July 3, 2008
“A real patriot is the fellow who gets a parking ticket and rejoices that the system works.” -- Bill Vaughan
The Fourth of July gives us an opportunity to reflect on the idea of patriotism. The topic is still high-profile and has been since 9/11, maybe since 1776. Flag lapel pins, ribbon car decals, bumper stickers, flags, “Stars and Stripes Forever”…they all remind us every day that we live in America, the land of the free and the home of the brave. In our younger days, we never missed the Fourth of July parade in our hometown (population 30,000). Decades later, it’s still a tradition there, with politicians waving from vintage convertibles and pretty girls atop floats built by schools and local businesses. We remember when our big sister dressed up as Mae West to ride a float sponsored by the bank where she worked. What Mae West has to do with the Fourth of July we’ll never know, but it certainly was memorable. Here in D.C., we probably won’t attend the parade, but we will find some place to watch the fireworks from afar, basking in our only summer holiday and all that it commemorates.
Duke is well-known in banking circles, having served as chairman of
the American Bankers Association in 2004-2005. She also served as
president of the Virginia Bankers Association in 1999 and served on the
board of the Federal Reserve Bank of
Before joining TowneBank in 2005, she served as executive vice
president of the merger project office at Wachovia Bank. Previously, she
served as executive vice president of community bank development of
SouthTrust Bank. Earlier in her career, Duke served as president &
chief executive officer of Bank of Tidewater,
Neil Milner, president and CEO of the Conference of State Bank Supervisors, commended the Senate on confirming Duke’s nomination. “We are very pleased that Ms. Duke will be joining the Federal Reserve Board. We know that she will bring a strong community banker perspective to the board’s policy-making at a critical time for the banking industry,” he said.
Banking By The Numbers; 72% Are State-Chartered
State-chartered banks continue to out-number their national and federally-chartered brethren, according to first quarter statistics. The agency’s Quarterly Banking Profile, released on May 29, showed there were 6,122 state-chartered commercial and savings institutions as of March 31, 2008, down from 6,190 at the same time last year. There were 2,372 national banks and federal savings institutions, compared to 2,459 on March 31, 2007. National banks and federal thrifts continue to hold the lion’s share of assets, with a 71.8 percent asset share while state-chartered financial institutions’ assets stood at 28.2 percent.
Reflecting the current economic downturn, state commercial banks had an average return on assets of 0.86 compared to 1.23 at the same time last year. For national banks, ROA was 0.61 for national banks, compared to 1.24 last year. State savings institutions had an ROA of 0.48, compared to 0.73 as of March 31, 2007, while federal savings banks had an ROA of -0.09, down significantly from last year’s 1.02. Total number of employees (FTEs) at state chartered commercial banks and savings associations as of March 31, 2008 stood at 733,706, down from 771,402 a year earlier. Net interest margin for state chartered commercial banks as of March 31, 2008 averaged 3.45, down from 3.66 a year earlier. More detailed data on the nation’s banking system may be queried from the FDIC State Banking Performance Summary at More Information
Around The States
Around The Agencies
FDIC/FRB/OCC: Federal banking regulators reminded financial institutions that most of them face a July 30 deadline for their June 30 Call Reports. The joint notice by FDIC, the Federal Reserve and the Office of the Comptroller of the Currency reminded the bankers of the new reporting items that were previously optional, but are now mandatory. In the call report for this quarter, banks must report the number and amount currently outstanding of loans to small businesses and small farms; the number of deposit accounts (other than retirement deposit accounts) of $100,000 or less; and the number of retirement deposit accounts of $250,000 or less. More Information
FFIEC: The Federal Financial Institutions Examination Council
(FFIEC) this week announced the appointment of Paul Sanford as executive
secretary of the Council. He replaces Tamara Wiseman, who
returned to the Office of the Comptroller of the Currency.
NCUA: The National Credit Union Administration on Tuesday
liquidated two state-chartered
July 4 – Independence Day federal holiday. CSBS offices will be closed.
July 8 – The FDIC hosts a forum on strategies for promoting
responsible and sustainable mortgage lending to low- and moderate-income
families. Speakers include: Treasury Secretary Henry M. Paulson Jr.,
Federal Reserve Chairman Ben S. Bernanke and JPMorgan Chase & Co.
Chairman and Chief Executive Officer James Dimon. – 7:50 a.m.
– 3:45 p.m., L.
July 9 - The FDIC's Advisory Committee on Economic Inclusion (ComE-IN) will convene to examine ways to encourage mortgage credit availability to lower-income households. - 8:30 a.m. - 12 noon, 6th Floor Board Room, FDIC headquarters, 550 Seventeenth Street NW, Washington, D.C.
July 9 – The American Enterprise Institute will hold a
discussion on the future of insurance regulation. – 8:30 a.m.
– 4 p.m., AEI 12th Floor conference center,
July 9 – Jeffrey Lacker, president of the Federal Reserve Bank
July 9 – The Securities and Exchange Commission will hold a
roundtable discussion on fair value accounting. 9 a.m. – 12:30
p.m., SEC's headquarters,
July 10 – The House Financial Services Committee will hold the
first in a series of hearings on financial market regulatory
restructuring. Treasury Secretary Henry Paulson and Federal Reserve
Board Chairman Ben Bernanke have been invited to testify at the first
hearing. Subsequent hearings will be scheduled later in July and
continuing into the fall. – 10 a.m., 2128
“Like the Cyclops, the regulatory system would have only one eye.” - Cam Fine, president and CEO of the Independent Bankers Association of America, discussing the Treasury Department's Blueprint for a Modernized Financial Regulatory Structure, quoted in the June 18 Credit Union Times.