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 26, 2011 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Responds to Senator Durbin’s Letter on Interchange
  • Free Webinar: Making Sense of Debit Interchange
  • FASB Backs Off “Mark-to-Market” Accounting for Loans
  • CBAI Members Appointed to St. Louis Fed Advisory Council
  • CBAI Meets With Illinois' New Congressmen - "The Freshmen Five"
  • CBAI and ICBA Seek to Overturn 1099 Reporting Requirement
  • Bengtson Exposes Credit Union Irony
  • CBAI Sponsors Small Business Lending Fund Presentation
  • FOMC Votes to Hold Rates Steady and Buy More Treasuries
  • Baker Market Update
  • Synopsis of Community Bankers Symposium Released
  • Gallop Poll: Growing Dissatisfaction with Government and Big Firms
  • ICBA Urges FDIC To Delay Overdraft Guidance
  • Federal Benefit Payments Must Be Electronic
  • CRA Asset-Size Threshold Adjustment Information from FDIC
  • FDIC Reports on Asset-Size Exemption for Institutions
  • Results of “Quick Poll — Employee Phone Policies”
  • Early Registration Now Open for Capital Conference!
  • State Treasurer Rutherford Issues Linked Deposit Moratorium
  • How Is Your Bank Special?
  • Capital Plans: Why the Regulators Believe Every Capital Plan Is Unacceptable and How to Prove Them Wrong
  • CBAI Announces Opening Breakfast Speaker for 37th Convention
  • FREE Community Banking Week in Illinois Materials Available
  • ACH Seminars Next Week
  • Technology Conference Targets Solutions for Community Banks
  • Teller Management I & II Scheduled
  • Unfair and Deceptive Acts and Practices: It's More Than Reg. AA


  • CBAI Responds to Senator Durbin’s Letter on Interchange

    U.S. Senator Richard Durbin, chief sponsor of legislation to impose limits on debit card fees, has asked CBAI and other Illinois financial trade groups to support debit interchange fee caps.
    See Durbin Letter.

    In response, however, CBAI reiterated its opposition to the fee limits and expressed concern that VISA’s recently announced two-tiered fee structure would ultimately prove unworkable. See CBAI Response.

    Meanwhile, momentum is growing in the House to repeal limits on debit interchange fees as the ranking member of the Financial Services Committee, Barney Frank, indicated that he is willing to work with the GOP to address new limits. See The Hill Article. CBAI and ICBA have consistently expressed opposition to imposing fee limits on competitive financial products.

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    Free Webinar: Making Sense of Debit Interchange

    How will the Federal Reserve’s new rules governing interchange rates for debit cards affect your card business? Join Fiserv and ICBA Bancard for an informative one-hour Webinar “Making Sense of the Breaking News Regarding Debit Interchange” January 28, 2011 at 2:00PM EST as we attempt to outline the Fed’s recent action and the anticipated impact upcoming rules could have on debit issuers and network participants. For more information and to register,
    click here.

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    FASB Backs Off “Mark-to-Market” Accounting for Loans

    Representing a major victory for community banks, the Financial Accounting Standards Board (FASB) on January 25th reversed a proposal to require banks to value their loans based on the ups and downs of the market, or “fair value” accounting.

    Both ICBA and CBAI have lobbied intensely to discourage FASB from applying fair value accounting to bank loans. FASB agreed that banks can continue to carry various financial assets and liabilities at amortized cost, an adjusted version of their original cost, as they do now. The broader rule will not be completed until June.

    FASB acknowledged that overwhelmingly negative reaction to the proposal influenced the board’s decision. Had the “mark-to-market” approach been instituted, it would have likely reduced banks’ book value and regulatory capital.

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    CBAI Members Appointed to St. Louis Fed Advisory Council

    CBAI congratulates two members who have been appointed to the St. Louis Fed’s new Community Deposit Institutions Advisory Council (CDIAC). The 12-member Council will be chaired by Dennis Terry, president and CEO of First Clover Leaf Bank in Edwardsville. As chairman, he will report twice yearly to the Fed’s Board of Governors in Washington, DC.

