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Community Bankers Association of Illinois
Community Bankers Association of Illinois    Community Bankers Association of Illinois CBAI E-Newsletter Sponsor - SHAZAM
 
     A Bi-Weekly News Bulletin for CBAI Members                            December 24, 2014

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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois

  • Op-Ed: Megabanks Overplay Hand with ‘Swaps Push-Out’
  • MIT’s Johnson: Community Bankers Right to Have Concerns with Antonio Weiss
  • CBAI Meets with New Illinois Congressmen Robert Dold (R-10th) and Mike Bost (R-12th)
  • Hit Your 2015 Marketing Goals
  • U.S. Mint Cuts Costs, But Pennies and Nickels are Still Money Losers
  • Fed Disputes Cost-Saving Claims of Switching to $1 Coin
  • CBAI Applauds New Law Improving Community Bank Access to Capital
  • Ready for New TILA-RESPA Requirements?
  • What Makes a Community Bank Insurance Specialist So Special?
  • Baker Market Update
  • Baker Economic Brief
  • CBAI Foundation Announces Partnership with iHELP
  • NFTB: Two Years On the Job Required to Enforce Non-compete Covenant
  • Take This Week’s CBAI Quick Poll
  • Lenders’ Guide to Mortgage Loan Compliance Set for January 7 & 8 and 13 & 14
  • Compliance Institute (Operations/Deposit) Scheduled for January 13-14
  • Community Bank Directors’ College Scheduled for January 21-22
  • Ag Lenders’ Conference to be Held January 28


  • Op-Ed: Megabanks Overplay Hand with ‘Swaps Push-Out’

    Wall Street overplayed its hand in pushing for the repeal of a provision requiring the biggest banks to push out their derivatives businesses into affiliates, according to a new op-ed. Boston University Professor Cornelius Hurley wrote on the American Banker website that repealing the swaps push-out rule inadvertently thrust the issue of too-big-to-fail subsidies back into the spotlight.

    Hurley noted that the swaps push-out provision, which was overturned in the $1.1 trillion government-funding law signed this week, would have required the five big banks that account for 95 percent of swaps activity to move a portion of that business to their nonbank affiliates. This would have removed FDIC deposit-insurance coverage of this activity, reducing its profitability.

    Hurley wrote that this development will force regulators to recalculate the subsidy big banks receive from taxpayers. “File this under ‘be careful what you lobby for,’” he wrote. Read Hurley’s Op-Ed.

    Protestors: “Break Up Big Banks”

    In response to the successful Citigroup-led lobbying effort to repeal the key Dodd-Frank Act provision on derivatives, protestors gathered outside the mega bank’s New York headquarters last week to urge breaking up the big banks; enacting a modern-day Glass-Steagall Act; and opposing the nomination of Antonio Weiss, an investment banker, to a key Treasury position. See CNN Money Article.

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    MIT’s Johnson: Community Bankers Right to Have Concerns with Antonio Weiss

    Community bankers are justified in raising concerns about the nomination of Antonio Weiss for undersecretary for domestic finance at the Treasury Department, according to a new blog post. MIT professor Simon Johnson wrote that the Wall Street view is in full control at Treasury and Weiss lacks relevant experience outside of major mergers and acquisitions.

    Johnson cited communication to lawmakers expressing concerns with the nomination, in which President and CEO Cam Fine wrote that Weiss’ professional experience is a serious concern for ICBA community banks nationwide. CBAI also weighed in against the Weiss nomination. See Johnson Blog. Read ICBA Letter. Read CBAI Release.

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    CBAI Meets with New Illinois Congressmen Robert Dold (R-10th) and Mike Bost (R-12th)

    Community Bankers Association of Illinois (CBAI) staff and leadership bankers Todd Grayson (President of South Central Bank, N.A., Chicago and Chairman of CBAI) and David Pirsein (President of First National Bank in Pinckneyville and CBAI Southern Illinois Regional Vice Chairman) respectively met with Illinois’ new Congressmen Robert Dold (R-10th) and Mike Bost (R-12th) to review CBAI's Federal Policy Priorities. Read More.

