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CBAI Applauds GAO Study of "Too-Big-To-Fail"

January 15, 2013

CBAI applauds the decision by the Government Accountability Office to study the economic benefits received by the “too-big-to-fail” megabanks as a result of actual or implied government bailouts. In the waning days of the 112th Congress U.S. Senators David Vitter (R-LA) and Sherrod Brown (D-OH) introduced legislation requiring the GAO to conduct this study (Vitter-Brown GAO Study on Government Subsidies of Megabanks). While this bill passed the Senate by unanimous consent it was not taken up in the Republican-controlled House. In January Senators Vitter and Brown wrote the GAO to encourage this study, and last week the GAO announced they will conduct a study. READ LETTER In the letter to GAO Comptroller General Dorado the Senators said the government has not done enough to prevent future bailouts. “There is broad bipartisan support for the position that we must end “too-big-to-fail” government policies, whereby the U.S. government provided financial support to large financial institutions to protect them from failures of their own making.” “We should all want free-market principles to apply across the financial system and do everything possible to ferret out any market distortions fostered by government involvement and subsidies to the largest megabanks.” In a separate statement the Senators said, “After the financial crisis of 2008, policymakers should seek all available data to unwind too-big-to-fail market distortions.” CBAI thanked Senators Vitter and Brown and also the GAO. We look forward to the results of this important study and vigorously support legislation to downsize "too-big-to-fail" banks.

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Regulators Delay Basel III Implementation

November 9, 2012

The Federal Reserve, FDIC and the OCC announced today that the proposed Basel III rules would not become effective on January 1, 2013 as they had originally planned. The three Agencies stated the high volume of comments letters as the reason for their decision.

CBAI encouraged Illinois community bankers to submit comment letters detailing the negative impact of these misguided proposed Rules on their banks and communities. The regulators have already posted over a thousand letters on their websites to-date. At the Chicago Federal Reserve Community Bankers Symposium, Federal Reserve Governor Elizabeth Duke stated that the total number of comment letters being reviewed and posted will be approximately 2,000! Read CBAI’s comment letter

CBAI is encouraged with this impressive industry response and that the regulators have chosen to the take time to carefully review the thoughtful input from community banks about how these Rules will impact lending and their ability to serve their communities. Read Joint Regulator Press Release

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ACTION ALERT: Sign Online Petition Opposing Credit Union Power Grab

February 2, 2012

Credit unions are poised to charge Capitol Hill by the busload to advance their member business lending bills (H.R. 1418/S. 509). Your action is urgently needed to help prevent these bills from moving forward . Please sign an online petition today so your voice opposing their unwarranted power grab is heard in Washington D.C.

Credit unions are primed for a full scale campaign to expand their small business lending by 1) raising the cap on member business loans from 12.25% to 27.5% of assets; 2) increasing the size of loans exempt from the cap; 3) excluding any loan made in an underserved area; and 4) repeal certain lending restrictions on undercapitalized credit unions, thereby raising safety and soundness concerns. CBAI has consistently held the position that tax subsidized credit unions should meet the basic statutory mission that Congress spelled out for them by serving individuals of modest means and with a common bond.

H.R. 1418 and S. 509 currently have 114 bipartisan co-sponsors in the House and 22 bipartisan co-sponsors in the Senate. Seventeen members of the Illinois delegation have not co-sponsored this legislation. The 4 House members that have cosponsored are Congressmen Rush (D-1st), Jackson (D-2nd), Lipinski (D-3rd), and Congresswoman Schakowsky (D-9th).

Please click here to sign the online petition. Please also encourage your employees, Directors, customers, and even family members to join in supporting taxpaying Illinois community banks.

Here is the link to the petition if you would like cut/paste and send the link to others - http://www.icba.org/MBLPetition/index.cfm

It takes under a minute to complete and send the petition. Please sign it today.

Thank you!

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CBAI Action Alert - Urge Congress to Cosponsor the Communities First Act

December 14, 2011

The CFA (H.R. 1697) is bipartisan legislation that would provide much needed regulatory relief for community banks and their communities. The CFA also reduces the tax burden on community banks and narrows the competitive gap between community banks and tax-exempt unions. The CFA is extremely important to the continued ability of community banks to effectively service their communities.

H.R. 1697 introduced by Blaine Luetkemeyer (R-MO), currently has 61 co-sponsors including Illinois Congressmen Mike Quigley (D-5), Robert Dold (R-10), Randy Hultgren (R-14), Tim Johnson (R-15), and Don Manzullo (R-16).

CBAI recently joined with community bank trade associations across the country in support of the CFA. Read letter. Please click here to urge your Congressman to cosponsor, H.R. 1697.

The companion version of H.R. 1697 (S. 1600) was introduced by Jerry Moran (R-KS) in September, and currently has four co-sponsors.

Please click here to urge Illinois’ Senators Richard Durbin and Mark Kirk to cosponsor S. 1600. Thank you for your efforts.

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ACTION ALERT: Sign Online Petition Opposing Credit Union Power Grab

February 2, 2012

Credit unions are poised to charge Capitol Hill by the busload to advance their member business lending bills (H.R. 1418/S. 509). Your action is urgently needed to help prevent these bills from moving forward . Please sign an online petition today so your voice opposing their unwarranted power grab is heard in Washington D.C.

Credit unions are primed for a full scale campaign to expand their small business lending by 1) raising the cap on member business loans from 12.25% to 27.5% of assets; 2) increasing the size of loans exempt from the cap; 3) excluding any loan made in an underserved area; and 4) repeal certain lending restrictions on undercapitalized credit unions, thereby raising safety and soundness concerns. CBAI has consistently held the position that tax subsidized credit unions should meet the basic statutory mission that Congress spelled out for them by serving individuals of modest means and with a common bond.

H.R. 1418 and S. 509 currently have 114 bipartisan co-sponsors in the House and 22 bipartisan co-sponsors in the Senate. Seventeen members of the Illinois delegation have not co-sponsored this legislation. The 4 House members that have cosponsored are Congressmen Rush (D-1st), Jackson (D-2nd), Lipinski (D-3rd), and Congresswoman Schakowsky (D-9th).

Please click here to sign the online petition. Please also encourage your employees, Directors, customers, and even family members to join in supporting taxpaying Illinois community banks.

Here is the link to the petition if you would like cut/paste and send the link to others - http://www.icba.org/MBLPetition/index.cfm

It takes under a minute to complete and send the petition. Please sign it today.

Thank you!