Reporter's notebook

Northwestern Financial Review, Oct 15-Oct 31, 2003 by Bengtson, Tom

* Howard Fineman,the Newsweek writer who addressed Iowa bankers at the IBA convention, called President Bush's decision to invade Iraq without the support of other countries "the most fateful decision of our lifetime." He asked whether the world is safer today as a result, noting that question would be at the center of the 2004 presidential campaign, which he predicted would be very close. Fineman called Bush an organizer who makes decisions and sticks with them. "He is a decisive man who never looks back," Fineman said.

Fineman said Iowa will play an "extremely important" role in the election, with its early caucuses. Among the crowded field of Democrat contenders, Fineman noted that "undecided" is the leading candidate so far.

*The lunch hosted by Bankers' Bank of Madison, Wis., at the IBA convention grows every year. This year's lunch attracted more than 175 people. Bank President Ron Slater reported the bank is serving 600 to 700 banks in 12 states, with the majority of customers located in Wisconsin and Iowa. He said the bank has recorded earnings through August of $3.2 million, which is about $1 million ahead of last year's record-breaking performance.

*The board of directors at the Iowa Bankers Association is encouraging each of its 10 groups to provide up to $750 toward the expenses associated with participation in the IBA's annual Washington trip in June. The board is recommending that groups help their secretary attend. Group chairs automatically serve on the IBA board, and secretaries automatically serve on the IBA legislative committee. Washington trip participation is intended to help bankers gain a better understanding of industry issues, which should help them serve more effectively in their trade association.

* Representatives from the Iowa Bankers Association told members they have high hopes for the Certificate of Deposit Account Registry Service (CDARS) offered by Promontory Interfinancial Network. If enough Iowa banks participate, it may become possible for banks to avoid pledging for public deposits. Keeping the public deposits in Iowa institutions will require a high degree of CDARS participation by Iowa banks. Current law regarding pledging and contributions toward the state's sinking fund does not make a distinction between insured and uninsured public deposits beyond a bank's capital level. In order to fully realize the advantages of using CDARS for public funds, the state law would need to be changed. IBA was scheduled to discuss the issue at a mid-October legislative committee meeting.

* The IBA set a PAC goal for this year of $150,000, double its goal of last year. So far, IBA has raised $105,000, which is the largest sum ever. Approximately 40 percent of the banks in the state have contributed, about two-thirds of the organization's goal for member participation. Ron Hanson, Liberty Bancorp, Durant, reported IBA has 403 member banks and S&Ls, which is 92 percent of the institutions eligible for membership. The association's strategic plan identifies a membership goal of 95 percent of eligible institutions. The IBA picked up three new members in the last 12 months.

* The Iowa Bankers Mortgage Corp., is having a record year, processing 5,450 mortgages worth $570 million through August of this year. About $7 million in fees have been paid back this year to the 176 banks using the mortgage company.

Tom Bengtson