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 29, 2010 Graphic
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Community Bankers Association of Illinois
Community Bankers Association of Illinois Community Bankers Association of Illinois


  • CBAI Extends Best Wishes for a Healthy and Prosperous New Year
  • Community Bankers Offer Observations on their Profession
  • In the Wake of Financial Reform: What’s Next for Community Banks?
  • Elizabeth Warren Calls CBAI to Discuss CFPB Formation
  • Too-Big-to-Fail Still Needs Resolution
  • Congress Passes CBAI-Backed Bill to Include IOLTAs in TAG Extension
  • CBAI Warns Illinois Banks About HELOC Scam
  • Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Institutions
  • Treasury Releases $30 Billion Small Business Lending Fund Guidelines
  • BAKER Market Update
  • Economic Activity Slowed in November
  • Federal Reserve Analyzes Seventh District Census Data
  • Mixed Economic Picture for St. Louis Region
  • Property Values Continue Decline
  • Consumer Confidence Falls in December
  • Calling All Community Bank Directors!
  • Compliance for Lenders in January
  • Session I of the Compliance Institute Scheduled for January 12-13
  • Branch Managers’ Forums Set for January 19 & 20, 2011
  • Satisfaction at Credit Unions Falls
  • CBAI Announces Schedule for 2011 Group Meetings


  • CBAI Extends Best Wishes for a Healthy and Prosperous New Year

    The leadership and staff of the CBAI corporate family extend hope and best wishes to all CBAI members for a healthy and prosperous 2011. CBAI exists to keep community banks safe, sound, and profitable through education, governmental relations, and special bottom-line services. Call on CBAI for assistance and support throughout the year.

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    Community Bankers Offer Observations on their Profession

    US Banker Magazine recently interviewed several Midwestern community bankers about various issues affecting their profession today, including access to capital, lending, and over-regulation.
    See Article.

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    In the Wake of Financial Reform: What’s Next for Community Banks?

    The sixth annual Community Bankers Symposium, co-sponsored by the Federal Reserve Bank of Chicago and the Federal Deposit Insurance Corporation (FDIC), was held at the Chicago Fed on November 19, 2010. This
    article summarizes the key presentations and discussions at the conference.

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    Elizabeth Warren Calls CBAI to Discuss CFPB Formation

    CBAI's Kraig Lounsberry, Senior Vice President of Governmental Relations, and David Schroeder, Vice President of Federal Governmental Relations, recently discussed the formation of the new Consumer Financial Protection Bureau (CFPB) with Elizabeth Warren via telephone conference. Professor Warren was appointed by President Obama to serve as Assistant to the President and Special Advisor to the Secretary of the Treasury on the CFPB, to assist in the organization of the new Bureau.
    More.

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    Too-Big-to-Fail Still Needs Resolution

    Fortune’s Sloan Reflects on Financial Reform and TBTF

    Allan Sloan, senior editor of Fortune Finance, recently reflected on the financial reform efforts of 2010 and what remains to be done in 2011. In his assessment, major problems that led to the financial crisis have yet to be fixed, including the mega banks that are still too big and under-capitalized. CBAI has long advocated breaking up the mega banks so they can be resolved without a government bailout and destructive collateral damage.
    See Sloan's Article.

    TBTF Partially Fixed According to Reuters Editor

    Peter Larson, Assistant Editor of Reuters Breakingviews, last week wrote that higher capital requirements will make the mega banks somewhat safer, but much remains to be done to resolve the dangers of too-big-to-fail. He noted that lawmakers and regulators will remain under pressure to impose an explicit cap on bank size. See Article.

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    Congress Passes CBAI-Backed Bill to Include IOLTAs in TAG Extension

    CBAI's efforts to urge the Illinois Congressional delegation to support legislation to add Interest on Lawyer's Trust Accounts (IOLTAs) to the extension of the Transaction Account Guarantee (TAG) program contributed to its adoption by Congress.
    See Report.

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    CBAI Warns Illinois Banks About HELOC Scam

    CBAI is warning Illinois banks about an increase in attacks by fraudsters on customers with home equity lines of credit ( HELOC). The sophisticated schemers already have struck at least two Illinois banks, which have reported losses.
    More.

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    Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Institutions

    The federal bank regulatory agencies
    announced the annual adjustment to the asset-size thresholds used to define small bank, small savings association, intermediate small bank and intermediate small savings association under the Community Reinvestment Act (CRA) regulations. The annual adjustments for banks are required by the CRA rules.

    Annual adjustments to these asset-size thresholds are based on the change in the average of the Consumer Price Index (CPI) for urban wage earners and clerical workers, not seasonally adjusted, for each 12-month period ending in November, with rounding to the nearest million.

    As a result of the 2.21 percent increase in the CPI index for the period ending in November 2010, the definitions of small and intermediate small institutions for CRA examinations will change as follows:

      "Small bank" or "small savings association" means an institution that, as of December 31 of either of the prior two calendar years, had assets of less than $1.122 billion.

      "Intermediate small bank" or "intermediate small savings association" means a small institution with assets of at least $280 million as of December 31 of both of the prior two calendar years, and less than $1.122 billion as of December 31 of either of the prior two calendar years.

