News/Talk 750 WSB this week began running a series of public service announcements carrying important bank industry information to the state’s largest listening audience. The three spots, which focus on FDIC insurance/safety and soundness, continued availability of credit and money saving tips for consumers, will rotate and air 100 times through the end of January during prime daytime programming. WSB approached GBA about producing and airing some spots because, “our listeners are very tuned in to news about their money and banking 

Being an influential resource to our lawmakers about the banking business is one of the four key things we do at GBA, so it’s nice when outside parties recognize our hard work. Legislators, administration leaders and other lobbyists voted GBA among the 10 most influential associations at the State Capitol for James Magazine's annual ranking of associations. This year we’re number three and we’ve been in the top 10 since the list began being published several years ago. Our lobbying team, led by Elizabeth Chandler, will be called on a lot this coming session, so it helps to go into the session with this recognition. 

James Magazine 10-Most Influential Georgia Associations

1. Georgia Hospital Association

2. Georgia Chamber of Commerce

3. Georgia Bankers Association

4. Georgia Realtors Association/Homebuilders Association of Georgia (tie)

5. Georgia Dental Association

6. Association County Commissioners of Georgia

7. Georgia Automobile Dealers Association

8. Georgia Municipal Association/Georgia Convenience Stores (tie)

9. Georgia Textile Association/Georgia Agribusiness Council (tie)

10. Georgia Healthcare Association/Georgia Association of Healthcare Plans (tie)

Elizabeth Warren, the Harvard Law Professor chairing the Congressional Oversight Panel of TARP, gave an extended interview to the National Public Radio program Fresh Air this week that provides key insight into the panel’s philosophy and areas of focus going forward. It’s a long interview, 39 minutes, but it is worth a listen, especially if your bank applied for funds from the Capital Purchase Program because the panel will focus heavily on accountability for how the money is being used. It’s probably instructive that Warren offhandedly referred to the panel by its acronym, “COP,” during the interview. She’s clear that she and the panel will ask “really hard questions” about Treasury’s management of the $700 billion provided to stabilize the nation’s financial system. She is particularly forceful in stating that clear accounting is necessary for how the funds are being used, and her belief that focusing on solutions for mortgage and foreclosure problems is the primary way out of the financial crisis. “You can’t save the banks without preventing further damage to families and communities,” affected by the foreclosure crisis, she said. The panel will report every 30 days on its findings. As we reported last week, the oversight panel posed 10 questions to Treasury in its initial report. You’d need to adjust some of the wording, of course, 

but we think it’s a good idea for all bankers to think about these because you may be asked similar types of questions by your regulators, customers, directors, shareholders and community leaders, regardless of whether you applied for or received CPP funds. The specific questions asked are:

1. What is Treasury’s Strategy?

2. Is the Strategy Working to Stabilize Markets?

3. Is the Strategy Helping to Reduce Foreclosures?

4. What Have Financial Institutions Done with the Taxpayers’ Money Received So Far?

5. Is the Public Receiving a Fair Deal?

6. What is Treasury Doing to Help the American Family?

7. Is Treasury Imposing Reforms on Financial Institutions that are taking Taxpayer Money?

8. How is Treasury Deciding Which Institutions Receive the Money?

9. What is the Scope of Treasury’s Statutory Authority?

10. Is Treasury Looking Ahead?

The Federal Reserve, Office of Thrift Supervision and National Credit Union Administration Thursday approved extensive new rules for credit card issuers aimed at restricting how and when issuers increase interest rates, setting new standards for billing structures and making disclosures easier to understand. The Federal Reserve's release says the new rules, which go into effect July 1, 2010:

• Protect consumers from unexpected interest charges, including increases in the rate during the first year after account opening and increases in the rate charged on pre-existing credit card balances.
• Forbid banks from imposing interest charges using the "two-cycle" billing method.
• Require that consumers receive a reasonable amount of time to make their credit card payments.

• Prohibit the use of payment allocation methods that unfairly maximize interest charges.
• Address subprime credit cards by limiting the fees that reduce the amount of available credit.

“Clearly there has been a lot of frustration and concern by consumers about these issues, and the new rules provide a tremendous amount of change to the way card companies do business with their customers. The new disclosure rules will certainly make it easier for consumers and card issuers to have clearer expectations about the terms of their account relationship,” said Joe Brannen, GBA President and CEO. “The card industry has consolidated greatly and only a few of our members issue cards in their name.  We are concerned that these rules will cost the industry a significant amount to implement and most likely limit the availability of credit for some consumers.” 

Take note of new Final Rules adopted Dec. 15 by the Georgia Department of Banking and Finance. The only part of the rules that is of particular concern to bankers is the change in registration date for wholly-owned subsidiaries of lenders to be a calendar year registration. 

House Financial Services Housing Subcommittee Chairman Maxine Waters (D-CA) has introduced H.R. 7326 that would require institutions to implement the FDIC mortgage modification program, which is based on the program that the agency implemented at IndyMac Bank. We note that Georgia Congressman David Scott has co-sponsored the bill. Rep. Waters wrote in a “Dear Colleague” letter last week, “Under my legislation, the FDIC’s

Banks can help homeowners by educating them about potential scams involving so-called foreclosure prevention specialists that unnecessarily charge homeowners high fees that servicers and reputable housing assistance groups offer free. FDIC Chairman Sheila Bair pointed out this need in a speech this week.

