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                    May 6, 2009 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Headed to Washington
  • CBAI’s Case for Changing the FDIC Assessment Method
  • Action Urged on Interchange Fee Legislation
  • Consumers Prefer Community Banks
  • CBAI Capital Conference Has Record Attendees
  • CBAI Seeks Clarification on Reports Required by IDFPR
  • Bair to Congress – Too Big To Fail Must End
  • FDIC Expresses Concerns over Complex Products
  • Fed Chairman Bernanke Predicts Economic Turnaround
  • Baker Market Update
  • Midwest Manufacturing Output Fell in March
  • St. Louis Fed Creates Site to Track the Recession
  • FTC Delays Red Flags Rule Enforcement until August
  • Employment Implications for Mass Flu Outbreak
  • The Importance of Credit Scoring
  • Community Banks Tackle Issues Affecting the EFT Industry
  • ICBA’s Menzies on Community Bank PR Opportunities
  • NCUA Assumes Control of Florida Credit Union
  • CBAI’s Community Bank Technology Conference Scheduled
  • Growing Opportunities: CBAI Ag Lenders’ Conference
  • Harland Clark Introduces Acquisition Accelerator™ Solution


  • CBAI Headed to Washington

    Next week (May 11th-13th), CBAI will host its 27th Annual Washington Visitation. More than 40 participants from across Illinois will meet with federal regulators and their congressmen to discuss financial restructuring and numerous regulatory issues facing the banking profession. The annual visit will be held in conjunction with the ICBA’s Annual Policy Summit.

    CBAI thanks the following sponsors that helped make this event more affordable for the attendees:

          Community BancService Corporation
          Conference of State Bank Supervisors
          Federal Home Loan Bank of Chicago
          Federated Investors
          SHAZAM, Inc.

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    CBAI’s Case for Changing the FDIC Assessment Method

    CBAI has urged the FDIC to assess banks based on total assets minus tangible capital as opposed to the current method of domestic deposits. For more details on the rationale for the proposed method, please
    click here.

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    Action Urged on Interchange Fee Legislation

    The U.S. Senate is expected to vote soon on amendments to credit card legislation that would establish government price controls on credit and debit card interchange fees. CBAI and ICBA urge community bankers to contact Senators Burris and Durbin to let them know who price controls on interchange will not only harm community banks, but also your customer and communities. Act now by
    clicking here.

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    Consumers Prefer Community Banks

    In a recent
    survey conducted by the Raddon Financial Group, 63% of respondents said they are now more likely to use community banks in the future due to the financial crisis. Consumers preferred community banks over credit unions, regional banks, and Internet banks. Other useful demographic information is contained in the survey results.

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    CBAI Capital Conference Has Record Attendees

    Nearly 100 Illinois community bankers converged on the state capital to meet with elected officials to discuss a broad range of issues affecting community banks and the communities they serve. The record turnout resulted in scores of banker/legislator contacts for the benefit of the profession.
    Click here for highlights.

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    CBAI Seeks Clarification on Reports Required by IDFPR

    CBAI understands that community bankers have more than enough to deal with in today’s banking environment. New or additional regulatory reporting requirements can cause an unwelcome commitment of time and resources. When CBAI learned from one of our state-chartered member banks that the Illinois Department of Financial & Professional Regulation (“IDFPR”) was requiring state banks to complete surveys dealing with private mortgage insurers and loan servicers and was threatening banks with fines if they did not comply, CBAI responded with a
    letter to IDFPR. The letter questioned the statutory basis for the reporting requirements and the justification for the threat of monetary penalties. CBAI emphasized that the failure of the State of Illinois and IDFPR to maintain the State Banking Board of Illinois is, in CBAI’s view, a violation of the Illinois Banking Act by the State of Illinois. The State Banking Board, which has statutory oversight powers relating to examination reports and administrative penalties imposed by IDFPR, is required by law to meet annually but in reality has not met in several years. CBAI inquired as to when the State Banking Board would be reactivated so that it could exercise its oversight function.

