On behalf of the entire GBA Staff, we wish you, your families and customers a safe, fun and relaxing July 4 holiday. And, while we all will enjoy some much needed R&R, we also join you in celebrating true meaning of the holiday – appreciation for the unique and special freedoms we enjoy as Americans. Happy Birthday U.S.A.!
 

Just in time for some light holiday reading, the Obama administration this week delivered a 152-page draft bill and summary to Congress that would create a Consumer Financial Protection Agency (CFPA) with broad powers to design and mandate bank products and enforce all banking consumer laws. This is the first actual legislative language related to the larger regulatory reform proposal from the administration. We’ve updated our Federal Issues web site with the bill, a couple of summaries and some preliminary position notes that can help you understand and explain the concerns for our industry. Under the proposed legislation, the new consumer agency would write, supervise and enforce consumer protection regulations on all financial products, including mortgages, credit and stored-value cards and overdraft programs. As we noted last week, the House Financial Services Committee is slated to consider the bill before the August congressional recess, while the Senate Banking Committee plans to incorporate its agency legislation into a larger regulatory reform measure this fall. One of the most helpful things bankers can do is to go ahead and let your members of Congress hear from you about your concerns.

GBA was honored that Doreen Eberley, the Acting Regional Director of FDIC’s Atlanta Region, could take time to give an update to our Bank Counsel Section board members at their meeting this week. Of particular note from her briefing was that the regional office is seeing an increase in private-equity investor interest in purchasing local closed banks. However, the proposals to date are raising a lot of complicated accounting and other questions they’re working through that continue to limit possible approval. Of note, FDIC wants to ensure strong capital levels for several years and that investors have a long-term interest in managing acquired banks, not just investment for the sake of quickly flipping the bank and its assets. FDIC approved a proposed policy statement about this Thursday. It is seeking comment about the proposal within 30 days of publication in the Federal Register. Eberley also was specific to point out that the FDIC intends to quickly address institutions that are not meeting brokered-deposit guidelines for funding strategies issued in a March Financial Institutions Letter. The letter states, “Institutions rated 3, 4 or 5 are expected to limit balance sheet growth and take actions to improve their risk profile while they work to remedy their problems.

CPP Updates:

Two More Georgia Banks Get Investments, New Warrant Repurchase Info. and Comp. Clarification

The U.S. Department of Treasury has invested in two more Georgia banks through its Capital Purchase Program during the past couple of weeks. Rome’s RCB Financial Corporation (River City Bank) received an $8.9 million investment June 19, and Dalton’s Alliance Bancshares Inc. (Alliance National Bank) received almost $3 million. There are now 24 Georgia-based institutions that have received CPP investments, totaling $6.26 billion, according to Treasury’s web site. In related news, Treasury announced its four-step process for companies wishing to repurchase warrants. Also, Treasury has answered some industry questions seeking to clarify a recently issued interim final rule restricting executive compensation at banks receiving Troubled Asset Relief Program funds. In a note to members,  ABA said Treasury confirmed the rule’s bonus limitations for banks receiving less than $250 million in TARP funds will apply to the “most highly compensated employee(s),” regardless of whether they are senior executive officers. The rule’s definition of “most highly compensated employee” had excluded senior executive officers.

Take Note of New Banking-Related Georgia Laws That Are Now In Effect

Several new state banking-related laws passed in the 2009 legislative session took effect July 1. Here’s a summary of some of the key new laws:

• The most significant is SB 141 that requires a deed to be filed within 90 days of a foreclosure sale.

• The Georgia Department of Banking and Finance’s (DBF) housekeeping bill, HB 141, eliminates certain intangible assets from being counted as part of “net assets” such as those related to the purchase, acquisition or merger of a bank charter. There are also increased fines related to failure to respond to DBF’s request for information, and changes in certain definitions of a bank holding company.

• The Uniform Electronic Transaction Act, HB 126, standardizing rules related to electronic transactions.

Two other new laws went into effect in May, immediately upon the Governor’s signature. They are:

• HB 261, the homebuyer tax credit of $1,800 – effective May 11.

• HB 127 is the Uniform Real Property Electronic Recording Act – effective May 5.

With questions, contact Elizabeth Chandler, 404.420.2027.

Supreme Court Ruling Strikes a Blow to Preemption, OCC Regulatory Authority

There’s big legal news worth noting this week. The U.S. Supreme Court ruled in a 5-4 decision that national banks are subject to some state laws under the National Bank Act. The ruling effectively reverses law that’s been in effect since 1864 and calls in to question the OCC’s ongoing role as the exclusive regulator of national banks.

There was at least one instance of positive headlines about our business this week. The Atlanta Business Chronicle did a summary story that noted our annual convention attracted the most attendees in seven years. The number of registered bankers increased 21 percent from 2008, to 262 from 207. Banker attendance this year was higher than the 210 we averaged from 2003 to 2008. And, total attendees numbered 484 this year, an increase of 13 percent from the year prior and 13 percent above the average attendance since 2003. Keeping the event close to home based on member feedback, adding more expert content, shortening the length of time attendees were out of the bank and a 25-percent reduction in registration cost helped us ensure maximum information and value.

• Receive great leadership training from Dan Greene with Greene Consulting, Atlanta.
• Hear about Regulatory Reform proposals and other state and federal issues affecting the banking industry from GBA’s own Elizabeth Chandler.
• Get the most up-to-date economic information from Dr. Donald Ratajczak with Morgan Keegan & Co., Inc.

• Hear exclusive information from bank regulators.
• The opportunity to network with your fellow bankers and share ideas.

The Leadership Conference is July 12-15 at Amelia Island Plantation in Amelia Island, Florida. There’s still time to register. With questions about the conference or Leadership GBA, please contact GBA’s Susie McGehee at 404.420.2010 or Jennifer Stevens at 404.420.2024.

July Webinars – Register Today:

Understanding Loan Documents, BSA/AML Compliance, Commercial Loan Documentation

• Understanding Loan Documents, Part 1: Loan Documents – July 7

• BSA/AML Compliance: Recent Developments & Common Errors – July 9

• How Will the Mortgage Disclosure Improvement Act (MDIA) Changes to Reg. Z Impact Your Mortgage Operations?  – July 9

• Commercial Loan Documentation, Part I – July 10

• Commercial Loan Documentation, Part II – July 13

All webinars are live and allow time for questions and answers. The $250 registration fee gives you access to one web site “seat,” one telephone site license and all handout materials. If you can’t attend the webinar, you may buy the audio CD, handout materials and a password to see the information online. With questions, please call GBA’s Courtenay Pope at 404.420.2015.

• Deluxe Welcome Home Tool Kit (start-to-finish branch package focusing on the first 90 days of the relationship)

• DeluxeCard Visa Gift Card

• Deluxe Experience Inquiry (improve customer experience and drive new revenue)

• Deluxe Detect (account screening to combat fraud and risk).

For more information about these products and services, please call Deluxe’s Bob Hicks at 317.873.5572 or Brandt Teft at 800.332.4234 ext. 159340, or GBA’s Levi Crabtree at 404.420.2022. Deluxe is a GBA Strategic Partner.

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