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 14, 2009 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • State Legislature Approves Fund Sweeps Settlement Legislation
  • TARP Term Sheet for S-Corps Available Today
  • CBAI Supports ICBA Proposals for Economic Recovery
  • CBAI Education Catalog: Meeting Challenges in Unchartered Waters
  • ICBA to Congress: Consider Community Banks in Economic Recovery
  • Bernanke Reiterates Too-Big-To-Fail Problem
  • CBAI Responds to Senator Durbin’s Citigroup-backed Proposal
  • Citigroup May Sell Certain Assets and Downsize
  • Obama Urges TARP Funds for Community Banks
  • Long-Term Mortgage Rates Fall To Another New Low
  • Data Breaches Up 47% in 2008
  • Fannie and Freddie Extend Foreclosure Sale and Eviction Suspension
  • Rural Mainstreet Bankers Report Agricultural Pullback
  • Chicago Fed Symposium: Economic Outlook Weak
  • Baker Market Update
  • Peter Leyden Named CBAI Convention Keynote Speaker
  • Community Banking Week in Illinois Dates Announced
  • ICBA Makes Available Ads to Promote Community Banking
  • Expand Your Knowledge on Key IRA Issues


  • State Legislature Approves Fund Sweeps Settlement Legislation

    More than four years after obtaining an injunction preventing the Governor from sweeping funds out of the state bank examination funds, CBAI and the other plaintiffs gained a major victory yesterday when the state legislature approved legislation to implement a negotiated settlement. Once signed by the Governor, eligible state banks will receive refunds totaling more than $15 million. The legislation also contains a mortgage foreclosure provision that was required to pass the bill.
    More information.

    Back to top

    TARP Term Sheet for S-Corps Available Today

    The Treasury has
    announced that the TARP term sheet for Subchapter S Corporations will be posted on its web site today. The application period will be open for 30 days. CBAI will continue to urge Treasury to release the term sheet for mutual institutions.

    Back to top

    CBAI Supports ICBA Proposals for Economic Recovery

    ICBA has
    announced several proposals intended to foster economic recovery that CBAI also supports. They include provisions for taxpayers, homeowners, small businesses, communities, and banks.

    Back to top

    CBAI Education Catalog: Meeting Challenges in Unchartered Waters

    CBAI is pleased to present its
    2009 Education Catalog. One-day seminars and conferences remain at the core of CBAI’s professional-development program. Designed for community bankers by community bankers, these seminars are led by experts in their fields; most have hands-on community banking experience and utilize a variety of approaches to keep learning at its highest. In addition to the knowledge gained at these programs, instructors provide user-friendly manuals and tools that can be taken back to the bank for immediate use and sharing with other staff members. A brief description of each seminar, school, institute, and training program that has been scheduled is contained in this catalog.

    Back to top

    ICBA to Congress: Consider Community Banks in Economic Recovery

    As the 111th Congress convened last week, ICBA once again has taken the lead in advocating for the nation’s community banks. In a recent
    statement, ICBA President and CEO Cam Fine asked lawmakers to keep community banks in mind as they consider various economic recovery proposals. Fine addressed specific issues such as regulatory fairness, financial restructuring and providing community banks access to TARP funding.

    Noting that community banks stand ready to help with recovery efforts and that they did not have a hand in creating the current problems, Fine said, “At a minimum, Congress should end financial policies that allowed for the creation of a handful of financial institutions whose sheer size has held the taxpayer hostage and threatened the very foundations of our nation’s economy.”

    Back to top

    Bernanke Reiterates Too-Big-To-Fail Problem

    Fed Chairman Ben Bernanke, in a
    lecture on January 13 at the London School of Economics, emphasized the need to address the problem of financial institutions that are deemed “too big to fail.” He said, “It is unacceptable that large firms that the government is now compelled to support to preserve financial stability were among the greatest risk-takers during the boom period. The existence of too-big-to-fail firms also violates the presumption of a level playing field among financial institutions. In the future, financial firms of any type whose failure would pose a systemic risk must accept especially close regulatory scrutiny of their risk-taking.” CBAI and ICBA have encouraged Congress to break up the unwieldy giants so they don’t pose a systemic risk.

    Back to top

    CBAI Responds to Senator Durbin’s Citigroup-backed Proposal

    On January 6th, Senator Dick Durbin introduced legislation in the U. S. Senate that would allow bankruptcy judges to reform the terms of residential mortgage contracts. If enacted, judges would be able to “cram down” the principal owed to match the current market value of the home, change the term of the note to allow the borrower to make smaller monthly payments over an extended period of time, replace variable interest rates with a fixed rate intended to make payments more affordable, and waive any prepayment penalties.

    Two days after the introduction of Senator Durbin’s bill, Citigroup announced its support for a modified version of the legislation. Citigroup’s support was heralded by Senator Durbin and others in Congress as a sign of Citigroup’s leadership and cooperative spirit on this issue. CBAI has now responded to Senator Durbin, advising Illinois’ senior senator that Citigroup is not representative of the interests of community banks and that he should be looking to community bankers, to CBAI and to the Independent Community Bankers of America for “Main Street” guidance regarding mortgage foreclosure proposals. To read CBAI’s letter to Senator Durbin,
    click here.