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    Treasury Releases $30 Billion Small Business Lending Fund Guidelines

    The United States Treasury Department released guidelines for community banks to participate in the $30 billion Small Business Lending Fund.

    The Small Business Lending Fund (SBLF) was first proposed by President Obama in his 2010 State of the Union Address. CBAI was an early and enthusiastic supporter of the SBLF. At a press conference in Chicago last January, CBAI leadership bankers Todd Grayson and Tony Sisto joined with Senator Richard Durbin to announce this legislative initiative. In the spring and summer, CBAI bankers visited Washington D.C. to voice support for the bill. The SBLF was enacted under the Small Business Jobs Act in late September. The goal of this program is to encourage additional small business lending, fuel job creation, and help create economic stability.
    More.

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    BAKER Market Update

    Treasury yields are set to close the abbreviated trading week higher as recent economic data showed slightly firmer growth. Today’s economic reports indicated initial jobless claims fell last week, while continuing claims dropping to its lowest level in over two years as employers are retaining more of their work force.
    More.

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    Economic Activity Slowed in November

    The Chicago Fed National Activity Index was –0.46 in November, down from –0.25 in October.

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    Federal Reserve Analyzes Seventh District Census Data

    The Chicago Federal Reserve Bank released its analysis of the 2010 census data for the Seventh District on December 21, and noted that Illinois experienced a 3.3 percent population growth during the decade compared to total U.S. population growth of 9.7 percent. Due to subpar population growth, Illinois, Iowa and Michigan will each lose one congressional seat.
    See Full Article.

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    Mixed Economic Picture for St. Louis Region

    The St. Louis Federal Reserve Bank recently released the December edition of the Burgundy Book, a quarterly summary of detailed economic information and data for the St. Louis region. According to four of six indicators, the nation has outperformed the St. Louis region.
    See Burgundy Book.

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    Property Values Continue Decline

    Home prices declined more than forecast in October which signaled that housing will remain a weak link in the economic recovery in 2011. The S&P/Case-Shiller index of property values declined by 1.0 percent in October, and a wave of foreclosures waiting to reach the market will keep home prices under pressure. Eighteen of 20 cities experienced a decrease in prices.
    See Bloomberg Article.

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    Consumer Confidence Falls in December

    According to the Conference Board, the consumer confidence index unexpectedly fell to 52.5, reflecting consumer caution due to the depressed housing market and continuing high unemployment.
    See Full Article.

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    Calling All Community Bank Directors!

    The
    Community Bank Directors’ College is designed to teach individuals how to become a more effective, capable, and supportive member of a bank’s board of directors. It is the goal of the college to graduate directors who return to your bank more active, more knowledgeable, and more decisive. The first session, which may be attended as a stand-alone course, is being held at Crowne Plaza in Springfield, IL, on January 18 - 19. Topics covered include an overview of the role of the bank director; the changing landscape of banking; the director and the board; the loan processor from the director’s view; the internal audit function; directors’ responsibilities in compliance; strategic technology planning and security update; your regulators’ views of directors’ responsibilities; and a regulator panel.

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    Compliance for Lenders in January

    This January, CBAI is pleased to offer
    “Compliance for Lenders” in three locations is January 10-12. This one-day program provides a discussion of the current “hot-buttons” of the financial regulators as related to compliance; up-to-date information on compliance issues, the changes, and other developments in bank regulations that relate to lending; and a review of the major substantive requirements of compliance acts or regulations that relate to lending. 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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    Branch Managers’ Forums Set for January 19 & 20, 2011

    CBAI is pleased to offer
    “Branch Managers’ Forum.” Robert Swartz, manager at BKD, LLP, Decatur, will facilitate the Branch Managers’ Forum held in Springfield, while Kathy Enbom, manager with WIPFLi LLP, will facilitate the Naperville Group. CBAI organizes the forums based on bank size and market to ensure that branch managers have as much in common as possible without being competitors; the groups remain small. Other consultants from a variety of firms may be invited to address the group on branch issues. This expertise would normally cost banks thousands of dollars if paid on a “real-time” basis. Forums meet quarterly at a date and location determined by the group members. Four to six issues are usually discussed at each session and the agenda is member selected.

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    Satisfaction at Credit Unions Falls

    Member satisfaction with credit unions has taken a slight dip in a new poll.

    A study conducted by the American Customer Satisfaction Index found that credit unions "are now beginning to feel pressure to increase performance." For the first time since 2008, satisfaction with credit unions fell 5%, to an index score of 80. Banks received a rating of 76.
    More.

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    CBAI Announces Schedule for 2011 Group Meetings

    CBAI leaders and executive staff are visiting 11 locales on the 2011 Group Meeting tour. The objective of Group Meetings is to learn more about the needs of CBAI members, as well as share information on key community-banking issues and activities. Consisting of an optional golf outing and a dinner meeting,
    Group Meetings also provide an excellent opportunity to catch up with friends and peers. So meet us for an enjoyable and informative event – just for community bankers – that is sure to please!

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