Minnesota Bankers Association employee concludes 33 years of service to industry

Northwestern Financial Review, Jul 1, 2001 by Bengtson, Tom

The Minnesota Bankers Association lost a wealth of historical knowledge when Joyce Berg retired from the trade group at the end of May. She joined the MBA in 1964 and worked for four executive vice presidents in 33 years with the group: Ken Wales, Truman Jeffers, Wes Ehrecke and Bill Bond. Wales, Jeffers and Bond were among dozens of people who stopped by the MBA office May 23 to honor her at an open house.

I had the privilege of working with Joyce from 1989 to 1991 when I worked at the MBA as communications director. She was Truman's secretary at the time. Nobody knew the bankers better than Joyce. She could tell you who worked at what bank, and who was who's son, and who served on an MBA committee years earlier. I loved to listen to her talk about the "old days." It is because of her that I know Kenny Wales hired Truman Jeffers on March 1, 1961. When I worked for Truman, I used to tell him: "You know Jeff, you've worked at MBA longer than I've been alive!" No wonder I never got a promotion.

Joyce was a comforting presence at the MBA. Even though I haven't worked there in a decade, I will miss her. Joyce's desk was always one of my stops on visits to the MBA office. Her telephone number was at the top of my Rolodex so I could call her when seeking an obscure fact about the industry in Minnesota from 20 years ago. Good luck, Joyce!

The Independent Community Bankers of Minnesota have formed a search committee to recruit a new president to replace Allen Olson, who has led the organization since 1988. Dave Knopick, president of Security State Bank of Mankato, is heading the committee. Knopick also is in line to become the association's chairman at its convention in August.

Knopick said Olson informed the ICBM board that he plans to retire at the end of 2003. In addition, Olson, a former Republican governor of North Dakota, is being considered for an appointment in the Bush administration. ICBM Chairman Michael Byrne, State Bank of Long Lake, said Olson believes the Bush administration appointment is six months to a year away, if it happens at all. Knopick said the committee is in the process of selecting a search firm.

Gary Stem has an interesting column in the June edition ofRegion magazine, the publication of the Ninth Federal Reserve Bank. Stem writes that the industry should be careful about growing overly dependent upon the Federal Home Loan Bank for funding. "I see the expansion of the mission, membership and lending of the FHLB as a potentially costly method for providing lower-cost funds to banks," he writes. Stern's comments are worth considering, although his warning might be more credible coming from someone outside the Fed. It is difficult to take too seriously criticism of a government agency when it comes from the president of another government agency.

Nonetheless, Stern concludes his June column with a comment that community bankers will support. He points out that Congress could allow the Fed to pay interest on the reserves that banks hold with the Fed. "These steps could allow banks to better rationalize their funding programs and more efficiently compete for deposits," he writes. Most community bankers will agree with that.

President Bush has nominated a banker to the Federal Reserve Board. Susan Schmidt Bies, executive vice president of the $18 billion First Tennessee National Corporation, was nominated on June 8.

There is still a chance the president may nominate North Dakota banker Terri Jorde to a Fed governorship. The American Banker newspaper has reported the Bush people have discussed the possibility with Jorde, president and chairman of CountryBank USA in Cando, N.D.

Jorde is active in independent banking circles and currently is head of the for-profit subsidiaries arm of the Independent Community Bankers of America. During the next four years, Bush is likely to get the opportunity to appoint at least five people to Fed governorships. Such positions run for 14 years and pay $145,115 per year.

Although Fed governorships usually go to PhD economists like Bies, there has been talk for years of getting a community banker on the Fed Board. Jorde has served on the Federal Advisory Council, and represented community banking during an economic summit hosted by then president-elect Bush last January. An articulate Jorde was one of only a few meeting participants asked to address the press after the event.