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              November 4, 2009 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • ICBA’s Fine: “Shark in the Waters”
  • CBAI Comments on FDIC’s Three Year Pre-paid Assessment Proposal
  • Main Street: “Wall Street’s Behavior Hasn’t Changed”
  • Chairman Frank Urges Temperance on Bank Exams
  • Community Banks Recognized for Lobbying Effectiveness
  • Great Britain to Break Up its TBTF Banks
  • Fed Pledges to Keep Rates Low
  • Draft Bill on Systemic Risk Includes ICBA Proposals
  • SBA Announces Secondary Market Guarantee Program
  • Baker Market Update
  • ICBA Continues Efforts on Estate-Tax Relief
  • Rural Mainstreet Economy Remains Weak
  • More Illinois Farmers Using Conservation Tillage Systems
  • Register Now for CBAI’s Inaugural Winter Retreat
  • Affinion Launches “Everyday Travel Insurance”
  • E-mails Fraudulently Claiming To Emanate from the FDIC
  • Holiday Shipping Dates for U.S. Troops
  • Bankers and Bikes Road Rally Announced
  • CBAI Financial Statement Analysis Seminars Next Week
  • CBAI Seminar for Community Bank Attorneys November 13
  • CBAI Women in Community Banking Conference November 17-18


  • ICBA’s Fine: “Shark in the Waters”

    The sea changes proposed under the financial reform effort in Washington are likely to leave no segment of our financial system untouched. ICBA is focused solely on ensuring that community banks are not harmed while unregulated nonbanks and too-big-to-fail Wall Street financial firms are brought under control.
    More.

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    CBAI Comments on FDIC’s Three Year Pre-paid Assessment Proposal

    On October 30, 2009, CBAI submitted comments to the FDIC concerning its proposed three year pre-paid assessment plan. Of all the possible assessment methods, CBAI believes that the prepayment approach is the lowest cost and most politically viable option. CBAI raised several concerns with the proposal and recommended various changes, including the use of total assets minus tangible capital (as opposed to domestic deposits) to calculate the assessments. For a more detailed report on CBAI’s comments,
    click here.

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    Main Street: “Wall Street’s Behavior Hasn’t Changed”

    Despite TARP bailouts and lending programs guarantee programs from the Fed and FDIC to prevent them from failure, the too-big-to-fail financial giants on Wall Street are doling out massive bonuses as if the crisis never existed. In this
    poignant article by Time reporter Allan Sloan, he points out what’s still wrong with Wall Street.

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    Chairman Frank Urges Temperance on Bank Exams

    In a letter to all federal financial institution regulators, House Financial Services Committee Chairman Barney Frank (D-Mass.) called on regulators “… to show some restraint in the immediate enforcement of new rules that may prove excessive at a time when community banks are least able to respond. A self-fulfilling prophecy of community bank failures, shrinking credit availability and a slower economy can all result from a regulatory over-reaction to the current crisis.” CBAI has called on both federal and state regulators to temper their exams and take a more reasoned approach that reflects the unusual economic circumstances confronting community banks today. CBAI applauds Chairman Frank’s efforts.
    See Full Letter.

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    Community Banks Recognized for Lobbying Effectiveness

    In an October 31, 2009, article written by Washington Post staff writer Brady Dennis, the effectiveness of the community banking lobby was cited. The Independent Community Bankers of America (ICBA), CBAI, and other state community bankers associations across America work closely together to communicate with congressmen, regulators, and the Obama Administration.
    See Complete Article.

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    Great Britain to Break Up its TBTF Banks

    The British government announced this week that it will break up the giant banks that were bailed out by taxpayers. Europeans are calling for more and smaller banks to increase competition and eliminate the threat posed by large banks so large that they must be rescued by taxpayers. CBAI and ICBA have long urged the U.S. government to break up the giant U.S. banks. Only the community banking lobby supports this position.

    In addition, former Fed chairman Paul Volcker, an outside economic advisor to President Obama, has proposed renewing the separation of commercial banking and commerce. The Glass-Steagall Act, which prevented commercial banks from engaging in the investment banking business, was largely repealed in 1999.
    See Complete Article.

    Former Secretary of Labor Robert Reich also recently offered his reasons why the TBTF banks should be broken up. See Full Article.

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    Fed Pledges to Keep Rates Low

    The Federal Open Market Committee (FOMC) today said it will keep interest rates near zero for “an extended period” and specified that the policy will remain unchanged as long as inflation expectations are stable and unemployment does not decline.
    More Details.

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    Draft Bill on Systemic Risk Includes ICBA Proposals

    Treasury and the House Financial Services Committee
    released draft legislation to prevent systemic risks posed by too-big-to-fail financial institutions. The draft bill, which includes many ICBA policy proposals, would create a mechanism for monitoring and reducing the threats that systemically risky firms pose to the financial system. It includes stricter regulatory standards on systemic-risk firms and creates a Financial Services Oversight Council to monitor risks.

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    SBA Announces Secondary Market Guarantee Program

    The Small Business Administration published regulations to create a secondary market guarantee program to provide greater liquidity for lenders and expand access to capital for small businesses. Funded through the Recovery Act, the new program encourages sales into the secondary market of the “first mortgage” portion of small business financing made possible through the SBA’s 504 Certified Development Company program. It provides credit for the purchase of real estate and other fixed assets tied to the expansion of small businesses. SBA will begin accepting applications to become a pool originator from banks and broker dealers immediately. For more information, contact SBA Deputy Assistant Administrator for Policy and Strategic Planning James Hammersley at
    james.hammersley@sba.gov. Read More.

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    Baker Market Update

    Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to pickup.
    Details.

