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               August 26, 2009 Graphic
Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • CBAI Continues to Urge Congressional Contacts During August Recess
  • President Obama Reappoints Bernanke as Fed Chairman
  • Economic Indicators Mixed
  • BAKER Market Update
  • Find the Hottest Products at CBAI’s 35th Annual Convention
  • Some Credit CARD Act Disclosures Take Effect
  • Keynote Speaker Announced for Women in Community Banking Conference
  • Update on S.A.F.E. Act Registrations For Loan Officers
  • Agencies Propose Changes to Call, Thrift Reports
  • FDIC Board Meets Today on Transaction Account Guarantee Program
  • What is DLP (Data Loss Protection)?
  • New CBSC Service Provides Business Continuity Planning Solution

  • CBAI Continues to Urge Congressional Contacts During August Recess

    With just over a week left in the August recess, outreach to lawmakers in their respective districts is critical. Community bankers are encouraged to contact their congressmen to discuss the significant financial restructuring and other issues that await them when they return to Washington in September.

    CBAI has scheduled meetings next week with Illinois Congressmen serving on the House Financial Services Committee to discuss issues important to community banks, but your individual outreach to the entire Illinois delegation is also essential.

    Here are talking points on the key issues you can provide to your congressmen:

    H.R. 3126, the Consumer Financial Protection Agency Act of 2009.
    H.R. 2897, the Bank Accountability and Risk Assessment Act of 2009, and CBAI’s Letter to Congressmen urging support and co-sponsorship.
    Regulatory Restructuring
    Congressional Contact Information

    Thank you for your participation in governmental relations!

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    President Obama Reappoints Bernanke as Fed Chairman

    After months of speculation, President Obama yesterday reappointed Ben Bernanke to another term as Chairman of the Federal Reserve.
    See the President’s Announcement and Chairman Bernanke’s Response. Both CBAI and ICBA support Bernanke’s reappointment based on his steady leadership during the financial and economic crisis and his willingness to confront the problems associated with institutions deemed too complex and too-big-to-fail. See ICBA Statement. The reappointment is subject to Senate confirmation which is expected.

    For a timeline of key moments during Bernanke’s tenure as Federal Reserve Chairman which began February 1, 2006, please click here.

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    Economic Indicators Mixed

    Various economic indicators gave mixed signals last month, but the economy overall appears to have stabilized, at least for now. The
    Chicago Fed Midwest Manufacturing Index experienced its first increase in more than a year, while the Chicago Fed National Activity Index, which is a weighted average of 85 monthly indicators of national economic activity, also improved.

    In addition, the Consumer Confidence Index jumped well beyond predictions in August, as the job market outlook and business expectations improved. Despite the increase to 54.1, the index remains at historically low levels as an overall reading above 90 indicate the economy is solid, and 100 or above signals strong growth.

    According to the Standard & Poor’s/Case-Shiller U.S. National Home Price Index, home prices posted their first quarterly increase in three years during the second quarter. Of the 20 major cities in the Case-Shiller Index, only Detroit and Las Vegas experienced declines in home prices in June. There are concerns, however, that the momentum behind home prices will stall at the end of November with the expiration of a federal tax credit for first time home buyers.

    Meanwhile, the Rural Mainstreet Index (RMI) for August, a survey of community bank CEOs in an 11-state region including Illinois, declined for the third straight month. The index, which gauges overall economic activity, reveals weakness in the farm sector where net farm income is under pressure.

    Looking longer term, federal budget officials are predicting exploding deficits and mounting debt over the next decade. The Congressional Budget Office stated that “The budget remains on an unsustainable path” over the long term and will require some combination of lower spending and higher tax revenues. More Information.

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    BAKER Market Update

    July’s release of leading economic indicators showed fourth consecutive rise, up 0.6%; and Treasury yields were generally lower last week.

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    Find the Hottest Products at CBAI’s 35th Annual Convention

    CBAI’s 35th Annual Convention & Expo on September 24-26, 2009, at the new Renaissance Hotel in Schaumburg, features the largest Exhibit Hall of its kind in the state, packed with the latest products and services geared specifically for community banks. Nearly 100 firms have already registered. By visiting the Exhibit Hall you can explore new information, products, and services; compare prices and products more effectively; and improve purchasing management and business development. Additional attractions include desserts and cocktails on Friday and a Continental breakfast on Saturday. You will also be eligible to win great prizes, including a Rolex watch, walk-around program prizes, as well as an array of exhibitor prizes. You won’t want to miss out!
    Click here for a list of exhibitors, visit for complete information on the convention. To register, please click here.

