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• Vol. 17 No. 16 Des Moines, Iowa August 1,1988 IBAA Special Committee Makes— • 4 Deposit Insurance Recommendations ETAINING the integrity of the FDIC and creation of a new Re R construction Finance Corporation ^ ^ 9 0 0 % # are two of the key areas covered in a special report submitted to the In dependent Bankers Association of America by its 18-member Commit tee on Deposit Insurance. IBAA President J.R. Nunn said the com mittee’s four principal recommenda tions were p resen ted to the Republican and Democratic plat form committees and to the FDIC. Mr. Nunn outlined the committee report in an address he gave at the Iowa Independent Bankers 17th an nual convention at Lake Okoboji on July 23. A summary of that talk follows: The insolvency of the FSLIC is no longer a subject talked about in whispers. It is discussed openly in the corridors of power and on the streets of our own communities: The fund’s problems are so serious and their ramifications so far-reaching that, as President of the Independent B ankers A ssociation of America, I appointed a special Com mittee on Deposit Insurance to make a comprehensive study of the issue and make recommendations to the Democratic and Republican Platform Committees and the FDIC. IBAA’s 18-member commit- tee met in June, and today I will report to you the committee’s four principal recommendations. Nothing is more fundamental to the safety of the financial industry than the profitability of its par ticipants. And nothing is more fun damental to the soundness of the financial system than the public’s confidence in the system. 1. The integrity of the FDIC must be maintained. The committee rein forced two of the resolutions adopted at IBAA’s 1988 convention in Hawaii concerning the stability of deposit insurance and the separate ness of the insurance funds. The solution to the FSLIC’s insolvency does not lie in raiding the FDIC. Merging a weakening fund with an insolvent fund would only further jeopardize the deposit insurance system. 2. The establishment of a new Re construction Finance Corporation. We propose financial assistance not only to financial institutions which can still be saved, but to close without delay insolvent thrifts and banks. Funding for this RFC would come from various sources, speci fically: • From a revised deposit in surance assessm ent base th a t should be expanded to include all liabilities of the insurance system. That means foreign deposits, and it means non-deposit liabilities. • From a supplemental premium that should be assessed on brokered deposits. • From a new risk-based pre mium that should be assessed on deposits over $ 100,000 for all in sured financial institutions. • From the diversion to the RFC of the current supplemental assess ment levied on thrifts. • From interest on reserves which the Federal Reserve should pay on depository institutions’ re quired reserves and send to the RFC. • From the taxation of credit unions at rates comparable to banks. • From the proceeds from the sale of the assets acquired from the failed thrifts and banks the RFC closes. • From a line on the T reasurydirect or indirect—as necessary. 3. A review of the deregulation policies of the Reagan administra tion. Since coming to power, the Reagan Administration has pursued a radical agenda of financial deregu lation—an agenda which puts free market thinking above safety and soundness. The high cost of that policy is now evident. The FSLIC insolvency flows directly from those deregulation policies and from the lax regulatory policies of the Federal Home Loan Bank Board in the early After m ore than 120 years of providing correspondent banking services to the M idw est, you can say weVe had a chance to polish our trade. Find out for yourself. Count on Com m erce. 1 800 892-7100 1 800 821*2182 * * https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis * * (Outside Missouri) tu t Commerce Bank of