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       July 16, 2008 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Treasury and Fed Support Fannie and Freddie
  • OTS Closes IndyMac Bank
  • CBAI, ICBA Respond to Regulatory Actions
  • FDIC Assures IndyMac Depositors
  • Housing Rescue Bill Goes to Conference
  • Federal Reserve Adopts Rules to Halt Deceptive Lending
  • Baker Weekly Market Update
  • CBAI Expands Governmental Relations Team
  • FTC Releases "Red Flag" Guidance
  • CBAI Community Bank Directors’ College – Session I
  • FACTA Deadline Is Looming
  • Online Account Recordkeeping Services Now Available
  • Register for CBAI’s 34th Annual Convention & Exposition by July 31 and Qualify for Special Drawings!
  • Banking Essentials Training Now Available


  • Treasury and Fed Support Fannie and Freddie

    In an
    announcement on Sunday, July 13, Treasury Secretary Henry Paulson rolled out a plan to financially support Fannie Mae and Freddie Mac as the housing and financial markets become more turbulent. The Federal Reserve also announced that the FRB of New York is now authorized to lend to the GSEs if needed.

    The Treasury plan temporarily expands Fannie’s and Freddie’s existing lines of credit with the government, gives the Treasury temporary authority to purchase their stocks, and allows the Fed to help set GSE capital and other safety and soundness requirements.

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    OTS Closes IndyMac Bank

    The Office of Thrift Supervision closed the $32 billion asset IndyMac Bank, FSB of Pasadena, California on Friday, July 11, and named the FDIC as conservator. OTS Director John Reich said the bank failed due to a liquidity crisis caused by bad home loans. He added that the immediate cause for the closing was a deposit run that began after public release of a letter dated June 26, 2008, to the OTS and FDIC from Senator Charles Schumer (D-NY) who expressed concerns about the bank’s viability. A preliminary FDIC analysis estimates the cost of the resolution to the insurance fund at between $4 billion and $8 billion.
    More details.

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    CBAI, ICBA Respond to Regulatory Actions

    In separate statements, CBAI assured consumers that community banks are safe and praised the Federal Reserve for new rules to half deceptive lending's and ICBA praised the Treasury and Federal Reserve for their coordinated efforts to restore public confidence in Fannie Mae and Freddie Mac. CBAI
    stated that community banks are safe and sound financial institutions that are generally well capitalized and conservatively managed with diverse lending and investment portfolios.

    ICBA emphasized the value of FDIC insurance protection for consumers and the impressive safety record of community banks throughout the nation.

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    FDIC Assures IndyMac Depositors

    FDIC Chairman Sheila Bair released a
    statement on Sunday, July 13, assuring IndyMac depositors that their $18 billion in insured deposits are safe and accessible. She also stressed that the overwhelming majority of banks remain safe and sound. IndyMac is the second largest failed bank the FDIC has handled. “No depositor has ever lost a penny of insured deposits,” she said.

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    Housing Rescue Bill Goes to Conference

    On Friday, July 11, the U.S. Senate passed a multi-part housing rescue
    legislation that includes three stimulus measures proposed by the ICBA – an $8,000 homebuyer tax deduction, a federal property-tax credit, and FHLB benefits for community financial institutions. Congressional leaders hope to act quickly to reconcile differences and send a final bill to President Bush.

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    Federal Reserve Adopts Rules to Halt Deceptive Lending

    On Monday, July 15, the Federal Reserve sweeping rules to prevent abusive mortgage lending practices that have led to widespread delinquencies and foreclosures. For more information,
    click here.

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    Baker Weekly Market Update

    Turmoil returned to the global financial markets this week with news regarding the tenuous financial condition of government sponsored mortgage giants FannieMae and FreddieMac.
    Click here to read more.

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    CBAI Expands Governmental Relations Team

    Effective July 1, CBAI’s governmental relations services were expanded and enhanced to address the increasing number of competitive issues facing community banks at the state and federal levels. For details,
    click here.