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    Hit Your 2015 Marketing Goals

    Establishing quality, consistent branding, offering targeted marketing campaigns across all appropriate channels and adapting marketing strategies to fit the times are each hallmarks of successful community bank marketing plans. Of course, many community banks lack the staff and resources to launch and maintain sustainable marketing efforts. That’s where CBSC preferred provider SHAZAM can be of assistance. Learn More.

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    U.S. Mint Cuts Costs, But Pennies and Nickels are Still Money Losers

    The Mint cut the cost of making pennies and nickels, but they still cost more to make than their face value. A penny costs 1.7 cents to make, and a nickel costs 8.1 cents. That adds up to a $90.5 million loss this year. Read More.

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    Fed Disputes Cost-Saving Claims of Switching to $1 Coin

    To lawmakers and others arguing that replacing the $1 bill with a $1 coin would save the government money, the Federal Reserve says, "Don't bet on it." A new analysis by Fed staffers said the old-fashioned greenback is more durable than people realize and replacing it with a $1 coin, which is more expensive to produce, would cost the government $1.2 billion over 30 years. Read More.

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    CBAI Applauds New Law Improving Community Bank Access to Capital

    CBAI applauds the recent enactment of legislation that will improve community bank and thrift access to capital. The CBAI legislation, signed into law by President Obama, increases the Small Bank Holding Company Statement asset threshold from $500 million to $1 billion and also allows small savings and loan holding companies to be covered by the Policy Statement provisions. Read More.

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    Ready for New TILA-RESPA Requirements?

    In 2015, community banks will face sweeping changes as part of the TILA-RESPA integrated disclosure requirements. The regulation is much more than mere cosmetic changes to two loan disclosure documents, and it will affect U.S. mortgage lenders in unprecedented ways. CBAI Preferred Services Provider Wolters Kluwer Financial Services offers information about the new regulations and what community banks need to know in preparing for the most significant revisions to these rules in 40 years. Read Now.

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    What Makes a Community Bank Insurance Specialist So Special?

    Community BancInsurance Services, Inc. (CBIS) offers a free, proprietary Risk Review Analysis to CBAI members. This process, which was built in-house at Nicoud, is an exhaustive appraisal of the current policies banks hold. Learn More.

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    Baker Market Update

    Thank goodness for online shopping. Just yesterday, another package arrived at the house from Amazon’s-Fulfillment Center. What a concept! An actual location for those seeking fulfillment! Can we go there? Can we go there now? See More.

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    Baker Economic Brief

    GDP Grew 5 Percent in Q3: Third Estimate

    The gross domestic product increased at an annual rate of 5 percent in the third quarter, according to the Commerce Department’s third estimate. This estimate is up from the 3.9 percent advance estimate released last month. Much of the improvement came from consumption expenditures which represent more than two-thirds of total GDP. In the second quarter, the GDP increased 4.6 percent. See Baker Economic Brief. See Commerce Department Report.

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    CBAI Foundation Announces Partnership with iHELP

    Providing Funding Opportunities for Students

    A bank customer turns to you for student-loan assistance for his high-school daughter. You’d like to help, and you don’t want to see the business go to a big-bank competitor. Now, you have an answer!

    iHELP has partnered with the Community Bankers Association of Illinois’ Foundation for Community Banking to offer a Referral Partner program to CBAI member banks that also helps fund the Foundation’s scholarship programs while offering affordable private student loans to Illinois residents. This includes both in-school loans and loan consolidation. What does your bank have to do to participate? Simply put the iHelp icon on your bank’s web site. That’s it!

    The icon will direct the parent or student to www.ihelploan.com. There, through a simple process, loan assistance may be forthcoming for qualified students. If the loan goes through, your bank receives fee income and the CBAI Foundation for Community Banking receives a donation. Your bank does not make the loan nor bear any risk– it simply acts as a conduit.

    For more information about the iHELP private student loan program, contact Kevin Moehn, Program Manager, at kmoehn@ihelploan.com or 571/313-1307.

