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                     June 16, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Negotiations Underway in Conference Committee on Financial Reform
  • CBAI’s Estes and Schroeder Lobby Reform Bill
  • ICBA/CBAI Urge Retention of $150 Billion Systemic-Risk Fund
  • Urge Congressmen to Enact $30 Billion Small Business Lending Fund
  • Victory! Loan Loss Amortization Added to Jobs Bill
  • Former SEC Chairman Says Reform Measure Won’t Prevent Crisis
  • On Bailouts and Too-Big-to-Fail
  • Baker Market Update
  • Federal Reserve Issues District Economic Reports
  • Federal Reserve Adopts Card Penalty Rules
  • Be Eligible To Win Prizes by Registering NOW for CBAI’s 36th Annual Convention & Expo!
  • Win, Place, & Show…Donate to BancPac’s Live/Silent Auction Today!
  • Batter Up! Support FedPac and Enjoy a Day of Baseball at Busch Stadium
  • All CBAI Members Are Invited to Attend a Free Investment Seminar and Golf Outing Sponsored by the Baker Group
  • Participate in the ICBA Technology Survey
  • CBAI Participates in SubS Regional Conference
  • CBAI Accepting Nominations for “Distinguished” Members
  • ACH Boot Camp Scheduled for June
  • The Employer-Employee Relationship Seminar Slated for June 29-30


  • Negotiations Underway in Conference Committee on Financial Reform

    Immediate Member Action Needed on Key Issues

      Remove State Lending Limits

    Letters via email are now needed to ask your congressmen to oppose language in the financial reform bill that would subject state-chartered banks to national lending limits to any one borrower as a percentage of their capital. The provision would remove the discretion of state regulators to set lending limits and restrict lending in the 20 states that have limits above the national limit. To contact your members of Congress on lending limits,
    Click Here.

      Oppose Interchange Provision

    CBAI and ICBA are encouraging House members to sign a letter instructing House conferees to oppose the interchange provision, and 110 congressmen have signed it to date. However, continued outreach is essential to attain more signatures. Contact Your House Member on Interchange.

    House Offer Includes Key Community Bank Priorities

    The House Legislative Offer to the Senate contains several ICBA/CBAI priorities on financial reform, including a permanent extension of the Transaction Account Guarantee program and a permanent increase in FDIC deposit insurance to $250,000, retroactive to January 1, 2008.

    CBAI’s Estes and Schroeder Lobby Reform Bill

    CBAI’s First Vice Chairman Mikes Estes of the The Fisher National Bank and CBAI’s Vice President of Federal Governmental Relations David Schroeder were in Washington this week to lobby the historic financial regulatory reform bill. They were invited by the Independent Community Bankers of America (ICBA) to weigh-in with the members of the Illinois Congressional delegation on several key provisions of special importance to community banks.
    More.

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    ICBA/CBAI Urge Retention of $150 Billion Systemic-Risk Fund

    In a letter to Chairman Barney Frank, ICBA urged the conferees on financial reform to include the $150 billion prefunded systemic-risk fund in the final version of the reform bill. The provision is contained in the House financial reform bill but not the Senate bill. The ABA and giant banks oppose the measure which would require the largest banks to provide the funds that would be used to resolve future large bank failures.
    Read ICBA Letter.

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    Urge Congressmen to Enact $30 Billion Small Business Lending Fund

    ICBA and a coalition of state community banking associations including CBAI are urging the House to pass the $30 billion Small Business Lending Fund which will enable community banks with less than $1 billion in assets to receive capital investments up to 5 percent of their risk-weighted assets without any TARP-like restrictions.
    Contact Your Member of Congress.

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    Victory! Loan Loss Amortization Added to Jobs Bill

    The U.S. House of Representatives today approved by voice vote an amendment to H.R. 5297, the Small Business Lending Fund Act of 2010, which will allow community banks to amortize commercial real estate loan losses over a period of up to 10 years, depending on increased small business lending. This measure was originated by CBAI member Francis Smith of HomeStar Bank in Manteno and supported by CBAI, ICBA, and other state community banking associations. CBAI thanks and congratulates Francis Smith for his tireless efforts over the past eight months. The measure has faced resistance from the FDIC, and H.R. 5297 will need to be approved by the U.S. House and Senate and signed by President Obama before its provisions become law. The big bank lobby did not support this effort. CBAI will likely call on all CBAI members to engage in grassroots lobbying when deemed appropriate.
    See Amortization Amendment.

