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                             March 9, 2011 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Early Registration Now Open for Capital Conference!
  • CFPB's Elizabeth Warren Meets with CBAI Bankers
  • Fed’s Hoenig Calls for Breaking Up the Mega Banks
  • House Joins Senate in Voting to Repeal CBAI-Opposed 1099 Reporting Requirement
  • CSBS Raises Safety and Soundness Concerns with Fed’s Interchange Proposal
  • ICBA to Congress: Update Wall Street Reform To Protect Community Banks
  • Wolters Kluwer Financial Services Creates Dodd-Frank Resource Center
  • CBAI Selects Diebold as Preferred Provider for ATMs and Security Equipment
  • CDD Annual Spring Conference Will Inform, Motivate and Energize!
  • Do Farmland Prices Echo Another Boom and Bust?
  • Regulators Sowing Caution on Ag Loan Concentrations
  • Unintended Consequences of Overdraft Guidance
  • Housing Reforms Should Not Continue Moral Hazard
  • REGISTER TODAY for the 29th Annual CBAI Washington Visitation!
  • Baker Market Update
  • Fed’s Beige Book Show Modest Economic Expansion
  • Economic Activity Slower in January
  • FDIC Announces "Top 10" List of Online Resources for Consumers
  • FDIC Offers Consumer Tips On Organizing and Simplifying Finances
  • New Photo Card Options Illustrate Cardholder Benefits
  • Residential Real Estate Lending Institute Coming in Late March
  • Community Bank Directors’ Workshop Slated
  • Sales MBA Seminar Is a Must for the Banking Sales Professional
  • Register Today for Early-Bird Pricing for CBAI’s Annual Convention & Expo


  • 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.
    Community banker involvement is crucial. Register Today!

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    CFPB's Elizabeth Warren Meets with CBAI Bankers

    The Community Bankers Association of Illinois (CBAI) and Community BancService Corporation hosted a Roundtable Discussion with Elizabeth Warren of the Consumer Financial Protection Bureau (CFPB) and CBAI bankers at The Westin O'Hare on February 23, 2011.
    Read More.

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    Fed’s Hoenig Calls for Breaking Up the Mega Banks

    Tom Hoenig, President of the Federal Reserve Bank of Kansas City, has reignited the call for downsizing the nation’s largest banks. In a recent speech Hoenig said, “I am convinced that the existence of too big to fail financial institutions poses the greatest risk to the U.S. economy. The incentives for risk-taking have not changed post crisis and the regulatory factors that helped create the crisis remain in place. We must make the largest institutions more manageable, more competitive, and more accountable. We must break up the largest banks…” CBAI has long advocated that the mega banks in excess of $100 billion in assets should be downsized so that, in the event of failure, they can be resolved without a taxpayer-funded bailout and jeopardizing our nation’s economy.
    See Full Speech.

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    House Joins Senate in Voting to Repeal CBAI-Opposed 1099 Reporting Requirement

    The United States House of Representatives voted 314 to 112 to repeal the 1099 reporting requirement created by the Health Care Reform Act of 2010. The Act requires businesses that pay another individual or business $600 or more for goods and services to issue Form 1099s beginning in 2012. All of the Illinois Republican members of the House were joined by Democrats Dan Lipinski and Mike Quigley in voting in favor of the repeal. Previously, the Senate voted 81 to 17 to repeal the requirement as an amendment to an FAA reauthorization bill which still needs to be approved by the House. There are, however, differences between the House and Senate versions on how to pay for the repeal which must be reconciled.

    The CBAI supports these bipartisan efforts and thanks lawmakers on both sides of the aisle who are working to eliminate this unnecessary burden on small businesses including community banks.

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    CSBS Raises Safety and Soundness Concerns with Fed’s Interchange Proposal

    The Conference of State Bank Supervisors (CSBS) has issued a comment letter to the Federal Reserve Board on its Notice of Proposed Rulemaking (NPR) regarding Debit Card Interchange Fees and Routing.

    In the letter, CSBS expresses concern that the full impact of the proposal on the industry is not yet understood and the NPR could give rise to significant safety and soundness concerns.
    Read More.

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    ICBA to Congress: Update Wall Street Reform To Protect Community Banks

    ICBA called on Congress to implement changes to the Wall Street Reform Act to ensure that community banks and their customers are not disproportionately disadvantaged. Among the recommendations, ICBA Chairman Jim MacPhee repeated ICBA’s request that Congress stop the Federal Reserve’s proposed rule to impose government price fixing of debit-card interchange fees.

    “MacPhee also recommended that Congress ensure that prudential regulators and community banks have a significant role in developing Consumer Financial Protection Bureau regulations and that new mortgage regulations not drive community banks from the residential market, among other proposals.
    Read ICBA Release.

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    Wolters Kluwer Financial Services Creates Dodd-Frank Resource Center

    To help financial institutions comply with the requirements of the Dodd-Frank Act that begin taking effect on July 21, 2011, Wolters Kluwer Financial Compliance Services today
    announced the launch of its new Dodd-Frank Resource Center.

