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Vol. 12 No. 46

Des Moines, Iowa

March 5,1984

Gara and Proxmire Proposals Analyzed
N THE January issue of The ding FDIC insurance to the definition of a
the Conference of bank, subject to several exceptions, one of
which would establish a new class of non­
State Bank Supervisors monthly bank subsidiary, the “ consumer bank.”
publication, members and associate
The “ consumer bank” is defined as a non­
members were given a detailed anal­ bank subsidiary which would be a bank but
ysis of two Congressional banking for the fact that it does not make commercial
proposals. The following is an ex­ loans. This asset-side restriction does not
mean much, however, since the bill .defines
cerpt from that issue.
“ commercial loans” narrowly. It does so by
The many legislative packages in­ excluding a long list of loans which do not fall
troduced in the Congress late last in the commercial loan category for purposes
session run the gamut from mora­ of the Bank Holding Company Act and al­
lows consumer banks a five percent of assets
toria to omnibus bills. Two senior basket of credit to finance inventory of
legislators—Congressman Fernand natural persons, small business loans, and
St Germain (D-RI) and Senator John “ similar loans.” While the language limiting
Heinz (R-PA)—have recommended geographic location is unprecise and there­
m oratorium s on m ajor banking fore subject to interpretation, it appears that
interstate acquisition of such banks would be
change while the Congress considers limited to those states in which the interstate
such issues as Glass-Steagall and acquisition of a consumer bank, industrial
geographic restraints in detail. Sen­ bank, Morris Plan bank, industrial loan com­
ator E.J. “ Jake” Garn (R-UT) on the pany or similar intitution is “ specifically
authorized by the statute law of the state.”
other hand, prefers an “ om nibus”
• Allow added permissible activities for
approach, through which the Con­ BHC’s to include activities of a financial
gress and the affected industries nature, and, specifically, securities, in­
would hammer out a compromise surance, and real estate activities including
consensus. In the middle is Senator insurance underwriting and brokerage and
real estate investment, development, and
William Proxmire (D-W I), offering a brokerage up to five percent of capital.
lim ited package o f new powers.
• Preempt state authority to prohibit
Because the Gara and Proxmire otherwise permissible non-bank activities of
proposals offer concrete starting BHCs within their borders.
a new class of securities affiliate
points for a debate on change, both for• Create
BHCs, with authority to deal in and
bills assume m ajor importance. Fol­ underwrite state and municipal revenue
lowing is an analysis o f both mea­ bonds, operate an investment company and
deal in the securities of an investment com­

I Supervisor,

S. 2181—The Financial Services Com­
petitive Equity Act (Garn)
Title I—Financial In stitu tion s Com­
petitive Equity
This title would:
• Close the non-bank bank loophole by ad­

pany and in promissory notes secured by real
estate mortgages.
• Provide streamlined procedures for for­
mation of a BHC through what essentially
would amount to a one-for-one exchange of
stock by the shareholders of the existing

• Give the Fed authority to examine BHC
• Restrict the use of bank service corpora­
tions, limiting them to general routine pro­
cessing functions, such as check and deposit­
sorting and posting. There would be a grand­
father clause as of July 1, 1983.
Title III—Bankers Banks
This title would expand the authority of
bankers banks, allowing provision of services
not only to the banks which own the entities
but to the holding companies of such bank
owners, and to any subsidiary of the BHC.
Title IV—Competitive Savings Incentive
This title would require the Federal Reserve
to pay monthly interest on reserves held
against money market deposit accounts,
Super NOW accounts, and any new transac­
tion accounts authorized by DIDC, at the rate
earned that month by the Fed on its securities
Title V II—Credit Deregulation and Avail­
This title would preempt state interest rate
ceilings on business, agricultural, and con­
sumer credit loans, but allow states a threeyear period to override the preemption, in
whole or in part, by explicit state legislation or
certification that voters of the state have
adopted a provision to that affect.
Title V III—Interest on Demand Deposits
This title would eliminate statutory prohibi­
tions on the payment of interest on demand
deposits, and empower DIDC to establish
maximum rates and rules; it would go into ef­
fect 180 days after enactment. The title also
would allow NOW accounts for political orga­
Title X —Interstate Banking
This title would remove the consti­
tutionality question concerning state recipro­
cal laws under the Douglas Amendment by (a)
allowing national banks to branch across state
lines to the same extent state chartered banks
may; (b) allowing states to “ condition” out-ofstate holding company entry—such as by a
geographic location test (i.e., New England);

where common transactions
are handled uncommonly well.

