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 24, 2008 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Rescue Plan Must Address Community Bank Concerns
  • CBAI Issues Action Alert on Treasury Plan
  • Excerpts from Congressional Hearing on Bailout Plan
  • FBI Investigating Companies at Heart of Meltdown
  • Goldman Sachs and Morgan Stanley to Convert to BHCs
  • ICBA Addresses Bankruptcy Cram Down Issue
  • Baker Market Update
  • CBAI Convention Attracts T.V. Attention
  • Chicago Fed Releases National Activity Index for August
  • OCC Publishes Report on SBA’s 7(a) Loan Guarantee Program
  • Chicago FHLB Announces Agreement with Fannie Mae
  • Federal Banking Agencies Evaluating FASB's Accounting Proposals
  • Advanced Commercial Lending Institute Announced (NEW)
  • Register Now for Consumer Lending Institute
  • CBSC Endorses Check Resultz for Free Electronic NSF Collections
  • CBAI Immediate Past Chairman Quoted in Agri-Pulse
  • Foundation Certificate Winners’ Names Drawn at Convention
  • Community Bankers for Compliance (CBC) Program in 20th Year
  • Fed Announces Progress on Account-Management Info. Service
  • Attend a Personal Scenic Tour of ComplianceOne, Free!
  • Recognizing Community Service


  • Rescue Plan Must Address Community Bank Concerns

    Both CBAI and ICBA are pushing policymakers to ensure that the Treasury’s proposed $700 billion financial rescue package addresses community bank concerns and protects local communities. The primary positions include:

      1) Provide community banks access to the Treasury’s program to purchase troubled mortgages, especially troubled commercial real estate mortgages, and Fannie Mae and Freddie Mac preferred shares;
      2) Treat community bank GSE preferred stock losses as ordinary losses for fair tax treatment and spread any losses over a period of years;
      4) FDIC should have more time and flexibility to recapitalize the Fund to avoid drastic increases in premiums.

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    CBAI Issues Action Alert on Treasury Plan

    CBAI urges community bankers to communicate with their congressmen by emailing a suggested letter regarding the purchase of GSE Stock.
    Click here to read more.

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    Excerpts from Congressional Hearing on Bailout Plan

    FRB Chairman Ben Bernanke and Treasury Secretary Henry Paulson were grilled by members of the Senate Banking Committee on Tuesday (9/23) concerning their proposed bailout plan. Here are some excerpts from
    Bloomberg and Forbes.

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    FBI Investigating Companies at Heart of Meltdown

    The FBI is
    looking into potential fraud by Fannie Mae, Freddie Mac, American International Group (AIG), and Lehman Brothers Holdings. The new inquiries bring to 26 the number of corporate lenders under investigation.

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    Goldman Sachs and Morgan Stanley to Convert to BHCs

    The Federal Reserve
    revealed that the last of the independent Wall Street investment banks will become bank holding companies, and the normal five-day antitrust period will be waived. Morgan announced that Mitsibishi UFJ Financial Group will buy up to a 20% stake in the firm. The OCC has approved the conversion of Morgan’s Utah-based ILC into a national bank called Morgan Stanley Bank, NA.

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    ICBA Addresses Bankruptcy Cram Down Issue

    ICBA and other national trade groups
    urged Congress not to include bankruptcy provisions in the rescue plan that would allow judges to reduce (cram down) the balance owed on a mortgage.

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    Baker Market Update

    The U.S. government is preparing a comprehensive program to address the crisis that has consumed the global banking system and financial markets. The essence is to remove bad assets from balance sheets of financial companies. To learn more,
    click here.

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    CBAI Convention Attracts T.V. Attention

    Television media attended CBAI's 34th annual convention in Springfield on September 12 to learn more about community bank safety and soundness. For the full story,
    click here.

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    Chicago Fed Releases National Activity Index for August

    The Chicago Fed National
    Activity Index was -1.59 in August, its lowest level since 2001. The Index is a weighted average of 85 indicators of national economic activity drawn from four broad categories of data: production and income; employment, unemployment, and hours; personal consumption and housing; and sales, orders, and inventories.

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    OCC Publishes Report on SBA’s 7(a) Loan Guarantee Program

    The OCC just released a
    Community Developments Insights report which highlights how banks can use the 7(a) program to develop new business, mitigate risk, and help meet CRA goals.

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    Chicago FHLB Announces Agreement with Fannie Mae

    The Federal Home Loan Bank of Chicago announced on September 23 that it has reached an agreement to sell conventional, conforming mortgage loans originated by member banks to Fannie Mae, effective October 1. For more information,
    click here.

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    Federal Banking Agencies Evaluating FASB's Accounting Proposals

    The federal banking agencies are evaluating the amendments to generally accepted accounting principles proposed today by the Financial Accounting Standards Board (FASB). These proposals would amend Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (FAS 140), and FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities (FIN 46(R)).
    Click here for more information.

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    Advanced Commercial Lending Institute Announced (NEW)

    Designed specifically for more experienced commercial lenders, this three-day Advanced Commercial Lending Institute provides the necessary tools to ensure a quality loan portfolio from analyzing promising customers, to loan approval, to loan documentation, and finally to credit administration. It also features a Regulator Panel consisting of representatives from the OCC, IDFPR, FDIC, and Chicago Federal Home Loan Bank. The popular Jeffery Johnson, president and founder of Bankers Insight Group, Atlanta, Georgia, leads the Institute.
    Click here for details.

