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August 4, 2006
FDIC Declares 6 Month ILC Moratorium - Letters Still Needed
The
Federal Deposit
Insurance Corporation Board has
approved a six-month moratorium on industrial loan company
applications for deposit insurance. The moratorium also applies to notices of change in
bank control for existing ILCs. During the moratorium period, the agency
will not make any final decisions or accept any future applications for
deposit insurance or notices of change in control for ILCs. The
moratorium expires on
Jan. 31, 2007.
"We applaud the FDIC's actions which will give Congress time to consider
legislation that would clarify the intent of giving ILCs exemptions from
other, more restrictive bank-like laws," said GBA Chairman Bobby
Carmichael, President and CEO of
Commercial Bank &
Trust in LaGrange. "Our best hope is for Congress to enact
legislation that would restate the historical barrier between banking
and commerce which is clearly being breached if these applications are
approved," Bobby concluded. Currently, 61 ILCs operate in seven
states. There are nine ILC applications for deposit insurance and five
notices of change in control for existing ILCs pending before the FDIC,
including those from Wal-Mart and Home Depot. All of those applications
and notices are subject to the moratorium.
We recently
asked you to write your member of Congress and both Senators supporting
a bill to prevent the merging of banking and commerce with these kinds
of transactions. The Industrial Bank Holding Company Act (H.R. 5746) is pending in the House
Financial Services Committee. GBA
wrote a letter to the
delegation recently and you may use portions of that letter to compose
your own personal letter. Please ask your member of congress to
cosponsor H.R. 5746 - we need to build momentum and the only way to do
that is for you to let Congress know you personally care about this
issue. Please make sure GBA gets a copy of your letter.
Revised BSA/AML
Exam Manual Released - Download Your Copy Now
The Federal Financial
Institutions Examination Council has finally released a revised
Bank Secrecy Act/Anti-Money Laundering Examination Manual. At the
recent meeting of the GBA Compliance Peer Group, this manual and
the underlying procedures were discussed and the arrival of the manual
is expected to give some much-needed guidance. Among the key new
guidance, information will be found on risk-based policies, procedures
and processes to enable banks to comply with the BSA and to protect
their operations from money laundering and terrorist financing. The
manual has been updated to further clarify supervisory expectations and
incorporate the regulatory changes made since the original manual's
release over a year ago.
Group
Meetings Slated for September
In
keeping with tradition, the GBA’s annual
Group Meetings will be held in each of the ten GBA Groups
during the month of September. The meetings will begin on September 6
in Athens and conclude on September 28 in Statesboro. “Attending your
group meeting is a great opportunity to network with colleagues in your
area,” said GBA Chairman Bobby Carmichael, President and CEO of
Commercial Bank & Trust, LaGrange. “It also shows your support
for the Association and the industry. We had a great turnout last year
and hope to see even more members attend this year’s meetings.” The
program will feature an informative discussion about some recent
innovative services available from the GBA as well as good dialogue
about the major state and federal issues before the industry. Four of
the ten groups will host luncheon meetings. Please check the
Group Meeting schedule
to see your Group's plans for your meeting. With questions, please
contact GBA’s
Susie McGehee at (404) 420-2010.
FDIC Emergency Preparedness Meeting
The Atlanta
Region of the FDIC
is hosting a one-day meeting on August 30th for members of the Atlanta
financial services sector (primarily financial institutions.) The
session is a meeting of the
Financial and Banking
Information Infrastructure Committee (FBIIC) and the
Financial Services
Sector Coordinating Council (FSSCC), and the goal is to
encourage those present to organize a regional response and recovery
coalition to represent the Atlanta financial services sector. The FDIC
is working with the
U.S. Department of
Treasury on this outreach effort. The goal of the coalition is
to work with state, county, and local disaster management agencies to
improve the regional process to better prepare for, mitigate, respond
to, and recover from all hazards that face the state's critical
financial services sector. Two successful similar meetings have
resulted in the creation of
ChicagoFIRST
and FloridaFIRST, regional coalitions formed to cooperate on
issues related to business continuity. Recently, AlabamaFIRST was
formed and it is now time for Georgia bankers to put their plans in
place. Other banking regulatory agencies have been invited to the
meeting to support the effort. Bankers in the metro-Atlanta area will be
receiving a letter directly from the FDIC giving more details.
Clarity
Asked for Reg Burden Relief Provision
We have been concerned about a little-noticed provision in both the
House and
Senate versions of the regulatory burden relief bills that
could possibly be harmful to bank directors if the regulator's interpret
the provision narrowly. One of the authors of the bill,
Sen.
