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                  March 10, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Your Voice Can Make a Difference: Come to Washington!
  • CBAI’s David Schroeder Reports on his Week in Washington
  • Friday Night Lights Out
  • Dallas Fed Chief Calls for Downsizing TBTF Banks
  • Bengsten: “Congress Should Resolve Commercial Real Estate Issue”
  • Chicago Fed President Addresses Fed Role and Regulatory Reform
  • ICBA Continues Fight Against Overly Harsh Exam Environment
  • OCC Comptroller Dugan on Basel Proposals
  • CBAI’s Capital Conference Held February 24
  • IHDA Transfers Servicing from Local Banks to B of A
  • CBAI Members Address “Move Your Money” Consumer Action
  • Baker Market Update
  • Economic News and Reports
  • Federal Reserve Banks Complete Check Processing Changes
  • FREE Community Banking Week Materials Now Available
  • Register Today for CBAI’s 36th Annual Convention
  • CDD’s Annual Spring Conference Scheduled for March 23-24, 2010
  • Is Your Bank Ready For Reg E Final Overdraft Services Rules?
  • Reg E Resource Center; Opt-in Manager Help Financial Institutions Address Overdraft Fee Requirements
  • Residential Real Estate Lending Institute Set for March 16-18, 2010
  • Community Bank Directors’ Workshop Scheduled for April 5-7, 2010
  • LifeLock Settles With FTC For $12 Million


  • Your Voice Can Make a Difference: Come to Washington!

    REGISTER TODAY for the 28th Annual CBAI Washington Visitation, April 25- 27, Renaissance Mayflower Hotel, Washington, D.C.
    Click here for more information. Please contact Megan Stieren or Jessie Schmidt at 217/529-2265 with questions or comments.

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    CBAI’s David Schroeder Reports on his Week in Washington

    Last week, CBAI’s David Schroeder spent several days in Washington in his new capacity as Vice President of Federal Governmental Relations, and met with Illinois congressmen, staff members, and regulators to discuss financial reform issues. For a full report,
    click here.

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    Friday Night Lights Out

    In his recent Finer Points blog, ICBA’s Cam Fine says the giant Wall Street banks should face the same resolution authority that all other banks must face every Friday night. The only problem is that the massive Wall Street lobbying machines are working the Congress to keep resolution authority from their doorsteps.
    See Full Article.

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    Dallas Fed Chief Calls for Downsizing TBTF Banks

    Last week, the President of the Federal Reserve Bank of Dallas said the giant too-big-to-fail banks should be dismantled over time to prevent another economic calamity. In a speech before the Council on Foreign Relations in New York City, Richard Fisher said existing rules and oversight cannot functionally regulate the largest financial firms because they are so large and complex and because the firms act recklessly knowing they have a government guarantee against failure. He indicated that the 10 largest U.S. banks held 60% of the banking industry’s assets in 2009 compared to 25% in 1990. There are 8,000 banks in the U.S.
    See Full Speech.

    CBAI and ICBA support the call to downsize the giants as part of the reform effort in Congress. The big bank lobby, however, opposes the reform proposal.

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    Bengsten: “Congress Should Resolve Commercial Real Estate Issue”

    In his recent
    Commentary in the LAWMAKERS’ Edition, publisher/editor Tom Bengsten said lawmakers should understand the difference between making a bad loan and a bankers making a loan that goes bad. He articulated that Congress should nurture the commercial climate so businesses start hiring again. He urged Congress to focus community bank reform ideas on resolving the commercial real estate issue in ways that decrease the likelihood of loans going bad.

    CBAI and several other community banking associations in the Midwest co-sponsor the LAWMAKERS’ Edition which is distributed periodically to state legislators and features articles on community banking issues. Bengsten also published the Northwestern Financial Review magazine.

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    Chicago Fed President Addresses Fed Role and Regulatory Reform

    Chicago Fed President Charles Evans wrote a
    letter to United States Senators representing the Seventh Federal Reserve District stating his views on regulatory reform and the role of the Federal Reserve.

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    ICBA Continues Fight Against Overly Harsh Exam Environment

    In testimony before the House Financial Services and Small Business committees, ICBA told Congress that overzealous examiners are hindering the ability of community banks to make new small-business and commercial-real-estate loans. ICBA Congressional Affairs Committee Vice Chairman Steve Andrews testified that while bank regulatory agencies have released statements urging banks to extend credit to creditworthy borrowers to enhance economic recovery, overzealous examiners are hindering the ability of community banks to make loans.

    “While Washington policymakers exhort community banks to lend to businesses and consumers, banking regulators, particularly field examiners, place restrictions on banks well beyond what is required to protect bank safety and soundness,” said ICBA Congressional Affairs Committee Vice Chairman Steve Andrews in testimony before the House Financial Services and Small Business committees.

