Hello Friends

I have received tons of e-mails and phone calls from you about the FDIC’s announcement last week to increase the assessment on insured deposits by 20 BP… and I totally understand.  What I am hearing is that too many of you are projecting that this assessment would impact somewhere from 30% to 50% of your bank earnings forecasted in 09.

On Monday afternoon, I participated in a conference call with FDIC Chairman Sheila Bair.  The ICBA Board of Directors and other state association directors also sat in.  Chairman Bair told us the FDIC rationale of the assessment, with some detail, and also explained all the other options that were available to the FDIC Board before they took that vote.  I found this session very productive with a lot of questions answered.

This week I am meeting with the IBAT Board of Directors in Dallas to consider options for mitigating the negative earnings impact on our member banks.  And I must reiterate here, what upsets me the most is our banks are not the banks that caused or in any way contributed to the irresponsible practices of the Wall Street banks.  I think we all can agree that our banks, the Texas community banks, should not be penalized by this unbearable FDIC assessment.

I still need your imput too.  I’m asking for your suggestions.  We need collective action options for the IBAT Board to consider.  And please share with me what you have determined to be the potential financial impact of this 20 BP assessment on your bank.  You may do so by simply commenting to this blog or by emailing me at cwilliston@ibat.org.

Remember that the FDIC vote take last Friday was an interim decision that has been left open for comment for the next thirty days.  I am moving quickly, with your IBAT Board, to determine appropriate steps on behalf of all of you.  So please post your feedback and let me know what you have determined the impact to your bank will be from this decision.  If you have already taken the time to e-mail me, then don’t post a comment here.