Community Bankers Association of Illinois

Division of Banking’s Jorge Solis and Scott Clarke Meet with CBAI Staff

Jorge Solis, Director of the Division of Banking within the Illinois Department of Financial and Professional Regulation, and Assistant Director Scott Clarke visited CBAI headquarters on July 16th to discuss recent developments and to look forward on a number of topics affecting Illinois financial institutions. CBAI was pleased to host Director Solis and Assistant Director Clarke as part of our continuing efforts to periodically exchange thoughts and share concerns with regulators.

Director Solis and Assistant Director Clarke met with CBAI’s President Bob Wingert, Senior Vice President for Governmental Relations Kraig Lounsberry, General Counsel Jerry Cavanaugh and Community BancService Corporation President Mike Kelley. Among the items discussed during the meeting were the following:

    • the vast majority of Illinois banks are operating safely and soundly and will successfully navigate their way through this financial and economic crisis;
    • the regulators are discouraging banks from cutting costs that may increase vulnerability to Information Technology fraud (whether from bank insiders or from outside perpetrators) or that may unreasonably scale back audits of bank functions;
    • reductions in the market value of collateral should not necessarily cause an asset to become classified by examiners, provided that the collateral was taken “as an abundance of caution” and the asset is in other respects fully performing;
    • “Loan Servicer Questionnaires” that the Division of Banking is requiring from Illinois lenders on a semi-annual basis will not continue indefinitely, but rather are intended to provide the Division of Banking with current data regarding Illinois lenders’ practices with respect to mortgage loan modifications;
    • CBAI supports federal legislation aimed at increased accountability for “too big to fail” or “systemic risk” financial institutions;
    • CBAI opposes federal legislation that would create a “consumer protection agency” with authority to conduct compliance examinations in addition to the bank examinations already conducted by Illinois and federal bank regulators;
    • CBAI believes that the supervision and regulation of state-chartered depository financial institutions should be controlled by an independent State agency, rather than the current structure under a mega-agency (the Illinois Department of Financial and Professional Regulation) that regulates numerous professions unrelated to financial services;
    • the State Banking Board of Illinois should be re-activated, possibly with some modifications to its size, so that the Division of Banking can receive advice and feedback from Illinois bankers and so that the statutory role of the State Banking Board can be fulfilled;
    • the Division of Banking will host another one-day banking conference, formerly known as “A Day with the Commissioner,” and dates will be released soon; and
    • CBAI complimented the Division of Banking for promptly issuing a Cease and Desist Order against a mortgage entity that deceptively used the name of a CBAI member bank in a solicitation mailed to a customer of the bank.

Director Solis and Assistant Director Clarke have attended or participated in a number of CBAI Conventions, seminars and conferences, and this was the second consecutive year that they have visited the CBAI office to meet with members of our Association’s senior staff. CBAI welcomes these opportunities to have open dialogue with the State’s top banking regulators.

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