Community Bankers Association of Illinois
Community Bankers Association of Illinois    Community Bankers Association of Illinois CBAI E-Newsletter Sponsor - SHAZAM
 
     A Bi-Weekly News Bulletin for CBAI Members                         January 25, 2012 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Credit Union Power Grab a Real Threat
  • Fed Didn’t See Crisis Coming in 2006
  • Dallas Fed’s Fisher: “Break Up the TBTF Banks”
  • CBAI Releases 2012 Federal Policy Priorities
  • 2012 CBAI Washington Visitation Dates Scheduled for April 24-27
  • ICBA Releases Title-by-Title Guide on Dodd-Frank
  • U.S. Consumer Bureau Mulling Rule Exemptions for Smaller Banks
  • CBAI Urges USDA to Repropose Rule for Rural Business Investment Program
  • Baker Market Update: Fed Extends Low Rate Forecast to 2014
  • Chicago Fed Examines Rising Farmland Values/Risks
  • ICBA Backs Streamlined Student-Loan Disclosures
  • Outlook for Pension, Medicaid, and Tax Reform in Illinois
  • CBAI'S 2012 Capital Conference Set for April 17
  • SHAZAM Launches Mobile Payment Application
  • A.M. Best Downgrades Ratings of BancInsure Inc.
  • Diebold Announces "Bold Changes All" Campaign
  • SHAZAM Launches Blog with Payments Information
  • February Seminar Featuring CFPB Update, Fair Credit Reporting and FACT Act
  • Senior Lender Forums Scheduled for January 31 – February 3
  • Register Today for CBAI’s 2012 CEO Forums
  • Register Today for CBAI’s 2012 Operations/Technology Groups
  • Attention Bankers with Cool/Collector Cars!


  • Credit Union Power Grab a Real Threat

    Legislation pending in Congress to expand credit unions’ business-lending powers poses a genuine threat to the nation’s community banks. According to the
    latest in-depth article on Community Banker Today. ICBA Executive Vice President for Congressional Relations and Chief Economist Paul Merski wrote that the credit union industry has launched a full-scale campaign in 2012, and community bankers must make their opposition heard in Congress.

    CBAI's Vice President for Federal Governmental Relations, David Schroeder, commented "Opposing any expanded powers and taxing all credit unions are among CBAI’s top Federal Policy Priorities that we intend to discuss with every member of the Illinois Congressional Delegation during our annual Washington D.C. visit, which is scheduled for April 24-27.” Schroeder added “We encourage all CBAI members to express their opinions on important issues directly to their Members of Congress and federal regulators. Your voice really does make a difference! Now is the time to get involved.”

    Back to top

    Fed Didn’t See Crisis Coming in 2006

    Recently released transcripts of Federal Reserve officials in regular meetings throughout 2006 reveal that they did not see the housing downturn adversely affecting the broader economy. The biggest concern was still inflation. Some place blame on their deep reliance on faulty forecasting models.
    See New York Times Article.

    Back to top

    Dallas Fed’s Fisher: “Break Up the TBTF Banks”

    In a recent speech in New York City, Richard Fisher, President of the Federal Reserve Bank of Dallas, advocated an international accord to break up the too-big-to-fail banks into more manageable sizes. He stated that recent policy coddles survival of the fattest rather than promoting survival of the fittest to the detriment of social welfare and economic efficiency. His recommendation is one of CBAI’s primary federal priorities.
    Read Fisher’s Speech.

    Back to top

    CBAI Releases 2012 Federal Policy Priorities

    Each January CBAI publishes its federal policy priorities in advance of the congressional session. Prepared in consultation with the CBAI Legislative Committee and staff and subsequently endorsed by the CBAI Board of Directors, the 2012 federal priorities reflect the association’s longstanding support for fair competition, state and federal chartering, tiered regulation, separation of banking and commerce, and the prevention of financial concentration. CBAI works closely and cooperatively with the Independent Community Bankers of America (ICBA) to pursue adoption of these policies.
    See Federal Policy Priorities.

