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 11, 2009 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Call to Action Continues on FDIC Special Assessment!
  • Community Banks Praised on ABC World News
  • Bernanke Addresses Problem of Too-Big-To-Fail Banks
  • CBAI’s 25th Annual Capital Conference April 22, 2009
  • CBAI State Legislative Update – “News from the Front”
  • CBAI's 27th Annual Washington Visitation May 11-13, 2009
  • Federal Reserve Releases “Beige Book” on Economic Conditions
  • USDA Announces First Wave of Stimulus Funding
  • FDIC Offers Tips to Help Consumers Manage Money
  • Federal Reserve Announces Plans for Same-day ACH Debit
  • Baker Market Update
  • Early-Bird Registration Open for CBAI’s 35th Annual Convention
  • Community Bank Marketing Conference Scheduled for April
  • CBSC and Harland Clarke Renew Alliance
  • Triad Loans Yield 7% and No Losses
  • Former FDIC Chairman Seidman Joins Board of Sageworks
  • Midwest Office March Specials Include Items Every Bank Needs!
  • Midwest Office Supply Offering CBAI Members $100 Gift Card
  • Prepare for Growth at the 2009 SHAZAM EFT Forum
  • Join the 2009 ComplianceOne™ Get Togethers


  • Call to Action Continues on FDIC Special Assessment!

    CBAI’s call to action remains in effect to convince the FDIC not to levy a special assessment on community banks. Thanks to thousands of emails and letters from community bankers, the FDIC said it will reduce the assessment from 20 to 10 basis points if Congress increases the FDIC’s line of credit with the Treasury from $30 billion to $100 billion. Legislation has been introduced to permanently increase the limit to $100 billion.

    CBAI and ICBA strongly believe that community banks should not pay any special assessment. Instead, the too-big-to-fail banks that largely caused the nation’s economic crisis with their excessive risk-taking should replenish the FDIC fund. It’s noteworthy that only the community banking lobby is articulating this position and also urging Congress to break up the TBTF banks so they do not pose a systemic risk. The ABA and its state affiliates are apparently unwilling to assign responsibility to the TBTF institutions.

    ACTION #1: CBAI urges all officers and directors of community banks to communicate the following positions to the FDIC before April 1, 2009:

      • Community banks, which did not cause the economic crisis, should not pay any special assessment.
      • The FDIC should ask Congress for the authority to levy special assessments on the TBTF banks that caused the financial meltdown.
      • The FDIC should tap its line-of-credit with the Treasury.
      • If all banks are assessed, then the FDIC should assess premiums based on total assets rather than domestic deposits, which would rightfully place greater responsibility on the TBTF banks.

    To send a personal email to FDIC Chairman Sheila Bair, please click on
    comments@fdic.org to open the link, or you can access CBAI’s special link at http://capwiz.com/cbai/issues/alert/?alertid=12832021 to send a suggested letter that can be amended.

    ACTION #2: CBAI also asks all community bank officers and directors to correspond with their U.S. Representative and U.S. Senators with the following recommendations:

      • Community banks, which did not cause the economic crisis, should not pay any FDIC special assessment.
      • Authorize the FDIC to levy a special assessment only on the too-big-to-fail banks that are largely responsible for the financial and economic meltdown as a result of their excessive risk-taking and greed.
      • Support an increase in the FDIC’s line of credit from the current $30 billion to $100 billion.
      • If all banks are assessed, then urge the FDIC to assess premiums on the basis of total assets rather than domestic deposits; the TBTF banks would then be responsible for a larger portion of the assessment.
      • Urge the Financial Accounting Standards Board (FASB) to give banks the option to spread any special assessments over four years.

    Click on http://capwiz.com/cbai/issues/alert/?alertid=12831826 to send emails to your Congressmen; the content can be revised as desired. If you haven’t already done so, also urge Congress to break up the TBTF banks so they do not pose a systemic risk.

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    Community Banks Praised on ABC World News

    Community banks received a ringing endorsement on March 5, 2009, when a
    special segment aired on the ABC World News with Charlie Gibson. Union Bank and Trust in Evansville, Wisconsin was featured in the world-wide broadcast which noted that thousands of community banks in the U.S. are still going strong and still making loans on Main Street. The segment concluded with the following: “On Main Street, community bankers believe a bank that’s ‘too-big-to-fail’ is simply too big.”

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    Bernanke Addresses Problem of Too-Big-To-Fail Banks

    In a
    speech to the Council on Foreign Relations in Washington on March 10, Federal Reserve Chairman Ben Bernanke said TBTF banks lack proper market discipline and take excessive risks. He added that the TBTF phenomenon provides an artificial incentive for banks to grow in order to be perceived as too-big-to-fail, and it creates an unlevel playing field with smaller banks.

