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Vol. 15 No. 5 Des Moines, Iowa Washington Works in Strange Ways By BEN HALLER, JR. Publisher OWER is the name of the game P in Washington and the pursuit and/or exercise of it is a science that leads to the sweet smell of success or the frustrations of defeat. Often, one or more of the victims or partici pants are innocent bystanders. Two such scenarios are being scripted in the nation’s capital at this time. The two federal hanking regula tors, the Comptroller of the Curren cy and the FDIC, are being targeted by the powerful Office of Manage ment and Budget, an arm of the White House, for inclusion under the provisions of the Gramm-Rudman-Hollings Law enacted by Con gress earlier to force a balanced budget. OMB wants a say-so over how much the OCC and FDIC spend each quarter, just as it does with taxpayer-supported agencies. The catch is that OCC and FDIC are not taxpayer supported, but receive their funds from the banks they regulate. By subjecting the agencies to rules applied to tax-supported agencies, OMB would automatically control the number of examiners and the amount of money each agency could spend in a quarter, despite what the demands of any emergency might be—such as bank closings. During a visit to Washington last month, an OCC official told us the agency had to close three banks over one weekend. Those actions exceed ed the budget that OMB felt OCC was constrained to follow, so OMB instituted criminal proceedings! “The money continues to come in” from bank assessments, the official stated, “but we can’t spend 4.3% of it in 1986 and OMB is telling us we can’t spend 15% of these assess ments in 1987. If we aren’t removed from Gramm-Rudman by 1987 we’ll have to cut staff—and 90% of our budget is spent on personnel and travel.” The OCC official went on to say, “Three years ago we had 3,300 peo ple. That was cut back to 2,700. We had a hiring freeze imposed about four years ago and we now have 2,600 personnel with a ceiling of 2,850; yet we have 200 problem banks and one failure right now to deal with. You can see the effects of that freeze of four years ago, and this threat will do the same four years from now. This is an appren tice business. We take people in and keep moving them up with training and experience. “We experience a 17% turnover, compared to 3% for the rest of gov ernment. We’re losing examiners to May 19,1986 the Bank Board (FHLBB), for exam ple, where they get a $5,000 raise up front and offer higher levels to rise to.” He concluded his comments by saying, “OMB suggested a cut in our travel expenses. We had to ex plain that bankers don’t come to us, we have to go to them!” FDIC is in the same position and officials at that agency are having their share of discussions trying to convince them that OMB should not be tinkering with non-taxpayer sup ported agencies that are obligated to assure the safety and soundness of the banking system. Adding to their frustration is that the Federal Reserve is exempt! Who are the best allies OCC and FDIC can probably get to speak on their behalf? Probably the banks themselves. Sen. Phil Gramm, a co author of the bill, said the OMB’s action with OCC and FDIC was not intended and he will introduce legis lation to make that part of the Act clear. The banking lobby itself is a player in the second scenario, which involves the tax revision package that would eliminate deductibility of IRA contributions for those workers who have company pensions, al though interest earned would still be tax-deferred. Banks have won their battle to retain the loan loss provi sion and other points important to them. If they launch an all-out war on the IRA section at this time, they stand to lose the gains they made Call on the “ Experienced Professionals” Ready to meet your correspondent needs. FirsTierBank Lincoln 13th & M Streets, Lincoln, Nebraska 68501 ____________ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Firsfier Bank, N.A., Lincoln, Member FDIC 2 and King, Reinsch, Prosser & Co., CPAs of Sioux City, are holding a joint senior bank