www.gabankers.com

About the GBA
Board of Directors
Bank/Thrift CEOs
Georgia Banks Online
Associate Members
Strategic Partners & Products
Bank Counsel Section
Volunteer Committees
Electronic Publications

Annual Convention

Privacy Policies Due July 1, 2001
One of the most important issues facing the banking industry involves the confidentiality of customer information.  Most of the public’s attention has been directed to information sharing by banks both within and outside the banking organization.  As required by the privacy provisions in the Gramm-Leach-Bliley Act (GLBA), the financial regulators released the final rule on privacy that went into effect on November 13, 2000.  Included in the final rule, however, was the ability for financial institutions to delay compliance with the disclosure requirements until July 1, 2001, which many of our members opted to do.   Click here for a copy of the joint final rule issued by the Comptroller of the Currency, the Federal Reserve, the FDIC and the Office of Thrift Supervision.

The Comptroller of the Currency has issued an advisory letter and questionnaire to assist banks in complying with the GLBA privacy rules before the upcoming July 1 deadline.  The OCC questionnaire was provided to help banks prepare and perform a self-assessment.  The agency also said that during this year’s quarterly reviews, the bank portfolio manager or the examiner-in-charge will include a discussion of the OCC’s advisory, provide the results of the bank’s self-assessment, and describe the bank’s progress toward full compliance with the privacy requirements.   The FDIC has also released its "Privacy Rule Handbook" to help banks comply with the privacy protection requirements.  The handbook explains the requirements of the privacy regulation, provides suggestions for reaching the July 1 deadline for issuing privacy notices, and suggests activities to monitor and maintain compliance over time.  Key terminology and lists of other helpful resources are also provided in the handbook.

One of our associate members provides another resource of help to bankers.  PrivacyHeadquarters.com, a website maintained by Bankers Systems, Inc., contains updates on breaking privacy news, tools and checklists and compliance information.

Privacy will also be on the legislative agenda in both the Congress and the General Assembly.  Governor Roy Barnes is proposing legislation to restrict access to social security numbers held by state agencies under Open Record Requests.  Also, several federal issues are pending such as S. 30 by Sen. Paul Sarbanes (D-MD), the Financial Information Privacy Protection Act.  The bill resurrects the opt-in versus opt-out debate from GLBA.  Call GBA’s Joe Brannen at (404) 420-2026 with questions or comments.

2001 State Legislative Issues
Governor Roy Barnes
Lt. Gov. Mark Taylor
Georgia House of Representatives
Georgia State Senate
Federal Legislative Issues
U.S. Congress
Legislative Updates
Legal Issues

This week's
Legislative Update

Interest on Corporate Checking Accounts
Sen. Chuck Hagel (R-NE) introduced S. 229, a bill to permit the payment of interest on corporate checking accounts.  The bill would:  

• Allow internal sweeps from commercial checking accounts to demand deposit accounts 24 times a month (more, if the Fed permits);

• Repeal, two years from enactment, the current prohibition on the direct payment of interest on commercial accounts; and 

• Require the Fed to pay interest on sterile reserves at a rate not to exceed the general level of short-term interest rates.

Calendar of Events
Schools
Conferences
Seminars
Events
Georgia AIB
Leadership GBA
Personal Economics Program (PEP)
Internet Training

Graduate School of Banking
Georgia bankers continue to support the Graduate School of Banking at Louisiana State University.  This year’s school will be held May 20 – June 1 in Baton Rouge.  Georgia continues to lead all 15 states sponsoring the school in sending the most students.  Overall, Georgia will have around 100 students attending the school this year.  The school is perennially recognized as the best graduate banking school in the country with a track record spanning more than 50 years.  The three-year program covers subjects applicable to bank management and operations and a banker completing the curriculum will be knowledgeable of credits, investments, asset and liability management, planning and control, regulatory issues, human resources and marketing.  Call GBA’s Marybeth Jones at (404) 420-2032 with questions.

Financial Risk Management Conference
Make your plans today to attend the GBA Financial Risk Management Conference on March 14-15 at the Renaissance Waverly Hotel in Atlanta.  The program includes topics on liquidity and funding risk issues, current bank stock valuations and M&A trends, income simulation modeling and strategies for investment portfolio management. Call the hotel at (770) 953-4500 to reserve a room today. For more information, please contact Norma Guild at (404) 420-2031.

Southern Trust School
The Southern Trust School is scheduled for June 17-22, 2001 at Spring Hill College, Mobile, Alabama (see enclosed flyer).  To request a complete brochure, contact Wayne Lambert at Alabama Bankers Association, (800) 239-5521 or GBA’s Marybeth Jones, (404) 420-2032.