Kansas City 2 and of the price to be paid for their inaction. For regardless of the cause of the crisis, its effect is clear and univer sal. Americans’ faith in the nation’s financial system has been strained. Congress must keep it from being1 broken. □ Norwest Bank Des Moines , N.A. ÊÊMLmm NORMEST BANKS Call (515) 245-3131 or toll-free (800) 362-2514 mmmmm mm yma Member FDIC Teamwork: one of the reasons we're first in Iowa. Dorothea Wolfe John Rigler years of the Reagan Administration. The Administration has not aban doned its cause. Indeed, it continues to promote an agency which looks toward the establishment of vast conglomerates with one foot in financial affairs and the other in commercial activities. Now, it may be useless for sheep to pass resolu tions against eating meat when the wolf is of a different opinion. But the next administration will be a new administration. And thè Congress and that incoming Administration must review the effect these policies have had on the safety and sound ness of our financial system and on consum ers’ confidence in th a t system. 4. Strenthening the Federal Finan Jerry Trudo MNB C orrespondent Banker together We Can Accomplish Great Things Call 319-368-4306 or toll free 1-800-332-5991 cial Institutions Examination Coun cil. The Federal Financial Institu tions Examination Council is made up of the five financial regulators. Congress created the Council in the late 1970s to improve communica tion between the agencies and to in crease uniformity among them. So far, so good. But so far is not far enough. The Council has no true power, no ability to force uniformity into a system mired in inequality. Congress needs to strengthen the Council to permit the setting and en forcement of uniform regulatory standards to address the Bank Board’s failure to regulate in such areas as accounting, capital and len ding standards and reporting re quirements. And the five-agency Council should be expanded to in clude the Farm Credit Administra tion, whose own government bailout became necessary because of lax supervision and regulation. Consis tent regulatory standards and im proved regulatory coordination are essential if fairness is to override politics. The need for action is as evident as the problem itself. You’ve heard the old expression that a chain is on ly as strong as its weakest link. O ur challenge as com m unity bankers is to do what we can to strengthen our link and thereby hand down a stronger chain to the next generation. And we must re mind Congress and the new ad ministration of its responsibility Correction on Expedited Funds Availability Chart The American Bankers Associa tion has informed us that an ABA typing error appeared in its chart published in the last issue of the W eekly N ew sletter. Under the category, “Deposits Made by Mail/ Night Depository,” both local and nonlocal maximum holds were listed as 2 days. ABA says this should have been 1 day, stating that “Funds from all deposited checks drawn on the U.S. Treasury must be available on the next business day, regardless of how they were deposited by the customer (i.e., teller deposit, ATM deposit, or by mail [once the bank receives the deposit]).” Iowa News Patrick R. Moehn, president and CEO, Commercial Savings Bank in Carroll, was elected president of the Iowa Independent Bankers at the 17th annual I IB convention at The New Inn, Lake Okoboji, July 23. He succeeds Thomas H. Huston, presi dent, Columbus Junction State Bank, Columbus Junction. The I IB vice president for 1988-89 will be Oliver Hansen, chairman, Liberty Trust & Savings Bank in Durant. Elected to three-year terms on the IIB board were: Richard Buenneke, president and CEO, Citizens Bank & Trust Co., N.A., Belle Plaine; Cecil W. Dunn, president, Security Sav ings Bank, Eagle Grove; Howard K. Hall, president, Perry State Bank, Perry; Robert M. Sierk, president, I t's easier to talk Iowa banking with people w ho live it — people like Donald