management seminar, Wednesday, June 11 at the Lodge at Okoboji. The seminar, for bank CEOs and senior credit of ficers, will cover loan workouts, monitoring loan portfolio risks, loan loss reserved planning, and more. For more information, contact Bank Loan Management Inc. at (712) 7583660 or King, Reinsch, Prosser & Co., CPAs at (712) 258-5550. earlier. In the meantime, the Invest ment Institute of America and the general public has taken up the fight to retain full IRA deductibility dir ectly with their Congressmen. Banks stand to lose billions of depo sits if IRA contributions are not deductible, but find themselves in a crossfire. □ B of A Economist Named For Federal Reserve Post President Ronald Reagan has nominated H. Robert Heller for the vacancy on the Federal Reserve Sys tem Board of Governors created by the resignation in April of Vice Chairman Preston Martin. That term runs until 1986. Governor Manuel Johnson has been nomi nated to be vice chairman. , Mr. Heller, 46, is a native of Co logne, Germany. He was educated at Parsons Collge, Fairfield, la.; the University of Iowa and the Universi ty of California at Berkeley. He taught economics at UCLA and the University of Hawaii from 1965 to 1974. He was chief of financial studies at the International Moneta ry Fund from 1974-78, then joined Bank of America as senior vice president and director of interna tional economic research, the posi tion he holds now. If his nomination is confirmed, Mr. Heller would be the fifth Reagan appointee to the seven-member Fed eral Reserve Board. Iowa News ASK DENNIS EARHART to make MNB work for you. Toll free 1- 800- 332-5991 M erchants ^ National B ank 151 Member F.D.I.C. A BANKS OF IOWA BANK https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Iowa Bankers Association will hold its 1986 Iowa Young Ban kers Conference, “Commitment to Tomorrow,” June 3-4 at the Hotel Fort Des Moines. The conference will concentrate on helping mid management bankers become more efficient and productive. Advanced registration is $150 for members, $190 for subscribers, $225 for non members, and $120 for spouses. At the door registration is $20 addi tional. Register through the IB A of fice. * * * TREYNOR: Eugene W. Young has been promoted to vice president of operations and cashier, and Richard Saar to vice president of lending at Treynor State Bank. Mr. Young was previously cashier at the bank. Mr. Saar was promoted from assistant vice president. • • • Nebraska News H. L. “Bud” Gerhart, Jr., president and CEO of the First National Bank of Newman Grove, has been elected a Class A director of the Federal Reserve Bank of Kansas Ci ty. He will complete the term of Wayne D. Angell, which expires December 31, 1986. Mr. Angell was appointed in February by President Reagan to serve on the Federal Reserve System Board of Governors in Washington, D.C. Mr. Gerhart was graduated from the University of Nebraska—Lincoln in 1950 with a business degree. He joined his father at First National Bank in 1953 as vice president and cashier and has been president since 1968. * * * Capital Forbearance/Clear Title workshops sponsored by the Neb raska Bankers Association and con ducted by FDIC and Comptroller of the Currency representatives will begin this week in a series of five Bank Loan Management, Inc., locations, running from 9:30 a.m. to consultant to bankers of Ocheyedan, 3:30 p.m. Dates and locations are: I t's easier to talk Iowa banking with people who live it — people like Brad Hansen and the corre spondent staff at Bankers Trust. Call 1-800-362-1688 or 515/245-2424. Bankers Trust Des Moines, IA Member FDIC • Brad Hansen Assistant Vice President ^ ^ a £ 0 0 • Monitoring your customers' loan activity is vital to your bank. But maintaining accurate, up-to-date information on financing arranged by ^ them through your competitors is nearly impossible. Unless you sub scribe to Iowa Public Records Search’s Loan Activity Bulletin. The Loan Bulletin is a twice# monthly report of all the loan activity in your county, and every county https://fraser.stlouisfed.org important to you. Each report