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    Some Credit CARD Act Disclosures Take Effect

    Some credit card disclosures under the Credit CARD Act of 2009 have taken effect. Starting 8/20/09, credit-card issuers must give their customers written notice of higher rates no less than 45 days before the changes take effect. The notice must contain an explanation of how the customer can cancel the account before the effective date of the change.

    In addition, creditors must now generally mail or deliver periodic statements for credit cards and other open-end consumer credit accounts, such as home equity lines of credit, at least 21 days before the payment is due. Both provisions were included in an
    interim final rule published by the Federal Reserve last month. Following intensive ICBA lobbying and a vigorous grassroots campaign by community bankers and state bank associations, an ICBA-opposed interchange amendment was not included in the credit-card bill passed in May. Read ICBA Summary.

    Meanwhile, the OCC issued a bulletin today that describes an interim final rule issued by the Federal Reserve that requires banks to notify customers 45 days in advance of any rate increase or significant changes in account terms. However, the rules state that new rates or terms can be applied to any transaction that occurs more than 14 days after the notice is provided even if the customer ultimately rejects the changes. The rules do not require creditors to tell customers that new rates or terms can be applied during the 45-day period. As a result, the OCC is directing national banks to include an additional disclosure to notify customers of this consequence.

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    Keynote Speaker Announced for Women in Community Banking Conference

    CBAI is pleased to offer the third annual “Women in Community Banking Conference” this November at the Hilton Hotel in Springfield. The conference begins with an evening social on Tuesday, November 17, and the full-day conference is scheduled for Wednesday, November 18. The keynote speaker for this event is Brenda Clark Hamilton, founder of Fresh Coffee Professional Growth Programs. Hamilton will present two sessions at the conference, entitled “I Know I’m Supposed To Be Wonder Woman, But I Don’t Have Any Bullet-Blocking Bracelets” and “Your Best Self – Freshly Brewed!” Additional information on the conference will be distributed in September. For a biography and more information, please
    click here.

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    Update on S.A.F.E. Act Registrations for Loan Officers

    Federal bank regulatory agencies have not met the target date of July 29, 2009, to develop a system for the registration of residential mortgage loan originators who are employed by financial institutions. The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the S.A.F.E. Act) requires the agencies to develop the registration system. For more details about the program and its likely impact on community banks, please
    click here.

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    Agencies Propose Changes to Call, Thrift Reports

    Federal banking regulators are seeking comment on proposed revisions to the Call Report and Thrift Financial Report. Among its provisions, the proposal would change how financial institutions report on other-than-temporary impairment losses on debt securities, unused credit card lines and other unused commitments, brokered deposits, reverse mortgages, small business and farm loan reporting and other items. Most provisions would take effect March 31, 2010. Comments are due October 19.
    Read Call Report Proposal. Read Thrift Financial Report Proposal.

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    FDIC Board Meets Today on Transaction Account Guarantee Program

    The FDIC board is scheduled to meet today to decide whether or not to extend the TAG program for six months beyond yearend. The program provides unlimited insurance coverage for noninterest-bearing checking accounts, or about $700 billion in deposits that would otherwise be uninsured. CBAI and ICBA favor extending the program because many community banks are benefitting from low-cost deposits in this fragile economy.
    More Information.

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    What is DLP (Data Loss Protection)?

    Challenges regarding data protection and the insider threat have changed significantly over the past few years. The build out of digital business to include outsourcing projects and new business partners, coupled with stricter compliance laws, new types of technology, and constant personal changes, makes protecting your sensitive data a very difficult task. When combined with increasingly sophisticated hackers, identity thieves, and disgruntled employees, more sensitive data is at greater risk than ever before. To learn more about data loss protection (DLP),
    click here.

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    New CBSC Service Provides Business Continuity Planning Solution

    Community BancService Corporation, Inc. (CBSC), the member services subsidiary of CBAI, announced today that Recovery Solutions has been selected as a preferred service provider for business continuity planning and compliance services. Recovery Solutions, a leading provider of business resumption services, was selected as a preferred provider for their proven ability to help community banks develop and test a comprehensive business continuity plan (BCP) that complies with the new federal guidance.

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    Other CBAI Events

    9/24-25 CBAI's 35th Annual Convention & Exposition - Renaissance Schaumburg Hotel





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