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    Register Now for Consumer Lending Institute

    This three-day Consumer Lending Institute, led by the nationally recognized David Kemp of Bankers Management, Inc., College Park, Georgia, provides lenders the training necessary to make sound credit decisions. Lending compliance, taking the loan application and interviewing, investigating the application, risk analysis, lending to self-employed borrowers, business development, loan documentation, and collections and bankruptcy are key topics. For more details and a registration form,
    click here.

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    CBSC Endorses Check Resultz for Free Electronic NSF Collections

    The Community BancService Corporation (CBSC) board of directors continually researches promising new programs to offer CBAI members the very best in banking services. In fulfillment of that mission, it is pleased to announce the addition of Check Resultz to the CBSC stable of preferred service providers. Check Resultz promises to; generate income for member banks, while providing a valuable service to commercial customers.

    Check Resultz is a leading provider of Business Account NSF Electronic Check Recovery Services. The program is a turnkey program utilizing the ACH system to successfully collect the full face value of 75–80% of all checks it processes, potentially doubling most businesses’ collection rates.

    The Check Resultz program directly supports small businesses' financial well-being and demonstrates community bank's desire to offer a real solution to real problems. With the program you can service business customers like never before, while immediately increasing their profitability - and that of your bank. The program is FREE for both your bank and your business customers. The merchant’s customer who wrote the bad check pays the fees. The bank incurs no additional liability or additional staff time while generating additional revenue. Through a CBSC negotiated agreement, CBAI members will receive $8.00 per recovered check. There are absolutely no start-up or ongoing cost!

    Want more information now? Call Todd J. Maple, Director of Relations, at 888-311-7248, ext 223. Or, contact Mike Duke, CBSC electronic payments specialist, at CBAI headquarters (800-736-2224 or
    miked@cbai.com).

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    CBAI Immediate Past Chairman Quoted in Agri-Pulse

    Kent Siltman, CBAI immediate past chairman and president of Citizens First State Bank of Walnut, was quoted recently in the September 10 issue of AgriPulse newsletter. To read his comments on the ag economy,
    click here and go to page 5.

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    Foundation Certificate Winners’ Names Drawn at Convention

    Thanks to all who purchased Foundation Certificates this year. Following are the 2008 winners: $150 – Jim Rupert, First National Bank of Nokomis; Steve Swinney, State Bank of Whittington; Shelby County State Bank; Ernie Chappel, First National Bank of Vandalia; Lindgren, Callihan & Van Osdol, Rockford; $250 – Ron Pletsch, Illini State Bank, Oglesby; Bob Lott, Farmers State Bank, Elmwood; $500 – Jean Ann Honegger, Morton Community Bank; $1,000 – Allen Kaisor, Buena Vista National Bank, Chester; $2,500 – Midwest Office Supply, Springfield.

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    Community Bankers for Compliance (CBC) Program in 20th Year

    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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    Fed Announces Progress on Account-Management Info. Service

    Customers Converting to the FedLine Direct Access Solution Enjoy the Benefits of Contemporary IP-based Technology for Critical Transaction Services
    The Federal Reserve Banks have announced significant progress toward converting customers to the FedLine Direct access solution in advance of the sunset date of December 31, 2008 for legacy computer-interface technology. Customers are reporting high levels of satisfaction with the FedLine Direct access solution for their critical transaction services — the Fedwire® Funds, Fedwire Securities, and FedACH® Services.

    Financial institutions are converting steadily from the legacy System Network Architecture (SNA)-based computer-interface platform to the new Internet Protocol (IP)-based technology of the FedLine Direct access solution. The conversion does not involve any changes to message or file formats. Rather, the FedLine Direct access solution is designed to leverage a financial institution’s investment in IP-based technology, while minimizing the impact to the institution’s existing payments applications.

    “As with all Federal Reserve access solutions, security and reliability are top priorities. The FedLine Direct access solution allows financial institution organizations to leverage technology investments by building on industry standard messaging and file transfer software products,” described Tony Fressola, Assistant Vice President of the Federal Reserve Banks’ Wholesale Product Office.

    Customers Using the Account Management Information Service Will Soon Be Able to Access Detailed Transaction Information for the Fedwire Services
    In response to customer demand, the Federal Reserve Banks will make enhancements to the Account Management Information (AMI) service in 2009. These enhancements will allow customers that subscribe to AMI to view certain details of Fedwire Funds and Fedwire Securities Service transactions they send or receive.

    For more information regarding the Fedwire Funds Service or other Federal Reserve Bank financial services, please visit
    FRBservices.org.

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    Attend a Personal Scenic Tour of ComplianceOne, Free!

    Wolters Kluwer Financial Services (WKFS) has earned CBAI's respect for its solutions and service to community banks. The mutual standards of quality and service have led CBAI and WKFS to offer the ComplianceOne solution via Road Shows in your area. To see it in action for yourself,
    click here now.

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    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


    TELEPHONE/WEBCASTS THROUGH 10/30/08



    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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