Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois Community Bankers Association of Illinois
January 30, 2008 Graphic Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois
Welcome New Members
     Great United Bank, Huntley (In Organization)

     Thomas J. Schnell, CFO



  • Keynote Speaker for CBAI's 34th Annual Convention
  • VICTORY! Home Depot Withdraws Application to Buy ILC
  • Baker Market Update: Fed Cuts Rates 50bps to 3.00%
  • ICBA Offers 9-Point Economic Stimulus Plan
  • Chicago Federal Reserve National Activity Index (CFNAI) Released
  • Record Farm Income Pushes Rural Economy Higher
  • The Community Bankers School (formerly The Midwest School for Community Bankers)
  • The Next Generation in ID Theft: Protecting Consumers
    From Spiraling Crime
  • 2008 Community Bank Congressional Outlook (prepared by ICBA)
  • CRA Contributes to Fewer High-Cost Loans, Study Claims
  • Legal Link: "Honorary" or "Advisory" Directors
  • Visa PCI Compliance Continued to Grow in 2007
  • Mortgage Foreclosures Outstrip Modifications




  • Keynote Speaker for CBAI's 34th Annual Convention
    Because CBAI's 34th Annual Convention & Exposition is scheduled for 9/11 to 9/13, the Special Events Committee selected Richard "Pitch" Picciotto, FDNY Chief and highest-ranking firefighter to survive the World Trade Center collapse, as keynote speaker at the Opening Breakfast. This first person account by an American hero illustrates what inspired a nation in the aftermath of that awful day.

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    VICTORY! Home Depot Withdraws Application to Buy ILC
    Giving ICBA, CBAI, and community banks a hard-fought victory, Home Depot is abandoning its two-year effort to buy a Utah industrial loan company, according to American Banker. ICBA, which has led the nation's community bankers in opposing the retail giant's plan to enter retail banking, will continue to urge Congress to close the ILC loophole permanently.
    More details.

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    Baker Market Update: Fed Cuts Rates 50bps to 3.00%
    The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3 percent.
    More details.

    The Committee expects inflation to moderate in coming quarters, but it will be necessary to continue to monitor inflation developments carefully.

    Today's policy action, combined with those taken earlier, should help to promote moderate growth over time and to mitigate the risks to economic activity. However, downside risks to growth remain.

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    ICBA Offers 9-Point Economic Stimulus Plan
    On January 18, the Independent Community Bankers of America (ICBA) released to congressional policymakers nine recommendations to quickly boost economic activity, jobs, the housing sector, and help community banks assist their customers.

    CBAI and ICBA are encouraging Congress to quickly enact solutions to benefit the national economy and promote growth. Read a
    summary of ICBA recommendations.

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    Chicago Federal Reserve National Activity Index (CFNAI) Released
    The CFNAI, a monthly index designed to better gauge economic activity and inflationary pressure, is released on scheduled days toward the end of each calendar month. The index is a weighted average of 85 existing monthly indicators of national economic activity including data on production and income, employment, personal consumption, housing, sales, and inventories. For more details,
    click here.

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    Record Farm Income Pushes Rural Economy Higher
    Buoyed by record farm income, the Rural Mainstreet Index (RMI) increased for a third straight month. Even so, economic activity for January 2008, particularly new hiring, remains well below January of last year.

    Each month, community-bank presidents and CEOs in non-urban, agriculturally dependent portions of a 10-state area are surveyed regarding current economic conditions in their communities and their projected economic outlooks six months down the road. Bankers from Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakotas, and Wyoming are included. For more detailed survey results,
    click here.

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    The Community Bankers School
    (formerly The Midwest School for Community Bankers)

    David Kemp, CBAI lead faculty member and president of Bankers Management Inc. of College Park, GA; several graduates; and a current student discuss the benefits of The Community Bankers School. To view the video,
    click here. Complete details including curriculum, faculty and registration are also available by clicking here.

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    The Next Generation in ID Theft: Protecting Consumers From
    Spiraling Crime

    Identity theft has become the fastest-growing crime in America, with 27.3 million victims in the past five years, and nearly 20 million in the past two years alone. This crime costs more than $56 billion, or $6,383 per victim, annually, and has become so prevalent, that an identity thief strikes on average every 3.5 seconds. In fact, ID theft has now surpassed drug trafficking as the No. 1 crime in America, according to the Justice Department.
    For full article, click here.

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    2008 Community Bank Congressional Outlook (prepared by ICBA)
    Congressional leaders have indicated they want to see who controls the White House next year before they set definitively on controversial issues. However, growing recession fears may soon trigger tax-cut legislation. Despite the election year, community bankers will need to lobby for regulatory relief and many other important issues. For further details on the top issues of 2008, please
    click here.

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    CRA Contributes to Fewer High-Cost Loans, Study Claims
    Banks that made loans within their Community Reinvestment Act areas in 2006 were 66 percent less likely than other lenders to make high-cost loans, a
    study from fair-lending law firm Traiger & Hinckley LLP found. The study, covering 15 major metropolitan markets, also found that high-cost loans made by banks lending in their CRA areas were 68 basis points lower than non-CRA lender loans.

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    Legal Link: "Honorary" or "Advisory" Directors
    Community-bank officials occasionally inquire about whether a position can be established for one or more "honorary directors," "advisory directors" or "directors emeritus." Regulators of both state- and national-chartered banks in Illinois have addressed this matter. For full text of article,
    click here.

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    Visa PCI Compliance Continued to Grow in 2007
    Visa is working to mitigate the risk of data compromises by securing cardholder information," said Michael E. Smith, head of payment system risk, Visa Inc "In 2007, more U.S. merchants made good on their commitment to protect cardholder information than any other year. Visa is pleased with the progress of merchant PCI DSS compliance though there is still more to accomplish with among payment system participants," he said. To read more,
    click here.

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    Mortgage Foreclosures Outstrip Modifications
    The mortgage industry modified an estimated 54,000 loans and established formal repayment plans with another 183,000 borrowers during the third quarter of 2007, according to a
    report from the Mortgage Bankers Association. By comparison, foreclosure actions were started on approximately 384,000 loans. Of those foreclosures, 63 percent were cases where the borrower did not live in the home, the borrower did not respond to repeated attempts by the lender to contact them, or where the borrower failed to perform on a repayment plan or loan modification that was already in place.

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    CBAI
    UPCOMING EVENTS   
    Capital Conference 2/20/08 - Register Now!

    CBAI's Professional Development Programs thru 2/15:

     The New Fact Act Regulation

     Advanced Fiduciary Essentials

     Teller/Head Teller Training Series

     Analyzing Cash Flow from Income-Producing or Rental Real Estate

     Commercial Real Estate Appraisals Reviewing & Interpreting

     Managing the Commercial Real Estate Portfolio

     IRA Seminars

    Telephone/Webcasts thru 2/15:

     Fraudulent Cashier's
    & Official Checks: Detection, Protection
    & Risk


     Loan Concentrations

     Fair Lending Pitfalls

     Understanding Endorsements

    Community Banking Week in Illinois
    4/6 - 4/12


    CBAI's 34th Annual Convention:
    "Hometown Heroes", 9/11-13, 2008
    Crowne Plaza Hotel,
    Springfield




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    Career Center and Message Board

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    INSURANCE

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    FOUNDATION

    Purpose

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    The SHAZAM® Scholarship

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    How to Contribute



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    Illinois Financial Directory and Fact Book

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    Annual Report

    CBAI History



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

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