Bond and D&O Coverage
Have you quoted your Directors and Officers Liability Insurance and Financial Institution Bond lately? If not, maybe now is the time to have yours re-quoted.  The ABA-sponsored insurance program underwritten by Progressive Insurance has been able recently to provide several Georgia banks with not only better coverage and increased benefit amounts but significantly lower rates.  The Georgia Bankers Association worked closely with the ABA to institute this program at a time when most insurance carriers were either exiting the market or were quoting extraordinarily high rates.  To find out more about this program or to provide your bank with a competitive proposal, please call Mark Wiesner at (770) 587-4807 or GBA’s Renee Valdez at (404) 420-2036.

Record Retention a Priority?
Here’s why it should be…..
Usually bank personnel are less than familiar with the laws regulating retention.  Often they want to retain records permanently that have little or no legal, fiscal or archival value.  Some laws dictate that you keep records for a certain period of years, usually this is between two and six years (federally).  If a record has a legally required retention period of six years, banks should dispose of the record at six years and one day. 

Some bankers think it is best “for the customer” to retain certain records, but this gesture could backfire and cause the customer to lose a lawsuit.  If the bank records are subpoenaed, the records of their reproductions and substaining records must be supplied, unless the records have been destroyed by a method set forth and practiced routinely by the bank. 

Banks pay the price for keeping records that should have been disposed of many years before.  The nightmare and costs of unneeded litigation are topped only by the inability to find the records in a timely and efficient manner when they are needed immediately.  The worse case being in court and explaining (in a non-embarrassing way) that you can’t find the records needed for the litigation.  

Many banks choose to outsource their boxes of records, only to find out that it costs a minimum of $.11 per month.  Storing them at you bank, even in an area that is less than “prime” will cost an average of $18 per year, per box, including the costs of space, insurance, manpower, shelving and boxes.  Therefore, when deciding to keep records for a longer time than necessary because you “may need them”, you should figure the expense of retention before you decide to be a “pack rat.”

Record retention is an extremely important part of running your bank.  Each of you should set-up a retention program.  Records should be destroyed on a regular basis, in a timely manner and in accordance with the law.  In addition to being in compliance, you will be in control, save money and able to find your record when you need them.

For more information on record retention specifics, contact Kenyetta Anderson-Parks at (404) 420-2035.

Newest Banks Linked
Welcome to Peoples Bank and Trust, Buford, Douglas Nichols, President, and Altamaha Bank & Trust Company, Uvalda, Colon Sammons, President, as the latest banks to link to GBA’s website.  When your bank’s homepage is ready to be linked, call GBA’s Lydia Thomas at (404) 420-2039.

Alpharetta, Chattahoochee National Bank
David Fentress has joined the bank as Vice President, Commercial Lending.

Atlanta, Prudential Bank and Trust
Tom Farley has been named Chairman and Chief Executive Officer and Lucille Mauge Chief Operating Officer.

Commerce, First Commerce Bank
Jeffrey S. Blair has joined the bank as Vice President – Commercial Lending.

Carrollton, West Georgia National Bank
Scott McDonald and Phil Stamps have been promoted to Vice President; Joe Morck to Banking Officer; and Sylvia Cunningham and Amy Wood to Assistant Banking Officer.

Elberton, Pinnacle Bank
Ken Watson has joined the bank as City Vice President and Manager and Kevin Heaton as Assistant Vice President.  Lee Vaughn has been promoted to Assistant Vice President and Regina Routh, Priscilla Madden, and Miranda Fleming to Banking Officer.

Forsyth, Monroe County Bank
Daryl Cohen has been promoted to Vice President of Lending; Candice Griffin to Vice President of Information Systems; and Marvin Carr to Assistant Vice President.

LaGrange, Flag Financial Corp.
The bank announces the following promotions:  Brian L. Bowen, B. Ray Gassett, Randy M. McCorkle, JoEllen V. Williams, and Dan H. Wright to Vice President; Patricia R. Hinze, George L. Jennings, Larita F. Perdue, Nancy F. Thomas and Sharon M. Whitney to Assistant Vice President; and J. Todd Barker, Rex C. Conley, K. Rashad Little, and Lisa A. Sams to Lending Officer.

Marietta, Charter Bank and Trust Co.
Arturo H. Sanchez and Robert L. Moultrie have been elected to the Board.  Joyce R. Self has been promoted to Executive Vice President and Sloan Evans to Commercial Lending Officer.

Rockmart, United Bank & Trust
Rodney Grizzle has been appointed President and Chief Executive Officer.

Stockbridge, Eagle National Bank
William A. Burell has joined the bank as Senior Vice President and Commercial Lender.

GBA’s e-Bulletin List
Almost 500 bankers are on GBA’s email distribution list to receive the e-Bulletin as well as the e-versions of our Legislative Update and warnings about bank scams.  We don’t share or sell our email list and don’t send frivolous information to our recipients.  We’ll continue sending the paper version, and we don’t limit the number of bankers from any one bank on the list.  Send an email to GBA’s Lydia Thomas to get added.

For more information, send an e-mail to the Webmaster.