H. Jordahl and the cor respondent staff at Bankers Trust. Call 1-800-362-1688 or 515/245-2424. Strength Eastern |owa Donald H. Jordahl Merchants National Bank Si Rapids. Iowa 52401 Member F O IC Digitized for Cedar FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKS OF IOWA BANK Des Moines, IA M em ber FDIC Vice P resid en t OVER 60% • OFALLBANKSINOURMARKETAREAARENOWINSURED BY THE KANSAS BANKERS SURETY COMPANY That’s Right. . . In the nine states we serve we have solved the bonding needs for 6 of every 10 banks. That's over 16.4% of all banks in the United States THE REASONS. . . SUPERIOR SERVICE MOST COMPETITIVE PREMIUMS REALISTIC UNDERWRITING PROMPT CLAIMS SERVICE IF YOU’RE NOT GETTING THE SAME FROM YOUR BONDING COMPANY... GIVE US A CALL - YOU’LL BE GLAD YOU DID. THE KANSAS BANKERS SURETY COMPANY DO NALD M . TOW LE President DAVID E. ABENDROTH Senior Vice President 611 Kansas Avenue P.O. Box 1654 Topeka, Kansas 66601 Phone 1-913-234-2631 FINANCIAL INSTITUTION BONDS, SAFE DEPOSITORY LIABILITY, CHECKS KITING FRAUD INDEMNIFICATION, DIRECTORS AND OFFICERS LEGAL DEFENSE AND LIMITED INDEMNITY POLICIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Serving the Heartland of America since 1909 OVER 60% OFALLBANKSINOURMARKETAREAARENOWINSURED • BY THE KANSAS BANKERS SURETY COMPANY That’s Right. . . In the nine states we serve we have solved the bonding needs for 6 of every 10 banks. That's over 16.4% of all banks in the United States THE REASONS. . . SUPERIOR SERVICE MOST COMPETITIVE PREMIUMS REALISTIC UNDERWRITING PROMPT CLAIMS SERVICE IF YOU’RE NOT GETTING THE SAME FROM YOUR BONDING COMPANY... GIVE US A CALL - YOU’LL BE GLAD YOU DID. DONALD M . TOW LE President THE KANSAS BANKERS SURETY COMPANY DAVID E. ABENDROTH Senior Vice President 611 Kansas Avenue P.O. Box 1654 Topeka, Kansas 66601 Phone 1-913-234-2631 FINANCIAL INSTITUTION BONDS, SAFE DEPOSITORY LIABILITY, CHECKS KITING FRAUD DIRECTORS AND OFFICERS LEGAL DEFENSE AND LIMITED INDEMNITY POLICIES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Serving the Heartland of America since 1909 3 FirsTier.Correspondent Services More of what it takes to serve you well. F irs T ie r B an ks Lincoln • Omaha FirsTier Bank, N.A., Lincoln and FirsTier Bank, N.A., Omaha, Members FDIC First National Bank, Iowa City, and Daniel A. Steffensmeier, president, Pilot Grove Savings Bank, Pilot Grove. ® The convention report and photos will appear in the August N o r t h ® • ® • MASON CITY: Ronald J. Havlik has been named president and chief executive officer of Norwest Bank Mason City, N.A. He succeeds Arlan Tengwall, who has retired. Mr. Havlik previously served as w estern B a n k er. president of Norwest Bank Sauk * * * Rapids, Minn. He joined Norwest in 1959 and has held positions in The Iowa Bankers Association Dawson, Minneapolis and Virginia, will sponsor a seminar entitled “In Minn, and Denison, la. troduction to the Ever Changing In dividual Retirement Account,” at South Dakota News three locations during August. The ABERDEEN: First Bank System program is being presented by Col has named Charles Habhab to vice lin W. Fritz and Associates and is president and trust officer in the geared for bankers who are relative trust services division of First Bank ly unfamiliar with IRAs. Agenda is: 8:30 am., registration; 9:00, program of South Dakota, Aberdeen. He begins; 12:00 p.m., lunch; 1:00, after previously served as an account ex noon session; 4:30, adjournment. ecutive with E.F. H utton and Com Fee for IB A members is $100 for pany, and has also held positions first attendee, $85 for each addi with Toy National Bank, Sioux City, tional; for subscribers is $125 for la., and Norwest Capital Manage first, $115 for each additional, and ment and Trust Company. for non-members is $150 for first and $140 for each additional. Dates SIOUX FALLS: Donald S. Hooper and locations are: 23rd—Holiday has been elected senior vice presi Inn, Cedar Rapids; 24th—Airport dent, commercial