Iin im

H iii

13th & M S tre e t • L in c o ln , N e b ra s k a 68501 • M e m b e r, F .D .I.C .
Federal Reserve Bank of St. Louis


Norwest Bank Des Moines, N.A.


Portable M odular Bank Building

Call (515) 245-3131 or toll-free (800) 362-2514
Member FDIC


one of the reasons
we're first in Iowa.
Mark Conway

Bernie Kersey
and (c) extending interstate S&L branching
where it is authorized by state law. There is a
five year sunset provision.
S. 2134—Depository Institutions Holding
Company Act Amendments of 1964 (Proxmire)
This legislation would:
• Close the non-bank bank loophole by ad­
ding to the definition of a bank those institu­
tions with FDIC insurance or eligible for
FDIC insurance. It would provide an excep­
tion for thrifts and trust companies and in­
clude a grandfather clause as of June 23,
Unlike the Garn bill, it does not provide for
consumer banks nor does it restrict the cur­
rent definition of commercial loans.
• Provide for streamlined BHC formation
like the Garn bill.
• Preclude state-chartered non-member
banks from performing non-bank activities
not on the Fed’s laundry list unless they were
done pursuant to a state statute prior to Jan­
uary 1,1983, or were undertaken on an intra­
state basis only pursuant to a state statute
passed after that date.

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work for you.
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1- 800- 332-5991

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Member F.D.I.C.
Federal Reserve Bank of St. Louis


• Bring state-chartered nonmember banks
under the provisions of Glass-Steagall which
separate banks and the securities business.
At the same time, allow bank holding com­
panies to underwrite and deal in municipal
revenue bonds through an affiliate separate
from the bank.
• Allow BHCs to offer mutual funds to
their customers. A securities affiliate could
direct, operate or advise a closed end invest­
ment fund.
• Stop nonfinancial firms from buying sav­
ings and loan associations unless the S&L
was operated independently from the parent,
and retained a commitment to housing fi­
• Eliminate the “ proper incident test” for
the Fed laundry list, and streamline review
procedures under the BHC Act, making it
easier for BHCs to operate legal activities.
Among other elements, the 30-day period re­
quired for waiting after a Board approved
merger into or acquisition of a non-bank enti­
ty could be waived by the Board, with the ap­
proval of the Attorney General.

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Hiway 73,3 Vz Miles North of Int. 680
Omaha, Nebraska 68152

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2) Authorize savings and loan as­
sociations, savings banks, and cred­
it unions to act as depositories for
public funds.
3) Authorize any bank holding
com pany located in M issouri, Kan­
sas, Illinois, W isconsin, Minnesota,
South Dakota, North Dakota or Ne­
braska to acquire Iowa banks if the
Iowa News
law o f the state in which the holding
The Commerce Committee o f the com pany is located perm its an Iowa
Iowa Senate has recommended an bank holding com pany to acquire
omnibus bill, which among other banks in that state.
4) Increase the holding com pany
things would authorize interstate
banking on a reciprocal basis within concentration lim itations from the
present maximums o f 8% o f bank
a nine-state “ midwestern” region.
A t a m eeting held on Thursday, deposits and 8% o f savings and loan
February 23, the Committee voted 6 deposits, to 10% o f bank deposits
to 3 with one member absent, to re­ and 10% o f savings and loan and
commend for passage a subcommit- savings bank deposits.
5) Authorize credit unions char­
tee-drafted proposal containing five
tered in another state to do business
objectives. They are:
Repeal o f the state sinkingin Iowa if the laws o f that state per­
fund, and require depositories of mit Iowa-chartered credit unions to
public funds to pledge securities or do business there.
The Iowa Bankers Association
obtain a corporate surety bond to
cover deposits that are in excess o f supports passage o f the bill. The
Iowa Independent Bankers oppose
federal deposit insurance coverage.