con Federal Reserve Bank of St. Louis tains all liens filed with the Secretary of State; the name of debtor; secured party; file num ber; and the date and hour of filing. And the price is right, too — as low as $12.50 per county, per month. To order, or for information on our other search services (telephone searches, judgment searches, bank ruptcy searches, and more), give us a call. We’re Iowa Public Records Search. We’ll follow your loan cus tomers everywhere. IOWA ^ PUBLIC RECORDS SEARCH, INC. # 2 C o rp o ra te P lace 1501 4 2 n d S t r e e t W e s t D e s M o in e s , Io w a 5 0 2 6 5 Telephone (5 1 5 ) 223-1153 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis May 20—Scottsbluff Country Club; May 21—North Platte Stockman Inn; May 22—Kearney Ramada Inn; June 3—Norfolk Villa Inn, and June 4—Lincoln Hilton. * * * 3 ThereJ s A Difference In Banks... For Professional Correspondent Service Call 1-800-622-7262 The Iowa-Nebraska chapter of the Bank Marketing Association has elected its officers and directors. Those elected are: Pam Hunzeker, president; Stan Wirth, first vice president; Randy Sheden, second vice president; Nadine McHenry, secretary; Phyllis Otto, treasurer, and Don Slifer, Marlene Ahrenholz, Becky Jenkins, Mary White, D. Dwaine Penner, Jodi Mahlberg and Cathy Miller, board members. H. PETER De ROSIER Vice President Valley National Bank « Main Office-Sixth and Walnut D ES M OINES, IOWA 50304 president. George Akers joined FirsTier Mortgage in 1981 as super visor in loan administration. Kevin McDermott came to the company this year in the finance and opera FREMONT: The board of the Amer tions department. ican National Bank of Fremont has elected Douglas L. Heim as acting president and CEO. He formerly was executive vice president and Minnesota News head of the bank’s loan division. The Minnesota Bankers Associa tion has announced the appointment NORFOLK: Raymond H. Tiedje has of Ray Murray as MBA finance dir resigned as president at Bank of ector. Mr. Murray is a certified Norfolk, effective June 1, to become public accountant and a former president and CEO of the Founders senior staff accountant for Touche Bank of Arizona, which has received Ross and Co. in Minneapolis. He has a state charter to be located in the 10 years experience in both public Gainey Ranch Financial Center com and private accounting. plex in the Phoenix-Scottsdale area. It is awaiting FDIC approval. Lyle Campbell of Downers Grove, 111., M I N N E A P O L I S : Richard B. chairman of 11 Illinois banks, heads Huart, Leonard P. Kiskis, Lucy W. a group of investors organizing the Mattson and Duane C. Ostlund have bank with $7 million capital. He will been promted to vice president at be chairman of the Founders Bank. First Bank Minneapolis. Mr. Huart Mr. Tiedje joined Bank of Norfolk had been assistant vice president in 15 years ago, shortly after its open ing, and has guided its growth from $2 million to more than $37 million. A BANKS OF IOWA BANK Member FDIC the executive and professional bank ing division/professional banking I since joining the bank in 1983. Mr. Kiskis had been assistant vice presi dent since 1984. Ms. Mattson had been assistant vice president in the business owners section since 1983. Mr. Ostlund had been assistant vice president in the personal hanking di vision since 1983. Illinois News SKOKIE: Roger Sadler has joined First National Bank of Skokie as vice president in the commercial loan department. Wisconsin News SHEBOYGAN: First Interstate Corporation has announced the Federal Reserve Board has ap proved the acquisition of Outagamie Bank Shares, Inc., Appleton, by First Interstate. Inquire about FLEX^O-PAY® OMAHA: Three have been promoted to vice presidents at FirsTier Mort gage Company. Gary Rifkin joined the company in 1983 as second vice Estate Appraisals Purchase of Collections 1-800-772-2411 ■ generates additional income from present staff and equipment WRITE: ■ means of increasing your local commercial business ■ plan developed by bankers for bankers LeRoy Bell The National Bank of Waterloo RO. Box 90, Waterloo, IA 50704 