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    Former SEC Chairman Says Reform Measure Won’t Prevent Crisis

    A former chairman of the Securities and Exchange Commission said yesterday the financial reform legislation under consideration will not prevent another financial crisis. Richard Breeden, SEC head from 1989 to 1993, said regulators must have the courage to make banks smaller. “We would all be safer,” he declared. CBAI has urged Congress to downsize the giant banks to make them easier to regulate, manage, and resolve in the event of failure.
    See Article.

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    On Bailouts and Too-Big-to-Fail

    In a recent article, Simon Johnson, MIT economist and proponent of placing hard caps of $100 billion on bank size, noted that when the chips were down, the most powerful nations deferred again and again to the needs of people who lent money to the big banks by bailing them out. He indicated that we are setting ourselves up for another boom based on excessive risk-taking that will result in another financial crisis.
    See Article.

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    Baker Market Update

    The U.S. Treasury dominated the new issue market last week with its quarterly refunding of "threes, tens, and thirties." The market was surprised by a decline in retails sales and the unemployment picture remains gloomy.
    See Details.

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    Federal Reserve Issues District Economic Reports

    On June 9, 2010, the Federal Reserve released The Beige Book, a periodic assessment of economic conditions by District. For the Seventh District (Chicago), economic activity continued to improve in May with manufacturing leading the way. For the Eighth District (St. Louis), economic activity increased modestly in May.
    See Seventh District Report. See Eighth District Report.

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    Federal Reserve Adopts Card Penalty Rules

    The Fed has approved final rules that set caps on credit card fees, prohibit “inactivity” fees, and prevent the charging of multiple penalty fees on a single late payment or other violation of the account terms. The rules generally become effective on August 22, 2010. See Chicago District Report.
    See St. Louis District Report.

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    Win, Place, & Show…Donate to BancPac’s Live/Silent Auction Today!

    Do you have sporting event tickets? Do you have a condo or time share? Do you have autographed memorabilia? These are just a few of the items needed for the Community BancPac’s Third Annual Live Auction and 19th Annual Silent Auction on Thursday, September 30, 2010, Galt House, Louisville, Kentucky.
    Donate to BancPac's Silent/Live Auction now!

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    Batter Up! Support FedPac and Enjoy a Day of Baseball at Busch Stadium

    CBAI FedPac Needs Your Support! Batter-Up!! Step up to the plate and help raise much needed funds for CBAI FedPac and have a great time in the process! St. Louis Cardinals vs. Philadelphia Phillies, Busch Stadium in St. Louis, Thursday, July 22, 2010 at 1:15 p.m.
    Click hereto get your tickets now!

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    All CBAI Members Are Invited to Attend a Free Investment Seminar and Golf Outing Sponsored by the Baker Group

    To register,
    click here now!

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    Participate in the ICBA Technology Survey

    Tech Survey Early Bird Cash Drawing June 18
    Community banks can find out if their technology needs a tune-up and earn a possible payday in the process by taking part in the
    2010 ICBA Community Bank Technology Survey. Community banks that complete the 15-minute survey by June 18 will be entered into two cash drawing dates with prizes totaling $2,250. Winners from the first drawing will also be eligible for the second drawing, scheduled for June 25, the final day for all survey submissions. All responses will be kept confidential, with only collective responses reported.

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    CBAI Participates in SubS Regional Conference

    The Subchapter "S" Bank Association recently hosted a series of Regional Conferences. CBAI bankers and CBAI participated in the Chicago Regional Conference which presented the latest information relating to managing a Subchapter "S" financial institution.

    In 1996 Congress passed legislation granting banks and thrifts the opportunity to elect subchapter "S" taxation, which quickly resulted in subchapter "S" conversions by many financial institutions across the country. This trend continues today, as more than 2,000 banks and bank holding companies have made subchapter "S" elections. Not surprisingly, a myriad of issues, questions and concerns have developed surrounding subchapter "S" taxation for financial institutions. The Subchapter "S" Bank Association was established to address these very issues.

    This Association was created in 1998 to provide financial institutions which have either elected, or are interested in, subchapter "S" tax status a unified voice through which to promote and protect the benefits available under a subchapter "S" election. The primary objective of the Association is to keep its members well informed. The Association hosts regional conferences, featuring speakers from around the country who specialize in a variety of fields impacting subchapter "S" institutions. These conferences are the premier educational opportunity for banks and bank owners to learn about the latest issues surrounding subchapter "S" taxation and regulation. The 2010 conferences were held in Dallas, Chicago and Minneapolis.