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    FTC Releases "Red Flag" Guidance

    The Federal Trade Commission issued an
    alert on the "red flag" rules requiring banks to develop customer identity theft prevention programs under the Fair and Accurate Credit Transactions Act. The advisory outlines requirements that must be in place by Nov. 1, 2008. CBSC Preferred Service Provider Wolters Kluwer Financial Services also offers a Red Flags Resource Center to help members comply with the regulations.

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    CBAI Community Bank Directors’ College – Session I

    Developed in close conjunction with both state and federal regulators, CBAI’s Community Bank Directors’ College is designed to teach individuals how to become a more effective, capable, and supportive member of a bank’s board of directors. Recommended for both new and seasoned bank directors, it is structured as two, two-day sessions offered on an annual basis. Session I, may be attended as a stand-alone course and is being held at the Hilton Hotel in Lisle August 12-13. The faculty is the “best of the best” and includes such nationally recognized instructors as David Kemp from Bankers Management, Inc.; Phillip Smith from Gerrish McCreary Smith; Lee Wetherington from Goldleaf Technologies; and key regulators.
    Click here for details and to register.

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    FACTA Deadline Is Looming

    November 1 is the deadline for complying with Section 114 of FACTA (Fair and Accurate Credit Transactions Act of 2003), also known as the “Red Flag” rules. If that fact has you ready to wave the white flag, Harland Clarke can help.
    Click here to read about The Facts about FACTA’s Identity Theft “Red Flag” Rules.

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    Online Account Recordkeeping Services Now Available

    Wolters Kluwer’s Online Account Recordkeeping Services allows bankers to administer all types of tax-advantaged accounts, including Individual Retirement Accounts (IRAs), Health Savings Accounts (HSAs), and Coverdell Education Savings Accounts (CESAs). It gives you faster and easier access to large amounts of account information to help you develop the reports needed for the government, your organization, and your account owners. You’ll get exactly what you need — when you need it — with little paper waste.
    Click here to find out more.

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    Register for CBAI’s 34th Annual Convention & Exposition by July 31 and Qualify for Special Drawings!

    The Special Events Committee has selected a number of unique items including a Garmin portable navigation system, a sterling silver star necklace from Tiffany’s, a custom-framed print of President Abraham Lincoln, and a DVD collection of some of the best military and war hero movies of all time for a prize drawing. To qualify, you must register before July 31. For a more detailed description of these fabulous drawing items,
    click here.

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    Banking Essentials Training Now Available

    The Community Bankers Association of Illinois (CBAI) is pleased to present “Banking Essentials,” four one-day seminars offered in two locations. A must for the newer community bank employee, this series is designed to provide a complete knowledge of banking principles and operations. The first quarter, "What Is a Bank," is being offered in two locations this August. This one-day session focuses on the deposit, lending, operations, audit, and investment functions of a bank. It also covers a bank’s purpose, services, and customers, as well as customer-service issues. For more information or to register, please
    click here.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 8/30/08

    › Identify Theft Protection: Are You in Compliance?

    › Fourth Quarter Compliance Meeting – Reviewing a Consumer Loan File

    › Training the Credit Analyst

    › Community Bank Directors’ College – Session I

    › Managing Consumer Collections during a Difficult Market!

    › The New FACT Act Regulation


    TELEPHONE/WEBCASTS THROUGH 8/30/08

    › Opening Personal Accounts

    › Title Insurance Issues

    › Granting, Documenting, & Monitoring CTR Exemptions

    › Advanced Commercial Loan Documentation

    › Conducting an Independent BSA Audit

    › Sub S Trusts: Use, Management and Problems with QSST, ESBT and Other Unique Sub S Shareholders

    › Technology Contract Negotiation

    › Understanding Letters of Credit Rules

    › How To Roll Out Remote Deposit Capture
    › Advanced Business Accounts: Agencies, Escrow, and Multi-Tiered

    › Network Scanning

    › Regulators & Impaired Loans

    › S Corporation ESOPs: How to Take Advantage of the Benefits and Avoid the Risks

    › Dealing with Traditional Return Items

    › Reporting Your Credit Data: EOSCAR & Federal Compliance


    OTHER EVENTS


    CBAI's 34th Annual Convention:
    "Hometown Heroes," Crowne Plaza Hotel, Springfield 9/11 - 9/13




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