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                       April 7, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • You Can Make a Difference: Come to Washington with CBAI!
  • Action Alert – Oppose Credit Union Business Lending Expansion Proposal
  • Calls to Downsize Giant Banks Intensify
  • Officials Testify at Financial Crisis Commission Hearing
  • Democrats Claim Big Bank Lobby Improperly Portraying Community Banks
  • Special Message from ICBA’s Fine: The Elephant in the Room
  • CBAI Staff Hosts Meeting with OCC Officials
  • Senators Urge USDA To Revisit Crop Insurance Changes
  • Baker Market Update
  • Join Baker's April 15 Investment Strategies Conference Call
  • Top 10 Fraud Predictions for 2010
  • The Power to Wow! Do You Have It? You Will.
  • CBAI Announces Friday Night Optional Activity at Convention
  • Interest-Rate Risk and Investment Management Set for April 12-13
  • NEW Advanced Operations Conference Scheduled for April 13
  • Consumer & Commercial Loan Documentation Scheduled for April 20-23


  • You Can Make a Difference: Come to Washington with CBAI!

    Major financial reform legislation is being debated in Washington that will affect the future of community banking forever. Join CBAI and scores of community bankers from across America in our nation's capital to voice our positions. We can influence change for the better! 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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    Action Alert – Oppose Credit Union Business Lending Expansion Proposal

    CBAI and ICBA urge all community bankers to contact your congressmen to oppose proposals that would increase the credit union business-lending cap and increase the size of loans exempt from the cap. The proposal may be included in an upcoming jobs bill. To contact your congressmen,
    click here.

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    Calls to Downsize Giant Banks Intensify

    Today, America has 8,000 bank and thrift charters, and the four largest banks (Bank of America, JP Morgan Chase, Citigroup, and Wells Fargo) control a staggering 45% of all banking assets in the U.S. banking system. These unwieldy goliaths, along with their beastly Wall Street brethren, have proven through their actions that they are too big to regulate and manage, and they must be downsized for the long-term health and welfare of our nation. Members of the community banking lobby (CBAI and ICBA) are the only advocates of downsizing the giants. Support is growing among economists and regulators alike.

    MIT Economist Warns of More Financial Catastrophes

    MIT Professor and former chief economist of the International Monetary Fund, Simon Johnson, is imploring Congress to break up the nation’s largest banks. He argues that they have too much economic and political power. He believes another financial crisis is around the corner. He advocates hard caps on size to avert government bailouts.
    See Full Story.

    Johnson recently authored a book titled, 13 Bankers, Wall Street Takeover, Next Financial Meltdown, which portrays how the largest banks were bailed out, and identifies the social and financial threats of banks that are too-big-to-fail. See TODAY SHOW interview.

    Bank of England Official Suggests Size Limits

    Andrew Haldane, the Bank of England’s executive director in charge of financial stability, said last week that Britain’s top-heavy banking system is fragile because it lacks diversity. He noted that explicit limits on bank size may need to be considered. See NYTimes Story. See Bank Release.

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    Officials Testify at Financial Crisis Commission Hearing

    The Financial Crisis Inquiry Commission began three days of hearings today to determine the causes of the subprime meltdown and identify solutions to prevent a repeat of the financial crisis. Former Federal Reserve Chairman Alan Greenspan said, “Managers of financial institutions, along with regulators, including but not limited to the Federal Reserve, failed to comprehend the underlying size, length and potential impact of market risks that contributed to the 2007-2009 crisis.” However, former Citigroup executive Richard Bowen, who was chief underwriter at CitiMortgage, said he alerted senior executives at the bank of the dangers in the subprime market. The congressional Commission must make a final report by December 15, 2010.
    See Full Story.

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    Democrats Claim Big Bank Lobby Improperly Portraying Community Banks

    Senate Democrats released a statement this week accusing big bank lobbyists of portraying community banks as victims of regulatory reform legislation as a way to defeat the measure. “Giant Wall Street banks are spending millions of dollars to lobby against financial reform. These giant firms face one problem, money can’t buy you love,” according to the statement. The Senators cited the key distinctions between the financial reform positions of the ABA and the ICBA. Cam Fine, ICBA President, said, “We do differ sharply from the American Bankers Association... on aspects of the bill dealing with resolution authority, ‘too-big-to-fail,’ the pre-fund and the Volcker Rule.”
    See Article.

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    Special Message from ICBA’s Fine: The Elephant in the Room

    One of several debates raging in Washington between Main Street and Wall Street involves the "prefunding" of a reserve by “too-big-to-fail” firms (sometimes called systemically dangerous firms) to be used to resolve their own failures the next time there is a financial meltdown (and there will be a next time).
    See Full Message.

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    CBAI Staff Hosts Meeting with OCC Officials

    On April 1, 2010, members of the CBAI staff met with the OCC's Bert Otto, Deputy Comptroller (Chicago), Gary Baranowski, Assistant Deputy Comptroller (East Peoria), Thomas Munz, Assistant Deputy Comptroller (Schaumburg), and Mark Zeihen, Assistant Deputy Comptroller (Champaign). The meeting was part of an ongoing dialogue between CBAI and the bank regulatory agencies.
    More.

