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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 sures: 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 bank. • Give the Fed authority to examine BHC subsidiaries. • 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 portfolio. Title V II—Credit Deregulation and Avail ability 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 nizations. 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); CALL ON THE “PERFORMANCE TEA M ” where common transactions are handled uncommonly well. Iin im H iii FIRST NATIONAL LINCOLN 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 . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis H ill Norwest Bank Des Moines, N.A. mmmmm Portable M odular Bank Building Call (515) 245-3131 or toll-free (800) 362-2514 Member FDIC NORWEST BANKS Teamwork: 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, 1983. 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. ASK D ICK R E T Z to make MNB work for you. Toll free 1- 800- 332-5991 Merchants ^ National Bank ISI Member F.D.I.C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A BANKS OF IOWA BANK • 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 nance. • 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. □ General Bank Equipment: Si Systems, Inc. RR45, Box 115 Hiway 73,3 Vz Miles North of Int. 680 Omaha, Nebraska 68152 (402)453-3000 Lease • Rent • Buy 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: 1) 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 ... Responsive... Call Mark Christen for any correspondent service. Call toll free (800) 622-7262 Valley National Bank in DES MOINES, IOWA 50304 A BANKS OF IOWA BANK Member FDIC 3 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 1956. 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 spective.” 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 wmwm https://fraser.stlouisfed.org 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 for...ag gressive, a good public relations man who makes good loans.” Married. Age: 46. Lives SD. $35,000. Call Jean. 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. Contact: 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. n_ s,91mFDlc Linda: 515/394-5827 Jean 515/263-9598 if New Hampton, la. 50659 no answer, 712/779-3567 ■ Massena, Iowa 50853 3011G4RBRS, INC. ■ J THE ORIGINAL AGRICULTURAL RECRUITER 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. AN EQUAL OPPORTUNITY EMPLOYER.________ (PA) BANKING GRADUATES FROM IOWA CENTRAL COM MUNITY COLLEGE, FORT DODGE, IOWA. Course work in 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 515/576-7201. (PW) 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. (PA) 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 (FS) BANK MICRO/MINI COMPUTER PROGRAMS—Apple (tm)/ 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 (FS) SKI TH E SU M M IT One, two and three bedroom units for sale or rent. Most with hot tubs. Phone 1-800/922-2590. Dwayne Smith PARADISE PROPERTIES Box S Dillon, Colorado 80435 BANKING 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. BANK SALES AND PURCHASES EDDIE A. WOLF 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. BANKING PLACEMENTS “ 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. WANT TO BUY 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). (WTB) CORRESPONDENT BANKER 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. F & M MARQUETTE NATIONAL BANK 6th & Marquette Minneapolis, MN 55480 Affirmative Action Employer (PA) POSITIONS AVAILABLE 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 PROFESSIONAL RECRUITERS, INC 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 COMMERCIAL LOAN OFFICER— Due to exceptional 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. (PA) SENIOR VICE PRESIDENT OF LOANS. #2 position at Uni 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. (PA) 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. (PA) 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 312/584-5757. (PA) Commercial Lender w ith over 10 years experience in major market banks. Excellent background in documentation and financial statement analysis................. Salary $38,000 TOM HAGAN & ASSOCIATES 2508 East Meadow • Springfield, Missouri 65804 417/882-2265 COMPLETELY CONFIDENTIAL ___________ “ E m ploym ent Service” P.O. Box 12346 - 2024 Swift North Kansas City, MO 64116 816/474-6874 “ 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. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis