Community Bankers Association of Illinois
Community Bankers Association of Illinois    Community Bankers Association of Illinois CBAI E-Newsletter Sponsor - SHAZAM
 
     A Bi-Weekly News Bulletin for CBAI Members                           July 25, 2012 Graphic
Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • ICBA’s Fine: “Basel III Capital Proposals are a Disaster!”
  • Former Citigroup Chairman: “Break Up the Big Banks”
  • Bair Forms Systemic Risk Council to Address Too-Big-To-Fail
  • Main Street and Community Banks: Natural Allies
  • Banking Grades Ranks Community Banks as Best Small Business Lenders
  • CSBS Reiterates Support for Community Banks and Dual Banking System
  • Chase, Citi Group, Bank of America on Hall of (Service) Shame List
  • Treasury Releases Status Report on Dodd-Frank Reform Act
  • Federal Reserve Releases Beige Book on Current Economic Conditions
  • Rural Mainstreet Index Nosedives
  • Two-thirds of Illinois Corn Rated Poor or Very Poor
  • Baker Market Update
  • Baker Group Springfield Seminar Set for August 6
  • Study Details Threat of Small Business Tax Increases
  • Winning the War on E-Commerce Fraud
  • EEOC Issues Guidance on Hiring Applicants With Criminal Records
  • Illinois Comptroller Releases Quarterly Fiscal Report
  • New CTR and SAR, plus Closed-End Reg Z Set for July 31 and August 1
  • Training the Credit Analyst Scheduled for August 1-2
  • 2012/2013 Banking Essentials to Begin August 7 & 8
  • Join Us at CBAI’s 38th Annual Convention this September in St. Louis!


  • ICBA’s Fine: “Basel III Capital Proposals are a Disaster!”

    In his blog released today, ICBA President Cam Fine decried the proposed Basel III capital rules as disastrous for community banks, and he declared that any bank not designated a Systemically Important Financial Institution (SIFI) by the Financial Stability Oversight Council (FSOC) should not be subject to the proposed guidelines.
    See Fine’s Blog.

    CBAI fully concurs that Basel III proposed rules should not apply to smaller banks because, combined with low interest rates and other restrictive credit rules, they will threaten community bank prosperity and survival. Earlier this week, ICBA formally asked the federal banking regulators to extend by 90 days the September 7 comment deadline on the proposed Basel III rules. See ICBA Letter.

    The FDIC is scheduled to hold a Chicago regional information session on July 31st and a national conference call on August 3rd to discuss how the proposed rules are likely to affect banks. For more information and to register, Click Here.

    Back to top

    Former Citigroup Chairman: “Break Up the Big Banks”

    Sandy Weill, who engineered a series of corporate takeovers and lobbying efforts to create Citigroup in the late 1990s and subsequently became its Chairman, announced on CNBC this week that the largest banks should be broken up to protect taxpayers. He recommended separating investment banking from commercial banking or essentially restoring the primary provisions of the Glass-Steagall Act. He cited over-leveraging and a lack of transparency as causes for the financial crisis.

    CBAI has long-advocated downsizing the mega banks to protect our financial system and economy from another crisis and applauds Weill for his dramatic change in position.
    See CNNMoney Article.

    Back to top

    Bair Forms Systemic Risk Council to Address Too-Big-To-Fail

    In a recent interview with Bill Moyers, former FDIC Chairman Sheila Bair said she started the
    Systemic Risk Council partly because the big bank lobby is “…in a calculated way, trying to slow down reform, complicate reform, water down reform.” She said the too-big-to-fail issue must be resolved, or another crisis is certain to happen. One of the members of the Council is former Citibank CEO John Reed, who is now an outspoken advocate of restoring the separation between commercial and investment banking. See Moyers/Bair Video Interview.

    Back to top

    Main Street and Community Banks: Natural Allies

    A recent article published by the National Trust for Historic Preservation emphasized the strong alliance between community banks and small businesses, noting that local banks made 58 percent of all outstanding small business loans in 2011.
    See NTHP Article.

    Back to top

    Banking Grades Ranks Community Banks as Best Small Business Lenders

    Banking Grades, which tracks small business lending by banks, gave the nation’s five largest banks grades of F’s and Ds while community banks received As, Bs, and Cs. See Clark Howard Article.

    Back to top

    CSBS Reiterates Support for Community Banks and Dual Banking System

    In an open letter to all state bank examiners, the new Chairman of the Conference of State Bank Supervisors (CSBS) Greg Gonzales encouraged them to understand that community banks are under duress today, and they represent an important element of our nation’s economic fabric. He said the CSBS Community Banking Steering Group is working to identify unnecessary burdens for community banks and opportunities where the supervisory approach can have a positive impact.

