ABA Banking Journal - April 2008 - (Page 12)

briefing ABA NATIONAL CONFERENCE FOR COMMUNITY BANKERS REPORT it is not good for the country.” Other quick points from Snow: • Regarding political participation: “This is not a time to hold your silence. There are too many important things going on Lee Eisenberg around the world.” • Regarding Hillary Clinton and the end of her “sure thing”: “Can you imagine being married to that guy all these years, and then having this happen?” • Regarding John McCain: “John McCain is a maverick. He doesn’t stab you in the back, he stabs you in the front. That’s because he wants you to know who’s holding the knife.” • Regarding Barack Obama: “My six-year-old son could recite his speeches. They don’t say anything.” Many Obama ideas come from the 1932 Democratic party playbook, Snow claimed. “The ideas are old and stale.” • Regarding the Republican Party: It seems to be locked into Reagan mode; while Snow loved Reagan, he said, Reagan was in office 19 years ago—things have changed. • Regarding the Iraq War: Both Sen. Obama and Sen. Clinton say they will get the U.S. out of Iraq. “It will not happen,” said Snow. While every would-be president calls the incumbent President an “idiot” on foreign policy, said Snow, “foreign policy is driven by fact, by the security briefings you get every day.” Brad Rock What it takes for banking to win Strength in unity and numbers. That’s the key to banking’s future in Washington, according to ABA Chairman Brad Rock. Speaking during the association leadership session with ABA ChairmanElect Arthur Connelly (chairman and CEO, South Shore Bancorp, Weymouth, Mass.), Rock, president and CEO, Bank of Smithtown, Hauppauge, N.Y., hammered home his view that bankers have got to organize to bring a major presence Tony Snow to Washington. Not on every legislative battle, but on the ones that really matter. “We have to be able to shoot that ‘big gun’ when we need it,” said Rock. Future “big gun” events? Rock said they could include the mortgage bankruptcy legislation pending in Congress and credit union encroachment. BJ Bank value: all in the mind C EOs and their boards at many community banks share an odd, and not always collegial, dynamic. Frequently the CEO brought many of his or her directors to the board, and, though the banker works for the board, banker and board go through a great deal together, often with common goals. Much teamwork goes into the relationship. But there is also another factor: self-interest. Attorney Walter Moeling reminded bank leaders that directors are also stockholders, and that, for stockholders, whom directors, after all, represent, the bottom line of every decision made in the bank, from broad-scale strategic planning to how to collect on an errant loan, is: “What’s in it for me? What’s my stock going to be worth?” Moeling asked listeners to join him in eavesdropping on the thoughts of directors and CEO as a typical board meeting begins: Directors: “If somebody came along and offered us four times book, he [the CEO] probably wouldn’t even tell us.” CEO: “They think I’m a nice guy, but if somebody came 12 APRIL 2008/ABA BANKING JOURNAL along and offered us four times book, they’d sell me out in a minute.” Moeling let that sink in, and said that no one ever admits such a dynamic is there, but it is. Indeed, if anything, today’s board and management have such thoughts more than ever. Today’s directors are better educated and more aware of the bigger picture, according to Moeling, and “they will not be patient forever.” Moeling recalled the story of a veteran CEO whose board fired the banker after a $17 million loss came to light. The CEO’s parting shot, he said, was to complain of ill treatment, “after all I’ve done for you.” It’s hard to believe any board at any time would have been forgiving after a loss like that. But today’s boards want to see value, and growing value. Moeling said that bankers must understand what strategic planning is really all about—“creating long-term wealth.” Moeling, partner and co-chair of the financial institutions practice group at Powell Goldstein LLP, Atlanta, Ga., addressed the topic of “Your Bank’s Worth—Today and Tomorrow.” BANK VALUE continues on page 16 Subscribe at www.ababj.com http://www.pogolaw.com http://www.ababj.com

Table of Contents Feed for the Digital Edition of ABA Banking Journal - April 2008

ABA Banking Journal - April 2008 Contents Editor's Column You Can't Beat Wal-Mart: Or Can You? Snapshot: Non-Interest Income Shoulders More Weight ABA National Conference for Community Bankers Report 100th Anniversary: Then & Now ABA Resources ABA Chairman's Position Banks Plus Insurance: How to Make It Work Pass the Aspirin 2008: Year of Rich Internet Apps? Tough Time For That IPO Your Audience Needs to Know Who You Are Telepresence: Costly But Very Cool Webnotes Better Websites Mean Tougher Compliance Mailbox Banker's Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - April 2008

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