    Bernanke recommended that giant banks must be better regulated to prevent excessive risk-taking and must be held to higher capital and liquidity standards. CBAI has long advocated that TBTF banks must be made smaller by, among other actions, jettisoning their investment banking activities; they must be more tightly regulated and maintain greater capital; and they should insure their deposits separate from the FDIC.

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    CBAI's 27th Annual Washington Visitation May 11-13, 2009

    CBAI’s 27th Annual Washington Visitation is scheduled for May 11-13, 2009 -
    Register today!

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    CBAI State Legislative Update – “News from the Front”

    CBAI’s legislative agenda progressed last week in the Illinois General Assembly. For details on pending legislation, please
    click here.

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    CBAI’s 25th Annual Capital Conference on April 22, 2009

    CBAI's 25th Annual Capital Conference is scheduled for April 22, 2009.
    Early Bird Registration $150 Per Bank! Register today!

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    Federal Reserve Releases “Beige Book” on Economic Conditions

    On March 4, 2009, the Federal Reserve
    released its periodical publication called “The Beige Book” which summarizes comments received from business and other contacts outside the Federal Reserve regarding economic conditions.

    Information for the Chicago District and the St. Louis District are also available.

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    USDA Announces First Wave of Stimulus Funding

    On March 9, 2009, the USDA
    announced it will be delivering its first actions implementing the $28 billion provided in the recently enacted Economic Stimulus Plan. The USDA will use the funds to rebuild and revitalize rural communities.

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    FDIC Offers Tips to Help Consumers Manage Money

    The FDIC today
    announced a new publication to help consumers spend less, save more, prevent fraud, and borrow wisely, especially in a difficult economy. The information is provided in a special edition of the FDIC’s regular publication called FDIC Consumer News.

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    Federal Reserve Announces Plans for Same-day ACH Debit

    The Federal Reserve Banks today
    announced plans to add increased flexibility in their Automated Clearing House (ACH) settlement schedules by developing an intraday service for certain existing ACH debits. The service would be restricted to consumer checks converted to ACH as well as consumer debits generated from Internet and telephone transactions. Consumer or corporate credits will not be included in the new service, which is intended for rollout in the second quarter of 2010.

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    Baker Market Update

    Unemployment and payroll reports dominate the news this week. Treasury prices went up slightly, but then dipped down again.
    Click here for details.

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    Early-Bird Registration Open for CBAI’s 35th Annual Convention & Expo

    CBAI is pleased to open
    early-bird registration for the 35th Annual Convention & Expo, titled “Survive and Thrive.” During these turbulent times, a community bank's challenge is to survive this economic crisis and find ways to thrive in the future. At CBAI's 35th Annual Convention and Expo on September 24-26, 2009, you'll be welcomed to the jungle at the new Renaissance Hotel in Schaumburg, and find the information and insight you need to “Survive and Thrive.” Highlights of this year’s convention include 20 targeted education sessions featuring prominent speakers from around the country addressing cutting-edge topics and our largest-ever 112-booth Exhibit Hall, showcasing the latest in products and services designed specifically for community banks. Technology and future trends expert Peter Leyden leads off the convention’s education with a big picture overview of the extraordinary transformation the world is going through right now, and globetrotting adventurer David Miln Smith’s Closing Session “Blaze a Trail Through New Terrain,” teaches you how to convert the fear of change from an enemy to an ally. You’ll also enjoy exciting entertainment from world-guitar-fusion band Incendio at the Welcoming Reception and the big-band sound of the Cherry Poppin’ Daddies at the Saturday Night Dinner Dance.

    Now more than ever is the time to unite with community bankers statewide and gain the information and tools necessary to “Survive and Thrive.” You won’t want to miss it! Register today and receive the lowest pricing available!

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    Community Bank Marketing Conference Scheduled for April

    CBAI’s 2009 Community Bank Marketing Conference, “Profit Marketing in a Challenging Environment,” is designed to help educate community-bank marketing professionals on results-driven strategic marketing, customer insight for better marketing, customer retention, on-line marketing strategies, and incorporating innovation into customer service. Scheduled for Wednesday, April 22, 2009, at the Crowne Plaza in Springfield, this conference was developed by a committee of community bank marketing professionals with the needs of their peers in mind.