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    CBAI Selects Diebold as Preferred Provider for ATMs and Security Equipment

    CBAI, the state’s largest banking trade association, has
    announced that Diebold, Incorporated has been selected as a CBSC Preferred Provider for automated teller machines (ATM) and security equipment. To mark the new partnership, CBAI and Diebold are hosting a free ATM security seminar on Thursday, March 10, 2011, at CBAI headquarters in Springfield, and the event is now at maximum capacity.

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    CDD Annual Spring Conference Will Inform, Motivate and Energize!

    The
    CDD Annual Spring Conference and Mini-Exposition is scheduled for March 15-16 in Bloomington. This conference combines motivational, energetic, and informative general sessions with important messages for today’s banker, as well as six breakout sessions with practical solutions and ideas that can be immediately implemented at the bank and a fun-filled social event. Additional conference highlights include:

    Rory Rowland, founder of Rowland Consulting Services in Independence, MO begins and concludes the Spring Conference with his sessions entitled, “My Best Boss Ever” and “MindSet of Champions,” respectively.

    The mini-exposition, following the Business Meeting Luncheon, features a fabulous dessert table. To date, the mini-exposition has attracted seven exhibiting firms and three sponsoring firms. They are:

    *BKD, LLP, St. Louis, MO *Community BancService Corporation
    Marquis Software Solutions, Inc., Plano, TX SHAZAM®, Inc., Davenport, IA
    Small Business Growth Corporation State Bank of Lincoln, Lincoln, IL
    U.S. Small Business Administration *Welch Systems, Inc., Peoria, IL

    * Denotes sponsor

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    Do Farmland Prices Echo Another Boom and Bust?

    The 80 acres of rich farmland that Jeff Freking and his brother Randy bought near Le Mars, Iowa, on Monday for $10,000 an acre would seem to have nothing in common with a condo in Miami or a house in Las Vegas. However, concerns are growing that the boom is not sustainable and caution must prevail.
    Read More.

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    Regulators Sowing Caution on Ag Loan Concentrations

    The FDIC is warning agricultural banks about the perils of farm loan concentrations, but many rural bankers have countered that the ag sector shouldn’t be compared to the commercial real estate sector due to the long-term relationships between farmers and bankers. CBAI and ICBA have urged regulators not to overreact by applying a bright-line 300-percent-of-capital requirement.
    See Full Article.

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    Unintended Consequences of Overdraft Guidance

    The Federal Deposit Insurance Corporation’s Overdraft Payment Programs and Consumer Protection, Final Overdraft Supervisory Guidance (FIL-81-2010), will ultimately hurt consumers by limiting their choices and increasing the cost of delivering products and services. This guidance does not expand upon existing policies designed to protect consumers but instead creates more burdensome red tape for financial institutions (FIs).
    Read More.

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    Housing Reforms Should Not Continue Moral Hazard

    ICBA President and CEO Cam Fine encouraged Treasury Secretary Timothy Geithner not to replicate the moral hazard exhibited by Fannie Mae and Freddie Mac as the Obama administration works to reform the secondary mortgage market. “Some of the proposals for reform that have been put forward would, by allowing a small number of large banks to dominate the secondary mortgage market, create a new variety of moral hazard just as pernicious as the old variety,” Fine wrote in a letter to Geithner.

    Fine wrote that privatization is not enough to cancel out moral hazard and that any solution that fuels consolidation would only be setting up the financial system for an even bigger collapse. He also noted that ICBA is preparing its own proposal on housing-finance reform and looks forward to sharing its ideas with the administration.
    Read ICBA Letter.

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    REGISTER TODAY for the 29th Annual CBAI Washington Visitation!
    May 1 - 4, Grand Hyatt, Washington, D.C.


    Washington Visitation is CBAI's annual lobbying trip to our Nation's Capital. Now in its 29th year, community bankers from across Illinois will be traveling to Washington, D.C. to express their opinions on important issues to their Members of Congress and federal regulators. YOUR VOICE CAN MAKE A DIFFERENCE! Now is the time to get involved.
    Register Now!

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    Baker Market Update

    The Labor Department reports a rise in February’s payrolls. Economists anticipate added jobs and an unexpected decline in the jobless rate. Treasury prices are rallying. The savings rate has experienced an uptick and personal incomes outpaced spending in January.
    More.

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    Fed’s Beige Book Show Modest Economic Expansion

    Reports from the 12 Federal Reserve Districts indicated modest overall economic expansion in January and early February. For a more detailed summary,
    Click Here.

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    Economic Activity Slower in January

    The Chicago Fed National Activity Index was –0.16 in January, down from +0.18 in December.
    See Release.