    Back to top

    2012 CBAI Washington Visitation Dates Scheduled for April 24-27

    CBAI’s 2012 Washington Visitation will be held in conjunction with the ICBA’s Washington Policy Summit, which is scheduled for April 24-27 at the Gaylord Resort and Convention Center in National Harbor, Maryland on the Potomac. Hundreds of community bankers from across the nation are expected to attend, and CBAI encourages member bank officers and directors to participate in this important event. It’s a perfect time to visit our nation’s Capital.

    Meetings will be scheduled with the Illinois congressional delegation and representatives of the various regulatory agencies, and presentations will be made by top-ranking government officials. Please mark your calendars now. Further details will be provided in the near future. For more information, please contact either Kraig Lounsberry, SVP Government Relations, at 800/736-2224 (
    kraigl@cbai.com) or David Schroeder, VP Federal Governmental Relations, at 847/909-8341 (davids@cbai.com).

    Back to top

    ICBA Releases Title-by-Title Guide on Dodd-Frank

    ICBA is offering its members an
    exclusive reference guide on provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act affecting community banks. The educational document offers a detailed look at each of the act’s titles and whether they affect community banks.

    The color-coded guide distinguishes the titles as applying to community banks, not applying to community banks, applying to some community banks, or possibly having an impact depending on the implementing regulations. The guide is designed as a reference to help community bankers navigate the various titles of the act and the regulations that will be issued in the months ahead.

    A hard copy of the piece will be distributed with the March 2012 issue of ICBA Independent Banker magazine and in registration kits for the 2012 ICBA National Convention and Techworld.

    Back to top

    U.S. Consumer Bureau Mulling Rule Exemptions for Smaller Banks

    The U.S. Consumer Financial Protection Bureau may weigh size or market share in exempting community banks from its rules to shield them from the greater regulatory burdens facing their larger rivals.

    Richard Cordray, the former Ohio treasurer and attorney general appointed to head the consumer bureau Jan. 4, touted the idea of exclusions for smaller lenders in a conference call organized by the Independent Community Bankers of America.

    “The bureau will be considering two-tiered regulatory requirements and exemption thresholds as it writes regulations so that community banks will be able to conduct their business without overly burdensome regulatory requirements,”
    Read More.

    Back to top

    CBAI Urges USDA to Repropose Rule for Rural Business Investment Program

    CBAI submitted a
    comment letter to the United States Department of Agriculture urging the USDA to withdraw and repropose an Interim Final Rule on Rural Business Investment Companies. While the CBAI appreciates the important role the USDA has played in providing programs to rural America we have serious concerns about the IFR including - an insufficient comment period to allow for meaningful input and having the Farm Credit Administration involved in administering the program.

    Back to top

    Baker Market Update: Fed Extends Low Rate Forecast to 2014

    Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth.
    Read More.

    Back to top

    Chicago Fed Examines Rising Farmland Values/Risks

    Chicago Fed Letter explores what has been driving the large and rapid increases in Midwest farmland values, as well as the potential risks posed by them. The author of this Chicago Fed Letter is David Oppedahl, business economist, Federal Reserve Bank of Chicago.

    Back to top

    ICBA Backs Streamlined Student-Loan Disclosures

    ICBA urged the Consumer Financial Protection Bureau to streamline and simplify Truth in Lending disclosures for student loans. In response to a request for information on private education loans, ICBA wrote in a comment letter that the current disclosures are too lengthy and include duplicative and unnecessary information. More generally, ICBA wrote that not many community banks provide private student loans, but the ones that do maintain active communication throughout the loan application and servicing processes. The association also noted that community banks are not dependent on impersonal loan-qualification criteria and can use individual circumstances in determining creditworthiness.
    Read ICBA Comment Letter.

    Back to top

    Outlook for Pension, Medicaid, and Tax Reform in Illinois

    The financial crisis in Illinois is expected to dominate debate in the state legislature this spring. With an unfunded pension liability of $85 billion and growing, Medicaid spending skyrocketing, and a shortfall in anticipated tax revenues, Illinois is fiscally ranked at or near the bottom among the states.
    See Illinois Statehouse News Article.

