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Greenspan Says Recession Nears End
Federal Reserve Chairman Alan Greenspan told the House Financial Services Committee this week there are increasing signs that the recession is coming to an end but the recovery this year is likely to be a slow one. He cited several signs of strength in recent months, including particularly strong gains in consumer spending. “In the past several months, increasing signs have emerged that some of the forces that have been restraining the economy over the past year are starting to diminish and that activity is beginning to firm,” Greenspan said.  The Fed expects the economy will grow by between 2.5 and 3 percent this year.

National Teach Children to Save Day
On Thursday, April 18, bankers nationwide will be speaking to local elementary, middle and high school students about the importance of saving money on National Teach Children to Save Day. Please join your colleagues in reaching even more students and make this one of the most successful educational events in ABA and GBA history. The ABA Education Foundation has created a resource kit that contains everything you need for your classroom presentation. To order your resource kit, simply complete the order form or call the ABA at 1-800-BANKERS, (catalog #889390).  With questions, call GBA’s Susie McGehee at (404) 420-2010.

(D-SD) has introduced S. 1945, the Safe and Fair Deposit Insurance Act of 2002.  The bill is similar to the deposit insurance reform bill (H.R. 3717) introduced earlier by Rep. Spencer Bachus (R-AL).  S. 1945 would, among other things:  merge the Bank Insurance Fund and the Savings Association Insurance Fund; increase deposit

The Ranking Member on the House Financial Services Committee, Rep. John LaFalce (D-NY) issued a statement about the house bill that reads in part, “My Republican colleagues [have] released a deposit insurance bill that I cannot support.  The proposal has a number of positive elements, including a provision merging the deposit insurance funds.  However, the proposal also includes provisions whose wisdom I question.  For example, the proposal would immediately raise the deposit insurance amount for both depository institutions and credit unions to $130,000, and would double that amount for retirement accounts.  At a time when the fund ratios have been falling and the FDIC tells us the Bank Insurance Fund may well fall below the 1.25 reserve ratio established in law, this would be irresponsible.”

In GBA’s assessment, the pending House and Senate bills are positive in their general approach.  On coverage, both bills contain an insurance level of $130,000, extra coverage for retirement accounts and indexing going forward.  It will be an uphill battle to preserve the increase in coverage due to the strong opposition from Fed Chairman Alan Greenspan, Treasury Secretary Paul O’Neill, Rep. LaFalce and Senate Ranking Member Phil Gramm (R-TX).

2002 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

Farm Bill in Conference
The U.S. Senate recently passed S. 1731, the new farm bill that would provide an additional $73.5 billion in federal assistance to farmers over the next 10 years.  The Senate-passed bill would make permanent Chapter 12 family farm bankruptcy provisions without major changes and would limit annual payments to farmers to $275,000.  The Senate has named four Democrats and three Republicans to serve as conferees with the House. President George Bush criticized the Senate bill, saying it provides too much spending in the first five years and will work with conferees to produce a plan that will benefit farmers in the long term.

Split with the Realtors
The Realty Alliance, an organization representing over 40 large regional real estate brokers and a member of the National Association of Realtors (NAR), has sent a letter to NAR opposing H.R. 3424 and S. 1839, bills that would block national banks’ entry into real estate brokerage.  The letter said the NAR’s position is “hypocritical,” “fundamentally wrong,” and “objectionable” because it would prohibit banks from engaging in real estate brokerage while real estate brokerage firms provide mortgage and insurance products.  The Alliance has even produced a white paper entitled “Why the Real Estate Industry Should Allow Banks to Enter the Business.”  Call 1-866-GO4WARD or click the Action Alert button at left to send your letter of support to your member of Congress.

Calendar of Events
Schools
Conferences
Seminars
Events
American Institute of Banking
Leadership GBA
Personal Economics Program (PEP)
Internet Training

HR Conference to Be Held in Savannah
GBA’s Human Resources Conference is one of the most anticipated educational opportunities for those who manage the HR function in their banks. This year’s conference will be held May 9-10 at the Marriott Riverfront Hotel in beautiful, historic Savannah, Georgia. Topics include an update of on-going legal issues challenging HR professionals, how to make your bank the employer of choice, how to develop a professional presence and a keynote address by Ellen Raulerson of Security Bank & Trust in Albany entitled “Two Many Indians and Not Enough Chiefs.” Raulerson will present ideas for helping employees focus on good decision-making, letting go of pettiness and identifying potential “chiefs.”  All conference attendees will have the opportunity to pre-register for GBA’s HR University to be held October 20-23. This program is always a sellout. 

Executive Management Academy:  A Peer-to-Peer Roundtable
The second session of the Executive Management Academy will be held March 18 at the City Club of Macon and will focus on Credit Risk Management. John Barrickman, President of New Horizons Financial Group, will facilitate the session. Discussions will be centered on comprehensive credit risk management, your institution’s tolerance for risk, and on identifying, quantifying, managing and mitigating portfolio risk. The Executive Management Academy is designed in a peer-to-peer roundtable format and addresses issues of importance to CEOs, presidents and executive management. You may attend all six sessions or select individual sessions to attend based on the content. For more details, call GBA’s June Somers at (404) 420-2012.