    CBAI applauds CSBS for its efforts to reduce the regulatory burden and remind examiners to help community banks survive and prosper for the sake of their communities and our nation.
    See CSBS Letter.

    Back to top

    Chase, Citi Group, Bank of America on Hall of (Service) Shame List

    MSN Money conducted its Sixth Annual Survey on customers’ lack of satisfaction with the service of major companies. Several mega banks are included.
    See Survey.

    Back to top

    Treasury Releases Status Report on Dodd-Frank Reform Act

    The U.S. Treasury recently released a status report on implementation of the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The report defends the measure and criticizes Wall Street’s efforts to roll back, delay, and weaken the rules.
    See Treasury Report.

    Back to top

    Federal Reserve Releases Beige Book on Current Economic Conditions

    The Beige Book, published eight times each year by the Federal Reserve, provides anecdotal information on current economic conditions in each District based on reports from Bank directors and interviews with key business contacts, economists, and other market experts. The current report, released on July 18th, indicated that overall economic activity continued to expand at a modest to moderate pace in June and July.
    See Beige Book Report.

    Back to top

    Rural Mainstreet Index Nosedives

    Drought conditions pushed the June Rural Mainstreet Index to its lowest level in nearly two years. With 50.0 representing growth neutral, the Index fell to 47.9 compared to last month’s 56.7. Farmers increased their demand for loans with the loan-volume index climbing to 65.3 from June’s 64.2 which marks the fifth consecutive month the index has risen.

    For the first time in more than two years, the RMI for Illinois moved below growth neutral. The June RMI slumped to 43.6 from May’s 50.4. Farmland prices remained above growth neutral with a reading of 51.5 from May’s 56.0. The state’s new-hiring index dipped to 50.2 from 50.6 in May.
    See Mainstreet Economy Report.

    Back to top

    Two-thirds of Illinois Corn Rated Poor or Very Poor

    For the first time this year, no corn is rated in excellent condition in Illinois as crop conditions continue to worsen due to the severe drought. Two-thirds of the corn crop and 49% of the soybean crop are rated either poor or very poor.
    See Midwest Crop Figures.

    Meanwhile, the Illinois Farm Bureau has established a Drought Crop Insurance Question and Answer section on its web site. See Q&A Section.

    Back to top

    Baker Market Update

    With much of America in mid-summer vacation mode this past week, Fed Chairman Ben Bernanke chose to spend part of his seasonal break at Washington, D.C.’s iconic theme park known as Capitol Hill. Never one to leave work at the office, Mr. Bernanke commiserated with park employees about the recent, disappointing slow-down in the pace of the current economic recovery and the prospect for even less robust growth throughout the remainder of the year.
    Read More.

    Back to top

    Baker Group Springfield Seminar Set for August 6 - Register Now!

    All In-Depth Program Financial institution managers will come away with sound ideas for using the bond portfolio as an effective tool in managing liquidity, cash flows, and interest rate risk. Attendees will also gain insight into the remarkable changes that the banking industry is experiencing in the current market environment. Topics include:

      Current Economic Conditions and Fed Policy Outlook
      Pre-Exam Interest Rate Risk Checklist
    Don't delay.
    Click here to register! Registration deadline - August 1, 2012.

    Back to top

    Study Details Threat of Small Business Tax Increases

    ICBA and a coalition of other national organizations released results of a study on the negative economic impact of proposals to raise tax rates on small businesses and investment income. The study found that raising tax rates on Americans earning more than $250,000 and raising the top rates on capital gains and dividends would lead to fewer jobs, lower wages, a smaller economy and lower small business investment.

    The proposed tax increase, scheduled to take effect on January 1, would have a particularly negative impact on small businesses taxed at the individual income tax rate, which employ more than half of the private-sector workforce. These flow-through businesses, such as Subchapter S corporations, would see their top tax rate rise from 35 percent to 44.7 percent next year. Nearly one-third of all U.S. banks—more than 2,300 mostly community banks—are organized as Subchapter S corporations. These stifling tax increases would have significant economic consequences by reducing investment in the United States by 2.4 percent and resulting in 710,000 fewer jobs, lower wages by 1.8 percent, and a 1.3 percent smaller economy.
    Read Study. Read ICBA’s Release.

    Back to top

    Winning the War on E-Commerce Fraud

    When fraud can be stopped before it happens, banks retain cardholder confidence and avoid the expense and time of chargeback processing. Outlined in an
    ICBA Bancard article are steps a bank can take to prevent fraud from happening or mitigate losses in the event a breach occurs. Community BancService Corporation (CBSC) recommends the services of ICBA Bancard.

