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 27, 2008 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Responds to Investment Advisor’s Scare Campaign
  • Excess Deposit Insurance Now Available
  • Chicago Fed National Activity Index Down in July
  • FDIC Releases Second Quarter Earnings and Fund Restoration Plans
  • August Among Top Five Driest on Record in Illinois
  • Farmland Values Climb
  • Consumer Confidence Improves in August
  • Patty Kreamer is Keynote for CBAI Women in Banking Conference
  • "Get a Good Night's Sleep" with FDIC Insurance: Q and A
  • CRE Markets Expected to Slow Further
  • Register for Optional Activities at CBAI’s 34th Annual Convention
  • "How community banking has impacted my life and that of my family”
  • Baker Market Update


  • CBAI Responds to Investment Advisor’s Scare Campaign

    The Community Bankers Association of Illinois was recently notified of a marketing campaign in which an investment advisor based in Rosemont, Illinois suggested that deposits might not be safe in certain financial institutions. In a letter dated August 25th, CBAI immediately registered a
    complaint with the Illinois Secretary of State’s Department of Securities and with Illinois and federal banking regulators. The Division of Banking of the Illinois Department of Financial & Professional Regulation took prompt action in a letter dated August 26th addressed to the investment advisor.

    The investment advisor, Kollar Financial Strategies, listed nearly 200 financial institutions and insurance companies that it claimed were the “most stressed banks and thrifts in Illinois.” The marketing letter then suggested that more than 2,000 banks could fail within the next two years, leaving the impression that banks identified in the list were vulnerable to failure and that depositors should remove their funds from those institutions.

    CBAI believes that such marketing tactics are irresponsible and unethical. Such a “scare campaign” could encourage customers to move their funds out of federally-insured financial institutions and into the arms of firms such as Kollar Financial Strategies.

    “The suggestion that the financial institutions listed in this marketing ploy are unstable or unfit depository institutions is dishonest and entirely inappropriate,” said CBAI President Bob Wingert. “We believed that it was essential for CBAI to step up on behalf of financial institutions throughout Illinois by bringing this matter to the attention of the appropriate regulatory agencies. CBAI will continue to cooperate with those regulators, and we will continue to fight against deceptive marketing tactics that attempt to damage the reputations of Illinois banks and thrifts.”

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    Excess Deposit Insurance Now Available

    CBIS offers Excess Deposit Insurance for your large depositers.
    Click here for more information.

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    Chicago Fed National Activity Index Down in July

    Three of the four broad economic indicators – employment; consumption and housing; and sales, orders, and inventories – were negative in July. The decline in the
    Index was caused primarily by employment-related indicators.

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    FDIC Releases Second Quarter Earnings and Fund Restoration Plans

    Bank earnings continued to decline in the second quarter of 2008 with net income of $5 billion. The Deposit Insurance Fund (DIF) reserve ratio fell to 1.01 percent from 1.19 percent the previous quarter, compelling the FDIC to replenish the fund to 1.15 percent within five years. The FDIC noted that the earnings decline was due mainly to a few large institutions, and Chairman Sheila Bair said banks that engage in high-risk ventures should pay a larger proportion of the premium increases.

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    August Among Top Five Driest on Record in Illinois

    After near-record rainfall in July, August ranks among the five driest in Illinois. For more details and crop progress,
    click here.

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    Farmland Values Climb

    The University of Illinois Extension has released a
    new study on the value of Illinois farmland in 2008. The study found that the average farm real estate value was $5,000 per acre, the highest on record.

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    Consumer Confidence Improves in August

    The Conference Board
    reported that its Consumer Confidence Index improved for the second straight month. The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households.

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    Patty Kreamer is Keynote for CBAI Women in Banking Conference

    Patty Kreamer, president of Kreamer Connect, Inc., has been selected as the keynote speaker for Day One of CBAI’s Women in Banking Conference. Kreamer Connect, Inc. is a Pittsburgh-based company that works with residential and corporate clients to become more productive and perform better while at the same time simplifying their work and lives. Author of “But I Might Need It Someday,” Kreamer helps individuals understand the habits that keep them from organizing their work and lives. She then shows them how to overcome their natural tendencies and conquer clutter in all its forms once and for all. Kreamer is past president of the National Speakers Association, Pittsburgh chapter. She was named Women in Business Networks’s 2007 Woman of the Year as well as one of Pennsylvania’s Best 50 Women in Business, and one of Pittsburgh’s “Fastrackers” in 2005.

