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           December 15, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • FRB President Calls for Downsizing Mega Banks
  • Community Banks Strong After Financial Crisis
  • ICBA Produces Video on Financial Reform
  • Recent Actions of FDIC Board
  • Sub S Banks Can Now Seek TEFRA Tax Refunds
  • Thrift Industry Shows Continued Stability in Third Quarter
  • BAKER Market Update
  • CBAI’s Washington Visit May 1-4, 2011 – Mark Your Calendars!
  • Delinquencies Will Fall in Illinois in 2011, TransUnion Predicts
  • November Retail Sales Top Forecasts
  • Chicago Fed Symposium Economic Outlook for 2011
  • Fed Study - More Than 75% of Noncash Payments Now Electronic
  • Fourth Quarter FREE Community-Banking Ads Available
  • The CBAI Energy Program Saves Banks Money On Electricity Costs
  • Electronic Pickpocketing
  • SBA Lending Newsletter Available from CBAI Associate Member
  • SBA Issues Guidance on Health-Care Tax Credit
  • Compliance for Lenders Set for January
  • Session I of the Compliance Institute Scheduled for January 12-13
  • CBAI Announces 2011 Convention Hotel


  • FRB President Calls for Downsizing Mega Banks

    Tom Hoenig, President of the Federal Reserve Bank of Kansas City, again called on Congress to reduce the size and scope of the giant banks, noting that they remain too-big-to-fail. He recommended that the mega banks downsize by spinning off certain risky activities. He said their enormous political influence only perpetuates a lack of accountability. CBAI supports mandates to break up the mega banks and restore Glass-Steagall provisions that prohibit proprietary trading and hedge fund activity within commercial banks.
    See New York Times Article.

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    Community Banks Strong After Financial Crisis

    In a recent article published by the Springfield Business Journal, CBAI President Bob Wingert noted that community banks remain financially viable after the near-collapse of our economy and are prepared to lend once confidence returns to the business sector. He also identified the principal causes of the financial meltdown and encouraged consumers to look to community banks for their banking relationships and to support legislation to break up the giant mega banks.
    See Full Article.

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    ICBA Produces Video on Financial Reform

    Consumers and bankers can now learn more about the financial crisis and subsequent reforms enacted by Congress via a new video produced by ICBA. It identifies how the reform law distinguishes between community banks and mega banks. To view the video,
    click here.

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    Recent Actions of FDIC Board

    Earlier this week the FDIC board approved a final rule to set the Deposit Insurance Fund’s designated reserve ratio at two percent (2%) of estimated insured deposits based on a historical analysis that the DRR must be at least two percent to maintain a positive fund balance and steady, predictable assessment rates.
    See Final Rule.

    The board also approved an interagency proposed rule to implement new capital rules for the mega banks based on the Collins amendment to the Wall Street reform Act. See Interagency Capital Rule.

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    Sub S Banks Can Now Seek TEFRA Tax Refunds

    Last March, ICBA and several state community banking associations including CBAI prevailed in court against the IRS on a proposed rule that would have increased taxes on Sub S banks invested in qualified tax exempt obligations (the so-called “TEFRA rule”). Forest Park National Bank & Trust Co., a CBAI member, was plaintiff in the case. The IRS has now acquiesced, and Sub S banks and BHCs can seek tax refunds for their open tax years if impacted by the TEFRA interest allowance.

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    Thrift Industry Shows Continued Stability in Third Quarter

    The U.S. thrift industry continued to stabilize in the third quarter of 2010, the Office of Thrift Supervision has reported. The industry posted profits of $1.77 billion, marking the fifth consecutive quarter of profitability after losses from the fourth quarter of 2007 through the first half of 2009. Third quarter 2010 profits were up from $1.49 billion in the previous quarter and from $1.24 billion in the third quarter of 2009.
    More.

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    BAKER Market Update

    Information received since the Federal Open Market Committee met in November confirms that the economic recovery is continuing,though at a rate that has been insufficient to bring down unemployment.
    More.

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    CBAI’s Washington Visit May 1-4, 2011 – Mark Your Calendars!

    CBAI’s 29th Annual Washington Visitation is scheduled for May 1-4, 2011, and will feature meetings with members of the Illinois congressional delegation and federal regulators. This is our opportunity to shape financial legislation in 2011. Make plans now to participate in this fantastic event.
    See Details.

