Bank News

Monthly Interest

New Solutions

New bank technology solutions are highlighted.

Management and Staff

Around the Region

Icba Joins Preparedness Coalition

Jha Increases Stock Repurchase, Reports Net Income

Rma Elects Wilson Chair

Henricks Rejoins First Data Corp.

U.S. Bank Names Coll Executive Vice President

Acb Names Two to Government Relations Department Posts

Fed Approves Final Rule On Payroll Account Cards

Groups Criticize Proposed Rules for Credit Union Conversion

Proposed 4rules for credit union conversion to mutual savings banks have received critical comment from the Independent Community Bankers of America, the American ankers Association and America's Community Bankers. ICBA said the proposed rule change is just another attempt to obstruct the right of a credit union to to convert to a mutual institution. Under the proposal, converting credit union boards would have to give 30-day advance notice to members before the board could vote on a conversi...

Fdic Updates Procedures to Protect Examination Data

Csbs Joins State Preemption Case Before Supreme Court

The Conference of State Bank Supervisors has joined with the National Conference of State Legislatures, National Governors Association and a number of other state and local goveernment organizations filing an amicus curiae brief with the Supreme Court in a case involving the federal preemption of state consumer protection laws. The brief states the Sixth Circuit should have required the OCC to demonstrate that its preemptive rules were consistent with congressional intent because the critical...

Icba Addresses Concerns in Several Issues

Concern and calls for action have been issued by the Independent Community Bankers of America in several areas. The ICBA asked the Securities and Exchange Commission to defer for 2 years the Sarbanes Oxley Section 404 due dats for internal control reports and audits for non-accelerated filers to give community banks sufficient time to undersand and apply changes to auditing guidance. ICBA said existing real estate lending standards, regulations and guidelines are sufficient to guide banks thr...

Csbs Testifies On Capital Rules, Commercial Real Estate

In testimony before the House Financial Services' Financial Institutions Subcommittee on behalf of the Conference of State Bank Supervisors, Massachusetts Commissioner of Banks Steven L. Antanokes said that proposed federal guidance on commercial real estate lending could do particular harm to community banks by alterning the competitive landscape.

Federal Agencies Seek Public Comment On Basel Ii Proposals

Public comment is requested by the federal bank and thrift regulatory agencies on a notice of proposed rulemaking that would implement new risk-based capital requirements in the US for large, internationally active banking organizations.

Ffiec Publishes 2005 Hmda Data

Mishkin Takes Seat On Fed Board

Texas Governor Names Gonzalez to Seat On Finance Commission

Sutko to Board at Omaha Fed Branch

Feature Story

Internal Yield Curves: Visualizing Net Interest Margin

During the almost 30 years The Baker Group has helped community banks manage their interest rate risk and investment portfolios, we have noticed that one of the shortcomings of many asset/liability management models is the simplistic assumption that interest rates all move together in parallel fashion. Many "rate shock" simulations are at times both inadequate and misleading since they make no provision for flattening and/or steepening of the yield curve. Perhaps the best way to visualize the...

Editorial Comment

A Sigh of Relief for Bankers

Labled by some, including a few of its own members, a "do-nothing" Congress, that body nevertheless gave bankers a going-away present in the form of a regulatory relief bill that embodied many of the provisions sought by industry trade groups. Sen. Mike Crapo, R-Idaho, author of The Financial Services Regulatory Relief Act of 2006 (S. 2856), which cleared the Senate unanimously in May, worked with House leaders to reach agreement on issues that remained in contention, including Regulation B b...

Investments

So Long, Term Premiums?

Term premiums are the academic explanation for hte xtra yield we as investors demand for buying long-term bonds versus shorter-term ones. The following theories are being discussedand debated to help explain the lack of term premiums: 1. the impact of foreign investors, 2. the Fed has succeeded in managing inflation and confidence is growing in Ben Bernanke. 3. The economy is slowing and real estate has peaked. 4. The yield curve is inverted. 5. Terrorism is on our minds again.

Around The Nation

National City Corp. To Sell First Franklin to Merrill Lynch &Amp; Co.

Pulse Sets Reciprocal Agreement with Link Interchange

PULSE EFT Association and LINK Interchange Networks Ltd., the operator of the UK Cash Machine Network, have announced a reciprocal agreement that will allow the 42,000 financial institution participants in the PULSE ATM/debit network to offer their cardholders access to all but a handful of the more than 58,000 cash machines across the UK and allow LINK to offer its 38 participating financial institution members access to an additional 250,000 PULSE cash machines in the US.

Regulatory Forum

Financial Institutions Post Record Earnings for Second Quarter

Net income of $38.1 billion was reported by FDIC-insured institutions for the 2006 second quarter, surpassing the previous quarterly earnings record of $36.9 billion set in the first quarter. FDI officials attributed the new quarterly record to strong commercial and consumer loan demand that sparked an increase in net interest income, which outweighed the effects of rising interest rates and narrower spreads between short- and long-term interest rates.

Conference Report

Missouri Independent Bankers Association: Liquidity Option Launched, Branching Business Is Brisk

A new liquidity tool was described to members of the Missouri Independent Bankers Association during their annual convention at the Lodge of Four Seasons in Lake Ozark, Mo., last month. The Capital Markets CD is a product of Aurora, Colo.-based Index Powered Financial Services LLC, whose CEO, Robert Colvin, was a speaker at the opening business session Sept. 13. Endorsed so far by 10 state independent bankers associations, including Missouri, the program involves IFPS purchasing three-year, ...

Iowa Bankers Association 120th Annual Convention: Remaining Diligent On Industry Issues

In opening remarks to nearly 400 members of the Iowa Bankers Association at its annual convention Sept. 17-19 in Des Moines. IBA chairman Nancy Dunkel, vice president of Fidelity Bank & Trust in Dubuquc, emphasized the importance of remaining diligent when it comes to credit unions and what is required of them, as well as keeping a close watch on commercially owned industrial loan companies and supporting the endeavors on such issues by Rep. James A. Leach, R-Iowa.

Nebraska Independent Community Bankers: Words of Wisdom About Politics and the Economy

The best time to get to members of Congress is this fall while they are home campaigning, members of the Nebraska Independent Community bankers were advised at their annual convention in Omaha last month by David Hayes, immediate past chairman of the Independent Community Bankers of America and president and CEO of Security Bank in Dyersburg, Tenn.