    This year's speakers included attorneys from Krieg Devault, an Indianapolis-based law firm with one of the largest and most sophisticated ESOP practices in the country; Bruce Toppin, a partner with the Dallas law firm of Kennedy, Toppin and Sutherland, LLP, whose San Antonio practice focuses on representing financial institutions around the country on a wide variety of corporate, securities and regulatory matters; Ed Krei, a Managing Director of The Baker Group which is based in Oklahoma City, and has an investment office at CBAI headquarters in Springfield, Illinois. (The Baker Group is a CBAI preferred service provider and specializes in investment portfolio services, asset liability management, and strategic planning for community-based financial institutions); and David Schroeder, CBAI's Vice President of Federal Governmental Relations. Schroeder provided an update on federal legislative issues, including - victories, challenges and unfinished business regarding the financial regulatory reform bill currently being debated in the House and Senate Conference Committee. Please
    click here to read the text of Schroeder's presentation.

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    CBAI Accepting Nominations for “Distinguished” Members

    Distinguished CBAI Members have contributed to community banking with an extraordinary expenditure of time, money and/or effort. They have acted as “ambassadors” for community banking, ultimately making a positive impact on the profession.

    Other criteria for Distinguished Members are that they must be retired or otherwise uninvolved in the day-to-day operations of a bank; have worked for a bank or other entity related to the financial services profession for a minimum of 20 years; and, if they worked for banks, those banks must be active members of CBAI at the time of induction. Candidates must be approved by the CBAI board of directors. To nominate an individual, contact Andrea Cusick, SVP Communications at 800/736-2224 or
    cbaicom@cbai.com.

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    ACH Boot Camp Scheduled for June

    CBAI offers
    “ACH Boot Camp” in three locations June 21-23. This seminar is designed to cover many of the critical aspects, rules, regulations, policies, and procedures related to the ACH function of the bank. This includes technical skills such as understanding the ACH processing structure; ACH RULES; ACH annual audit; return rules, ACH compliance and regulations; special transactions and upcoming changes. It also provides tips and tools to establish “best practices and policies” to evaluate and address risks and protect against frauds. A workbook is provided as a valuable resource for the bank staff. Leading this seminar is Gregg Bennett, president of Pivotal Financial Resources in Austin, TX.

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    The Employer-Employee Relationship Seminar Slated for June 29-30

    Employees are the most important component of the success of nearly every company. This June, CBAI is offering
    “The Employer-Employee Relationship: Avoid the Minefields and Nurture the Relationship” in two locations. The Employer-Employee Relationship is the responsibility of both management and non-management. This seminar examines the changing expectations for the workforce and workplace; how compliance with employment laws and voluntary policies promote better relationships; describes those laws and policies; what issues are more prevalent in these economic times; and how to discipline and restore a now strained relationship following discipline. In this seminar, participants are encouraged to share their experiences and learn from both each other and the presenter. Leading this seminar is Lynne Mapes-Riordan, partner at Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago, who concentrates her practice in employee benefits, executive compensation, and employment law.

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    Be Eligible To Win Prizes by Registering NOW for CBAI’s 36th Annual Convention & Expo!

    By registering for
    CBAI’s 36th Annual Convention & Expo by June 30, 2010, you not only receive a significant discount on the registration fee, you are also eligible to win valuable prizes, including weekend or overnight stays at some of the best hotels in the Midwest. Scheduled for September 30 – October 2, 2010, at the Galt House in Louisville, KY, "Community Banking: The Odds-On Favorite," is an event you won’t want to miss. The Special Events Committee, comprised of fellow community bankers, has designed a dynamic convention and exposition. It provides new ideas to further your relationship with your customers, shareholders, and community. It also offers the perfect mix of educational programs, top-rated speakers, a quality exhibit center, and networking opportunities at numerous social events.

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    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 07/30/2010



    TELEPHONE/WEBCASTS THROUGH 07/30/2010




    Other CBAI Events Thru 10/2

    CBAI Community Bankers School (7/11-7/16; Illinois Wesleyan University, Bloomington, IL)

    CBAI’s 36th Annual Convention & Exposition (9/30-10/2; Galt House, Louisville, KY)
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