Banker commends commissioner

Northwestern Financial Review, Aug 1, 2001 by Bense, Rodger

I'd like to share some good news with your readers regarding Minnesota banking Commissioner Kevin Murphy. Mr. Murphy came to the aid of many state bankers who, like us, were looking for funding alternatives.

Brokered CDs, borrowings and interest rate swaps all have separate rules for entry. One requires a bank to pledge an asset; this is done in lieu of a bank having a credit rating by Moody's and S&P.

Minnesota law allows a bank to pledge for six instances, one of which is NOT for funding alternatives. A conversation with Mr. Murphy moved his interest in allowing banks the opportunity to utilize this pledging to enhance funding alternatives. But time was of the essence to get the change in bill form, find an author, and get the bill into the system for consideration. Thanks to the quick action of Commissioner Murphy and assistance from banking lobbyist Jerry Schoenfeld the bill was introduced, passed and signed by the Governor.

I feel it's of importance to Minnesota bankers that they know the Commissioner has the best interest of Minnesota bankers on his mind and this is just one instance where quick action on his part relieved many bankers of a regulatory burden.

This is one Minnesota banker who appreciates the efforts of Commissioner Murphy.

The Financial Review welcomes your letters.

4948 Washburn Ave., S. Minneapolis, MN 55410

tom@nfrcom.com

Rodger Bense

Chairman/President

Lake Country State Bank Long Prairie, Minn.