    Back to top

    CBAI'S 2012 Capital Conference Set for April 17

    REGISTER NOW! CBAI'S 2012 Capital Conference will be held on Tuesday, April 17, at The Springfield Hilton.

    Back to top

    SHAZAM Launches Mobile Payment Application

    The SHAZAM network today announced that it has launched the Adaptive Payments Pentagon mobile point-of-sale (POS) payments application. Pentagon is a mobile payments platform, which allows merchants to accept PIN debit, signature debit and credit transactions using iPhone® and Android® mobile phone and tablet devices. SHAZAM will roll out Pentagon to its nearly 1,500 community financial institutions and their merchant customer base. Merchants that use Pentagon will receive a 1% discount on all PIN-based debit transaction.
    Read More.

    Back to top

    A.M. Best Downgrades Ratings of BancInsure Inc.

    A.M. Best Co. recently downgraded BancInsure’s financial strength rating to B (Fair) from B++ (Good) and the issuer credit rating to "bb" from "bbb". The outlook for both ratings is negative. BancInsure provides various coverages to banks and other financial institutions throughout the United States.
    Read More.

    Mark Kreinke, BancInsure vice president and CFO responded “ BancInsure’s assets remain adequate to meet the company’s obligations to policyholders…” Read BancInsure’s Response.

    If you are concerned or confused about your bank’s insurance coverage, please call the professionals at CBAI-backed CBIS/Nicoud. Jim Hillestad and his team of community bank insurance experts can help you identify and evaluate risk in your operation and offer insurance solutions from a variety of A rated carriers. They will work hard to insure you receive the most complete coverage at the lowest possible price from companies that possess the financial strength to pay claims. Please contact Jim via phone at 217-546-6900, or via email at jim@nicoudinsurance.com.

    Back to top

    Diebold Announces "Bold Changes All" Campaign

    When you’re bold, you inspire us to be Diebold.

    At Diebold, we admire bold action, bold thinking, bold decisions; because we believe doing bold things makes a positive difference. It’s why the theme of our new advertising campaign is “Bold Changes All.”

    For more than 150 years, customers have inspired Diebold to develop game-changing innovations by thinking boldly. This kind of bold leadership has led Diebold to create the first virtualized ATM prototype, secure the new World Trade Center site, and help local banks recover from Hurricane Katrina. Imagine what we can do for you.

    Whether you pioneered a process that saved your business millions, expanded a client relationship or just found a unique way to help a neighbor out of a jam, we want to hear about it. Inspire us with your bold story and we’ll donate $25.00 to the charity of your choice. Visit,
    www.Diebold.com/Bold.

    Back to top

    SHAZAM Launches Blog with Payments Information

    CBSC preferred provider SHAZAM is innovating the way it communicates with participants in more than 30 states with the announcement of
    The SHAZAM Network Blog. The objective of SHAZAM’s blog is to share payments industry insights to help financial institution executives remain as savvy and up-to-date as possible. A unique feature of The SHAZAM Network Blog is the team of SHAZAM senior executives that author the content. The bloggers share their expertise on topics like fraud prevention, regulations and compliance issues, payments innovations, and best practices for debit and ATM programs.

    In addition to occasional guest bloggers, the four SHAZAM bloggers regularly featured on the blog are listed below with a link to their most recent posts:
      • Dan Kramer, senior vice president of marketing and merchant services –
      Anyone Can Be a Retailer
      • Jim Ghiglieri, senior vice president of corporate communications –
      Flip the Focus in 2012
      • Terry Dooley, senior vice president and CIO –
      Developing Countries to See More ATMs
      • Kevin Christensen, vice president of audit –
      FedEx Emails Fool Unsuspecting Consumers
    Those interested in The SHAZAM Network Blog can subscribe to receive the latest posts delivered via email or RSS reader. Readers are encouraged to also follow SHAZAM on Twitter at @SHAZAMNetwork.

