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April 29, 2005

President Signs Bankruptcy Bill/Seminars Planned
As we have reported in recent e-Bulletins, Congress has passed the first overhaul of the bankruptcy code in more than two decades.  This new needs-based bankruptcy bill has been signed by President Bush and it could dramatically affect bankruptcy filings.  Because the bill will require more people to be in reorganization, bank policies and procedures may need to change.  GBA has two seminars planned to help our members understand this new law:  June 15 in Macon and June 16 in Gainesville.  Bankruptcy expert Jerry Blanchard with Powell Goldstein will lead the two seminars.  Among the topics covered will be the most significant changes in the new law affecting banks; the new “needs” test in consumer bankruptcies; what consumer debts are now non-dischargeable; changes for business bankruptcies, including family farmers; and much more.  For additional information, please contact GBA’s Fran Williams at (404) 420-2015.

Safeguarding Customer Information:  New Interagency Guidance
On March 23, 2005, the federal bank regulatory agencies (the “Agencies”) jointly issued guidance on what financial institutions should do to respond to instances of security breaches involving customer information.  Financial institutions now are required to develop, among other things, a risk-based response program for when security breaches occur, to notify their primary federal regulators, to notify law enforcement authorities, and under circumstances as specified in the guidance, to notify customers in a “clear and conspicuous manner.”  A former chairman and current member of GBA’s Bank Counsel Section, Stan Pollock of the Atlanta office of Coleman, Talley, Newbern, Kurrie, Preston & Holland, has written a short briefing paper for our members to help you begin implementing the new guidance. Click here for your copy of that paper.

Georgia Bankers “Teach Children to Save”
More than 4,000 bankers taught money skills in the nation’s classrooms this week as part of the ninth annual National Teach Children to Save Day.  GBA’s Leadership Development Section coordinated Georgia banks’ participation and we have heard great reports of bankers in schools all over the state.  Here’s a picture of Scott Swafford, President, United Bank in Thomaston, presenting to a class at the Griffin Christian Academy.  Scott is the one in the blue shirt on the right - the one with the big ears in the center is Penelope the Pig, his bank mascot.

Reich to Head OTS
Our thrift members will be interested in President Bush’s announcement that he will nominate FDIC Vice Chairman John Reich to be Office of Thrift Supervision (OTS) Director, replacing James Gilleran, who is leaving the agency effective today.  Many Georgia bankers know Mr. Reich from his speaking to one of our recent annual conventions where he talked about the regulatory burden relief initiative he was heading.  “We have had a good working relationship with John Reich since his early days on the FDIC board, and we look forward to working with him in his new role at the OTS,” said GBA President Joe Brannen.

Regulators Respond on Money Services Businesses/GBA Seminar in Macon
As we reported in recent GBA Bulletins, we have been actively working with the federal banking agencies to bring clarity on the Money Service Business (MSB).  We wrote a joint letter with the other state banking associations in the country along with the American Bankers Association letting the agencies know of the tremendous number of cases we had documented from our members where more guidance was necessary.  On Tuesday of this week, the agencies issued some clarifying guidance and have said banking organizations are not required to ensure their customers’ compliance with all applicable federal and state laws and regulations.  The guidance also provides the minimum due diligence expectations, based on Bank Secrecy Act requirements, associated with opening and maintaining accounts for MSBs.  We encourage our members to carefully review the guidance and keep us informed about how the new regulations are helping with both your regulatory exams and your relationship with your MSB customers.  Don’t forget to register for GBA’s BSA + MSBs = Risky Business seminar May 19^th in Macon.  You already know why you need to attend the seminar led by expert Steve Moore, but here are the highlights: 

• How to identify “High-Risk” customers
• How to perform due diligence and monitor “High-Risk” accounts
• Additional information about the new CIP guidance for MSBs
• Developing Internal Audit Procedures
   

GBA’s annual Training and Development Conference held last week at Callaway Gardens was a great success.  Our thanks to Nancy Wood with Security Bank and Trust in Albany for chairing the Training and Development Committee which put together such an outstanding program.  The attendees heard presenters discuss new and effective ways to educate the multiple generations we have employed in banks today, learned from each other about what training has worked best in other banks, and spent time seeing how GBA’s Performance Training Series (PTS) of in-bank training can be effectively utilized.  The two PTS courses highlighted were Telephone Etiquette and Dealing Effectively With Co-Workers.  These are just two of more than 60 similar courses that banks can use internally in training.  Please call GBA’s Edie Canales (404) 420-2034 for more details.  The picture at the right shows Trudy Wigley of F & M Bank & Trust Company in Manchester participating in one of the exercises which illustrated the most common learning styles of people.

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About the GBA  I  Professional Development  I  Government Relations  I  Services