View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

•

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

•