    Back to top

    February Seminar Featuring CFPB Update, Fair Credit Reporting and FACT Act

    The second quarter of the
    Community Bankers for Compliance (CBC) program addresses CFPB, the Fair Credit Reporting Act, and the FACT Act. At the time of this writing, the Consumer Financial Protection Bureau (CFPB) has issued some items, which will be covered in detail including pronouncements, requests for comment, the current state of the RESPA update, the new proposed credit-card disclosures, and any other details that are announced prior to the seminar. In addition to our standard Regulatory Update, the CFPB actions that may impact your institution will be addressed. Additionally, all facets of FCRA and the FACT Act will be reviewed to ensure that your bank has the required “parts and pieces” in place including policies and procedures. The focus of this seminar is to assist you in ensuring that your bank is “up-to-date” with the current, available information on these various subjects. Bill Elliott, senior consultant and manager of Compliance at Young & Associates, Inc. of Kent, Ohio, a nationally recognized compliance consulting firm specializing in community banks, leads this program.

    Back to top

    Senior Lender Forums Scheduled for January 31 – February 3

    CBAI is pleased to offer the
    2012 Senior Lender Forums. Consisting of four quarterly meetings annually, the Senior Lender Forums provide opportunities for community-bank lenders to discuss important issues with non-competing community bankers. They are also designed to be a rewarding experience where lenders can grow professionally and form lasting relationships with their peers. Facilitated by Paul Sims, president of Guided Solutions, Franklin, TN, the Senior Lender Forums discuss timely topics designed to improve the profitability of the loan portfolio, increase regulatory understanding, obtain access to highly respected banking experts, and solve pressing challenges. Other consultants from a variety of firms are invited to address the group. This expertise would cost thousands of dollars if you had to pay for it on a “real-time” basis.

    Back to top

    Register Today for CBAI’s 2012 CEO Forums

    CBAI is pleased to offer the
    CEO Forums, which provide opportunities for CEOs to discuss important issues with non competing community bankers. Based on bank size and market, CBAI organizes the Forums to ensure commonality among participants, which meet quarterly. Participation in the Forums comes with a long list of benefits including discussions on current challenges with peers; learning about profitable products and services from other community bankers; and forming lasting relationships with non-competing CEOs. The Forums also provide the opportunity to increase profits through higher performance, discover cost-cutting concepts, solve pressing problems, and obtain access to highly respected, banking-related experts.

    Back to top

    Register Today for CBAI’s 2012 Operations/Technology Groups

    The
    Operations/Technology Groups provide an opportunity for community bankers to exchange ideas, dissect problems, and discuss important issues with their peers. They are designed to be a rewarding experience where bankers can grow professionally and personally. In order to ensure that these community bankers have as much in common as possible without being competitors, individuals are assigned to groups based on bank size and location. The Groups meet four times a year in three locations: CBAI headquarters in Springfield, the Holiday Inn Select in Naperville, and the Holiday Inn in Mt. Vernon. The Springfield and Mt. Vernon groups are facilitated by Bert Purdy, manager at BKD, LLP in St. Louis. Tim Tedrick, executive officer with the accounting firm of Wipfli in Sterling, facilitates the Naperville group.

    Back to top

    Attention Bankers with Cool/Collector Cars!

    Taking a page from the very successful “Bankers on Bikes,” there seems to be quite a number of Illinois community bankers who have an interest in Corvettes, Mustangs, even Cadillacs, etc. In discussing this further, would there be interest in organizing to plan some fundraisers while having fun on a scenic drive? If so, please contact Doug Parrott at
    dparrott@statebankoftoulon.com or Jeff Rabenort at jrabenort@fmbnashville.com. We’re hoping to organize and kick a group off to do both! Hope you can join us.

    Back to top

    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 3/16/2012


    TELEPHONE/WEBCASTS THROUGH 2/29/2012



    Finer Points Blog


    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.

    © 2012 Community Bankers Association of Illinois. All Rights Reserved.