Professional ...
Call Mark Christen for
any correspondent service.
Call toll free (800) 622-7262

Valley National Bank in


Member FDIC


any form o f interstate banking.
Floor debate on this bill is ex­
pected Tuesday or W ednesday o f
this week.
O AK LAN D: Raym ond L. Graalfs
has been appointed president o f Citi­
zens State Bank. He succeeds Roy
E. Paradise, who has becom e presi­
dent o f Citizens Bank o f Ava, Mo.
Mr. Graalfs has spent his entire
hanking career with State Bank &
Trust o f Council Bluffs, starting in

Nebraska News

Illinois News

Montana News

ALLIAN CE: Robert E. Knight,
president o f Alliance National Bank
and Trust Company was recently
named chairman, succeeding his
father, the late Edward H. Knight.
Mr. Knight returned to Alliance in
1979 to becom e president, after an
11-year career with the Federal Re­
serve Bank o f Kansas City.

CHICAGO: Roger E. Anderson,
chairman and chief executive officer
o f Continental Illinois Corp., will
take early retirement. Mr. Ander­
son, 62, has headed the com pany
since 1973. David G. Taylor, vice
chairman, was named to succeed
Mr. Anderson. Edward S. Bottum ,
executive vice president, was named
president, succeeding John H. Per­
kins, who had previously announced
his retirement at the annual meet­
ing. Mr. Taylor joined the com pany
in 1957 and Mr. Bottum in 1959.

K ALISPELL: Robert T. Gerhardt
has been elected chairman and chief
executive officer o f First Interstate
Bank o f Kalispell. He succeeds
Harry E. Lattin, who recently re­
signed. Mr. Gerhardt spent nearly
20 years at First Interstate Bank o f
Oregon, m ost recently as senior vice
president in charge o f 29 branches in
the northwest part o f the state.

M ILLA R D : Preliminary approval
has been given by the Comptroller o f
the Currency to a group o f Omaha
investors to open a new national
bank in Millard. The proposed bank,
First Continental National Bank,
will be located at 138th St. and S.
Plaza. Cheron Beran, former presi­
dent o f the Ashland State Bank, will
serve as president o f the new bank,
which is expected to open this spring
or summer. H arold Cooperman,
owner o f the No Frills Supermarkets
and a real estate developer from
Omaha, will serve as chairman. The
bank will em ploy seven people and
start with $2 m illion in capital.

Minnesota News
M IN N EAPOLIS: Lawrence Ander­
son has been appointed president
and chief executive officer o f Mar­
quette National Bank. Mr. Ander­
son joined the bank as executive
vice president in 1979, follow ing a
number o f years with M arquette Na­
tional Bank o f Minneapolis and
Bank Shares, Inc.

Wisconsin News
The W isconsin Bankers A ssocia­
tion announced recently that it will
conduct a study o f interstate bank­
ing issues from “ a W isconsin per­
The W B A action followed a legis­
lative com m ittee vote that in effect
killed an interstate banking bill for
the current session o f the Legisla­
ture and a statement from Assem bly
Speaker Thomas L oftus, D-Sun
Prairie, that he might ask for a Leg­
islative Council study on the issue.
William J. M orrisey, president of
the W B A and the Independence
Bank o f Elkhom , said the W B A
task force would include representa­
tion from “ all areas, philosophies
and structures among banking in
W isconsin.”