    Andrews, president and CEO of the Bank of Alameda in Alameda, Calif., noted that community banks are facing decreased loan demand from qualified borrowers. He also outlined ICBA’s recommendations to improve the commercial- and small-business-lending environments.
    Read ICBA Testimony. Read ICBA Release.

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    OCC Comptroller Dugan on Basel Proposals

    Comptroller of the Currency John C. Dugan
    said that the central challenge for bank regulators over the coming year will be to strike the right balance between capital and credit availability.

    “On the one hand, we need to adopt the kinds of real prudential reforms – to capital, liquidity, and risk management – that will fortify the financial system to prevent inevitable future problems from mushrooming into the type of meltdown we sustained in the fall of 2008, with devastating effects on the real economy,” he said in a speech to the Institute for International Bankers.

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    CBAI’s Capital Conference Held February 24

    On Wednesday, February 24, 2010, nearly 80 community bankers from around the state gathered in Springfield to meet with their state legislators on key community banking issues.
    Click here for highlights.

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    IHDA Transfers Servicing from Local Banks to B of A

    CBAI has been informed by several members that the Illinois Housing Development Authority (IHDA) has decided to terminate its loan servicing agreements with Illinois community banks and is transferring the servicing to the Bank of America, a too-big-to-fail giant headquartered in North Carolina.

    CBAI is extremely concerned about the implications of this decision for several reasons including the loss of servicing fees and the imposition of transfer expenses on community banks. CBAI will soon communicate those concerns to the IHDA. CBAI also commends the Illinois League of Financial Institutions for submitting its objections to the IHDA this week.

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    CBAI Members Address “Move Your Money” Consumer Action

    Steven Rosenbaum, president and CEO, Prospect Federal Savings Bank in Worth, and George Paetow, Palos Bank & Trust in Palos Heights, were recently quoted in an article entitled “Move Your Money Helps Community Banks” from The Regional News of Palos Heights (2/18/10). “Community banking is imperative to the economy,” stated Rosenbaum, in part. Paetow stated that his bank’s lending is usually a part of community reinvestment.
    See Article.

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    Baker Market Update

    The Labor Department’s February employment report indicated this morning that the U.S. lost 36,000 jobs for the month.This was lower than most estimates. Inclement weather primarily on the east coast forced some businesses to temporarily close and may have distorted the data.
    More.

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    Economic News and Reports

    Delinquent loans rise in Chicago
    Past-due commercial real estate mortgages and construction loans increased in the Chicago area during the fourth quarter and are expected to continue climbing, according to Foresight Analytis LLC, a California-based research firm. Chicago lost more jobs in 2009 than any other major metropolitan area in the nation.
    See Article.

    Consumer confidence rallies in March
    According to the latest RBC CASH (Consumer Attitudes and Spending by Household) Index, consumer confidence levels jumped by nearly 19 points to 58.2 compared to February. Its volatility shows the fragility of consumer confidence since the recession began. See Article.

    Chicago jobs forecast shows increase
    A survey of Chicago area companies by Manpower, Inc., found that hiring will edge up during the second quarter of this year. About 18% of the companies said they will add workers, while fewer employers will cut workers compared to the previous quarter. More Information.

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    Federal Reserve Banks Complete Check Processing Changes

    The Federal Reserve Banks have completed the reduction in paper-check processing infrastructure that was begun in late 2003. With the discontinuation of paper check processing at the Atlanta office on Friday, Feb. 26, 2010, all paper-check processing is now handled at the Cleveland office. The Atlanta office serves as the Reserve Banks’ processing location for electronic check processing.

    “The movement to a single paper-check processing site is recognition of the industry’s success in moving to more efficient electronic solutions for clearing checks,” said Patrick K. Barron, first vice president of the Federal Reserve Bank of Atlanta and Retail Payments Office director. “The changes we have implemented to our paper check infrastructure position us well to continue to meet the needs of the nation’s payments system. At the same time, they have been difficult for our organization as we have been required to reduce our staff.”

    Since late 2003, the Reserve Banks have reduced the number of locations where paper checks are processed from 45 offices to a single site in Cleveland. These changes were made in response to the significant rate of adoption of Check 21-enabled services as well as the shift away from the use of paper checks and toward the much greater use of electronic payments.

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    FREE Community Banking Week Materials Now Available

    Community Banking Week 2010 is scheduled for April 4-10. Contact the CBAI Department of Communications to order your free kit:
    Bobbi Watson.

