Community Banker Alert

I am attaching for your information a comment letter PACB filed with the FDIC today concerning the FDIC’s proposal to treat FHLB advances as volatile liabilities therefore causing higher premiums to be paid by community banks that use the advances.

I am pleased to report that over 40 of our members commented on this proposal and I encourage all of our members to do so if you have not already. This proposal, if enacted by the FDIC, will have a chilling effect on uses of the advances and liquidity source available through the Federal Home Loan Bank system. The FDIC responds to volume and a case in point is when our industry bombarded them with over 4,000 comment letters on the ILC/Wal-Mart issue. We need to do the same here.

Please feel free to modify PACB’s comment letter and put it on your institution’s letterhead reflecting your institution’s opposition. If you have any questions, please call Dave Transue, our Government Affairs Consultant. He may be reached at 717-231-7447 or via email at dave@pacb.org.

The deadline for comment letters is Friday, September 22. PACB’s comment letter was filed electronically and we’d encourage you to file yours in this fashion as well.

Thanks so much.

Attachment