    Also appointed to the Council from Illinois is Larry Ziglar, president of the First National Bank in Staunton. The Council is organized to advise St. Louis Fed President James Bullard on local credit, banking and economic conditions.
    See Release.

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    CBAI Meets With Illinois' New Congressmen - "The Freshmen Five"

    CBAI leadership bankers and government relations staff met with Illinois' five new Congressmen to introduce them to CBAI and review our 2011 Federal Policy Priorities.
    More.

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    CBAI and ICBA Seeks to Overturn 1099 Reporting Requirement

    Bipartisan legislation has been introduced in the U.S. House and Senate to eliminate a provision in the health care reform act that requires businesses that pay another individual or business $600 or more for goods and services to issue Form 1099s beginning in 2012. Both CBAI and ICBA are supporting this effort to eliminate this onerous tax reporting mandate.
    See ICBA Release.

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    Bengtson Exposes Credit Union Irony

    Tom Bengtson, editor of Lawmakers’ Edition magazine, recently penned a thought-provoking commentary on the irony of credit unions. He noted that, unlike banks, failed credit unions have escaped media scrutiny. To add insult to injury, the credit union industry has tapped a line of credit from the U.S. Treasury to fund resolution of three recent corporate credit union failures, thereby using taxpayer money to bail our an industry that pays no federal in taxes.
    See Full Commentary.

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    CBAI Sponsors Small Business Lending Fund Presentation

    CBAI sponsored an informative presentation by the U.S. Treasury and the Federal Reserve Bank of Chicago titled "Small Business Lending Fund - A Capital Opportunity", at The Westin O'Hare on January 20, 2011.
    More.

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    FOMC Votes to Hold Rates Steady and Buy More Treasuries

    The Federal Open market Committee (FOMC) today voted to maintain the target range for the fed funds rate at 0 to ¼ percent and continue its policy of reinvesting principal payments from its securities and purchase $600 billion of longer-term Treasuries by March 31, 2011.
    See Fed Release.

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    Baker Market Update

    Treasury yields pushed higher; the yield on the benchmark 10-year Treasury Note is up 11bps; the yield on the two-year Treasury Note is higher this week.
    More.

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    Synopsis of Community Bankers Symposium Released

    The Federal Reserve Bank of Chicago and FDIC co-sponsored the sixth annual Community Bankers Symposium on November 19th in Chicago. A synopsis of that session has just been released by the Fed.
    See Chicago Fed Letter. CBAI sponsored a dinner the previous evening for CBAI members attending the symposium. Presentations were provided by ICBA’s Karen Thomas and CSBS’s Neil Milner.

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    Gallop Poll: Growing Dissatisfaction with Government and Big Firms

    A recent Gallop Poll conducted earlier this month found a nation less satisfied with a variety of aspects of U.S. life than it was in 2008, particularly with our government and major corporations. Satisfaction with large firms hit a new low with 67% dissatisfied with the size and influence of major corporations including mega banks.
    See Gallop Poll Results.

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    ICBA Urges FDIC To Delay Overdraft Guidance

    ICBA strongly urged the FDIC to delay the effective compliance date for its final guidance on automated overdraft payments to 2013 at the earliest and to use this additional time to assess current overdraft payment practices in the industry caused by recent regulatory changes. In a
    letter to FDIC Chairman Sheila Bair, ICBA President and CEO Cam Fine also urged the agency to ensure that its examiners are not attempting to enforce the guidance prematurely, which the association hears is happening.

    The FDIC guidance released in November does not explicitly exempt ad hoc overdraft payment programs as requested by ICBA. It also includes onerous provisions requiring institutions to monitor programs, contact customers who have incurred more than six overdrafts in a rolling 12-month period and institute daily fee limits.

    Following a recent ICBA meeting with FDIC officials, the association’s letter reiterates concerns that the guidance is bad for community banks and their customers, fails to address positions expressed in ICBA’s September 27 comment letter and does not reflect current overdraft payment practices. Read ICBA Letter.