    A mini-exposition featuring the latest products and services benefiting the community bank and its marketing efforts also highlights the day. Topics covered in this one-day conference include “Seven Secrets of Results Driven Strategic Marketing” and “Become a Top Gun: Gaining and Using Customer Insight for Better Marketing,” both with Bruce Clapp, founder of Market Match, Inc., Englewood, OH; “Retention, Retention, Retention,” with Sean Cunningham of Marquis Software Solutions, Minonk, IL; “Google Analytics: Stop Wasting Your Marketing Dollars,” with Tracey Conn of T8DESIGN, Cedar Falls, IA; and “Innovate Your Inside Reality,” with Dinny Cosyns and Susan Harris of NorthStar Strategies, Inc., Glencoe, IL. Register today! For more information, please
    click here.

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    CBSC and Harland Clarke Renew Alliance
    CBAI Members Get Special Price Protection!

    Community BancService Corporation, Inc. (CBSC), the member-services affiliate of the Community Bankers Association of Illinois, the state’s largest banking trade association, and Harland Clarke, a recognized leader of direct marketing products, have renewed their
    agreement to provide check printing and marketing solutions to community banks. “This agreement guarantees that the check prices paid by CBAI member banks will not increase more than four percent (4%) annually and only in conjunction with a national price increase,” said Dennis Hesker, CBAI chairman and president & CEO of The First National Bank of Okawville. He added, “Harland recently announced a nine percent (9%) national price increase effective April 1, 2009. As a result of this agreement, CBAI members exclusively will earn a savings of five percent (5%) beginning next month.”

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    Triad Loans Yield 7% and No Losses

    Since the Program’s inception three years ago, nearly three dozen CBAI member banks have purchased approximately 2,000 loans totaling more than $100 million in Triad-originated manufactured housing loans. Participating bankers have earned an average yield approaching seven percent, with few delinquencies, AND NO LOSSES!
    Click here to read more.

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    Former FDIC Chairman Seidman Joins Board of Sageworks

    L. William Seidman, the former chairman of the Federal Deposit Insurance Corp., has been named to the board of Sageworks Inc., a banking technology firm in Raleigh, NC and a preferred services provider of Community BancServices Corp. Sagework offers a popular commercial loan analysis software program. Seidman, who chaired the FDIC from 1985 to 1991, is a commentator for CNBC. He is also the founder and publisher of Bank Director magazine and serves on the boards of several financial companies. Organizations that Mr. Seidman has advised include: The Deposit Corporation of Japan, The World Bank, The Capital Group, Freddie Mac, and The U.S. State Department. Seidman also served as the first chairman of the Resolution Trust Corporation (RTC) and as the Dean of the College of Business at Arizona State University. Additionally, he held the following prestigious positions: Chief Financial Officer and Director of Phelps, Dodge, Inc. and President Reagan’s Co-Chair of the White House Conference.

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    Midwest Office March Specials Include Items Every Bank Needs!

    CBSC marketing partner Midwest Office Supply has
    released a list of specially-priced office supplies for CBAI-members only. These items include: Executive High-Back Chairs; Guest Arm Chairs; Recycled Post-It Notes; Recycled Colored and Manila File Folders; and Recycled Dual-Purpose Legal Pads.

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    Midwest Office Supply Offering CBAI Members $100 Gift Card

    Midwest Office Supply, CBSC’s preferred provider for office supplies and equipment, announced that CBAI member banks now qualify to receive a $100 gift card rebate on certain Fellows Commercial Shredders. The gift card is in addition to the 30 percent discount that Midwest offers CBAI member banks. For more details on this promotion,
    click here. But hurry, this special offer ends on March 31, 2009.

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    Prepare for Growth at the 2009 SHAZAM EFT Forum

    Preparing your institution for EFT growth will be more important than ever during the upcoming year. At this year’s EFT Forum, SHAZAM will provide the tools needed to help prepare for this new growth. Keynote speaker, Jim Welch, will share his knowledge of the next generation of EFT users and examine the seven critical generational customer insights that will drive current and future business growth. Registration information and more, click here.

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    Join the 2009 ComplianceOne™ Get Togethers

    Live, online e-shows demonstrate how well ComplianceOne works with others. When ComplianceOne gets together with other solutions, the result is a seamless addition of functionality. And, the new e-show series shows you how. Visit
    www.WoltersKluwerFS.com/CBAIenews to sign-up now.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 4/15/09



    TELEPHONE/WEBCASTS THROUGH 4/15/09



    OTHER EVENTS THROUGH 4/28/09


    3/25-26 CBAI’s Career Development Division Spring Conference, DoubleTree Hotel, Bloomington

    4/20 CBAI Group 6 Meeting, Soangetaha Country Club, Galesburg

    4/22 CBAI Marketing Conference, Crowne Plaza, Springfield

    4/22 CBAI Capital Conference, Hilton Hotel, Springfield

    4/27 CBAI Group 13 Meeting, Stone Creek Golf Course, Makanda

    4/28 CBAI Group 11 Meeting, Roland Barkau Memorial Golf Course, Okawville


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