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           September 10, 2008 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Support the CBAI Foundation for Community Banking at Convention!
  • CBAI Proposes Bill to Deter Reckless Claims about Banks
  • Government Takes Fannie and Freddie Into Conservatorship
  • Regulators Will Work with GSE Stockholders
  • Baker Market Update: Implications of GSE Rescue Plan
  • U.S. Jobless Rate Climbs in August
  • FDIC Chairman Bair Calls for Liquidity Reserves
  • Presidential Candidates Address Economic Issues
  • FDIC Report Highlights Suggestions for Expanding Mortgage Loans
  • Community Bankers for Compliance (CBC) Registrations Begin
  • Reduce Costs while Raising the Bar for Exceptional Customer Service!
  • What’s the Impact of Rapidly Rising Food Prices?
  • Community Banks Can Become Disaster-Relief Centers
  • ICBA Recognizing Community Service


  • Support the CBAI Foundation for Community Banking at Convention!

    Feeling Lucky? You could be the winner of $2,500!

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    CBAI Proposes Bill to Deter Reckless Claims about Banks

    The Community Bankers Association of Illinois (CBAI) has
    announced that it will introduce legislation to deter future irresponsible statements from investment advisors regarding the safety of deposits in federally insured financial institutions. The legislative proposal is one response to the recent correspondence from Kollar Financial Strategies, LLC ("Kollar") in which the safety of deposits at 190 financial institutions was called into question based on investment ratings used by Kollar.

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    Government Takes Fannie and Freddie Into Conservatorship

    This past weekend, the
    Treasury Department and the recently created Federal Housing Finance Agency announced a government rescue of troubled mortgage giants Fannie Mae and Freddie Mac. In a conservatorship, the GSE’s stock will continue trading, but the Treasury will hold $1 billion of senior preferred stock in each company that will rank above the existing preferred and common shares. Treasury released fact sheets regarding the preferred stock agreement, credit facility and mortgage-backed securities buying program.

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    Regulators Will Work with GSE Stockholders

    The Federal Reserve, FDIC, Comptroller, and OTS all
    announced they will work with those institutions that have significant holdings of GSE common or preferred stock compared to capital to develop capital-restoration plans. The agencies emphasized that these investments with readily determinable fair value should be reported as available-for-sale equity security holdings, and any net unrealized losses on these securities should be deducted from regulatory capital.

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    Baker Market Update: Implications of GSE Rescue Plan

    U.S. Treasury Secretary Henry Paulson announced the takeover of Fannie Mae and Freddie Mac on Sunday. This is a historic event for a variety of reasons. The companies comprise almost one-half of the U.S. market for home mortgages and it could well be the largest financial bailout in history. In short, Secretary Paulson stated that the reasons for the massive bailout are to protect “our markets and the taxpayers from the systemic risk posed by the current financial condition of the GSEs [government sponsored enterprises].”
    Click here to read more.

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    U.S. Jobless Rate Climbs in August

    The unemployment rate rose to a five-year high of 6.1 percent in August,
    according to the U. S. Labor Department. June and July job losses were increased by 58,000.

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    FDIC Chairman Bair Calls for Liquidity Reserves

    In a speech last week in Florida, FDIC Chairman Sheila Bair called on banks to build liquidity reserves and establish reliable contingency lines, but warned against relying on volatile funding. Bair said the FDIC is “confident that our industry funded reserves will be more than adequate to cover any losses caused by more bank failures.” She also said the restoration plan for the FDIC fund that will be considered in October will call for an increase in premium rates, shift a greater share of any increase onto riskier institutions, and reward institutions that reduce their risk profiles by decreasing premiums.

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    Presidential Candidates Address Economic Issues

    U. S. Senators
    John McCain and Barack Obama recommend differing economic reform proposals. McCain portrays himself as a small government friend of the marketplace, while Obama claims to be a sensible reformer of an economy in trouble.