2008 BankPAC Campaign Update

Since the last Bulletin, the following companies have contributed to the GBA StatePAC:

• Cornerstone Bank, Atlanta, Chris Burnette, CEO

• Bank of Dade, Trenton, Mike Tate, CEO

• TaxSlayer.com, a Division of Rhodes Financial, Evans, Jimmy Rhodes, President

Please see the BankPAC Campaign Update for total contributions by group. For more information, please call Elizabeth Chandler at 404.420.2027.

Please plan to participate in our annual Legislative Reception on Wednesday, Jan. 14, at the Georgia Aquarium from 6:30-8 pm. Your legislators need to see a united industry and hear your concerns. The room block for the night of Jan. 14 at the Embassy Suites Hotel, Centennial Olympic Park will expire on Friday, December 19.  Please make your hotel reservations by calling the hotel at 404.223.2300 and telling them you’re with the GBA.

GBA’s annual BSA/AML Compliance now will be Jan. 21 at Idle Hour Country Club in Macon. This seminar was originally scheduled for Jan. 15. Designed for anti-money laundering professionals, this seminar will help you understand the Bank

Time to Brush up on New HMDA and CRA Requirements at GBA Workshop

GBA will host its HMDA and CRA Workshop Jan. 22 at Idle Hour Country Club in Macon. The following topics will be covered:

• What types of loan applications (including denied, withdrawn, and incomplete applications) are HMDA reportable?

• How do we identify refinance and home improvement loans that are HMDA reportable?

• What are the regulatory consequences for non-compliance?

• What can we expect from the bank regulators regarding HMDA?

• What is a “community development” loan, service or qualified investment?

• Should the bank collect data on CRA loans even though it will not report the data?

With questions, please contact GBA’s Courtenay Pope at 404.420.2015.

GBA will host its Construction Lending seminar Feb. 5 at Idle Hour Country Club in Macon. Topics to be covered include:

• Prerequisites for Successful Construction Lending

• Analyzing and Underwriting the Builder/Developer

• Structuring the Construction Loan

• Managing Construction Loan Advances.

With questions, please contact Courtenay Pope at 404.420.2015.

GBA will host its annual IRA Basics seminar on Feb. 11 at the Holiday Inn Lanier Centre in Gainesville and Feb. 12 at Idle Hour Country Club in Macon. The course is designed for new account representatives, certificate of deposit personnel and any

Here is an overview of the upcoming January 2009 Instructor-Led AIB Online classes. Please register two weeks in advance to secure a seat in the class. These courses are instructor-facilitated with weekly assignments, and can be taken from the comfort of your home or the convenience of your office. All you need is a computer, printer and Internet access. (Classes with an asterisk * require Microsoft Excel Software.)

• ABA Online Review Course for the CRCM Exam, 8 weeks, $675 (Jan. 26)

• ABA Online Review Course for the CTFA Exam (open enrollment), 12 weeks, $795

• Analyzing Bank Performance, 7 weeks, $745 (Jan. 12)

• Analyzing Financial Statements*, 16 weeks, $485 (Jan. 12)

• Commercial Lending, 16 weeks, $405 (Jan. 26)

• Consumer Lending, 16 weeks, $405 (Jan. 21)

• General Accounting*, 16 weeks, $515 (Jan. 12)

• Introduction to Mortgage Lending, 16 weeks, $405 (Jan. 21)

• Law & Banking: Applications, 16 weeks, $455 (Jan. 21)

• Principles of Banking, 16 weeks, $405 (Jan 12 and Jan. 26)

• Principles of Banking Accelerated, 10 weeks, $335 (Jan. 21)

• Today's Teller: Developing Basic Skills* (open enrollment), 8 weeks, $315

Please see the AIB Online Course Schedule for a complete listing or call GBA’s Alison Moreau at 404.420.2034 with questions.

AIB Money & Banking is a required course for many of AIB’s diplomas and certificates. The class begins Jan. 12 and will be taught by Cassie Parker of McIntosh State Bank, McDonough. Class will meet three hours each week for 10 weeks and costs

Given today’s tough regulatory environment and ever-changing security landscape, information security should always be a top priority. Gladiator Technology can help. A Managed Security Service Provider located in Atlanta, Gladiator is a leading provider of IT security services that works with more than 600 financial institutions nationwide. A long-time strategic business partner with the GBA, Gladiator specializes in working with financial institutions to monitor and safeguard mission-critical IT solutions and networks, along with protecting non-public customer information. Their comprehensive services include 24x7x365 management, correlation and monitoring of multiple security layers specifically designed for financial institutions.

Make Money, Save Money With GBA Services, Inc. Offerings

Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. 

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Georgia Bankers Association • 50 Hurt Plaza, Suite 1050, Atlanta, GA 30303 • Phone 404.522.1501 • Fax 404.522.9848 • www.gabankers.com