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    Delinquencies Will Fall in Illinois in 2011, TransUnion Predicts

    Delinquency rates on mortgages and credit cards in Illinois will decline by double-digit percentages in 2011, credit agency TransUnion LLC predicted recently. The ratio of Illinois mortgages that are 60 days or more past due will decline 17.9%, from 6.2% at the end of 2010 to 5.1% by the end of 2011, the Chicago-based company said.
    Read more.

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    November Retail Sales Top Forecasts

    Retail sales increased more than forecast in November, and optimism among small businesses rose to a three-year high.
    See Bloomberg Article.

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    Chicago Fed Symposium Economic Outlook for 2011

    Solid economic growth is expected in 2011, according to Chicago Fed Economic Outlook Symposium participants. The 24th annual Economic Outlook Symposium was held on December 3 in Chicago.
    See Details.

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    Fed Study - More Than 75% of Noncash Payments Now Electronic

    The Federal Reserve’s 2010 study of noncash payments just
    released revealed that in 2009 more than three-quarters of all U.S. noncash payments were made electronically, a 9.3 percent annual increase since the Federal Reserve’s last study in 2007.

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    Fourth Quarter FREE Community-Banking Ads Available

    Click here for a sample of the ads. To order, contact the CBAI Department of Communications at cbaicom@cbai.com.

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    The CBAI Energy Program Saves Banks Money On Electricity Costs

    Whether your bank is located in southern Illinois or the “ComEd Territories” north of I-80, you likely are eligible to participate in the new CBAI Electricity Program. Even if your bank is under contract to an Alternative Retail Supplier for power, you may be able to lock-in today’s low rates for a future start date.
    Find out more.

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    Electronic Pickpocketing

    Today's technology has evolved in the creation and development of devices that can be detrimental to one's security.
    Watch Video.

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    SBA Lending Newsletter Available from CBAI Associate Member

    Holtmeyer & Monson offers an informational
    newsletter on various SBA lending topics.

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    SBA Issues Guidance on Health-Care Tax Credit

    The Small Business Administration released guidance on how eligible small businesses can claim a new health-insurance tax credit for the 2010 tax year. The credits, which were enacted under the Affordable Care Act, are available for tax years 2010 through 2013 and for any two years after that. Through 2013, the maximum tax credit is 35 percent of premiums paid by small employers and 25 percent for eligible tax-exempt organizations. Beginning in 2014, those levels increase to 50 percent and 35 percent, respectively.
    Read SBA Letter. Read the Guidance.

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    Compliance for Lenders Set for January

    CBAI is pleased to offer “
    Compliance for Lenders” in three locations on January 10-12. This one-day program discusses the current compliance “hot-buttons” of the financial regulators. Ip-to-date information on compliance issues, changes, and other developments in bank regulations that relate to lending; and a review of the major substantive requirements of compliance acts or regulations. Leading this seminar is Bill Elliott with Young & Associates, Inc., Kent, Ohio.

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    Session I of the Compliance Institute Scheduled for January 12-13

    Community banks are constantly faced with a bewildering array of ever-changing regulations. In response to this training need, CBAI presents the “
    Compliance Institute" this January & April. An introductory course for those compliance officers who are either new to banking or to their positions, this four-day institute is designed to provide a comprehensive understanding of the major regulatory compliance regulations that have been determined to be "must knows" for all compliance officers. The school has been divided into two sessions, Operations/Deposit Compliance and Lending Compliance. Attendees can attend one or both sessions, dependent upon need. Bill Elliott, senior consultant and manager of compliance, and Bryan Bradley, senior consultant, both of Young & Associates, Inc., Kent, Ohio, leads this institute.

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    CBAI Announces 2011 Convention Hotel

    CBAI’s 37th Annual Convention, September 22-24, will be held at the
    Hyatt Regency in Milwaukee. The Exhibit Hall and several functions will be held in the Frontier Airlines Center, and guest rooms will be reserved at the nearby Hyatt Regency. The newly-renovated Hyatt Regency Milwaukee Hotel is located in the city’s bustling downtown. You’ll enjoy a spacious room, featuring plush Hyatt Grand Beds™ and deluxe Portico bath amenities, and Hyatt's 24 hour StayFit™ gym. In addition to Wi-Fi service throughout public areas, the hotel also offers a full-service business center to cater to all meeting needs.

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