News from IBANYS

January 2011

Issue 1

Being Frank

I will begin making personal visits to members and potential members beginning the third week of February. I would ask all members to assist me in sharing IBANYS' information with a colleague in your area who is not yet a member of IBANYS but should be.

While certain legislative issues stand out on the State level, such as agency consolidation, state CRA, interest rates on mortgage escrow accounts and municipal deposit rights for our thrifts, IBANYS' agenda will take shape after the State Budget is made public on February 1.

We do know that the new Chairman of the Senate Banks Committee is Senator Joseph A. Griffo (R-C-IP, Rome).

Please let me know if you would like to participate on IBANYS new Government Relations Committee.

I also encourage you to contact me at any time to share your insight on the needs of members, how to attract new members, check on the status of pending legislative issues, comment on how we're doing, or just to say hello.

In the near future we will use this E-News format to introduce on-line surveys, a new web page, blog, social network outlets and IBANYS member services.

I can be reached at the Association office, (518) 436-4646. by email:

FrankC@ibanys.net or cell phone at (678) 428-0096.

Professor Elizabeth Warren to Address IBANYS Board

Professor

Elizabeth Warren

Our special guests at the upcoming board of directors meeting will be Professor Elizabeth Warren, Assistant to the President and Special Advisor to the Secretary of the Treasury on the Consumer Financial Protection Bureau. Profession Warren will join us by conference call and her new Director of Community Banks, Elizabeth Vale will join us in person. Professor Warren will make some preliminary comments and then both will do a Question and Answer session with the board.

President and CEO, Frank Capaldo attended an ICBA meeting of state executives last week and was able to speak with both in person. He commented that they shared positive comments on keeping community banks sacred.

Giving Small Banks a Chance to Survive

Please feel free to submit questions for Professor Warren and Ms. Vale to the Association office by calling (518) 436-4646, emailing FrankC@ibanys.net, or reaching out to any of your board members.

Community Commitment

A Lasting Legacy of Leadership and Longevity

Sixty years doing any one thing is commendable, but 60 years spent building a life, a family and a place in your community is extraordinary. Richard E. Forrestel has held a seat on the board of directors of the Bank of Akron for 60 years, becoming the longest serving director in the history of the bank. His father, Eugene P. Forrestel, personally recapitalized the bank in 1932 to keep it from being declared insolvent and its doors being closed. Richard was President and Chairman at the bank from 1975-94, before handing the reigns to son E. Peter Forrestel. Richard remains Chairman of both the bank and Cold Spring Construction, a family-owned highway construction company founded by Eugene, which is celebrating its 100^th anniversary this year.

Educating Our Elected Officials

IBANYS Chairman Paul Mello and board member Jack Webb will attend a fundraiser for Senator DeFrancisco next month in Syracuse. Senator DeFrancisco has been very receptive to community banking concerns over the years and Messrs. Mello and Webb will reiterate IBANYS concerns on the state of the financial industry.

Mr. Mello will also meet with newly elected Assemblyman Donald Miller, who is slated to be on the Assembly Banks Committee. Assemblyman Miller has voiced an interest in becoming better educated, by an industry insider, on issues affecting community banks.

Take Stock of Your Munis

New year creates opportunities in general

market munis

Jim Reber

I want to congratulate you. You have resisted the urge to page forward to a topic that you don't think you've read before, and I wouldn't blame you. Articles on the municipal security market have appeared in numerous magazines and trade journals over the last year. This one, I promise, is different.

All of the provisions from the main stimulus bill that impact the municipal market were allowed by Congress to lapse at the end of 2010. Virtually every bank in the country could have taken advantage of at least some of the programs, whether or not they were taxable. The broker/dealer and accounting communities rightfully tried to spread the good word to their clients, as the deadlines were well publicized when the bill became law in 2009.

Read More

ICBA Encourages Community Banks to Review SBLF

Many community banks report raising private capital remains extremely challenging. The Treasury's new $30 billion Small Business Lending Fund offers another option to access capital for interested community banks. ICBA is encouraging the nation's community banks to examine the initial terms and application information for the ICBA-advocated Small Business Lending Fund. The fund will provide Tier 1 capital to interested community banks with less than $10 billion in assets to boost small-business lending.

View ICBA online version

Bankers, Insurance Agencies Will Meet to Discuss Proposed Merger

Governor Cuomo is proposing to consolidate the Insurance Department, Banking Department and Consumer Protection Board and create a new state agency (Department of Financial Regulation). This potential merger may create an opportunity for positive change, however, there are also many questions and concerns for the respective industries.

Later this month Frank Capaldo, IBANYS President & CEO will join the New York Insurance Association (NYIA), Life Insurance Council of New York (LICONY), Health Plan Association (HPA), New York Bankers Association (NYBA), Property Casualty Insurers (PCI), American Insurance Association (AIA), Professional Insurance Agents (PIA) and the Independent Insurance Agents & Brokers of New York (IIABNY) to discuss the potential changes consolidation of the agencies would have on all parties involved.

Value in Membership

In this economy all of us are looking for value and return. So, in reading what follows consider your membership in IBANYS as a long term investment in your business, not an expense. I am the new guy at IBANYS, but very familiar with the value of associations that represent my business, profession and sometimes personal interests. Many times, when we are busy with our "day-to-day" we forget that value, and need to be reminded.

The Value Questions

So what does your Association do for you that we forget about, are unaware of, or just simply take for granted?

In This Issue

Being Frank

Professor Elizabeth Warren to speak with Bankers

Community Commitment

Educating our Elected Officials

Take Stock of Your Munis

Small Business Lending Fund

Bankers, Insurance Agencies to Discuss Proposed Merger