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    Bair to Congress – Too Big To Fail Must End

    In testimony before the Senate Banking Committee today, FDIC Chairman Sheila Bair reiterated that the U.S. needs a system whereby one firm can be allowed to fail without breaking down the entire system. She called upon Congress to move quickly to allow regulators to place large financial companies into receivership which could encourage them to be more willing to deal with troubled assets. She said, “A strong case can be made for creating incentives that reduce the size and complexity of financial institutions as being bigger is not necessarily better.” CBAI has long advocated against financial concentration and voiced concerns over institutions deemed too big to fail; CBAI supports Chairman Bair’s general position of reducing the size of the giant banks and implementing a regulatory structure that rewards safety and soundness and protects against excessive risk-taking.
    More information.

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    FDIC Expresses Concerns over Complex Products

    This week the FDIC issued a letter outlining supervisory concerns about certain structured credit products, especially private label mortgage-backed securities and collateralized debt obligations (CDOs). These products, used heavily by Wall Street investment and commercial banks, were instrumental in causing the financial and economic crisis. The FDIC letter provides guidance on risk management of these structured products.
    More information.

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    Fed Chairman Bernanke Predicts Economic Turnaround

    In testimony before the Joint Economic Committee, Federal Reserve Chairman Ben Bernanke told congressional members that economic activity should rebound later this year, and there are signs the housing market is beginning to bottom out. He also noted that consumer spending grew in the first quarter, but conditions in the commercial real estate sector remain poor. He noted, however, that a relapse in the financial sector could stall a recovery.
    Full testimony.

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    Baker Market Update

    The Fed met for the third time this year, deciding to maintain their target range for Fed Funds of zero to 0.25%. The Fed’s statement indicated the economy continues to decline, but“ the pace of contraction appears to be somewhat slower. ”Furthermore, the Fed expects to see continued “sustainable economic growth in the context of price stability” as a result of the irquantitative easing and policy actions.
    More...

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    Midwest Manufacturing Output Fell in March

    The Chicago Fed Midwest Manufacturing Index (CFMMI) fell 2.4% in March, to a seasonally adjusted level of 82.0 (2002 = 100). Please
    click here for a full copy of the release.

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    St. Louis Fed Creates Site to Track the Recession

    The Federal Reserve Bank of St. Louis has
    created a website called “Tracking the Global Recession” in an effort to provide accurate and useful information on the economy. The site will be regularly updated.

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    FTC Delays Red Flags Rule Enforcement until August

    On April 30, 2009, the Federal Trade Commission
    announced a delay in the enforcement of the new red flags rules until August 1, 2009. The FTC said creditors and financial institutions it regulates need more time to develop and adopt written identity theft prevention programs. This action does not affect other federal regulators’ enforcement of the original November 1, 2008, compliance deadline for institutions subject to their oversight.

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    Employment Implications for Mass Flu Outbreak

    According to the Director of the Centers for Disease Control (“CDC”), a pandemic, likely an influenza breakout, is inevitable. Some CDC recommendations have employment law implications. For example, if employees become ill, an obvious issue may be the need to satisfy Family and Medical Leave Act obligations. There may also be issues under the Occupational Safety and Health Act. There could be implications under the Fair Labor Standards Act for employees who are required to work from home. The
    attached article from CBAI associate member Howard & Howard law firm, addresses these concerns, and more, for all employers. Another article provided by CBAI associate member Hunton & Williams provide information on pandemic preparedness.

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    The Importance of Credit Scoring

    As consumers attempt to emerge on the other side of the economic crisis, individual credit scores will play a significant role in each consumer’s ability to infuse new capital into the economy. With banks, credit unions and other lenders forced to restrict lending to only the most creditworthy, higher credit scores will become the main goal for consumers. Consequently, in a desperate attempt for liquidity, consumers (and their attorneys) will be scrutinizing the information reported on their credit files even more closely than they have over the past few years. America’s need for economic recovery will place more pressure on the Federal Agencies to ensure that data furnishers are accurately depicting consumers’ credit histories through the upcoming release of the new FACT Act Section 312. By placing into effect strict new controls over the accuracy and integrity of data reported to the credit bureaus, FACTA 312 is expected to produce substantial challenges for all data furnishers in 2009. For a complete white paper on the subject,
    click here.

