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                 October 8, 2009 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • Changes to Consumer Protection Agency Bill Tackled To Address Community Bankers’ Concerns
  • ICBA Chairman Menzies Addresses the Role of ICBAPAC in the Future of Community Banking
  • Sageworks Named Vendor of the Year
  • Credit Quality Declines in Annual Shared National Credits Review
  • Comptroller Dugan Defends Strong National Standards for Financial Providers
  • Baker Market Update
  • Jobless Rate Falls in Chicago
  • Lawmakers Introduce Bill to Push Up Deadlines for Credit Card Rules
  • Frank Backs Too-Big-To-Fail Liquidation Authority
  • OCC Releases Consumer Advisory: “Reverse Mortgages — Are They for You?”
  • ICBA Offers FAQs on FDIC Prepayment Plan
  • Authority To File UCC Amendments
  • Banks Tapped To Bolster FDIC Resources
  • How Well Does the Chicago Fed’s Business-Cycle Indicator Perform?
  • Midwest Manufacturing Output Decreased in August
  • Second TARP Round for Community Banks Possible
  • CBAI’s Career Development Division Fall Meeting
  • CBAI's Consumer Lending Institute
  • Selling to Diverse Populations and Generational Marketing


  • Changes to Consumer Protection Agency Bill Tackled To Address Community Bankers’ Concerns

    Proposed legislative changes to the Obama administration’s plan to create a Consumer Financial Protection Agency
    won Treasury Secretary Timothy Geithner’s backing to ease community bankers’ concerns. House Financial Services Chairman Barney Frank (D-Mass.) acknowledged during a hearing yesterday that the changes are a response to "legitimate concerns of the community banks who feel correctly that they've been unfairly blamed for excesses elsewhere" that caused the financial crisis.

    ICBA Consumer Protection Agency Bill

    For the take of ICBA President Cam Fine on this issue, click here.

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    ICBA Chairman Menzies Addresses the Role of ICBAPAC in the Future of Community Banking

    What is ICBPAC’s role? In the 2008 election cycle, the bipartisan ICBPAC supported 345 federal candidates. About 94 percent of those we supported won election or reelection. That translates to a legislature likely to be friendly to community banks and thus to Main Street America.
    More.

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    Sageworks Named Vendor of the Year

    Sageworks was named the winner of the annual
    CBAI Vendor of the Year award for 2009. The award is bestowed by the association to the preferred vendor that demonstrated the highest level of performance in quality, integrity, delivery, and innovation.

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    Credit Quality Declines in Annual Shared National Credits Review

    Credit quality declined sharply for loan commitments of $20 million or more held by multiple federally supervised institutions, according to the 32nd annual review of Shared National Credits (SNC). For the full report,
    click here.

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    Comptroller Dugan Defends Strong National Standards for Financial Providers

    Comptroller of the Currency John C. Dugan said last week that uniform national standards have proved to be a powerful engine for prosperity and growth, and urged Congress to strengthen federal consumer protection rules and ensure they are applied to all providers of the same financial products. While many parts of the Treasury Department’s regulatory reform proposal would enhance consumer protection, provisions that would repeal preemption should be rejected, Mr. Dugan said in a speech to Women in Housing and Finance.
    More.

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    Baker Market Update

    Payrolls for the month of September fell more than expected, as economic woes continue to rattle the labor market.
    Click here for more details.

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    Jobless Rate Falls in Chicago

    Unemployment in metropolitan Chicago fell in August for a second straight month. The seasonally unadjusted jobless rate was 9.6% in August, down from 10.7% in the prior month, according to figures
    released by the Illinois Department of Employment Security. The jobless rate remains close to levels not seen since the mid-1980s.