Mike
Crapo (R-ID), has written a helpful
letter
to the banking regulators about the provision in the Senate-passed bill
(S. 2856). In his letter regarding affiliated parties, he said in
part that the provision “should not be used routinely to require directors
of insured depository institutions to enter into capital maintenance
agreements with the agencies as a condition of granting a charter or
providing deposit insurance [or] to routinely require a bank director to
maintain the capital of a troubled insured depository institution
without the director’s agreement.” The national trade associations
have also written a
letter
to ensure the provision is properly interpreted should the bill receive
final passage this year. Our thanks to Sen. Crapo for supporting
our position that it would be counterproductive to create an environment
where the threat of personal liability may cause bank directors to
resign or keep well-qualified people from becoming directors in the
first place. We will keep you advised on this issue as the
legislation makes its way through the process.
GA
BankPAC Golf Classic Scheduled
Leadership GBA
will host its sixth annual
Georgia BankPAC Classic on October 25 at
Kinderlou Forest Golf Club in Valdosta. The two-man scramble
tournament is sure to be a fun and challenging event for everyone. It’s
also a great opportunity to invite your legislators and directors to
meet and play golf with your colleagues in the banking industry.
Registration is $300 per team or $150 per person, and the proceeds will
be donated to the GBA StatePAC. Please call GBA’s
Susie McGehee at (404) 420-2010 with questions about the
tournament. Register now for a great time and a chance to win the
Georgia BankPAC Trophy.
President/CEO Conference Announced
GBA’s
annual
President/CEO Conference is will be held on October 8-10 at The
Hyatt Regency, Savannah. Sponsored by the
Community Bankers Committee and the
GBA Board of Directors, this conference attracts bank leaders
from across Georgia. Committee Chair Mark Stevens, President and CEO of
Atlantic Southern Bank, Macon, said, “this
conference provides you with the most up to date information to help you
meet the day-to-day challenges of operating a bank.” Join Lee
Wetherington, Senior Vice President with
Goldleaf Technologies, Hahira, for a review of remote deposit,
what it is, how it works, and why it’s so critical in 2006. Ken
Proctor, Director of Risk Management with
Brintech, Inc. will be on hand to discuss strategies for
tracking and reporting CRE portfolios and ideas for creating or revising
loan policies that incorporate the new CRE guidelines. Chris Low,
Chief Economist with
FTN Financial, New York, will discuss the 2007 economic outlook
and its implications for the Fed and financial markets. Activities
include golf, fishing and shooting tournaments as well as a spouse
program. The GBA rate is $185/night for single or double occupancy, and
the room block expires on September 12, 2006. To reserve your
room, please call the hotel directly at (912) 238-1234. For more
information, please call GBA’s
Susie McGehee at (404) 420-2010.
Status of Important Banking Cases Available/Bank
Counsel Conference Planned
Our thanks to the Office of the General Counsel of the
American Bankers
Association for making available the newest edition of the
Status of Important Banking
Cases to the members of our Bank
Counsel Section. This monthly
report gives bank attorneys up
to date information on litigation involving banks across the country.
This report is another member benefit for the attorneys in GBA's Bank
Counsel Section. Another major benefit of membership in the section is
the annual Bank
Counsel Conference which is held concurrently with the
President/CEO Conference. Plans are being finalized and will be
announced next week. With questions about how your bank's attorney
can participate, please contact GBA's
Kenyetta Parks at (404) 420-2035.
Upcoming AIB Classroom Courses
Our next
series of
AIB classroom courses begin meeting next week and there is still
time to register. More
information about specific start dates will be announced shortly for
those marked with an asterisk.
-
Dealing Effectively With Co-Workers, taught by
Jeff
Kovach of
Northwest Georgia Bank, Ringgold
Beginning August 10, 3 weeks, $145 which includes text
-
Principles of Banking,
taught by Cassie Parker of
McIntosh State Bank, McDonough
Beginning August 14, 10 weeks, $195, text $60
-
Principles of Banking,
taught by Trae Dorough of
SouthCrest Bank, Fayetteville
Beginning August 22, 10 weeks, $195, text, $60
-
Principles of Banking,
taught by Steve McFarland of
Gwinnett Community Bank, Duluth
Beginning September 14, 10 weeks, $195, text, $60
-
Principles of Banking, taught by
Jeff
Kovach of
Northwest Georgia Bank, Ringgold
Beginning September 28, 10 weeks, $195, text $60
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Marketing
Financial Services, taught by Dale Morrissey of
First Cherokee State Bank, Canton, 10 weeks, $195, text, $65
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*Principles of
Banking, taught by Randy Blalock, Winder
10 weeks, $105, text $60
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*Analyzing
Financial Statements, taught by Peter Faser of
Flag Bank, Norcross
10 weeks, $195, text $69
AIB
classes meet three hours each week for 10 to 15 weeks and will be held
at a local financial institution. If you would like to see a specific
course offered in your area or if you have any questions about AIB
classroom courses, please contact GBA’s
Alison Moreau at (404) 420-2034.