    Back to top

    Citigroup May Sell Certain Assets and Downsize

    Reports that Citigroup is selling controlling interest in its Smith Barney brokerage division to Morgan Stanley has triggered
    speculation that the banking giant will also sell other assets after reporting a fourth quarter loss of $3.8 billion and $20 billion in losses for the year. Now that the U.S. government has a significant ownership stake in the company and has provided loan guarantees, its survival may depend on selling off assets such as certain international operations. Just yesterday the Financial Times reported that Citigroup may split its investment bank from commercial banking in an attempt to assure the company’s survival.

    Back to top

    Obama Urges TARP Funds for Community Banks

    In a
    letter to Congress dated January 12, 2009, Obama economic advisor Lawrence Summers said the new administration will direct more money to community banks and small businesses. Meanwhile, Congressman Barney Frank (D-Mass.) introduced legislation to ensure that community banks, including Subchapter S and mutuals, have equal access to TARP. For several weeks CBAI and ICBA have implored the Treasury to release the TARP term sheets for all community-based institutions.

    Back to top

    Long-Term Mortgage Rates Fall To Another New Low

    On January 8, 2009, Freddie Mac
    released the results of its weekly Primary Mortgage Market Survey, and the 5.01% average for 30-year fixed rate mortgages was the lowest since the agency started the survey in 1971.

    Back to top

    Data Breaches Up 47% in 2008

    Last week the Identity Theft Resource Center
    announced that data breaches were up 47% in 2008 compared to the previous year, affecting nearly 36 million Americans. The largest single cause of data breaches was a result of human error, while data theft from employees more than doubled to 16%. More than 35% were caused by lost or stolen lap tops and other removable electronic devices.

    Back to top

    Fannie and Freddie Extend Foreclosure Sale and Eviction Suspension

    Fannie Mae and Freddie Mac last week announced they are extending their suspension of all foreclosure sales and evictions involving occupied single family and 2-4 unit properties through January 31, 2009. The extension will provide servicers with more time to help troubled borrowers find an alternative to foreclosure and implement the recently developed Streamlined Modification program.

    Back to top

    Rural Mainstreet Bankers Report Agricultural Pullback

    The December
    survey results of rural community bankers in 11 Midwestern states found a significant pullback in economic activity, record-low farm equipment sales, declining commodity prices and farm land prices, and elevated farm input costs. Despite the economic weakness sweeping Rural Mainstreet, community bankers reported sound financial conditions for their institutions.

    Back to top

    Chicago Fed Symposium: Economic Outlook Weak

    According to the more than 90 economists and business analysts who attended the Chicago Fed’s annual Economic Outlook Symposium on December 5, the nation’s economic growth in 2009 will be weak due to the troubled housing market and tight credit conditions. Unemployment will continue to rise along with oil prices.
    See Chicago Fed Letter.

    Back to top

    Baker Market Update

    The Labor Department reported this morning that the U.S. economy lost 524,000 jobs in December, marking the twelfth consecutive month of payroll losses. December’s job losses were in-line with expectations, but the prior two months were revised lower by 51,000 and 103,000 jobs respectively. Job losses for the last four months of 2008 to taled 1.9mm, while the tally for the all of 2008 was 2.6mm,the largest employment drop since 1945.
    Click here to read more.

    Back to top

    Peter Leyden Named CBAI Convention Keynote Speaker

    CBAI is pleased to announce that Peter Leyden, technology and future-trends expert and author of What’s Next and The Long Boom, has been selected as the keynote speaker during the Opening Breakfast at
    CBAI’s 35th Annual Convention & Exposition, scheduled for September 24 - 26, 2009, at the captivating Renaissance Hotel in Schaumburg. Leyden believes that the Obama election is historic for all of the reasons that everyone has been talking about, but that most people aren’t thinking big enough. Ultimately, this election will be seen as the beginning of a great 21st century civilization; that the general direction is toward confronting today’s challenges and creating change on a level only seen a handful of times in American history. Plan now to attend and hear about this exciting new kind of global system that that will work for the long haul.

    Back to top

    Community Banking Week in Illinois Dates Announced

    The 2009 Community Banking Week in Illinois is scheduled for April 5-11, in conjunction with National Community Banking Week in April. Materials will be mailed to all CBAI members later this month. For a preview of the theme,
    click here.

    Back to top

    ICBA Makes Available Ads to Promote Community Banking

    ICBA has developed
    two ads to promote community banking entitled “Community Banks Start with Community.” You are welcome to utilize these ad templates. On the ICBA web page, you’ll find instructions on how to customize them with your logo.

         

    Back to top

    Expand Your Knowledge on Key IRA Issues

    Join Wolters Kluwer Financial Services for an in-depth look at important IRA rules and requirements, offered in two tracts and presented by their IRA experts. Beginners will learn the fundamentals of IRA administration, while more experienced IRA professionals will discover the more complex properties of a broader range of retirement and health savings plans.
    Click here for more information or to find a date and location near you.

    Back to top

    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 1/30/09



    TELEPHONE/WEBCASTS THROUGH 1/30/09



    OTHER EVENTS


    Directors' Series

    Education Catalog


    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS







    800.736.2224 (IL) | 217.529.2265 | www.cbai.com

    DISCLAIMER:The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site. If you do not wish to receive e-mails from Community Bankers Association of Illinois (CBAI), 901 Community Drive, Springfield, IL 62703, through CBAI in the future, please click here. - OR - If you would like to be removed from the CBAI e-mail database, please click here.

    © 2008 Community Bankers Association of Illinois. All Rights Reserved.