Sale o f Rare Coins Magnum Vault Doors R eliab le and respected service for over 20 years Ship from stock - Two on display in our showroom Used by bankers throughout the midwest é CALL: ■ a computerized billing/credit system The industry’s highest quality and the industry’s lowest cost Bankers Security—Safe and Vault 9906 A E. 53rd St. Raytown, MO 64133 816-358-0883 Ben E. Marlenee Coins 913 Locust Des Moines, Iowa 50309 515-243-8064 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Planning for future development and other management services SW ORDS ASSOCIATES. INC. PROFESSIONAL BANKING CONSULTANTS 4900 OAK SUITE 301 KANSAS CITY, MO 64112 (816) 753-7440 4 POSITION AVAILABLE czHotdsx and c^dfï,±oaLat£,6, COMMERCIAL LENDERS EXECUTIVE VICE PRESIDENT Bank Consultants Positions now available in three choice locations in Upper Midwest. Require minimum of 3 years experience and col lege degree. Salary to range from $35,000 to $60,000. $50M bank. Overall bank functions. 10 plus years of experience. Implement, develop, supervise, and document bank policies. Position leads to PRES/ CEO. Send resume to File No. WFJ c/o North western Banker. TRUST ADMINISTRATOR AND FINANCIAL PLANNER for $160M department in $200M bank. College degree and Fi nancial Planning designation required. Prefer minimum of two years experience. Send resume, including salary re quirements to File #WFN c/o Northwestern Banker. Equal Opportunity Employer. (PA) POSITION AVAILABLE COMMERCIAL LENDER Tired of being to ld — “ Be patient” ? Do your abilities deserve greater potential? Why starve? We have m ultiple commercial lending positions available through Minne sota including the metro area. If you have one to five years commercial lending experience, get your career moving! $30-45,000 Call Paul Gentzkow (612) 339-9001 1 M1 M H1 <9 ROBKRT MHIJF 3636 IDS Center Minneapolis, MN 55402 (612) 339-9001 POSITIONS AVAILABLE EVP - For East Central Iowa, $40M bank. Needs 7-10 years of bank operations exp. Highly promotable. To $45K. SENIOR LENDERS • For Central Nebraska bank. Need exp. in ag lending. To $45K. CEO - for small E. Central Iowa bank. Ag exp. is essential. To $50K. LOAN REVIEW OFFICER • For Omaha banks. Need 3-5 years loan exp., either comm, or ag. Some travel involved. To $35K. All fees are paid by our client employers. Richard L. Beam, CPC QUMBERT EXECUTIVE EXCHANGE, INC. 11246 Davenport Street Omaha, NE 68154 Phone: 402/330-3260 Member National Personnel Associates We're Nationwide Serving bankers quietly and efficiently. CAPITAL PERSONNEL SERVICE 714 First Interstate Bank Building Des Moines, Iowa 50309 515-283-2545 POSITIONS AVAILABLE COMMERCIAL LENDER Aggressive bk located in metro area seeks comm’l lender who has handled $6m + portfolio. W ill work w/ag comm’l and retail comm’l in a $80m + bank. Must have 2 + y rs o f lending exp in $50+ environmt. $32K. AG LOAN OFFICER Growing bk in excel recreational area seeks qualified ag lender w /3 + yrs ag lending and farm exp. Cash flows, FHA’s & statement analysis knowledge are important.$2530K. CEO $45 bk in strong ag area seeks proven, hard nosed pro w /3+ yrs as pres of rural bk. Must have skills in adding profits & cleaning up loans for this challenging position. $50K. FOR FURTHER INFORMATION CONTACT: KURT ROSENCRANTS Specializing in Bank Acquisitions 515-232-0814 P-O. Box 450 405 Main Ames, Iowa 50010 D o n a l d E . H o l d e r , Principal BANK REVIEW EXAMINER $29,000 + The Nebraska Department of Bank ing and Finance is looking for the right individual to assist the Depart ment with its banking supervision function. This is a highly visible func tion and involves working closely with Federal Regulatory Agencies and industry members. The individual will be responsible for analyzing bank examination reports and making su pervisory recommendations. Quali fied candidates will have: •BS degree in Business Admini stration preferably with a con centration in Accounting and/or Finance. An advanced degree would be a plus. •5 or more years of experience in the industry is required prefer ably in the area of back exami nation or