An important new profit center
for your bank:

a com puterized
local b illin ^ c re d it service

Federal Reserve Bank of St. Louis

NWM-1 AG LOAN OFFICER— Five yrs. exp. as ag loan
officer for life ins. co. S olicits applications for first
mortgages, long term loans, complete appraisals,
cash flow s and tax evaluations. Manages complete
loan portfolio of $40MM. Exceptional appearance, per­
sonality & attitude. M.S. Ag Bus. Married. Age: 31.
Lives IA. $33,000. Call Jean.
NWM-2 VP—Currently VP in $40MM bank in charge of
$24 MM in loans, $18 MM are ag loans. Supervises 5
loan officers...hires, fires, etc. Reference says, “ Con­
genial, honest and hard working, good to work­
gressive, a good public relations man who makes
good loans.” Married. Age: 46. Lives SD. $35,000. Call
NWM-3 AG LENDER—Four yrs. w ith small ($7MM) ag
bank as ag & consumer lender. Responsible for insur­
ance agency along w ith other facets o f banking. Life/
Accident & Health ins. licenses. AA Ag Banking. Mar­
ried. Age: 24. Lives IA. $25,000. Call Linda.
NWM-4 AG LOAN OFFICER—4 yrs. w ith farm credit
system. Responsible fo r all phases of loans from ap­
plication, appraisal to closing. Makes an excellent
personal impression. M.S. Ag Econ. Married. Age: 28.
Lives MN. $25,000. Call Linda.
NWM-5 AG LENDING TRAINEE— Now selling life in­
surance, ISU Marketing degree, farm raised. Single.
Age: 23. Lives IA. $12-15,000. Call Linda.
NWM-6 AG LENDER— Reference says, “ Good at ag
credit analysis...excellent employee...good w ith peo­
ple...very adaptable.” Nine years banking exp. w ith
7% yrs. as a loan officer w ith strong emphasis in ag
and heavy exposure to work out situations. Degree.
Single. Age: 34. Lives ND...Likes Western States.
$28-29,000. Call Linda.
NWM-7 CEO’s—Several very good presidents of
banks ranging in size from $15 to $36 M illion. Extreme
confidentiality required. Call Linda or Jean.


Leroy Bell or
Milt Hennick
319 291-5412

N a tio n a l B an k o f W a te rlo o
315 East 5th St. • Waterloo, IA 50704

Ag Banking Personnel
Let us help you. Call the ag lending personnel
specialists without cost or obligation. Confi­
dential. Employers pays us to hire the best.



Linda: 515/394-5827
Jean 515/263-9598 if
New Hampton, la. 50659 no answer, 712/779-3567
Massena, Iowa 50853

3011G4RBRS, INC.

Bankers Available
President of $400 m illion bank with top credentials and
references, MBA in Business Management, Loan Portfolio
over $200 m illio n ...................................... Salary negotiable
Senior Executive in $150 m illion bank, Experienced in all
phases of lending, trust and investments. Master’s degree
..................................................................................... $48,000
CEO, 47, now running a $25 m illion com m unity bank. Ex­
cellent earnings record and references___ Salary $45,000
Commercial Lender w ith 15 years experience. Now senior
vice president and trust officer in $50 m illion bank............
............................................................................Salary $43,000
EXPERIENCED TRUST OFFICER to form and head a trust
department in a $200 m illion financial institution. Position
requires law degree w ith approximately 5 years experi­
ence in all phases of trust services. Applicants should be
aggressive and personable in order to be considered. Ex­
cellent benefits and salary commensurate w ith experi­
ence. Send resume, salary history and requirements to file
WAH, c/o Northwestern Banker. All inquiries confidential.

cludes: AIB and other courses pertinent to banking plus a
sumer on-the-job training session in a bank. Students earn
67 semester hours which leads to an Associate of Applied
Science Degree. Contact the Placement Office or Forrest
B. Johnson, Banking Coordinator, Iowa Central Communi­
ty College, 330 Avenue M, Fort Dodge, Iowa 50501. Phone

EDP AUDITOR needed to establish EDP audit functions in
$1 billion bank. Degree required plus a minimum of three
years experience in auditing/data processing CPA desir­
able. To $26,000. An Equal Opportunity Employer. Write
file WAK, c/o Northwestern Banker.