Operations/Technology School Scheduled for November
GBA’s
Southern Operations and Technology School will be held November
5-10 at the
University of Georgia. As a resource for focused training in
banking technology and operations, the School is the premier provider in
the southeast and one of only a few in the country. The two-year
program covers four areas: compliance, risk management, technology and
general management. Please call GBA’s
Marybeth Jones at (404) 420-2032 for details.
Blue
Cross Blue Shield and Piedmont Reach Agreement
Those
bankers in the
GBA Insurance
Trust who use Piedmont Hospital or the doctors in the Piedmont
Physicians Group will be pleased to learn that an
agreement has been reached on HMO/POS and PPO
contracts, effective August 1, 2006. Under the agreement,
BCBSGa
HMO/POS and PPO participants will be able to continue accessing Piedmont
Healthcare as an in-network provider, including services from Piedmont
Clinic physicians, Piedmont Hospital in Atlanta, Piedmont Fayette
Hospital in Fayetteville and Piedmont Mountainside Hospital in Jasper.
With questions about your coverage, please contact GBA's
Susan Kelley at (404)
420-2017.
Clark Consulting Expands Benefits for GBA Members
With
over 2,100 banking clients,
Clark Consulting leads
the industry in helping banks optimize performance through: strategic
planning; compensation; benefits and profitability consulting;
bank-owned life insurance (BOLI); and benefit administration support
services. As a GBA Strategic Partner, Clark Consulting’s
seamless, consultative approach has benefited our member banks and their
shareholders for over 10 years. Clark’s banking consultants have a
comprehensive understanding of the challenges facing bank executives,
the changing landscape of compensation and benefits, and the
complexities involved in developing a competitive BOLI portfolio. For
more information, contact Clark Consulting’s
Bill Cunningham
at (877) 362-6917 or GBA’s
Chad Wilson
at (404) 420-2022.
GBA Job Bank
The Georgia Bankers Association offers free job posting
resources for our member banks. These listings can be viewed
online or through our bi-weekly publication included in the
GBA Bulletin.
Resume postings are also available. For
more information, please contact GBA’s
Kenyetta Parks at (404) 420-2035.
Some of the Services Available Through GBA
Services, Inc.
GBA Services, Inc. is governed by a board composed primarily
of community bank presidents who look for the best products and services
available. They do the due diligence for you and you can rely on
their efforts. For more information or to
order
any of these products or services, please call (404) 522-1501.
We will miss...
Mary W. Walker, director emeritus of the
National Bank of
Walton County, Monroe, died Wednesday of this week after an extended
illness. Mary was a pioneer for women in banking and was one of
the earliest women to serve as President and CEO of her bank. Mary
was active in the GBA throughout her career serving as a group officer,
on the Public Affairs Committee and Board of Directors and was a
longtime popular instructor in the Georgia Banking School.
Newsmakers:
Alpharetta -
IronStone Bank
Hope
Holding Connell has been elected President.
Alpharetta -
Providence Bank
Martha E. Brown has joined the bank as Senior Vice President and
Chief Financial Officer.
Atlanta -
Bank of North Georgia
Pamela R. Clarke has
joined Synovus Trust as Vice President and Senior Relationship
Manager.
Atlanta -
Buckhead Community Bank
Jan Tilinski has joined the Private and Entrepreneurial Banking
division as Vice President. Ms. Tilinski specializes in working
with Non-Profit and Foundation clients.
Atlanta -
Midtown Bank
Patrick M. Walsh has been named Senior
Vice President and Commercial Sales Manager.
Marietta -
Bank of North Georgia
Johnny Vance has
been promoted to Vice President of Commercial Lending.
Roswell -
Bank of North Georgia
Holly Arnette has joined the bank as Vice President and
Commercial Banker.
Suwanee -
Bank of North Georgia
Scott Hall has joined the bank as
Senior Vice President and Community Executive for the Old
Peachtree Office.
Vidalia -
Darby Bank & Trust
Nate
Shaffer has joined the bank as Business Banker
Woodstock - Creekside Bank
 Congratulations to
Larry Peterson, President and CEO,
and the other officers, board and staff on the bank's recent
opening. |
Connell
Tilinski
Arnette
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Clarke
Walsh
Hall
Shaffer |
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