At the FDIC Board meeting Tuesday, a proposal passed to restore the Deposit Insurance Fund by requiring banks to prepay their estimated quarterly assessment for the fourth quarter of 2009 and for all of 2010–2012. FDIC says the prepayments, due Dec. 30, 2009, would raise $45 billion. The FDIC issued a set of questions and answers on its web site that help explain the prepayment proposal. GBA Chairman Andy Williams, President of United Community Bank in Blairsville, said, “FDIC insurance has proven to be a vital component of maintaining our depositors’ confidence in our industry. While we may not all agree with FDIC on how they propose to restore the fund, it’s important to keep in mind how important the FDIC brand has been for each of our institutions. It sets us apart.” We’ve heard from a lot of you with your thoughts, concerns and ideas. We’re collecting these and will be using your feedback to craft a letter we plan to file during the 30-day public comment period. We also encourage you to file your individual comment letter. In general, we have been careful to recognize the importance of the industry’s support of the fund, but had strongly encouraged a less onerous proposal such as floating bonds, borrowing from the industry, or tapping the FDIC’s line of credit at the Treasury. However, in the end, the proposal developed by FDIC Chairman Sheila Bair passed unanimously.

As reported this week in the Wall Street Journal, Reps. David Scott (D., Ga.) and Tom Price (R., Ga.), Georgia’s two members on the U.S. House Financial Services Committee, raised questions during hearings last week about the FDIC’s oversight of banks. “I’m not convinced that the FDIC isn’t contributing to the awful problems that we’re having,” Price said at a House Financial Services Committee hearing Sept. 23.  “Some of these small community banks where they have performing assets, performing loans, they have been asked by the - they’ve been demanded by the FDIC to increase their capitalization and they do so and still they dot every ‘I’ and they cross every ‘T’ and then the knock comes on the door on Friday afternoon.

” Rep. Scott said that “the people of Georgia would appreciate very much if the FDIC could review how they’re dealing with the banks in Georgia to work with a plan to see if we can’t stop this very terrible pattern. Because it’s — it’s — it’s just not fair nor right.” The article noted that Chairman Bair said she’s “painfully aware of the concerns...”

House Financial Services Committee Chairman Barney Frank (D-Mass.) released draft legislation to revise the bill (H.R. 3126) he introduced in July to create a Consumer Financial Protection Agency. As we reported last week based on a memo Frank circulated about the changes, the revised draft legislation removes requirements that banks offer government-designed plain-vanilla products, eliminating an unworkable requirement that communications with consumers be “reasonable,” and requiring that the CFPA and safety and soundness regulators coordinate bank exams.

The FDIC this week announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Georgia affected by recent severe storms and flooding. The FDIC encouraged banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by these disasters.

The new Federal Reserve rule, which amends Regulation Z and is intended to protect mortgage borrowers from unscrupulous acts and practices, went into effect Oct. 1. The regulations  were adopted in July 2008 and apply to all mortgage loans in such areas as appraisals, servicing, disclosures and advertising.

RESPA: HUD Issues Updated Information about Jan. 1 Rule Changes

The Department of Housing and Urban Development has issued updated information about the new Real Estate Settlement Procedures Act (RESPA) regulations that take full effect on Jan. 1, 2010. See the updated FAQ document on HUD’s web site.

The federal financial institution regulatory agencies are requesting comment on proposed new Correspondent Concentration Risks guidance. The proposed guidance addresses supervisory matters relating to identifying, monitoring, managing and performing appropriate due diligence of correspondent concentration risks.

• Georgia Trust Bank, Buford, Mike Allen, CEO

• The Citizens Bank of Forsyth County, Cumming, Tim Perry, CEO

The officers, directors and staff of the following companies have contributed to the GBA FedPAC:

• Midtown Bank & Trust Company, Atlanta, Stan Kryder, CEO

• Georgia Bank & Trust Company, Augusta, Dan Blanton, CEO

• Georgia Trust Bank, Buford, Mike Allen, CEO

• The First National Bank of Polk County, Cedartown, Larry Kuglar, CEO 

Thank you for your support. For more information, please contact Elizabeth Chandler at 404.420.2027. Please see the BankPAC Update for year to date contributions by group. The contribution forms can be downloaded here.