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    ICBA Continues Efforts on Estate-Tax Relief

    ICBA is continuing its efforts to press Congress to create greater certainty on estate-tax relief. In a
    letter from ICBA and other members of the Family Enterprise Coalition, ICBA expressed concerns with legislation that would create a new, alternative definition of fair market value for business assets transferred to members of the same family. The Certain Estate Tax Relief Act of 2009 (H.R. 436) “would punish a subset of closely held businesses merely because they are family-owned,” the letter says. ICBA is advocating securing the greatest estate-tax relief possible for closely held family businesses.

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    Rural Mainstreet Economy Remains Weak

    According to the October Report of the Rural Mainstreet Economy, its overall index advanced for the first time since June, but job losses continued to climb and farmland prices continued to decline in September.
    See Full Report.

    Meanwhile, the Chicago Fed Midwest Manufacturing Index increased by 1.0% in September. See Report.

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    More Illinois Farmers Using Conservation Tillage Systems

    The Illinois Department of Agriculture recently
    released the results of a new study which found that 50% of the state’s cropland was farmed with a conservation tillage system this year, the highest percentage since the department began tracking tillage systems in 1994.

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    Register Now for CBAI’s Inaugural Winter Retreat

    CBAI recently announced its inaugural Winter Retreat, scheduled for February 7-10, 2010, at the Moon Palace in Cancun, Mexico. The Retreat was developed after conducting a member survey and conferring with other community banking associations that sponsor similar events. Featuring several sessions on key banking issues such as regulations, examinations, investments, and telecommunications, the Retreat also offers luxury accommodations in beautiful surroundings at fantastic rates. For more details,
    click here.

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    Affinion Launches “Everyday Travel Insurance”

    Affinion Group, a preferred marketing partner of Community BancService Corporation,
    announced this week an alternative to the traditional model of pay-per-trip travel insurance. Affinion’s “Everyday Travel Insurance” automatically covers insureds and their families any time they travel more than 100 miles away from home. Affinion Group is a leader in providing customer engagement and retention solutions to community banks.

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    E-mails Fraudulently Claiming To Emanate from the FDIC

    E-mails fraudulently claiming to be from the FDIC are attempting to trick recipients into installing unknown software on personal computers. These e-mails falsely indicate that recipients should download and open a "personal FDIC insurance file" to check their deposit insurance coverage. The "insurance file" may actually be a form of spyware or malicious code and may collect personal or confidential information.
    More.

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    Holiday Shipping Dates for U.S. Troops

    To ensure delivery of holiday cards and packages by Christmas Day to military addresses, the Postal Service suggests that mail be entered by certain mailing dates.
    See 2009 Holiday Shipping Dates.

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    Bankers and Bikes Road Rally Announced

    CBAI member bankers and employees of associate member firms can join the annual Bankers and Bikes Road Rally next June in Austin, Texas.
    Click here for more details.

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    CBAI Financial Statement Analysis Seminars Next Week

    CBAI is pleased to offer “
    Financial Statement Analysis” in Springfield on November 9 and Naperville on November 10. This seminar deals with the basic principles of financial statement analysis. It encourages participation in the analysis of business activity as revealed in the balance sheet, income statement, and funds flows statement of a business. Participants will eventually be able to recognize and understand of the basic condition of a business. Case studies will be presented. Leading this seminar is David Kemp, president of Bankers Management, Inc., College Park, GA, a nationally recognized company in financial services training and bank consulting.

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    CBAI Seminar for Community Bank Attorneys November 13

    To help community bank attorneys obtain the latest information regarding the myriad of legislative, legal, and regulatory mandates facing community banks, as well as to meet the Supreme Court of Illinois-ordered requirements for Minimum Continuing Legal Education (MCLE), CBAI has developed this comprehensive one-day education session entitled, “
    Seminar for the Community Bank Attorney.” This seminar utilizes the expertise of several attorneys who specialize in banking law and related topics. It provides an update on state laws and court cases impacting community banks; regulatory enforcement actions; purchasing failed banks; recent Reg Z and RESPA revisions; technology in the workplace; mortgage foreclosure; and more! The seminar has been approved for 5.5 hours of MCLE credit. Any attorney who serves on a community bank board, acts as a bank legal counsel, or has an interest in these topics will benefit from attending.

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    CBAI Women in Community Banking Conference November 17-18

    CBAI is proud to offer its third annual
    Women in Community Banking Conference” on November 17 – 18, at the Hilton Hotel in Springfield. The conference begins with an evening social on Tuesday, November 17, and a full-day conference is scheduled for Wednesday, November 18. Topics covered include “I Know I’m Supposed To Be Wonder Woman, But I Don’t Have Any Bullet-Blocking Bracelets” and “Your Best Self – Freshly Brewed” with Brenda Clark Hamilton, founder of Fresh Coffee Professional Growth Programs, Algona, IA; “Women’s History in Business and Banking” with Bobbette Fagel, vice president of infotex, Inc., Kokomo, IN; “Guiding Today’s Bankers: The Role of Women Bankers as Mentors,” with Dianne Barton, president of Performance Solutions, Inc., Kennesaw, GA; “Can Social Networking Benefit Your Bank,” with Bridget Huffman, BKD, LLP, St. Louis, MO; and community banking issues with Illinois State Treasurer Alexi Giannoulias or his chief of staff, Robin Kelly.

    Don't miss this opportunity for invaluable networking and powerful information designed for personal and professional development.

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    CBAI

           

    CBAI's PROFESSIONAL DEVELOPMENT PROGRAMS THROUGH 12/30/09



    TELEPHONE/WEBCASTS THROUGH 12/30/09




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


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