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    FDIC Report Highlights Suggestions for Expanding Mortgage Loans to Low- and Moderate-Income Households

    The FDIC has issued a report on ways mortgage lenders can responsibly and profitably expand the availability of home loans to low- and moderate-income (LMI) borrowers and still make a profit. The report -- a summary of best practices discussed by participants at an FDIC forum in July on problems in the mortgage market -- said that basic, traditionally underwritten, 30-year fixed-rate mortgages are the most suitable home loan for most LMI borrowers. For the complete text of the announcement, including links to the report,
    click here.

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    Community Bankers for Compliance (CBC) Registrations Begin

    Now in its 20th year, the Community Bankers for Compliance program is the most successful and longest running compliance-training program in the country. It provides up-to-date information on compliance issues and developments in bank regulations, as well as proven techniques for maintaining your in-bank compliance program. The CBC program consists of quarterly seminars, monthly newsletter, a compliance hotline, and a CBC members-only web page. For more information and the CBC program and a registration form, click here. For information on the First Quarterly CBC Meeting entitled “The Final Regulation Z Changes,”
    click here.

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    Reduce Costs while Raising the Bar for Exceptional Customer Service!

    Research suggests that, while only two percent of customers go into a branch with the intention of buying a product, more than 80 percent of sales are made by the frontline staff. To capitalize on these opportunities, savvy bank managers are realizing that retail banking requires more than standard transactions at teller windows – it requires new ways of doing business at the front line, including automating legacy processes and activities. The practice of tellers leaving their station (and their customers) to go into a back room to count coins is an opportunity lost.
    Click here to see how CBAI-members have implemented a new system that will improve that process.

    CBSC has negotiated 10% discount on the Quick Change™ Self-Service Coin Deposit System through 12/31/08. Additionally, the system may be leased for $317 per month! Click here for additional details on this offer.

    Save money, increase foot traffic, improve teller efficiencies, attract new core deposits, and add to your bank’s bottom line!

    For more information on this or any other CBSC product or service, please contact Pam Lowrance, CBSC VP of Services at 800/736-2224.

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    What’s the Impact of Rapidly Rising Food Prices?

    In a recent
    Chicago Fed Letter, Federal Reserve Bank of Chicago economist Leslie McGranahan looks at how recent food price inflation has affected different types of U.S. households.

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    Community Banks Can Become Disaster-Relief Centers

    To assist Gulf Coast residents recovering from Hurricane Gustav or other storms, community banks can become national disaster-relief donation sites through an ICBA partnership program with the American Red Cross. The
    Your Help Counts program serves as a national registration center for community banks to become official American Red Cross donation sites for their customers and communities.

    Donations through the program support the American Red Cross Disaster Relief Fund, which provides immediate help for Americans affected by any natural disaster, whether from Hurricane Gustav or possibly Hurricane Hanna now approaching Florida. The National Oceanic and Atmospheric Administration is predicting an "above normal" hurricane season in the Atlantic this year. See ICBA Crisis Preparedness Resources. See FEMA Site.

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    ICBA Recognizing Community Service

    ICBA is calling for nominations for the
    ICBA National Community Bank Service Awards. The annual award program acknowledges the valuable role community banks play in sustaining communities across the nation, and nationally recognizes member banks for their outstanding volunteer efforts.

    Community banks are recognized in four categories based on bank asset size, in addition to a national award recipient for a superior financial literacy program. One recipient is honored with the Grand National Award, the highest overall honor.

    Award recipients will be announced during the ICBA National Convention and Techworld in March. Winners will be featured in the April issue of ICBA Independent Banker, coinciding with Community Banking Month. Nominations are due Nov. 3, 2008.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 10/30/08


    › Assessing Individual Creditworthiness

    › Business Development Officer Calling Workshop

    › Auditing for Fair Lending

    › Advanced Commercial Lending Institute

    › Information Technology Security Conference

    › IRA Seminars


    TELEPHONE/WEBCASTS THROUGH 10/30/08


    › 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

    › Handling Powers of Attorney on Deposit Issues

    › Tax Reporting for Non-Resident Alien Accounts
    › UBPR: Understand and Then Improve Bank Performance


    OTHER EVENTS


    › 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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