Pub. 10 2015-2016 Issue 1

www.nebankers.org 4 Extraordinary Service for Extraordinary Members. 12 18 MAY/JUNE 2015 EDITORIAL: The Nebraska Banker seeks to reflect news and information relevant to Nebraska and other news and information of direct interest to members of the Nebraska Bankers Association. Statement of fact and opinion are made on the responsibility of the authors alone and do not represent the opinion or endorsement of the Nebraska Bankers Association. Articles may be reproduced with written permission only. ADVERTISEMENTS: The publication of advertisements does not necessarily represent endorsement of those products or services by the Nebraska Bankers Association. The editor reserves the right to refuse any advertisement. SUBSCRIPTION: Subscription to themagazine, which began bi-monthly publication inMay 2006, is included in membership fees to the Nebraska Bankers Association. 7 7 President’s Message – Celebrating 125 Years of Service to Bankers in Nebraska The recently completed Annual Convention served as the official kick-off celebration for the NBA’s 125th anniversary. By Richard J. Baier, President & CEO, Nebraska Bankers Association 8 Washington Update – Telling Stories If you want to see meaningful regulatory relief—or a level playing field with credit unions and the Farm Credit System, or more accountability for retailers involved in data breaches—share your stories with lawmakers. Storytelling is the most effective way to make a point. By Frank Keating, President & CEO, American Bankers Association 10 NBA Education Calendar 12 Counselor’s Corner – Are the Basel III Mortgage Servicing Assets Requirements Endangering Certain Relationship Lending? A moderation of Basel III’s treatment of MSAs would allow smaller banks to maintain responsible credit access for consumers while maintaining the loan servicing relationship with consumers. Now is the time to contact your congressmen. By Jeff Makovicka and the Hon. David Karnes, Kutak Rock LLP 15 Security Officer’s By-Word – Turning Strong Controls Into Strong Customer Service The simplification of the wire transfer process is great for your customers—until criminals take advantage of that ease of use to steal money. By Charles M. Towle, KBS President 16 Tech Talk – New Appendix, Same Principles February saw a new appendix added to the Federal Financial Institutions Examination Council’s Business Continuity Planning Handbook. By Stephanie Chaumont, Security and Compliance Consultant, CoNetrix 18 Bert Ely’s Farm Credit Watch – Does Ken Auer Fully Understand the FCS’ Tax Advantages? Perhaps Ken Auer does not want to publicly admit the magnitude of the Farm Credit System’s tax subsidy, which today reaches into the billions of dollars. By Bert Ely, Alexandria, Va. 22 Products & Services for NBA Members 24 How Much Portfolio Risk Is Too Much? Most banks these days have access to analytical tools that generally do an adequate job of measuring the potential changes in market valuations due to changing rate environments, but this information by itself is incomplete knowledge. By Lester F. Murray, The Baker Group LP 26 Thank You, NBA Chairmen! The NBA is forever indebted to those individuals who have donated their time and talents as chairmen of the association.