audit. •Working knowledge of bank ac counting principles and prac tices is required. •Excellent oral and written com munication skills. For consideration, application must be postmarked by May 23, 1986. Please apply to 1st Floor, 301 Centen nial Mall South, Lincoln, NE 68509, (402) 471-2075. ® (515) 244-4414 TRUST OFFICERS Positions now available in three major banks in Nebraska, Iowa, and South Dakota. Law Degree preferred. Experi ence in personal trust and/or employee benefits a plus. Salary range to $35,000. BANK AUDIT CHIEF Major bank holding company seeks CPA w ith bank audit experience. Salary to $30,000. Freeland Financial Service 1010 Equitable Bldg. Des Moines, IA 50309 515/282-6462 Employer pays fee. Please contact Malcolm Freeland concerning these quality applicants or for other types of banking officers. POSITIONS AVAILABLE EXECUTIVE VP Sick of politics? You w ill have an im pact on this bank’s future. $30MM Montana bank seeks No. 2 person. 10 + years lending experience dealing w ith a $10MM loan port folio desired. Stock options available. Hot!To$50K + bonus AGRICULTURAL LENDING OFFICER Tired of fast promises and problem loans? Central Min nesota bank of $40MM desires ag lender w ith 4 + years lending experience handling a $5MM ag loan portfolio. Great benefits! Make it happen now! To $35K, flexible. EXECUTIVE BANKER Do you enjoy mixing w ith the heavy hitter? Metro banks desire applicant w ith 3 years consumer and 1 year commercial lending experience. Must have polished im age & strong com m unication skills to help build a start up upscale department. To $30K. For further inform ation contact Paul Gentzkow (612) 339-9001 M► M> M► i NEBRASKA DEPARTMENT OF PERSONNEL ROBERT BM M LF 3636 IDS Center Minneapolis, MN 55402 (612) 339-9001 ® Equal O pportunity Employer M/F/H BANK LOAN MANAGEMENT, INC. CONSULTANT TO BANKERS 773 SPRUCE STREET, P.O. BOX 159, OCHEYEDAN, IOWA 51354 PHONE 712/758-3660 • Loan Review and Credit Administration • Profit Planning POSITIONS AVAILABLE TRUST ATTORNEY Northwest Bank & Trust Company has an opportu nity for an attorney w ith probate and estate plan ning experience. Strong tax and retirement plan ning background is a plus. New Trust Business Development is a key responsibility to this posi tion. Salary w ith incentive compensation plus an excellent benefits package is offered. Salary is commensurate w ith qualifications, incentive and performance. Qualified applicants, please send resume to: 317 6th Ave, Ste. 650 Des Moines, IA 50309 REAL ESTATE LENDER Multi-bank group seeks qualified real estate lender. A bility to package for sale to secondary market a plus. Salary Open depending on experience. NORTHWEST BANK & TRUST COMPANY WORLD’S LARGEST BANKING, ACCTG & EDP SPECIALISTS Human Resources Officer 100 E. Kimberly Road Davenport, Iowa 52806 ALL FEES COMPANY PAID An Equal O pportunity Employer M/F LOAN REVIEW - lead bank of major midwestern holding company. Requires degree and minimum of tw o yrs. loan review experience in large bank environment. $28K COMML. LOAN - $100M suburban affilia te of large m ulti bank holding company. Strong technical skills and 3 yrs. or more experience. $30K INSTL. LOAN - manage consumer department for $80MM suburban bank. Ideal candidate will have five yrs. instal. lending background including dealer paper. $30K CEO - small rural bank located close to recreational area. Work out situation. Ag credits not the problem. $38K AGRI LOAN ■ primary responsibility for all Ag credits In $25MM com m unity bank. Assist w ith commercial loans. Additional opportunities available. Resume requested** TOM HAGAN & ASSOCIATES 2024 S w ift - Box 12346 North Kansas City, MO 64116 816/474-6874 ______ “Serving the Banking Industry Since 1970” o f ' 1.5 p 0,', NorthwBBtem 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, $18.00 per year. Second class postage paid at Dee Moines, Iowa. Address all mall subscriptions, changes of address (Form 3579), manuscripts, mall Items to above address https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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