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    Register Today for CBAI’s 36th Annual Convention

    It's hard to think about Louisville, Kentucky, without mentioning “the most exciting two minutes in sports.” The Kentucky Derby at Churchill Downs is the first leg of the prestigious Triple Crown for thoroughbred horses. As we begin a new decade, CBAI is once again placing its bets on a sure winner. Join us at
    CBAI's 36th Annual Convention and Expo, “Community Banking: The Odds-On Favorite,” on September 30 - October 2, 2010, at the Galt House in Louisville.

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    CDD’s Annual Spring Conference Scheduled for March 23-24, 2010

    CDD's Annual Spring 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:

    Doug Cartland, founder of Doug Cartland, Inc. of Sharon, Wisconsin, begins and concludes the Spring Conference with his sessions entitled, “Solving the Communication Puzzle” and “The Essentials of Teamwork,” respectively.

    The mini-exposition, following the Business Meeting Luncheon, features a fabulous dessert table.

    Social Event, includes dinner, cash bar, and features the mind reader, “Christopher Carter.” Carter has earned feature appearances on the Martin Short Show and the Donny & Marie Show, and engagements for such diverse corporations as Harley Davidson, Conde Nast Publications, Bristol Myers Squibb and Sprint PCS.

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    Is Your Bank Ready For Reg E Final Overdraft Services Rules?

    CBSC-marketing partner, Impact Financial Services Overdraft Solution includes all components required for a safe and sound Overdraft Protection Service for banks and their customers. The program has been updated and revised to comply with Reg E Opt-in rules recently released by the Federal Reserve Board. The final rule requires consumers to opt-in, or affirmatively consent to the bank’s overdraft service for ATM and one-time debit card transaction before overdraft fees may be assessed on the account. All new, Impact Optimizer Reg E Opt-in marketing and administration program requires very little employee time and effort and costs just $0.78 per opt-in package mailed, plus postage.
    Click here for more details.

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    Reg E Resource Center; Opt-in Manager Help Financial Institutions Address Overdraft Fee Requirements

    Wolters Kluwer Financial Services announced it can help financial institutions rapidly address changes to Regulation E that require approval from consumers before charging overdraft fees on one-time debit or ATM transactions. The company has created an online resource center to help institutions understand the Federal Reserve Board’s revisions to Reg E that take effect July 1 for new accounts and Aug. 15 for existing accountholders. It has also launched Reg E Opt-in Manager, a solution that allows institutions to expedite generation and electronic delivery of opt-in notices to consumers for consent.

    Find out more by visiting the
    REG E Resource Center.

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    Residential Real Estate Lending Institute Set for March 16-18, 2010

    CBAI is pleased to offer
    "Residential Real Estate Lending Institute" on March 16-18. This three-day mini-institute provides 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.

    Heading up the faculty is David Kemp, founder and president of Bankers Management Inc. in College Park, Georgia. Bryan Bradley, senior consultant, and Linda Young, consultant, both of Young & Associates, located in Kent, Ohio, also co-lead this institute.

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    Community Bank Directors’ Workshop Scheduled for April 5-7, 2010

    CBAI will offer
    “Director Responsibility in a Changing World” in three locations this April. The one-day program is designed to provide today’s director with the tools and knowledge to carry out their duties. The program focuses on management and asset quality. Most of the banks that get into trouble fall short in these areas. A poor camel rating in these two areas will also impact earnings and capital. In these circumstances, a board must recognize that its interest may not be exactly aligned with management’s interest. The board must often rely on “outside advisors” to properly respond to Administrative Regulatory Orders. Leading this seminar is David Kemp, president of Bankers Management, Inc., College Park, GA, a nationally recognized company in financial services training and bank consulting.

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    LifeLock Settles With FTC For $12 Million

    Federal regulators
    said Tuesday (March 9) that LifeLock has agreed to pay $12 million to settle charges the company made deceptive claims about its ability to protect customers from identity theft. "While LifeLock promised consumers complete protection against all types of identity theft, in truth, the protection it actually provided left enough holes that you could drive a truck through it," said FTC Chairman Jon Leibowitz in a statement.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 04/23/2010



    TELEPHONE/WEBCASTS THROUGH 03/31/2010




    OTHER CBAI EVENTS THROUGH 04/17/2010


    CDD Annual Spring Conference: March 23 - 24, Hotel Pere Marquette, Peoria

    Community Banking Week in Illinois, April 4
    - 10. For a free kit, contact the CBAI Department of Communications: bobbiw@cbai.com or cbaicom@cbai.com.

    CBAI 2010 Group Meetings, April 19 – June 15

    28th Annual CBAI Washington Visitation: April 25-27, Renaissance Mayflower Hotel, Washington, D.C.

    CBAI Officer Compensation Survey Deadline: April 30. Complete your survey and get FREE results (CBAI members only, non-member participants pay just $300 for results)


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