You can do this by attending Leadership GBA’s eighth-annual Georgia BankPAC Classic slated for Wednesday, Oct. 28, at Idle Hour Country Club in Macon. Registration is $150 per person, $250 per team or $450 for a team and hole sponsorship. The proceeds will be donated to the GBA StatePAC. With questions, please contact GBA’s Susie McGehee at 404.420.2010. Help fund the State PAC today, your contribution CAN make a difference!

GBA’s Introduction to Consumer Lending presents a practical approach to consumer lending. It is designed to help participants understand the credit process, improve the quality of credit decisions and increase their confidence in making decisions. The seminar will be seminar is set for Oct. 14 at Idle Hour Country Club in Macon.

Check those calendars and make the necessary adjustments. We’ve re-scheduled our Loan Documentation and Advanced Loan Documentation seminars for Nov. 3 and Nov. 9. The Loan Documentation Seminar is designed for loan officers, loan administrators and credit administrators at every level. The seminar will cover how to document the condition of the collateral, the condition of the title and the condition of the borrowers and guarantors. Thompson Kurrie Jr. and Harrison Coleman, partners with Coleman Talley, LLP in Atlanta are the instructors.

Bank Trainers, Don’t Miss GBA-U’s Bank Trainer Peer Group Meeting 

Consumer  Lending and Principles of Banking Highlight Upcoming AIB Courses

• Consumer Lending, 16 weeks, $405

• Principles of Banking, 16 weeks, $405 

• Commercial Lending, 16 weeks, $405

• General Accounting*, 16 weeks, $515

• Law & Banking:  Applications, 16 weeks, $455

• Principles of Banking Accelerated, 10 weeks, $335 

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

• Power of Attorney & Living Trust Documents – Oct. 6

• Consumer Lending Requirements in a New Compliance Age – Making Sure You’re Set – Oct. 6

• Call Report for Banks - Highlights & Pitfalls – Oct. 8

• Accounting for the Allowance of Loan & Lease Losses (ALLL) – Oct. 8

• A New Day in Washington: Sweeping Changes for Employers – Oct. 9

MainStreet Technologies’ (MST) Loan Administration System is a complete program including evaluation, training and the automation of a bank's processes for managing risk in real-time and minimizing losses. It is a comprehensive program proven to reduce shareholder risk, improve regulatory compliance, save time and employee costs, add efficiency to operations and improve and enhance customer service. Bank leaders rely on the MST Loan Administration System to provide them and their board real-time information in the documents that secure their loans. They can employ the system to virtually eliminate the issue of missing or expired documents.

• Products and services offered provide cost savings and/or increase revenue to your bank.

• GBASI Board Member due diligence has been done on each of GBA’s 20 Strategic Partners.

• Helps with employee and customer loyalty.

• Most of GBA’s Strategic Partners are also endorsed by the ABA.

• GBA’s products and services are highly reputable among members that take advantage of the 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.

Newsmakers

GBA Members among Atlanta’s

Best Places to Work
Each year, Atlanta Business Chronicle, in partnership with Quantum Workplace, surveys the metro area's employers to find those that have discovered how to become one of Atlanta's Best Places to Work. In the large company category, Bank of North Georgia, Alpharetta, Kessel Stelling, CEO, ranked third. In the medium company category, Dixon Hughes, Atlanta, Bill Walton, member, and The Peoples Bank, Winder, Chris Maddox, CEO, ranked 4^th and 9^th, respectively. Congratulations!

We Will Miss...
Our sympathy to the family, friends and colleagues of Robert Wise on his recent death. Mr. Wise served as Chairman and CEO of Century Bank and Trust in Milledgeville from 1981 - 2004, and continued to serve as a director of the bank until May of 2008.

 

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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