ABA Banking Journal - November 2008 - (Page 22)

briefing ABA Chairman’s Position BRADLEY E. ROCK CEO, Smithtown Bancorp brock@aba.com Your grassroots support helped ABA make history IN A YEAR OF EXTRAORDINARY CHALLENGES TO our industry and fundamental changes to the nation’s financial system, ABA has been a leading participant in making economic history. ABA worked proactively with the Treasury Department to refine and then pass the Emergency Economic Stabilization Act in late September and early October. We broke the impasse that made final passage possible when we proposed that the FDIC temporarily increase insurance coverage on accounts to $250,000. Treasury Secretary Henry Paulson showed his appreciation of your grassroots strength when he took time to hold a telephone conference call with bankers. And in a private conversation, he let your chairman know that he valued your support. He understood the impact that hometown bankers can have on members of Congress. ABA recorded almost 40,000 calls and letters from bankers to members of Congress on the economic stabilization package. And state associations generated many more contacts. ABA worked with Treasury on its proposals to protect federally insured banks. ABA made certain that Treasury’s loan purchase program was open to banks of all sizes. Preferred shares in Fannie Mae and Freddie Mac can now be treated as ordinary losses for tax purposes. ABA encouraged the deletion of a bankruptcy provision in the original proposal that would have been harmful. And we used the opportunity presented by the debate over the economic stabilization bill to gain some traction on “fair value” accounting. Earlier, when Treasury announced it would guarantee money market mutual funds to stem the outflow of money that began when one of those funds “broke a buck,” ABA won a big improvement over the original proposal. We persuaded Treasury to limit coverage to balances as of Sept. 19. This was the year that grassroots activity took on a new importance. On issue after issue, long before the economic stabilization package was introduced, bankers across the country repeatedly demonstrated their willingness to reach out to members of Congress. Bankers showed their willingness to contact their members to stop expansion of the Farm Credit System, halt credit union initiatives in the House and limit Senate sponsorship of credit union legislation to just five senators. You responded by the tens of thousands at ABA’s urging to those issues and to others. ABA just sent the plays down from the booth. You executed the plays on the field. Political success is about votes. ABA members represent a lot of votes, and we will have to continue to work hard to make certain that our representatives in Washington know that—and especially so with a new administration and a new Congress. We began my term as chairman by voting to merge ABA and ACB, and we conclude this year with a far stronger association—one that represents 95% of our industry’s assets. Whether in congressional testimony, meetings with the regulators or private sessions at the White House or Treasury Department, we are demonstrating the power of speaking with a single strong unified voice. As the pre-eminent bank trade association in Washington representing institutions of every size and every charter, ABA has a seat at the table when legislation is being debated and policy is being formulated. And when ABA is there, your bank is there. Despite the drama associated with the passage of the economic stabilization package and the credit crunch that prompted it, the conservatorship of Fannie Mae and Freddie Mac and the actions by the Treasury and FDIC, there are many other items at the top of our radar screen. We’re still working on interchange, overdraft protection, ILCs, credit union competition and many more. And we will continue to do so. ••• On a personal note, being chairman of ABA has given me an opportunity to spend time with my banker friends from across the country. You have been gracious hosts to my wife, Tracy, and me. Thanks very much. ABA president and CEO Ed Yingling, COO Diane CaseyLandry, ABA’s Board of Directors and the great ABA team have given me their support and the benefit of their insight and expertise. They made my job easier. My team at Bank of Smithtown deserves my profound thanks. Most of all, I am indebted to you, our members, for your loyal support. I leave you in very good hands. Arthur R. Connelly, who will succeed me as chairman, and Arthur C. Johnson, who becomes chairman-elect, are strong leaders who are dedicated to the wellbeing of our industry. With your support, ABA will continue to shape the future of our industry. BJ 22 NOVEMBER 2008/ABA BANKING JOURNAL Subscribe at www.ababj.com http://www.ababj.com

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

ABA Banking Journal - November 2008 Contents Editor's Column Banking 2.0: Credit, Banking's Essence, Set for Rethinking Snapshot: The Few, the Proud, the Banks that Can Raise Capital Will Strong and Simple Banks Inherit the Business? Back to the Future ABA Resources ABA Chairman's Position Farm Lenders Must Take Care When Lending in Indian Country Pass the Aspirin Into the Breach Adventures Across A Century What the Future Holds, Post Crisis Paul Volcker: A Financial Legend Still Speaks Strong Ed Yingling: Weathering the Storm Dick Kovacevich: "Boring" Banking to Dynamic Financial Services Jim Culberson: Community Banking: What has Changed and What Shouldn't Walter Shipley: How a Chemical Reaction Helped to Mold Today's JPMorgan Chase William Isaac: Challenges and Opportunities Ahead for Banks A Hundred Years from Our Pages Eight Tech Innovations that Brought Banks into 21st Century Bank Cherokee: Third Generaton Marks 100th Year The First National Bank of Altavista: Railroad Gave Birth to a Town, a Hope Chest, and a Bank Rosedales Federal Savings and Loan Association: How a Friendly Game of Cards Turned into a 100-Year Mutual New Washington State Bank: Cooking Up the Next 100 Years Mailbox Banker's Mart To Advertise/Index of Advertisers The Economy

ABA Banking Journal - November 2008

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