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    Community Banks Tackle Issues Affecting the EFT Industry

    Community financial institutions from across the Midwest gathered recently to tackle issues affecting the electronic funds transfer (EFT) industry. Institutions attended the SHAZAM EFT Forums held in St. Louis, MO, and Des Moines, IA, in April. The EFT Forums provided SHAZAM participating financial institutions the opportunity to hear from industry speakers, learn about EFT trends, and provide input for the direction of the member-owned SHAZAM network.
    Click here for news release.

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    ICBA’s Menzies on Community Bank PR Opportunities

    Never in my career as a community banker has it been more critical to tell our industry’s positive story than now. As the historic financial markets crisis continues to make headlines, ICBA leaders and members are stepping up to spread the community banking message through news outlets across the country.
    More...

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    NCUA Assumes Control of Florida Credit Union

    The National Credit Union Administration assumed control of
    Eastern Financial Florida Credit Union, a state-chartered, federally insured credit union headquartered in Miramar, Fla. The credit union has approximately $1.6 billion in assets and more than 200,000 members. It lost $114 million last year.

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    CBAI’s Community Bank Technology Conference Scheduled

    On May 20 in Springfield, CBAI is offering the “Community Bank Technology Conference,” a one-day session which features targeted solutions to meet the demands of community banks. Designed for senior managers and operations personnel, you will benefit from informative break-out sessions spotlighting the mobile banking, vendor management, and answers to common technology questions. It also gives focus to card fraud and community-bank technology investments. New at this year’s conference is an opportunity to engage in roundtable discussions with peers on the hottest technology issues.

    With more than 40 of the nation’s leading financial-service providers showcasing the latest products, participants will also find solutions in the Exhibit Center.

    Speakers include Charles Burkhart, fraud operations manager at SHAZAM/ITS, Inc.; Cindi Lieblich, vice president, FundsXpress/First Data; Dan Hadaway, managing partner, infotex; Mark Scholl, executive officer, Lindgren, Callihan, Van Osdol & Co., Ltd.; and Brad Smith, president, Abound Resources, Inc.

    So don’t delay!
    Enroll your bank today for this timely program!

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    Growing Opportunities: CBAI Ag Lenders’ Conference

    CBAI is pleased to offer our annual “Ag Lenders’ Conference” on June 3 & 4, 2009. The recession has been compared to the large downturns of the 1970s and 1980s, characterized by a deteriorating housing market, large-scale disruptions in financial services, and plummeting consumer and business confidence. How these national and global factors are impacting Illinois agriculture, and how agricultural lenders should react, is the focus of CBAI’s 2009 Agricultural Lenders’ Conference. Designed by CBAI’s Ag Lenders’ Subcommittee, this two-day conference will help you to develop new skills and tools to better understand the issues affecting farm and agribusiness customers and to meet their credit needs.

    For information on topics and speakers and to register, please
    click here today!

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    Harland Clark Introduces Acquisition Accelerator™ Solution

    Your complete solution for attracting new checking account holders and deposits built on industry best practices and proven results Acquisition Accelerator™ combines audience selection, creative, direct mail execution and incentive rewards into a program that’s easy to implement and manage.

    Harland Clarke Marketing Services’ comprehensive approach to customer engagement can help your financial institution achieve real incremental deposit growth.
    Click here to read more.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 6/15/09



    TELEPHONE/WEBCASTS THROUGH 6/15/09



    OTHER EVENTS THROUGH 6/11/09


    5/20 CBAI’s Community Bank Technology Conference, Crowne Plaza Hotel, Springfield

    June 3 & 4 CBAI Ag Lenders’ Conference, Crowne Plaza Hotel, Springfield

    5/6 CBAI Group 8 Meeting, Pekin Country Club

    5/18 CBAI Group 10 Meeting, Jacksonville Country Club

    6/1 CBAI Group 5 Meeting, Pontiac Elks Club

    6/8 CBAI Group 7 Meeting, Spring Lake Country Club, Quincy

    6/11 CBAI Group 9 Meeting, Urbana Country Club

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