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    NFTB: Two Years On the Job Required to Enforce Non-compete Covenant

    Illinois courts are establishing a bright line standard that a minimum of two years of employment is required to enforce a restrictive, non-compete covenant in an employment contact. Such non-compete covenants are valid if they are reasonable in terms of distance and time, but even if reasonable cannot be enforced without the employee providing adequate consideration to form a binding contract. For the most recent case explaining the two-years rule, Click Here for information on the case of Prairie Rheumatology Associates vs. Maria Francis.

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    Take This Week’s CBAI Quick Poll

    Take this week’s Quick Poll on "Does your bank permit your employees to access confidential bank or customer information on a mobile device?" Access Quick Poll.

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    Lenders’ Guide to Mortgage Loan Compliance Set for January 7 & 8 and 13 & 14

    During the last few years, both Congress and the various federal regulators have crafted revisions to some of the regulations that have been a part of our lending lives, and have added new regulations as well. This has resulted in many additional regulatory issues in every mortgage loan transaction. As a result, lenders have been struggling to determine what they should do to assure that they not only make a safe and sound loan for the bank, but also do so in a manner that will not create regulatory problems for the bank. This year continues this process with many, many new rules and mandated ways of doing things. This seminar covers all aspects of mortgage compliance that a lender should know, including the current rules and regulations as they now stand. This seminar is designed to discuss the compliance issues from the perspective of mortgage lenders and lending management. This seminar also assists compliance officers, senior management, bank trainers, loan auditors, loan operations personnel, and others involved in the mortgage lending compliance process to understand all of the new requirements and to share this information with others inside the bank. Leading this seminar is Bill Elliott, CRCM, senior consultant and manager of compliance at Young & Associates, Inc., Kent, OH.

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    Compliance Institute (Operations/Deposit) Scheduled for January 13-14

    CBAI is pleased to present the “Compliance Institute” this January & April. An introductory course for those compliance officers who are either new to banking or new to their positions, this 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. Offered in January, session I, Operations/Deposit Compliance, addresses topics including compliance management, privacy of customer information, Fair Credit Reporting Act, Customer Identification Program, Bank Secrecy Act, Regulation D: Reserve Requirements, Regulation DD: Truth in Savings Act, Regulation CC: Expedited Funds Availability Act, and Regulation E: Electronic Funds Transfer Act. Bill Elliott, CRCM, senior consultant and manager of compliance, and Adam Witmer, CRCM, consultant, both of Young & Associates, Inc., Kent, Ohio, lead this institute.

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    Community Bank Directors’ College Scheduled for January 21-22

    The Community Bank Directors’ College was developed in close cooperation with both state and federal regulators and is designed to teach individuals how to become more effective, capable, and supportive members of their bank’s board of directors. Its goal is to graduate directors who return to your bank more active, more knowledgeable, and more decisive. In effect, they will be an even bigger asset to your community bank. The College is offered once a year and provides a thorough understanding of bank operations and bank directors’ responsibilities. The college is recommended for both new and seasoned bank directors. It is structured as two, two-day sessions offered on an annual basis; either may be attended as a stand-alone course. The first session is being held at Northfield Inn and Conference Center in Springfield, IL, January 21-22, 2015.

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    Ag Lenders’ Conference to be Held January 28

    This jammed-packed day takes a look at a variety of issues facing agricultural lenders. Attend CBAI's 2015 Ag Lenders' Conference to develop the skills and tools to better understand the issues affecting your farm and agribusiness customers and to meet their credit needs. A mini-expo featuring the latest in products and services for ag lenders also highlights the day. Topics and speakers include “Global Dashboard Indicators for Value-Added Producers and Lenders” and “Effective Traits of a Winning Ag Lender-Producer Team” by Dr. David Kohl, Professor Emeritus, Virginia Tech; “Global Grain Marketing” with Dan Hueber, The Hueber Report; and “Farm Bill Update” by Larry Smith, Diversified Crop Insurance Services.

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