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    FDIC Announces "Top 10" List of Online Resources for Consumers
    Highlighted in Conjunction With National Consumer Protection Week


    Consumers of all ages are increasingly turning to the Internet for help with managing their finances, but knowing where to go online for reliable, practical money tips can be challenging. That's why the Federal Deposit Insurance Corporation has compiled a "Top 10" list of FDIC online resources for consumers on subjects ranging from deposit insurance to shopping for a bank account and avoiding financial fraud.
    Read Press Release.

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    FDIC Offers Consumer Tips On Organizing and Simplifying Finances

    The
    Winter 2010/2011 issue of FDIC Consumer News, published by the Federal Deposit Insurance Corporation, features tips for streamlining money management. Other timely topics include strategies for getting a small business loan, a warning about new financial frauds on the Internet, an explanation of the unlimited FDIC insurance coverage for noninterest-bearing transaction accounts, options for boosting college savings, and ideas for positioning personal finances for changing interest rates.

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    New Photo Card Options Illustrate Cardholder Benefits

    Connecting with people emotionally has been a proven track for effective advertising time and time again. Nothing illustrates this connection more than family photos. Giving cardholders the ability to personalize their debit cards with a photo they choose will create an instantaneous connection to those cards, increasing overall card usage, and solidifying them as long term customers. By offering a personalized debit card, financial institutions are giving cardholders a way to personally connect with their cards in a way they cannot with traditional card programs.
    Read More.

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    Residential Real Estate Lending Institute Coming in Late March

    This
    three-day mini-institute will be held March 22-24 and provide the real-estate lending professional with a solid foundation for managing and producing a quality mortgage portfolio. It includes exercises in buying and selling mortgages in the secondary markets, a visit to a construction site, and analysis of the tax return of a self-employed borrower. The institute’s objective is to assist the participants in three areas: improved customer service, more efficient processing and servicing and stronger underwriting. Topics covered on day one include regulatory compliance, the secondary mortgage market, loan applications and interviewing, and closing documentation. Day two covers lending to self-employed borrowers, underwriting, construction financing and site visit, and loan origination. Day three includes how to analyze appraisals and loan processing. Heading up the faculty is David Kemp, founder and president of Bankers Management Inc. in College Park, Georgia. Don Blaine and Linda Young, both consultant with Young & Associates, located in Kent, Ohio, also co-lead this institute.

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    Community Bank Directors’ Workshop Slated

    CBAI is pleased to offer the
    Community Bank Directors’ Workshop in three locations this March entitled “Director Responsibility: Perspectives from a Banker and Regulator.” Led by both a former banker and a former regulator, this presentation provides dual perspectives into the responsibilities and challenges of today’s community bank director. This comprehensive seminar discusses the duties of care and loyalty, as well as guidelines for selecting and retaining qualified management, setting strategic directions, and overseeing performance. Director liability, the Uniform Bank Performance Report as a tool for peer-group analysis, effects of the current banking legislation, the impact of the current economic environment on safety and soundness, and the changing expectations of regulators, are also covered. Leading this workshop are Jay Phillips and Keith Seibold, both of Cerfis Group, Inc. Phillips’ banking career spans 30 years, starting during his high school and college years where he worked in every aspect of community banking.

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    Sales MBA Seminar Is a Must for the Banking Sales Professional

    This highly-interactive,
    six-hour sales training program is one of the most effective programs ever created on the subject of collaborative selling and peak performance. It has been specifically designed to give salespeople and sales managers the communication and negotiation skills they require to build relationships and close more sales in less time. In today's demanding marketplace, developing strong client relationships is critically important for promoting both customer retention and sustained revenue growth. This informative workshop focuses on face-to-face negotiation strategies, overcoming objections, customer service, team building and business development. Participants learn time-proven strategies to help them generate referrals, polish their presentation skills, overcome objections and close the sale. Leading this March 30th seminar is John Boe, president of John Boe International in Kettering, OH.

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    Register Today for Early-Bird Pricing for CBAI’s Annual Convention & Expo

    Take advantage of our lowest pricing by registering for CBAI’s 37th Annual Convention & Expo by April 30, 2011. Scheduled for September 22-24, 2011, this year’s convention will be held at the Hyatt Regency and Frontier Airlines Center in Milwaukee, WI. “Community Banking: Fueled by Loyalty” is highlighted by 24 educational break-out sessions featuring hot topics and expert speakers, a 98-booth exhibit hall, outstanding entertainment, and countless networking opportunities. You also won’t want to miss general sessions with National Speaker Association Hall of Fame inductee Mark Sharenbroich and Certified Speaking Professional Frank Bucaro.
    Don’t wait, register today!

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    CBAI
    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 4/15/2011


    TELEPHONE/WEBCASTS THROUGH 4/15/2011


    CBAI EVENTS


    Community Banking Week in Illinois, April 3 - 9. Order FREE materials from bobbiw@cbai.com

    CBAI's 27th Annual Capital Conference - April 13 - State House Inn in downtown Springfield. Register Today!

    Marketing Conference - May 12 - Crowne Plaza, Springfield (details available soon)


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