Federal Reserve Board Vice Chairman Donald Kohn is scheduled to meet with Michigan bankers on Thursday, April 18 in Washington, D.C.

A University of Michigan graduate, Kohn has ties to the state and takes a particular interest in how Michigan banks are struggling in this abnormally long, single-state recession. In 2007, the vice chairman spent a significant amount of time with MBA bankers discussing how they were evaluating their customers and credit risk management.

Michigan bankers have the chance to speak directly with the Federal Reserve vice chairman and give him the straight talk about how our banks and other banks are faring. The MBA will join the upcoming American Bankers Association in Washington, D.C. March 16-18, 2010, for the third annual Government Relations Summit. We invite and encourage all Michigan bankers to join this important conversation.

In addition to the vice chairman, bankers will meet with Michigan members of Congress and our U.S. Senators and banking regulators and participate in industry discussions regarding emerging banking legislation.

Bankers participating should make their own travel plans and register for the program directly through the ABA. We recommend the flight on Tuesday, March 16, Delta Flight # 7328, Detroit Metro (DTW) to Baltimore (BWI) departing Detroit 1:55 p.m. and arriving at Baltimore 3:38 p.m. Thursday, March 18, Delta Flight # 7337, Baltimore to Detroit departing Baltimore at 6:55 p.m. and arriving in Detroit at 8:41 p.m. We find these flights are less expensive than Reagan. The MBA will offer group transportation round trip for these flights to and from D.C. Contact the MBA at 517-485-3600 for details.

In the recent Supreme Court ruling Citizens United v FEC, the Court struck portions of McCain-Feingold and related state laws across the nation. It ruled that all organizations may make direct independent expenditures in candidate and issue campaigns.

Much misinformation has been reported about this decision and what it means. Currently 28 states allow corporate contributions to candidates but even with the current decision, Michigan is not among those states.

· The court ruled that all organizations may make direct independent expenditures in candidate and issue campaigns.

· The decision DID NOT AFFECT bans on corporate contributions to candidates, candidate committees or political action committees (PACs).

· Under Michigan laws and federal laws corporations could not, and still cannot legally give to a candidate, candidate committee or PAC.

· All members are reminded that a corporate contribution to a candidate, candidate committee or PAC remains illegal and may be a felony.

· It also remains illegal for a corporation to reimburse an individual for his or her personal contributions.

The vast majority of banks have been in business for more than 50 years, and one of every three banks has served its local community for more than a century. Through good times and bad, it is this philosophy of building long-term relationships with customers that has made banks successful.

Banks added another $5 billion in equity capital in the fourth quarter and total industry capital is now just short of $1.5 trillion. When added to the $227 billion in reserves banks have set aside to cover losses, this makes for a total buffer of roughly $1.7 trillion against losses. In addition, 95.5 percent of banks – holding more than 98.6 percent of the industry’s assets – are still classified as “well capitalized,” which is the highest regulatory designation possible.

The banking industry continues to fully fund the FDIC, as it has for the past 75 years. Besides the $18 billion in premiums paid by banks in 2009 to cover losses from bank failures, the industry also pre-paid more than $46 billion for three years worth of assessments. This pre-payment gives the FDIC considerable flexibility to deal with any further contingencies over the foreseeable future.

Free online training and a chance to win one of four 1,000 donations are available to banks that participate in the 14th annual Teach Children to Save program. TCTS Registration.

• $1,000 Donation
  The ABA will award four ABA member bankers with a $1,000 donation for a local school or youth group.
• Free Webinar Training
  The online training sessions will cover steps for planning an event, tips on using the Teach Children to Save resource kit and how to contact schools and other groups. Participation is free, but registration is required. View Webinar times and register.