banking manager Hilton, Des Moines; 25th—Siebens for the Sioux Falls branch of Forum, Storm Lake. Contact the Norwest Bank South Dakota. He previously was vice president, client IBA to register. executive for business banking and * * * manager of correspondent banking. The Citizens Savings Bank in He joined Norwest in Great Falls, Gilman will hold its annual Golf Day Mont., in 1963. August 24 at the Oakland Acres Minnesota News Golf Course, west of Grinnell on U.S. Highway 6. Shotgun start will The Minnesota Metro AIB has be at noon, a cash bar cocktail hour announced sem inar topics for at 5:00, and a prime rib dinner at August. They are: 9th—Supervising 6:00. Cost is $38 for the day or the Teller Line; 10th—Understan $13.50 for cocktail party and dinner. ding Account Ownership; 16th— For more information, contact Don Customer Relations: The Tools and Arendt at the bank at (515) 498- the Motivation; 17th—Working Ef 7714. fectively with Your Supervisor. For • ^ ® • • ® more information, contact Judy Clark at (612) 338-8482. MINNEAPOLIS: Norwest Corpora tion announced on July 26 th at it will merge 12 Minnesota banks with a total of 21 banking offices into four new banks, effective August 1. The four new banks and the com m unities they will serve are: Norwest Bank Minnesota Central, N. A .—Litchfield, Sartell, Sauk Rapids, St. Cloud and St. Cloud Westwood. Norwest Bank Min n e so ta N o rth , N .A .—D u lu th , Duluth Denfeld, Duluth Miller Hill, Grand Rapids, Silver Bay and Two Harbors. Norwest Bank Minnesota South Central, N.A.—Albert Lea, Austin, Mankato and Mankato Come to the Investment Specialists committed to quality. In these times of change and uncertainty, rely on the time-tested quality invest ment recommendations of the Investment Banking Division of United Missouri Bank. A Meeting Of The Minds. At Security National Bank, our minds are on meeting all your Correspondent Banking and Investment needs. We’re Security for you! kj UNITED MISSOURI BANK Member FDIC ^ Ron Kiel Correspondent Banking Officer 712-277-6736 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Michael Moreland SECURITY NATIONAL BANK IN SIOUX CITY, IOWA. MEMBER F.D.I.C. Wee President Investments 712-277-6616 10th & Grand • P.O. Box 419226 Kansas City, Missouri 64141-6226 (816) 556-7200 4 East. Norwest Bank Minnesota Southeast, N.A.—Dodge Center, R o c h e s te r, R o c h e s te r G reen Meadows, Rochester Northside, Winona and Winona Goodview. Out of a total of 10 applications that Norwest has filed with regulators, only one awaits approval—to merge Norwest banks in Faribault and Owatonna into a new bank to be called Norwest Bank Minnesota South, N.A. M IN N E A P O L IS : D ouglas J. Strachan has been appointed senior vice president and manager of the capital markets operations and funds management operations of Securities Processing Services, Inc., a subsidiary of First Bank System. He has over 20 years of manage ment experience in information sys tems, most recently with Shearson Lehman Hutton in London, Eng- land, where he was senior vice presi dent and director of information systems. MINNEAPOLIS: John D. Taylor has been elected president and a director of the First Bank System Foundation, succeeding David G. Herzer, who retired on June 30. Mr. Taylor will serve as senior vice presi dent of community affairs for FBS, and will manage the company’s volunteer programs. He has been with FBS since 1984, and most recently was head of FBS’s metro public affairs department. Elizabeth A. Malkerson, vice president of FBS government relations, also will LOAN O FFICER TRAINEE OR FARM MGR. TR AINEE— May grad, with bachelors degree in finance. Supervisory & mgmt. work exp. with a deep ag bkgrd. Contact Mark Janzen, Rt. 1, Box 57-A, Aurora, NE 68818, (402) 737-3325. (PW) Seasoned banker/team player with hands-on exp. desires location in IA or So. M N. Position of PRESJCEO or E.V.P. with future advancement to #1. Contact File No. W N