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    Federal Benefit Payments Must Be Electronic

    The March 1 deadline for all government payments to be made electronically is fast approaching. Here are some
    tips to make it happen with your customer base.

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    CRA Asset-Size Threshold Adjustment Information from FDIC

    Click here to review.

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    FDIC Reports on Asset-Size Exemption for Institutions

    Click here to review.

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    Results of “Quick Poll — Employee Phone Policies”

    What is your community bank’s policy on using personal cell phones and similar devices during office hours? Here are the results of an ICBA Quick Poll:

    Prohibited - 4%
    Restricted to emergencies - 10%
    Allowed as long as it doesn’t interfere with duties or coworkers - 55%
    Allowed only during breaks - 22%
    No restrictions - 10%

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    Early Registration Now Open for Capital Conference!

    The Community Bankers Association of Illinois’ 27th Annual Capital Conference will take place on April 13, 2011 at the State House Inn in downtown Springfield.

    Capital Conference is an important event that benefits all community bankers throughout Illinois. Scheduled activities provide bankers with the opportunity to meet with elected officials, legislative leaders and legislators while they are in session. Many issues vital to community banks will be on CBAI's Legislative Agenda for the 20011 Spring Session of the Illinois General Assembly. Your knowledge and involvement will help you individually and our organization as a whole, as our grassroots strength continues to grow. We need your help and participation to be successful!

    The early registration fee is $150 per institution and covers the cost of all registrants. Bring as many of your officers, directors, and employees as you can. After March 25, 2011 the registration fee is $200 per institution.

    A block of rooms has been reserved at The State House Inn at the rate of $98.99 per night. To make reservations, contact The State House Inn at 217/528-4358 and indicate that you are with the Community Bankers Association of Illinois.

    Register today!

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    State Treasurer Rutherford Issues Linked Deposit Moratorium

    Just two days after taking office, State Treasurer Dan Rutherford issued a three month moratorium for nearly all of the linked deposit programs. Rutherford issued the moratorium so that he could review the “purpose, guidelines, and compliance measures” of the programs. CBAI looks forward to working with Treasurer Rutherford on this endeavor. To that end, if you have any suggestions on how to improve the linked deposit programs, please contact Kraig Lounsberry or Megan Stieren in CBAI’s Governmental Relations Department or call them at 1-800-736-2224. Click
    HERE to see the letter from Treasurer Rutherford.

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    How Is Your Bank Special?

    Let CBAI know with your bank’s entry into the
    BKD Award. CBAI is looking for innovative products or services; outstanding philanthropic efforts; and quality community-service ideas. Send your nomination form in today.

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    Capital Plans: Why the Regulators Believe Every Capital Plan Is Unacceptable and How to Prove Them Wrong

    Virtually every formal administrative action requires a financial institution to adopt a capital plan. The concept seems simple enough: the financial institution determines how much capital is needed and the source of such funding. Institutions are then generally shocked to receive regulatory responses that categorically reject the capital plan and require it be redone. The rejection of the document is bad, but what may be worse is that the result of an inadequate submission may be a regulatory belief that the financial institution lacks an ability to identify, or does not take seriously, its needs.
    Read more of the article by Peter Weinstock of Hunton & Williams, CBAI associate member.

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    CBAI Announces Opening Breakfast Speaker for 37th Convention

    The Opening Breakfast speaker at CBAI’s 37th Annual Convention and Expo in Milwaukee, WI, is
    Mark Scharenbroich, a National Speakers Association’s Hall of Fame inductee and Certified Speaking Professional. Part motivational speaker, part thought-provoking inspiration, and pure entertainer, Emmy-Award winner Mark Scharenbroich makes every event memorable through engaging stories. Combining his comedy training with motivational speaking, Scharenbroich was employed by Jostens, where he earned the Golden Apple and Silver Screen film awards. He then left to create a communications company, and expanded into the association and corporate market. Scharenbroich’s new book, Nice Bike – Making Meaningful Connections on the Road of Life, shares powerful stories based on the three actions steps of acknowledge, honor, and connect. In his presentation, Scharenbroich will inspire you, motivate you, and validate the importance of recognizing people to improve employee and team performance. Make plans now to attend!

