Pub. 5 2010-2011

www.nebankers.org 12 Extraordinary Service for Extraordinary Members. F INANCIAL REFORM HAS DOMINATED THE MINDS OF bankers for months—and emotions have been running at an all-time high. As our economy and our industry work their way through the financial crisis and subsequent reform, we’ve felt mad, sad, and glad. As community bankers, we are mad because we did not cause the problems surrounding the financial meltdown, yet we will pay the price with new regulation. We’re sad because we see our industry changing in ways that may hurt our ability to deliver products and services to our customers, thereby impairing the growth of our communities. And we’re glad—well that’s a little more complicated to explain. You may not immediately see it but some good will come from financial reform. The good will come in a few things we get, a few things we didn’t get, and a boatload of positive things that I predict will result from our efforts to protect our banks and our customers. What Did We Get? Legislation is now in place that attempts to address the issue of Too Big to Fail. Some say it doesn’t go far enough, but it’s certainly a step in the right direction. The resolution process definitely gives pause for thought to large, compli- cated organizations. The legislation also attempts to regulate many previously unsupervised, unregulated competitors in the financial services arena. This should help us compete by slowing down the quick and often uncontrolled growth of unregulated providers. I also believe our industry will benefit from the permanence of the $250,000 FDIC insur- ance limit. Let’s not ever forget the value of the FDIC brand. The protection provided to our depositors separates us from most of our competition. What Didn’t We Get, or What Didn’t We Lose? Charter choice is preserved, which is extremely important for the long-term viability of banks that want to maintain a certain climate and business model. The grandfather rules surrounding the use of trust preferreds and TARP as capital savedmany banks from instant capital issues. Also, the final result on interchange could have been much worse. Our Future Remains Bright Matt Williams , NBA Past Chairman & ABA Vice Chairman Nominee What Are the Long-Term Benefits? Beauty is in the eye of the beholder. I choose to see the following long-term benefits of financial reform. Through the efforts of the ABA and the state bankers asso- ciations, we have created a renewed sense of purpose coupled with an enormous desire and ability to be heard. Our joint “team” has pride, purpose, and resolve. The work has been intense and difficult, and we didn’t win all the battles, but we have developed a more powerful advocacy force for the fu- ture. We have created a teamwith great “starters,” but more importantly we now know the real benefit of bench strength provided by the grassroots efforts of bankers fromevery state, of every bank size, and of every charter type. These efforts have made us stronger, which will clearly help the ABA and our state bankers associations serve our members into the future. These efforts also continue to demonstrate the cur- rent and ongoing benefits of membership. Not all trade as- sociations canmake this claim and then back it up with facts. I recently heard a congressman refer to himself as an intellectual pessimist and an emotional optimist. That sums up my feelings about the future of community bank- ing. Intellectually we have many challenges ahead, but we have proven that we are able to meet our challenges with success. I have no doubt that we will turn today’s challenges into future opportunities. Why? Because traditional banks are the backbone of our country, and our success is critical for the long-term growth and success of America. So don’t hesitate when someone asks you what you do. Be proud to be a banker. You’ve earned it! Z We now know the real benefit of bench strength provided by the grassroots efforts of bankers from every state, of every bank size, and of every charter type. Matt Williams is a past chairman of the Nebraska Bankers Association, currently serves on the board of directors for the American Bankers Association, and is the nominee for vice chairman of the ABA. He is chairman and president of Gothenburg State Bank. You can reach him at (308) 537-7181 or mwilliams@gothenburgstatebank.com .