X c/o Northwestern Banker. (PW) POSITIONS AVAILABLE EX. V.P. Senior loan position in M etro bank. #2 w ill have 1 0 + yrs. commercial and mgt. experience. $68K. BANKING ■quality service by experienced professionals CANDIDATE AVAILABLE LOAN OFFICER. Employed at small bank for past year & worked at same bank full-time every summer during college. Has worked In all depts., primary duties In lending. Handles majority of ag loans (including farm inspections, cash flows & spread sheets) as well as consumer & small commercial loans (inventory), floor plans, customer calls), also handles cashier duties. Has completed first year of ag credit school. Excellent references. Interested in advancement opportunity & open to any midwestern loca tion. BA business management. $20,000, TRUST HEAD Personal trust em phasis. Super location, run show your way. JD a + , bus. development skills a must. $60K. CONTROLLER Growing financial institution, prestige pos. Strong bank accounting knowledge. On the fast track. $35K. COM MERCIAL LOAN HEAD Run departm ent of $70M + your way! Take charge of your career. Large credit exposure. $50K. COM MERCIAL LENDER Move Into the limelight. High image org. has great opening for achiever. $38K. FOR FURTHER INFORMATION CONTACT KURT ROSENCRANTS COL. GORDON E. TAYLOR Box 949 - Mason City, la. 50401 515/423-5242 Professional Auctioneer Real Estate Broker and Appraiser C olorado News BRIGHTON: John Rhoades ha^Q} been elected president and CEO of United Bank of Brighton. He has been with the bank since 1984, serv ing as senior vice president and manager of lending. His banking career spans 13 years. £ FOR SALE RECONDITIONED BRANDT Coin Sorters-Counters BRANDT Currency Counters New Warranty 402- 571-5577 WANT ADS—Rates are $5.00 per line per insertion. Add $5.00 for file letters per Insertion. Identity of file letter advertisers cannot be revealed. NORTHWESTERN BANKER, 1535 Linden Suite 201, Des Moines, Iowa 50309. Phone 515/244-8163 POSITION WANTED assume responsibility for the public affairs function. She joined FBS in 1975. • I H l :MWW ' s ROBERT HALF 317 6th Ave, Ste. 650 Des Moines, IA 50309 Jean Eden 515 - 276-1151 Sandi Garner 515 - 832-1258 Tues / Wed / Fri 525 Merle Hay Tower Des Moines, Iowa 50310 Confidential. Fees Paid by Employer. (515) 244-4414 ALL FEES COMPANY PAID POSITIONS AVAILABLE TRUST M ARKETING - large urban bank. R equires degree and tru s t expe rience. $35K D O ES YOUR BANK NEED AN INVESTMENT CENTER? Your benefits: • New high net worth customers • Added profit • Reduced deposit loss to competitors • Ability to offer complete financial services For information contact: INVESTMENT 1 -8 0 0 -5 4 4 -7 1 1 3 First Dakota Building P .O . Box 2 7 9 6 Bismarck, ND 5 8 5 0 2 or P.O. Box 6 5 6 9 7 West Des Moines, IA 5 0 2 6 5 REAL ESTATE LOAN • s in g le fa m ily re sid e n tia l and seco n dary m arket expe rience required. P ro xim ity o f m ajor m etro area. $40K LOAN REVIEW ■ large bank expe rienced required. Both ju n io r and s e n io r level p o s itio n s available. $28-$40K COM MERCIAL LENDING - V.P. p o s itio n s In urban and large subu rba n banks. Personal p o rtfo lio s fro m $20MM to $50MM. $40K BRANCH MANAGER - handle sm a ll b u siness and c o n sum er c re d its . M ed-size c o m m u n ity a ffilia te o f m ultib a n k h oldin g com pany. $24K A d d itio n a l lis tin g s fo r c o m m e rcia l le ndin g and tru s t o ffic e rs . R esum e' requested. TOM HAGAN & ASSOCIATES P.O. Box 12346/2024 S w ift N o rth Kansas C ity, MO 64116 816/474-6874 ^ 1 "Serving the Banking Industry Since 1970" Vol. 17 No. 16 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 1535 Linden Street, Suite 201, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $24.00 per year. Second class postage paid at Das Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts to Northwestern Banker, 1535 Linden St., #201, Des Moines, Iowa 50309. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis •