover?

    “Corporate Account Takeover” is when cyber-thieves gain control of a business’ bank account by stealing the business’ valid online banking credentials. Although there are several methods being employed to steal credentials, the most prevalent involves malware that infects a business’ computer workstations and laptops.

    This
    ACH Operations Bulletin provides information to Participating Depository Financial Institutions about “corporate account takeover” – a specific type of cyber-crime that is targeting small- and medium-sized business customers of financial institutions. This Bulletin provides guidance for financial institutions on steps that they and their business customers each can take to reduce their respective vulnerabilities to corporate account takeover.

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    Golf Outing at CBAI’s 36th Annual Convention & Expo Announced

    The annual golf outing at CBAI’s 36th Annual Convention & Expo has been scheduled for Thursday, September 30 at Chariot Run Golf Club in Laconia, IN. A short drive from the convention location in Louisville, KY, Chariot Run is an 18-hole equestrian-themed, championship links-style, golf course. Receiving four and one-half out of five stars, Chariot Run was named one of the 2008/09 “Best Places to Play” by Golf Digest. More information on this year’s convention will be available soon.

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    CBAI Compliance for Lenders Scheduled for January 25-27

    CBAI is pleased to offer
    “Compliance for Lenders” in three locations statewide next week. This one-day program provides an in-depth discussion of the current hot buttons of the financial regulators as related to compliance; up-to-date information on compliance issues and developments in bank regulations that relate to lending; and a review of the major substantive requirements of each compliance act or regulation that relate to lending. By attending this valuable program, lenders will gain knowledge about regulatory compliance issues and how to properly comply with them, and reduces the number of inadvertent compliance errors occur within the bank. Leading this seminar is Bill Elliott, senior consultant and manager of compliance with Young & Associates, Inc., Kent, Ohio.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 02/28/2010



    TELEPHONE/WEBCASTS THROUGH 02/28/2010




    OTHER CBAI EVENTS THROUGH 04/17/2010


    CBAI 2010 Capital Conference: Wednesday, February 24, Springfield Hilton Hotel

    28th Annual CBAI Washington Visitation: April 25-27, Renaissance Mayflower Hotel, Washington, D.C.


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