BANK PRESIDENT for $36 million suburban bank. Experi­
enced in total bank management, asset liability manage­
ment, advertising, loans, investments and marketing.
Send resume and salary requirements to: Midwest Finan­
cial Management Corp., attention: M.J. Rooney, 1702 1st
National Bank Building, 13th & M Sts., Lincoln, NE 68508.
_______________________________________________ (PA)
IMMEDIATE OPENING—$50 m illion west central Minne­
sota bank seeks Senior Loan Officer experienced in com­
mercial and agricultural loans. Must have good references
and administrative ability. Salary commensurate w ith ex­
perience. Contact Paul W. Gandrud, Pres., Swift County
Bank, Box 289, Benson, MN 56215. Phone 612/843-4411. (PA)

Sr. Ag Lender with 11 years banking experience in $40
million community bank, Iowa State graduate - 45 - married.
Excellent personality....................................... Salary $32,000
CPA/ Bank Auditor, College graduate in accounting/Magna
Cum Laude...................................................................$24,000
Jr. Ag Lender with outstanding school and community
record, Graduate of Iowa State University, Married to R.N...
....................................................................................... $23,000
Installment Lender with both banking and finance company
experience. Serious minded, business-like.. .Salary $25,000
Operations and Accounting Officer, Graduate in accounting
from University of Wisconsin. Over 19 years bank experience
...........................................................................Salary $28,000

TWO (2) NCR 796-301 CRT’s. Eligible for maintenance. In
excellent condition. Call Scott Forte at (512) 250-0794. (FS)
PITNEY BOWES MODEL 5640 MAILING MACHINE. Excellent condition. Call Jody Bailey (512) 250-0794
IBM-PC/Franklin Ace and other micro computers. We are
distributors for over 55 bank programs. Send/Call for com­
plete list. Phone 308/384-5995. Bankers Electronic Equip­
ment Inc., 380 N. Walnut, Grand Island N E 68801

One, two and three bedroom units for
sale or rent. Most with hot tubs.
Phone 1-800/922-2590.
Dwayne Smith
Box S
Dillon, Colorado 80435

CEO NW WY-Good recreational area nea ski re­
sorts, community of 3,000, $35K.
CEO West Central lA-Part of a growing organiza­
tion, small town near county seat, $35K.
SR. V.P. Central Iowa, near college town; to head
$7mm + bank loan dept., $30-35K.

Eddie Wolf Bank Sales
7202 Maple Drive, Des Moines, la. 50322
Phone: 515/278-2271

AG LENDER N.E. CO, Retail Lender N.E. CO. Rural
bank near Denver, CO, $15-24K.
AG LENDER IA metro area, part o f progressive,
expanding holding company, 1-3 yrs. ag lending
experience, $21-25K.
AG LENDER, Metro Area, Open
A.V.P. S.E. KS, Cashier and lending duties $25-30K.
A.V.P. Lending O fficer E. NE, 10 miles from metro
college town, good potential for rapid advance­
ment $25-28K.

“ Successful Banking is Quality Personnel”
Eighteen years banking experience serving as
president o f rural and m e tro po lita n banks enables
me to fin d the “ rig h t” banking p o s itio n fo r you as a
banker o r the “ rig h t” o ffic e r fo r yo ur bank.

Investment Officer in major market bank, 10 years ex­
perience, proven track record. TOP references......................
........................................................................... Salary $45,000
If you have an interest in one or more of the above ap­
plicants, Write or call Malcolm Freeland c/o Freeland Finan­
cial Service, Inc., 1032 Carriers Bldg., Des Moines, Iowa
50309. Phone 515/282-6462. Employer pays modest fee.
Please let us know your needs, since this is only a partial list
of our bankers available.