Operations & Technology Conference Addresses CRM
Is Customer Relationship Management (CRM) high on your priority list? If it is, you need to be present at the GBA’s Operations and Technology Conference on March 27^th and 28^th at the Renaissance Waverly. Rita Gray and the other members of the Operations/Technology Committee felt that the first afternoon should be dedicated to this important topic. Chuck Wilson, Managing Principal of Banking Industry Group, will set the stage by outlining the critical issues that need to be addressed. Tom Collins of Harte-Hanks will focus on the hardware and manpower needed and Helen Johnson, Synovus Financial Corp., will address the people issues involved. Don’t miss out on this in-depth look at CRM. A popular feature of this year’s conference is the peer-to-peer discussions with colleagues. Participants always tell us that these discussions are invaluable. Remember…the Operations and Technology Conference will be held every other year, alternating with the GBA Banking Expo. Call GBA’s Marybeth Jones at (404) 420-2032 to request a brochure or to register by phone. The hotel registration deadline is March 4. 

Welcome New Participants
The Board of Directors of the GBA Insurance Trust, Inc. welcomes to the Trust Financial Systems & Consulting, Inc., Woodland, Richard Skates, CEO. The firm joins more than 275 community banks and associate members in this unmatched member benefit. Please call GBA’s Susan Kelley at (404) 420-2017 for more information.

Your Check’s In the Mail
Financial institutions that are members of the ABA-sponsored and GBA-endorsed insurance program, underwritten by Progressive, will be sharing in a profit distribution of $4,000,000. Forty-six member banks in Georgia that purchase insurance from the program will receive checks totaling $88,440. Since 1991, Georgia banks have received profit distributions totaling $1,144,563. Nationwide, the program has distributed $38,000,000 over the past twelve years. The program offers Directors & Officers Liability, Financial Institution Bond, Internet Banking Liability, Trust Errors & Omissions, Employment Practices Liability, Entity Errors & Omissions and other insurance products for community banks.  Call GBA’s Renee Valdez at (404) 420-2036 with questions.

Some of the Services Available Through GBA Services, Inc.

• Financial Publications-Georgia Banking Laws, Bank Directories

• Discounted Check Program

• Internet Loan Closing Program

• Checking Club Programs

• Discounted Long Distance Program

• Accounts Receivable Financing

• Bond and D&O Insurance

• Non-Qualified Executive Benefits

• Trust and Investment Services

• Real Estate Loan Products and Services
• Environmental Contamination Loan Insurance

Did you know GBA offers the following products?
Holiday Decals
Holiday Decals are made available through the GBA.  These window decals not only provide a professional appearance, but also contain the 10 holiday close dates recognized by the Federal Reserve Bank, in accordance the FDIC rules.
GBA Members $35 per set/Non Members  $45 per set

Georgia Banking Laws and Commercial Code (CD-ROM included)
All changes of the Uniform Commercial Code or the Rules of the Department of Banking and Finance during the 1999 session are included.
Law Code Book $140
2000 Supplement $45/2001 Supplement $45

Georgia Financial Directory
The Bank Directory contains complete information on all the banks in the state and is invaluable to banking professionals.  Also are included are a listing of Associate Member Companies and the GBA’s own endorsed vendors to assist officials in locating companies who provide useful products for their banks.
GBA Member $25/Non Members $45

Salary Survey
The Salary Survey includes salary and benefit data for over 100 Banking positions, with data being reported by approximately 100 financial institutions.

Record Retention Manual
Records should be destroyed on a regular basis, in a timely manner and in accordance with the law.  This manual aids banks in getting a retention program started. 
$145 first copy/$45 each additional copy

Thumbprint Signature Program
The GBA-sponsored Thumbprint Program has been found to significantly reduce check fraud.  Nationally this program is responsible for an 82% reduction in check fraud.  For more information or to order any of the products listed above, please contact GBA’s Renee Valdez at (404) 420-2036 or Kenyetta Parks at (404) 420-2035.

Fitzgerald, Colony Bank of Fitzgerald
The bank announces the following promotions: John C. Williams to President, Houston County; Debra Hall to Executive Vice President/Senior Lending Officer; R. Eric Jarred and Nancy S. Jernigan to Senior Vice President; Cheryl Seagraves to Assistant Vice President; Tammie D. Sheppard to Loan Compliance Officer; and Eddie Carter to Public Relations Officer.

Latest Banks to Link
Welcome to HeritageBank of the South, Albany, Lee Bettis, President, and Newton Federal Savings and Loan Association, Covington, George Lazenby, President, as the latest banks to link to GBA’s website. Call Lydia Thomas at (404) 420-2039 when your bank is ready to be linked.

GBA's e-Bulletin List
Our e-Bulletin subscriber list continues to grow with each edition.  Bankers from any member bank can be added to the email-distributed version of the Bulletin.  A bonus of getting the e-Bulletin is the number of links we include, which puts even more information at your fingerprints. This is a great way to keep your key employees informed of significant industry information, trends and events. To add yourself or others in your bank to the list, send an email containing the name and email address of each individual to GBA’s Lydia Thomas.

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