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    FREE Community Banking Week in Illinois Materials Available

    Your chance to emphasize the community-banking difference, Community Banking Week, is scheduled for April 3-9. Order your free materials today to prepare. Contact Bobbi Watson at
    bobbiw@cbai.com.

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    ACH Seminars Next Week

    CBAI offers
    ACH Three Little Letters That Keep Getting More Complicated in three locations on January 31, February 2, and February 9. In the ever-changing world of ACH, it is difficult to stay abreast of the risks and rules. This seminar provides each financial institution with ideas for reducing risk and improving compliance. Objectives include finding out how to mitigate ACH risks and avoid ACH fraud schemes; learning a practical approach to compliance with the recent ACH rule changes; and discovering what the commonly made ACH mistakes are and how to avoid them. Leading this seminar is Nicole Meinhardt, a manager at WIPFLi LLP in Sterling, IL.

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    Technology Conference Targets Solutions for Community Banks

    On February 10 CBAI offers the
    Community Bank Technology Conference which features targeted solutions to meet the demands of community banks. Designed for senior managers and operations personnel, you will benefit from informative break out sessions spotlighting mobile banking, vendor management, technology compliance, server and desktop virtualization, social media, and small business remote deposit capture. It also gives focus to emerging trends in the payments process and leveraging technology to reduce costs. Featured again at this year’s conference is an opportunity to engage in roundtable discussions with your peers on the hottest technology issues. With more than 35 of the nation’s leading financial-service providers showcasing the latest products, participants also find solutions in the Exhibit Center.

    Speakers include Trent Fleming, Trent Fleming, Inc.; Susan Orr, Susan Orr Consulting, Ltd; Ron Hulshizer, BKD, LLP; Joe Oleksak, Plante & Moran, PLLC; and Mark Scholl, Wipfli, LLP.

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    Teller Management I & II Scheduled

    CBAI offers the two-day series, “Teller Management I & II,” in two locations on February 7-8 and February 9-10. The
    Teller Management Series has been prepared to give all levels of teller management the basic principles to build a strong, productive teller department through detailed policies, procedures, and training methods. The Teller Management Workbook is an in-depth discussion of all subjects covered in this brochure. It was designed for use in each bank’s continuous management training program. Each participant receives a copy of this comprehensive study. Topics covered in Teller Management I include how to organize detail responsibilities, how to successfully create a loss-free environment, and how to create personal and professional rewards for excellence. Teller Management II covers how to hire, motivate, evaluate, and discipline, how to implement and maintain an effective teller-training program, how to develop cost-effective staffing, and how to extend service into sales. Participants can attend either Teller Management I or II, or attend both days of training.

    Leading this seminar is Helen R. Short, president of Training Consultants in Azle, Texas.

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    Unfair and Deceptive Acts and Practices: It's More Than Reg. AA

    The next
    Community Bankers for Compliance (CBC) seminar, scheduled for February 1-2, is designed to offer assistance as you prepare for 2011 — another year destined to be filled with changes! The second quarter of the CBC program covers two separate subjects. After our normal regulatory update, which covers the new FDIC Overdraft Guidance and new Appraisal regulations, we discuss Regulation AA. This regulation’s primary feature is the cosigner notice, so the discussion will be brief. However, there is so much more that exists under the canopy of “unfair and deceptive acts and practices.” Additionally, the Reform Act (Dodd-Frank) adds requirements for more regulation, and includes the new concept of “abusive” (UDAAP). This whole regulatory area has the potential to be the hot topic of 2011, much like the Bank Secrecy Act was a few years ago.

    This seminar is conducted by Bill Elliott, senior consultant and manager of compliance at Young & Associates, Inc. of Kent, Ohio.

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