Industry leaders update colleagues at Group One meeting

Northwestern Financial Review, Feb 20, 1999 by Bengtson, Tom

Reversing a trend of the last few years toward declining attendance, the annual Wisconsin Bankers Association Group One meeting conducted Feb. 12-13 at the Radisson Plaza Hotel in downtown Minneapolis attracted 180 bankers and guests, the highest number in several years. For the first time in the 95-year history of Group One meetings, bankers from Wisconsin's Group Seven were invited to participate; about a half-dozen Group Seven banks accepted. In addition, this was the first Group One meeting conducted since the WBA merger with the state's savings and loan trade association was completed last summer.

Noting a long and close association with WBA President Dirk Gasterland of the Coulee State Bank in LaCrosse, Wis., Bob Barsness, Prior Lake State Bank, Prior Lake, Minn., offered an industry overview from the perspective of the Independent Bankers Association of America. Barsness, IBAA president-elect, noted that his father and Gasterland's father were among the original people to charter the Coulee State Bank. Barsness and Gasterland also worked together at Richfield Bank & Trust Co., Richfield, Minn., many years ago during their first jobs in banking.

Barsness emphasized IBAA's opposition to industry modernization legislation that would permit the mingling of banking and commerce. "We urge ABA to back away from legislation which would permit banks to own a basket of commercial businesses," he said.

He also said that IBAA would only support modernization legislation that would close the unitary thrift loophole. Finally, he said the association would oppose legislation that would roll back a bank's ability to sell insurance.

Farm income and deposit insurance also are priorities for IBAA, Barsness said. "IBAA supports concepts which enhance farm income," he said.

Ultimately, Barsness said he is optimistic about the future of community banking, noting that nearly 200 new banks were chartered in 1998. "Community banking is as strong as ever," he concluded.

Barsness is scheduled to be named IBAA president at the association's annual meeting next month in San Francisco.

A panel of officers from the Wisconsin Bankers Association followed with its perspective of industry issues. Harry Argue, WBA executive vice president, said the WBA board recently voted to support the "concept" of financial modernization. The board did not vote on specifics such as whether to support a basket approach to the mixing of banking and commerce.

Argue explained that the association is following up on direction provided by a consultant who examined the WBA several months ago. Based on the consultant's advice, the association is focusing its educational efforts and beefing up its commitment to technology. The association also will move to serve non-traditional financial institutions. One way the association may meet all of these objectives is by offering more educational programs beyond the traditional borders of its own state.

Argue told the one-hundred plus bankers gathered for the three-hour general session meeting that WBA will bring its annual bank executives seminar back to Madison in 2000. Next month, the highly-successful meeting will be conducted in Phoenix, the first time the meeting will have been held out of state. He said more than 200 bankers have signed up for the 1999 meeting so far, making it as successful as any past meeting. He said in the future the WBA board will consider whether the meeting should be conducted in a warm-weather spot every two or three years.

WBA Vice President John Johnson, F&M Bank, Kaukauna, updated bankers on the association's goals for its political action committee. In 1998, the WBA PAC raised more than $148,000, with 36 percent of the state's banks participating. This year, the association hopes to raise $152,000 and obtain a participation rate of 40 percent.

Panel members noted that a number of serious issues have surfaced at the state legislature. For example, a bill requiring banks to shred every document they discard that contains personal information on it, is being considered. Johnson said the association is working to defeat this bill, as it did last year.

Also, Argue discussed the governor's proposed budget, which includes a combined reporting tax. This new tax would be especially onerous for banks and Argue said WBA will work vigorously to defeat it. Argue noted that the idea for such a tax has been suggested many times in recent years, but that this time around the concept has support from key lawmakers that it did not have in previous years.

Argue said that legislation to create a new universal bank certificate remains a priority. He said, however, that if the WBA has to spend the majority of its effort fighting the shredding bill, the combined reporting tax and other bills, it may not be able to pursue the universal bank bill to the degree it originally had intended this session. "Our agenda at the top has become more crowded that we would like," Argue quipped.

Michael J. Mach, administrator for the Wisconsin Department of Financial Institutions, told bankers to prepare for more regulatory emphasis on year 2000 problems. While he outlined a schedule of testing deadlines and other concerns, he said "your efforts and ours will make the problem a minimal event."