    Back to top

    EEOC Issues Guidance on Hiring Applicants With Criminal Records

    The U.S. Equal Employment Opportunity Commission (EEOC) has released new guidance to assist employers with their policies on hiring workers with criminal records.

    The EEOC points out that an employer cannot refuse to hire an applicant only because the person has been arrested, since an arrest does not prove that someone engaged in a particular type of conduct. Instead, an employer must give an applicant a chance to provide an explanation. Employers also cannot refuse to consider applications from people with criminal records unless their criminal history makes it clear that they pose a risk relative to the responsibilities required for the job.

    Read the full web story to learn about:

    • Conviction or arrest inquiries on a job application
    • Compliance with federal and state laws.

    Back to top

    Illinois Comptroller Releases Quarterly Fiscal Report

    Read the latest edition of the Comptroller’s Quarterly
    Report on Illinois finances which indicates little improvement in the state's budgetary condition.

    Back to top

    New CTR and SAR, plus Closed-End Reg Z Set for July 31 and August 1

    The next
    Community Bankers for Compliance (CBC) presentation discusses the new CTR and SAR that have been released. Although some banks have been using the new documents, many have not. The manual will detail a complete set of “screen shots” and all of FinCEN’s instructions regarding the new forms. The second half of the CBC seminar reviews the potential issues that can occur as disclosure format and content changes within Regulation Z. We expect that there will be new formats (but NOT new methods of calculation) for Regulation Z disclosure that will be released in 2013. The result of these new forms will be a further divergence between the way we disclose loans to customers and the way we actually calculate the underlying numbers. This seminar is conducted by Bill Elliott, senior consultant and manager of compliance at Young & Associates, Inc. of Kent, Ohio.

    Back to top

    Training the Credit Analyst Scheduled for August 1-2

    Training the Credit Analyst, a
    two-day seminar designed for credit officers with little or no experience, teaches participants how to write effective and comprehensive credit analyses which highlight the important trends shown on the financial spread sheet. Topics include identifying financial statement components, recognizing latent notes, and performing ratio analysis and cash-flow analysis. Preparing financial projections by utilizing sensitivity analysis, identifying factors which may impact the ability to repay debt obligations, and understanding how to grade a loan after analysis is completed are also covered. Leading this seminar is Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia.

    Back to top

    2012/2013 Banking Essentials to Begin August 7 & 8

    Banking Essentials is a must for the newer community bank employee; this series is designed to provide a complete knowledge of banking principles and operations. It is also geared toward veteran employees as a refresher course. Offered in one location, the four quarters are structured as two, two-day sessions, to cut down on travel for your convenience. As such, quarters one and two are offered on consecutive days in August and quarters three and four are offered on consecutive days in February. All seminars are held at the CBAI Headquarters in Springfield. While it is recommended that the individual attend all four quarters of the series to receive an entire overview of banking, each quarter's material stands alone; one quarter is not a prerequisite for another. Leading the first session on August 7, “Analyzing the Bank and the Banking System,” is Jim Kleinfelter, president of Young & Associates, Inc. while Cletus Bulcher of Brode Financial Services, leads the second session “What is a Bank?,” scheduled for August 8.

    Back to top

    Join Us at CBAI’s 38th Annual Convention this September in St. Louis!

    Register Now for Showcase Event for Illinois Community Bankers!

    Scheduled for September 20-22, “Building for Tomorrow” will be held at the Hyatt Regency at The Arch in St. Louis, MO. The convention features expert general session speakers, 24 break-out sessions on the hottest issues in community banking, exciting social activities, a 96-booth exhibit hall with the latest in products and services, and countless networking opportunities. Convention attendees registering before July 31st are eligible for significant discounts on the registration fees, as well as drawings for valuable prizes.
    REGISTER NOW!

    Back to top

    CBAI
    ACT Appraisal

    PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 8/31/2012


    TELEPHONE/WEBCASTS THROUGH 8/31/2012


    CBAI EVENTS

    Community BancPac Silent & Live Auction

    CBAIs 38th Annual Convention & Expo


    Finer Points Blog


    CBAI
    RECOMMENDED SERVICES



    CBAI
    INSURANCES



    CBAI
    FOUNDATION



    CBAI
    PUBLICATIONS







    800.736.2224 (IL) | 217.529.2265 | www.cbai.com

    DISCLAIMER:The association is not responsible for and has no control over the subject matter, content, information, or graphics when viewing links attached to this association's site. If you do not wish to receive e-mails from Community Bankers Association of Illinois (CBAI), 901 Community Drive, Springfield, IL 62703, through CBAI in the future, please click here. - OR - If you would like to be removed from the CBAI e-mail database, please click here.

    © 2012 Community Bankers Association of Illinois. All Rights Reserved.