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    Lawmakers Introduce Bill to Push Up Deadlines for Credit Card Rules

    House Financial Services Committee Chairman Barney Frank (D-Mass.) and Rep. Carolyn Maloney (D-N.Y.)
    introduced legislation to speed up two deadline dates for credit card issuers to implement provisions under the Credit Card Act. Their bill, H.R. 3639, would set Dec. 1, 2009, as the effective date for all of the law’s credit card pricing and disclosure provisions. Congress has set deadlines of February and August 2010 for the Federal Reserve to issue rules and for issuers to comply with the law’s requirements. The Fed has not yet published proposed regulations under the law enacted in May. Frank and Maloney cited moves by the biggest issuers to increase interest rates on credit card accounts by an average of 20 percent since the Credit Card Act was enacted in May. “The breadth and depth of the rate hikes happening now point to the need for faster consumer protections,” Maloney, an author of the Credit Card Act, said in a statement.

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    Frank Backs Too-Big-To-Fail Liquidation Authority

    Rep. Barney Frank (D-Mass.), House Financial Services Committee chairman, vowed that measures giving regulators powerful resolution authority to liquidate too-big-to-fail institutions—a priority ICBA has advocated since the financial crisis began — will be included in the financial regulatory reform bill he is preparing. Frank said the bill will allow regulators to quickly take over troubled systemic-risk institutions or sell off their assets. "We will give the regulators the power to step in and make it clear no one is too big to fail," he said. ICBA is also calling on Congress and the administration to direct a regulator to unwind any existing company or institution that would threaten the stability of the overall financial system if it failed.

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    OCC Releases Consumer Advisory: “Reverse Mortgages — Are They for You?”

    The Office of the Comptroller of the Currency (OCC) today issued a consumer advisory to help consumers better understand
    reverse mortgages. Reverse mortgages generally are available to consumers who are 62 or older, and can be used to supplement retirement income or meet health care or other financial needs.

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    ICBA Offers FAQs on FDIC Prepayment Plan

    ICBA prepared frequently asked questions on the FDIC’s proposal to require banks to prepay three years of regular premiums. The FAQs cover due dates, assessment rates, the assessment base, accounting treatment and a variety of other issues.

    Under the FDIC plan, banks would prepay their estimated regular quarterly assessments for the fourth quarter of 2009 and all of 2010-2012 on Dec. 30. It would allow for exemptions if prepaying assessments would threaten a bank’s safety and soundness. In addition, rates would increase by three basis points across the board beginning Jan. 1, 2011.
    Download ICBA FAQs.

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    Authority To File UCC Amendments

    A UCC amendment is only effective to the extent it was filed by a person with authority to do so. Generally, it is the secured party of record that must authorize the filing of an amendment, but the debtor's authorization is required in certain cases. Because the effectiveness of any UCC record depends on authorization by the proper party, it is important for filers and searchers to understand the significance of authority reflected in the public record. For details, go to
    http://www.cscflash.com/article1.html. For more information about CSC, a CBSC Preferred Provider of UCC Filing and Retrieval Services, go to www.diligenz.com or contact Pam Lowrance, CBSC vice president at 800/736-2224 or cbsc@cbai.com.

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    Banks Tapped To Bolster FDIC Resources
    FDIC Board Approves Proposed Rule to Seek Prepayment of Assessments

    The Board of Directors of the Federal Deposit Insurance Corporation today adopted a
    Notice of Proposed Rulemaking (NPR) that would require insured institutions to prepay their estimated quarterly risk-based assessments for the fourth quarter of 2009 and for all of 2010, 2011 and 2012. The FDIC estimates that the total prepaid assessments collected would be approximately $45 billion. The FDIC Board also voted to adopt a uniform three-basis point increase in assessment rates effective on January 1, 2011, and extend the restoration period from seven to eight years.

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    How Well Does the Chicago Fed’s Business-Cycle Indicator Perform?

    Chicago Fed Letter
    discusses the CFNAI as an indicator of business-cycle turning points.

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    Midwest Manufacturing Output Decreased in August

    The Chicago Fed Midwest Manufacturing Index (CFMMI) decreased 0.3% in August, to a seasonally adjusted level of 80.1 (2002 = 100).

