Weekly Electronic Newsletter of the Indiana Bankers Association

July 18, 2008

Response to IndyMac Closure

Both Independent Community Bankers of America and American Bankers Association are offering materials that Indiana bankers may find helpful in the wake of the IndyMac Bank closure. In addition the IBA has distributed to members a sample letter to the editor and talking points:

• ICBA Tips to Increase FDIC Insurance Coverage

• ICBA Print Ad

• ABA Safety and Soundness Communications Kit

• ABA Print Ads

• IBA Sample Letter to the Editor

• IBA Talking Points

The ABA materials are in the members-only portion of the website. Please contact Laura Wilson at the IBA, 317-387-9380, for assistance as needed.

Silent Auction

It's that time of year again! We are gearing up for the most exciting event of the year, the IBA Annual Silent Auction (benefiting Indiana BankPac)! The Silent Auction will be held a the IBA Annual Convention in French Lick, September 7-9, 2008. For more information, contact Amber Van Til at (317)387-9380 or avantil@indianabankers.org. Bid High and Bid Often!

Have you Registered for the 2008 Annual Convention?
This year’s event is September 7-9 at the French Lick Springs Resort. On Sunday, we have the perennial golf tournament, but this year we’ve added a tennis tournament with some very enticing prizes. In keeping with the theme “Fins to the Left. Fins to the Right” on Sunday evening we will be entertained by a Jimmy Buffet Tribute Band. Pack your tropical wear and join us in paradise!! Check it out…

Current question:
If your institution has engaged outside consultants during the past three years, which areas predominated? (Please check all that apply.)

Last week's question:

How many times has your institution engaged outside consultants in the last three years?

7% More than 15 13% 10-14 28% 5-9

48% 1-4 4% None (40 responses)

To suggest a question for Insta-Poll, contact Laura Wilson at the IBA. View Insta-Poll archives. Please note that Insta-Poll does not represent statistically accurate survey results. IBA members in search of specific information from peers are invited to enroll in IBA-member ListServes.

EDUCATION

2008 Bank Director’s Regional Workshops

The IBA is pleased to present the 2008 Bank Director's Regional Workshops in three locations, Fort Wayne Marriott, July 29; French Lick Springs Resort, July 30; and the IBA Center for Professional Development in Indianapolis, August 25, 2008.

This one day program is designed to assist bank directors and executive management with carrying out their duties and responsibilities. Directors and management make a pledge to "Enhance/Increase Shareholder Value." This commitment is at the heart of the fiduciary responsibilities.

This program explores the relationship between Bank Directors, Management, Regulators, Customers, Employees and Shareholders. As banking is a much regulated business, we will cover the many requirements that directors face on a day-to-day basis. The perfect director is described as being knowledgeable and active.

For more information and to register for the 2008 Bank Director’s Regional Workshops, please click on the appropriate link below.

Tuesday, July 29, 2008 – Fort Wayne Marriott, Fort Wayne

Wednesday, July 30, 2008 – French Lick Springs Resort, French Lick

Monday, August 25, 2008 – IBA Center for Professional Development, Indianapolis

More Information: For more details on the Consumer Lending School, please click on the link above. To register online or to get information on other educational offerings, please visit our website at www.indianabankers.org.

GOVERNMENT RELATIONS

BANKPAC Bootcamp a Success!
On Tuesday of this week, the IBA held its inaugural BANKPAC Bootcamp at the IBA Offices. Designated “Captains” were trained on the rules of PAC and how to run a PAC campaign in their respective banks. Special “thanks” to guest speakers, Representative Tim Harris (Marion) and Bethany Goswher of the House Republican Campaign Caucus. If your bank was not represented at BANKPAC Bootcamp and you would like for the IBA to send you a Bootcamp Campaign Kit, please contact Amber R. Van Til at avantil@indianabankers.org.

House Judiciary Panel Approves Amended Interchange Fee Bill
The House Judiciary Committee yesterday approved by a 19-16 vote the ABA-opposed interchange fee bill (H.R. 5546) that would exempt retailers from antitrust laws so they could collectively negotiate lower interchange rates with card issuers. But there were some improvements made in the legislation.

First, a government-appointed panel that would have set interchange rates if an agreement between retailers and card-issuers could not be reached was removed from the bill and, second, if retailers use the antitrust provision they would be prohibited from participating in card boycotts. However, the legislation also includes a dubious carve-out from the retailer-card issuer negotiations for credit unions of all sizes and for banks with assets under $1 billion.

Bernanke: Freddie, Fannie Not in Danger of Failing
Fannie Mae and Freddie Mac are not in danger of failing, Federal Reserve Chairman Ben Bernanke told the House Financial Services Committee yesterday. Fannie and Freddie are adequately capitalized, Bernanke said, but "weakness of market confidence is having an effect" on the companies, making it difficult for them to raise capital. Congress must work to reassure Americans the companies are safe, he added. "As their stock prices fall, it's difficult for them to raise capital," Bernanke explained. "If their debt spreads widen, it will increase their borrowing costs."

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IBA E-News is distributed every Friday. Please direct questions or comments to Laura Wilson or call 317-387-9380.