NCR 279 TELLER MACHINES. W ill purchase large groups
pf 279’s. Call Teresa George for a bid. 1-800/531-5036. (in
Texas 800-252-3402).

We are looking for someone with 3-5 years of com­
mercial lending experience to work in our corre­
spondent bank area. Additional requirements are
correspondent banking experience (or extensive
AG lending experience) and a college degree with
at least 1 year of accounting. For more inform a­
tion phone Mary Nerhaugen 612/341-6579.

6th & Marquette
Minneapolis, MN 55480
Affirmative Action Employer


PRESIDENT - ideal candidate w ill have current ad­
m inistrative experience as a #1 officer in a $30MM to
$50MM community bank. Superior Agrilending skills and
some knowledge o f operations is required. The position is
located in rural western Missouri.
$$ Open.
REGIONAL MANAGER - progressive, growing company
that provides a service to large financial institutions is
seeking a general manager for their midwest region, head­
quartered in Kansas City. Prefer an MBA with sales and
managerial experience.
Salary $40 to $60K
Interested parties should contact Linda Smith. All in­
quiries are confidential.

Call or send resume In confidence to: Barbara J. Rltta
6818 Grover Street
Omaha, NE 68106
Phone 402/397-2885

Planning and Development Specialist for $150 m illion
bank, experience plus Master’s D egree... .Salary $38,000

CEO of $16 million bank. Iowa State Master’s Degree. True
bottom line manager with earnings record to prove i t ..........
............................................................................Salary $40,000

growth, we have an immediate opening for a commercial
loan officer. Individual to be responsible for all commer­
cial/agri lending, directly accountable to sr. lending o ffi­
cer. Additional lending experience a plus. Salary commen­
surate w ith experience. Send resume to: Roger A. Wichelman, P.O. Box 85, Waconia, MN 55387.

versity Bank & Trust Co., Ames, Iowa. Immediate opening.
Contact Bob Grathwohl, President. University Bank &
Trust Co. P.O. Box 1066 Welch Ave. Station Ames, Iowa
50010. Phone 515/292-7475.

Young CEO running $15 m illion bank. Heavily ag-oriented
proven record in lending. Iowa State Graduate, seeks
Number One or Number Two position or Senior Ag posi­
tion with larger bank....................................... Salary $38,000

CEO of $11 million bank. Excellent record. Master’s Degree
from Iowa State. Seeks position in larger bank or multi-bank
network. Fine personality and references___ Salary $40,000

BRANCH OFFICER— Position requires knowledge in all
areas of lending w ith emphasis in commercial/agri lend­
ing. Position w ill require full responsibility of branch op­
erations and business development. Salary commensu­
rate w ith experience. Send resume to: Roger A. Wichelman, P.O. Box 85, Waconia, MN. 55387.

MANAGEMENT CONSULTING F IR M -d e a lin g extensively
w ith banks has Immediate openings for entry level indivi­
duals. Seek applications w ith 1-2 years bank examination
or bank operations background. Excellent advancement
and income potential. Extensive travel required. Contact
Austin Lawler, President, Austin T. Lawler & Associates,
40W 274 Winchester Way, St. Charles, IL 50174. Phone

Commercial Lender w ith over 10 years experience in major
market banks. Excellent background in documentation
and financial statement analysis................. Salary $38,000

2508 East Meadow • Springfield, Missouri 65804
___________ “ E m ploym ent Service”

P.O. Box 12346 - 2024 Swift
North Kansas City, MO 64116
“ Serving the Banking Industry Since 1970”

Vol. 12 No. 46 Northwestern Banker Newsletter (USPS 873-300) is published weekly by the Northwestern Banker Company, 306
Fifteenth Street, Des Moines, Iowa 50309, (515) 244-8163. Subscriptions $1.00 per copy, $18.00 per year. Second class postage paid at
Des Moines, Iowa. Address all mail subscriptions, changes of address (Form 3579), manuscripts, mail items to above address.
Federal Reserve Bank of St. Louis