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    Senators Urge USDA To Revisit Crop Insurance Changes

    A group of 28 senators, led by Senate Agriculture Committee Chairman Blanche Lincoln (D-Ark.) and Ranking Member Saxby Chambliss (R-S.C.), sent a
    letter to the USDA’s Risk Management Agency urging the agency to reconsider its proposal for significant reductions for spending on crop insurance.

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    Baker Market Update

    March payrolls rise by 162,000; jobless rate remains unchanged at 9.7%.
    Details.

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    Join Baker's April 15 Investment Strategies Conference Call

    Register now to participate the THE BAKER GROUP’S Quarterly Investment Strategies Conference Call. Scheduled topics for discussion include current market conditions, Fed’s exit strategy and potential market impact, Interest Rate Risk-A pre-exam checklist, and much more.

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    Top 10 Fraud Predictions for 2010

    For nine straight years, identity theft has topped the charts in the number of consumer complaints according to the FTC. According to the 2010 predictions, these crimes will continue to grow. Now is the time for a comprehensive identity theft solution for your account-holders.
    More.

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    The Power to Wow! Do You Have It? You Will.

    It’s a practical, yet super fast way to get the information you need to bring mind-bending ideas to your organization and workflow processes. At BankingHero.com you’ll get the latest trends, best practice ideas, industry news, and support resources—all from your own desk.
    Check it out today!

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    CBAI Announces Friday Night Optional Activity at Convention

    This year’s
    36th Annual Convention & Expo, “Community Banking: The Odds-On Favorite,” to be held at the Galt House in Louisville, KY, has a unique Friday night activity you won’t want to miss. You’ll be “off to the races” as you visit the historic Churchill Downs for a CBAI-exclusive event. Opened in 1875, Churchill Downs is a significant place in the history of horse racing in the United States and home of the Kentucky Derby, the first leg of thoroughbred racing's Triple Crown. You will enjoy exclusive use of the entire facility, including the Kentucky Derby Museum. A premier tourist attraction, the museum features an award-winning, high-definition Kentucky Derby film entitled “The Greatest Race”. Displayed on a 360-degree screen, “The Greatest Race” places the viewer in the center of Derby Day action. A permanent exhibit features African Americans in Thoroughbred Racing, while interactive exhibits include a “Place Your Bets” racing activity that illustrates pari-mutuel wagering and the “Warner L. Jones Jr. Time Machine” that permits visitors to select footage of past Derbys, as far back as 1918. You can even “be a jockey” and ride in a race. Tour guides are on hand to take you on a walking tour of Churchill Downs.

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    Interest-Rate Risk and Investment Management Set for April 12-13

    CBAI offers
    “Interest-Rate Risk and Investment Management” in two locations this April. This program focuses on the critical importance of investments and asset/liability management in the new regulatory and economic environments. Interest-rate risk, liquidity risk, cash-flow management, and security-selection techniques are discussed, as well as Fed Policy considerations and the interest-rate outlook generally. An integrated approach to balance-sheet risk management is emphasized as a guide for making investment decisions. There are also examples of recommended tools of analysis for security selection. Leading this seminar are Jeffrey Caughron and Ryan Hayhurst, both of THE BAKER GROUP, Oklahoma City, OK.

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    NEW Advanced Operations Conference Scheduled for April 13

    The CBAI
    Advanced Operations Conference is designed to help educate community-bank operations personnel on issues specific to the operations of your community bank. Participants benefit from expert speakers, pertinent and informative topics, and peer networking. A mini-exposition featuring the latest products and services benefitting the community bank and its marketing efforts also highlights the day. This conference is designed for operations officers, CEOs, and anyone who is involved in operations. Topics covered include a “Legal Update” (focusing on subpoenas, levies, and garnishments); “Future of Check Processing” presented by John Mills at BKD, LLP; “Fraud and Debit Card Issues” with Liz Little of SHAZAM®, Inc.; and “How To Deal with All the Compliance Changes,” “Reports for the Board of Directors: What Do They Want and Need?,” and “How To Do More with Less in Today's Economy” with Tim Tedrick of Lindgren, Callihan, Van Osdol & Co., Ltd.

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    Consumer & Commercial Loan Documentation Scheduled for April 20-23

    Loan Documentation is a critical component in lending. This part of the lending process is essential in order to avoid loan losses due to poor documentation. If not performed properly, poor documentation can cause loans to be adversely classified, even if the underlying credit is sound or if the loan is performing as agreed. The purpose of these one-day workshops is to provide participants with a good understanding of the
    consumer and commercial loan documentation processes. Participants can attend either one-day seminar or both days of training. Leading this seminar is Jeffery Johnson, president of Bankers Insight Group, Atlanta, GA. Johnson and has more than 25 years experience in banking. Most of Johnson's career has been spent in sales, lending, and the credit analysis.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 05/15/2010



    TELEPHONE/WEBCASTS THROUGH 05/30/2010




    OTHER CBAI EVENTS


    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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