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    Second TARP Round for Community Banks Possible

    Treasury officials are developing plans to possibly direct unallocated or repaid TARP funds to community banks that did not receive federal capital funding last fall. Speaking before ICBA's Washington Policy Summit last spring, Treasury Secretary Timothy Geithner said his agency was studying how to make the $700 billion TARP capital funding program more accessible and less restrictive to community banks. House Financial Services Committee members concerned about troubled commercial real estate loans on community bank balance sheets are working with Treasury and FDIC officials on the effort. A second round of TRAP funding might be limited to banks with less than $5 billion on their books, according to news reports. The program might also require qualifying community banks to raise matching money from the private markets.

    When the TARP program was instituted last year ICBA worked with Congress and Treasury officials to ensure that all community banks would have access to the capital funding program. But many community bankers reported that the qualifications for TARP capital remained too either restrictive or impractical for their institutions, ICBA Executive Vice President of Government Relations Karen Thomas told the Associated Press.

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    CBAI’s Career Development Division Fall Meeting

    The
    CDD Annual Fall Meeting scheduled for October 14 at the President Abraham Lincoln Hotel in Springfield, is geared toward honing professional and banking skills. The Fall Meeting begins with the popular Networking Session where bankers have an opportunity to engage in a roundtable discussion with other bankers sharing their job responsibilities. This is followed by a general session by Taye Cairnes entitled, "Today's Young Bankers Are Tomorrow's Leaders." Following is the Business Meeting Luncheon featuring CBAI Chairman Robin Loftus. The afternoon agenda also features breakout sessions: "What Do Customers Really Want?"; "SBA Loans — Enabling Lenders To Help Small Businesses Through Economic Recovery"; " Building a Better Website and Compete Against the Competition ;"OMG, They Changed Reg Z!"; and "The Four Generations of Today's Workplace." The Fall Meeting concludes with a general session by Taye Cairnes entitled, "It's Your Life — Get in the Driver's Seat!"

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    CBAI's Consumer Lending Institute

    Sound credit decisions by community-bank lenders require a high degree of perception and skill. To reach this level of sophistication, your lending personnel must constantly rethink existing approaches, research new ideas, and update their knowledge. To provide your community bank with guidance and training, CBAI has developed the three-day
    “Consumer Lending Institute” this October. This educational program provides essential knowledge and skills to your lending professionals, and establishes a network of lenders for continued support by sharing experiences with lending professionals. Topics covered on day one include lending compliance, introduction to consumer lending, and taking the loan application and interviewing. Day two covers investigating the application, risk analysis, lending to self-employed borrowers, and business development. On day three, participants learn loan documentation, collections, and bankruptcy. Leading this institute are David Kemp, president of Bankers Management, Inc., College Park, GA, and Tim Tedrick, executive officer with the accounting firm of Lindgren, Callihan, Van Osdol in Sterling, IL.

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    Selling to Diverse Populations and Generational Marketin

    CBAI is pleased to offer
    “Selling to Diverse Populations and Generational Marketing” in two locations this October. Structured as a morning and an afternoon session, this full-day seminar is designed for marketing and business development officers. Both sessions provide useful information to gain new customers and keep existing customers in a challenging environment.

    The morning session, “Selling to Diverse Populations,” examines selling to high priority customers, selling to the Hispanic marketing, as well as selling to female-owned businesses. In the afternoon session, “Generational Marketing,” you are introduced to the strategies and skills to bundle your products to fit the generational mix of your customers. It is designed to help you and your marketing team become savvy business developers you know you must be in order to help your bank survive in this economic climate. Leading this seminar is Duane F. Sobecki, senior partner of Focused Results, LLC, Fishers, IN, a sales strategy, consulting, and training firm.

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    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 11/30/09



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    Other CBAI Events

    10/14 CDD Fall Meeting, Springfield


    11/17-28 CBAI's Women in Banking Conference, Springfield

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