    CBAI’s second annual Women in Banking Conference is scheduled for November 18-19, 2008, at the Crowne Plaza in Springfield. More detailed information will be available in early September. Please
    click here for an overview of Kreamer’s sessions.

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    "Get a Good Night's Sleep" with FDIC Insurance: Q and A

    For consumers who have wondered about the health of their banking institution, if their deposits are fully protected, or what happens if a bank fails, the latest FDIC Consumer News provides answers to common questions and other useful information so people can rest assured that their money is safe in an FDIC-insured account. Other articles in the Summer 2008 issue of the agency's quarterly consumer newsletter explain what to do if a home equity line of credit has been reduced or frozen, how to avoid phone and fax fraud, and options for saving the environment as bank customers save and borrow money.
    Click here to read or print the Summer issue.

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    CRE Markets Expected to Slow Further

    In a recent communication, the ICBA stated that commercial real estate markets will continue to slow in the coming months, according to two industry
    indicators. A National Association of Realtors report found CRE activity slowed 0.9 percent in the second quarter, with analysts predicting further weakening. A Society of Industrial and Office Realtors survey found local experts anticipated less activity in upcoming quarters.

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    Register for Optional Activities at CBAI’s 34th Annual Convention

    Thursday’s optional golf outing takes you to Illini Country Club, an 18-hole championship course with a reputation as one of the premier golf courses in the state. Each year, it hosts a United States Open qualifier and has also hosted the Illinois State Amateur Championship. World-renowned golf course architect from Scotland, Tom Bendelow, designer of the famed Medinah Country Club in northern DuPage County, was the mastermind behind Illini.

    This year’s Friday night optional activity is being held at the Abraham Lincoln Presidential Museum in downtown Springfield. The Museum will open its doors exclusively for the Community Bankers Association of Illinois for a special event which includes access to most museum attractions, live re-enactments, cocktails and hors d’oevres, as well as period music by The New Century Orchestra.

    For more information or to register for either or both of these events, please
    click here.

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    "How community banking has impacted my life and that of my family”

    That’s the essay topic for the 2009 CBAI Annual Scholarship Program. Now in its 22nd year, the scholarship program annually offers 13 scholarships to Illinois high school seniors. CBAI member banks can participate at no cost. Click here for more information.

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    Baker Market Update

    The financial markets continue to experience volatility driven by problems with Fannie Mae and Freddie Mac. Congressional approval of support for both amounts to a more explicit guarantee. Nonetheless, a difficult liquidity position and the inability to raise additional capital under current market conditions are complicating an already tough situation.
    Click here for more.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 9/30/08

    › Branch Managers’ Workshop

    › Assessing Individual Creditworthiness

    › Business Development Officer Calling Workshop

    › Auditing for Fair Lending

    › Advanced Commercial Lending Institute


    TELEPHONE/WEBCASTS THROUGH 9/30/08

    › Head Teller Development: Communication Essentials

    › Proper Perfection of Security Interests in Collateral

    › Fee Income: O'Wherefore Art Thou?

    › Directors' Series: Ownership Issues for Directors

    › Flood Compliance: Getting It Right!

    › Understanding Signature Cards & Account Agreements

    › Surviving a BSA Exam

    › Certificate of Deposit Accounts: Compliance, Signature Cards & Disclosures

    › Dealing with Unclaimed & Abandoned Property

    › Bank Secrecy Act Basics

    › Appraisal Compliance & Review


    OTHER EVENTS


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


    › CBAI Career Development Division Fall Meeting, Embassy Suites Hotel & Conference Center,
    East Peoria 11/13
    details coming soon!

    CBAI’s Women in Banking Conference, Crowne Plaza Hotel, Springfield 11/18 - 11/19


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