BANKING BOARD OF ILLINOIS
of Thursday, March 19, 1998
I. CALL TO ORDER
of the State Banking Board of Illinois was called to order at 10:05 a.m.
by Chairman Jack Schaffer. Roll call was taken and a quorum was present.
The Farmers State Bank and Trust Company, Jacksonville, Illinois
R. Cary Capparelli
Public Member, Park Ridge, Illinois
A. Dean Decker, President and CEO
Central Trust and Savings Bank, Geneseo, Illinois
Susan J. Dubs, President
Richmond Bank, Richmond, Illinois
John G. Eck, Senior Vice President
ABN AMRO Bank, N.V., Chicago, Illinois
Gary N. Edwards, President and CEO
Wemple State Bank, Waverly, Illinois
Mark G. Field, President and Chairman
The Farmers Bank of Liberty, Liberty, Illinois
Dennis B. Long, Chairman and CEO
Bank of Rantoul, Rantoul, Illinois
Paul V. Reagan, Senior Vice President and U.S. General Counsel
Harris Trust and Savings Bank, Chicago, Illinois
Jack Schaffer, Chairman
Office of Banks and Real Estate
Charles Waterman, Chairman and CEO
South Holland Trust & Savings Bank, South Holland, Illinois
Public Member, Norridge, Illinois
Public Member, Winnetka, Illinois
Judith Quesenberry, CEO and Vice President
The First State Bank, Grand Chain, Illinois
Andre, Assistant Director, Fiduciary Activities
Arthur J. Appl, Jr., Director, Division of International Bank Supervision
Young Brockhouse, Supervisor, Compliance Reporting
Robert Burke, Director, Division of Commercial Bank Supervision-Chicago
Jerry D. Cavanaugh, Assistant General Counsel
Scott D. Clarke, Assistant Commissioner, Bureau of Banks and Trust Companies
Russell E. Curry, Director, Division of Commercial Bank Supervision-Springfield
Kathy Glynn, Administrative Assistant, Bureau of Banks and Trust Companies
Dale Turner, General Counsel
Federal Reserve Bank, Chicago, Illinois
OF SEPTEMBER 30, 1997 MINUTES
asked if there were any additions or corrections to the September 30,
1997 minutes. Mr. Dennis Long noted a correction to his bank address.
There being no other corrections, Sue Dubs moved to approve the minutes.
Dean Decker seconded. The motion carried unanimously.
ON ECONOMIC CONDITIONS
Mr. Rick Kaglic
of the Federal Reserve Bank of Chicago gave a presentation assessing the
midwest economy. A handout was provided and a question and answer session
ON PACIFIC RIM SITUATION IMPACT ON ILLINOIS
Mr. Art Appl,
Director of International Bank Supervision, gave an update on the impact
the Pacific rim situation has had on Illinois and noted several factors
which may have caused the problems in Asia. He noted actions taken by
the agency in regard to this situation.
the crisis, we lost two Japanese banks and will have a few more reduce
several billion dollars of assets from their business at their Chicago
branch. We will also lose one Korean bank. Mr. Appl noted California was
affected more than Illinois since they have a higher concentration of
Asian banks. Illinois now has the second largest representation of foreign
banking assets in the nation.
noted we did not introduce any agency legislation this session; however,
we did work with the various industries that did in order to get the necessary
corrective legislation in place.
reported several bills affecting the industry have passed. Mr. Jerry Cavanaugh
gave a legislative update on those bills pending. He reported the number
of bills have been much more manageable than in previous years.
ON PROPOSED RULE MAKING ACTIVITIES
gave an update on proposed rule making activities and discussed the provisions
briefly. A copy was included in the meeting packet for board members'
review and comment prior to publishing for public comment.
DISCUSSION FOR BOARD MEMBERS
Mr. Paul Reagan
had a question in regard to whether or not there is a conflict with the
state's civil rights law relating to preconviction action. Discussion
followed. Mr. Clarke suggested Mr. Cavanaugh and Mr. Turner prepare a
memo on this issue outlining the Commissioner's ability to remove someone
before they are convicted and outlining the powers of the State Banking
Board. The memo should also contain specific statutory immunities board
members have in regard to their liability.
There was an
inquiry in regard to charter activity. Mr. Clarke provided an update on
recent activities and geographic trends.
Mr. Gary Edwards
asked about De Novo branching issues. Brief discussion followed.
stated he recently met with State Farm Insurance Company. He noted they
have applied for a unitary thrift holding company. They are planning on
creating this entity initially only to make deposits for their own employees;
however, they are also interested in mortgages and car loans. They plan
to move into this slowly. Allstate has also applied. In addition, independent
insurance agents are currently working with us to get their employees
involved in mortgage business.
reported the Coalition for Consumer Rights held a press conference regarding
a survey they conducted on ATM machines to ensure compliance with law.
Discussion regarding compliance followed.
in regard to banks selling insurance was raised. Mr. Curry and Mr. Burke
reported on activity in their areas.
Mr. Eck asked
if any new four rated banks have come up in recent examinations. Division
directors gave brief updates of activity in their divisions.
congratulated Ms. French-Becker on her recent promotion to President of
Farmers State Bank and Trust Company in Jacksonville, Illinois.
briefly updated board members on pawnbroker activity within the agency.
requested a motion to approve the hearing rules for the board's hearing
authority. Ms. Dubs motioned. Mr. Decker seconded. The motion carried
and was approved unanimously.
no further business before the board, Ms. Dubs moved to adjourn the
meeting. Mr. Decker seconded. The motion carried unanimously. The
meeting adjourned at 12:10 p.m.