Community Banker Alert

Congratulations to the many community bankers who stood with PACB and ICBA to defeat the attempts by the Farm Credit System (FCS) to broadly and unfairly expand their lending authority at the expense of community banking and real competition. Please see this alert from ICBA on this tremendous victory!

While we have won the battle against the FCS’ attempted power grab, we must continue to work vigilantly against the ILC commercial conglomerates that want to break down the separation of banking and commerce. If you have not yet contacted U.S. Senators Casey & Specter’s offices in support of S. 1356, the legislation that would close the ILC loophole, please do so ASAP.

Thanks for the tremendous work you are all doing at the grassroots level to support PACB in our efforts to fight for community banking.

Key Community Banking Victory!

In a major, hard-fought victory by the nation's community bankers for Main Street America, ICBA and 42 state banking associations, the U.S. House of Representatives adopted a floor amendment to the 2007 farm bill reauthorization (H.R. 2419) late last night that defeated unwarranted and harmful provisions that would have significantly expanded the Farm Credit System's non-farm lending powers.

After months of intense effort and this past week's final blitz by community bankers flooding Capitol Hill offices with phone calls, the House passed the ICBA-supported Frank-Bachus amendment on an overwhelming voice vote.

ICBA applauds House lawmakers for passing the amendment offered by House Financial Services Committee Chairman Barney Frank (D-Mass.) and Ranking Member Spencer Bachus (R-Ala.). The FCS provisions, inaccurately portrayed as measures that would have fostered renewable energy financing, would have greatly expanded the commercial and mortgage lending powers of the government-sponsored enterprise, which has a well-documented history of using its subsidized tax and funding advantages to cherry-pick loans from tax-paying community banks.

"ICBA greatly appreciates the efforts by Reps. Frank and Bachus for their amendment and the House for making this change to the farm bill," said ICBA Chairman James P. Ghiglieri Jr., president of Alpha Community Bank in Toluca, Ill. "By passing this amendment, Congress protected our nation's local economies by keeping the government-sponsored FCS focused on its mission of providing credit to farmers and ranchers and not allowing expansion into providing general business and home mortgage loans to the families and small businesses that are already well-served by America's community banks."

The FCS provisions in the House farm bill were soundly defeated through the grassroots efforts of community bankers. "ICBA is very happy that Congress heard the voice of the 5,000 community bank members of ICBA and its 42 state and regional partners which took action by calling and writing their members of Congress to communicate their concerns over expanded FCS powers," Ghiglieri said.

ICBA leveled a multifaceted lobbying campaign against the FCS provisions involving a flurry of phone calls, many letters, in-person Capitol Hill office visits, and coordinated responses with allies and coalition partners. The association's lobbying efforts successfully countered misleading FCS information while explaining how the FCS provisions would harm local communities throughout the country and permit the government-sponsored enterprise to stray far from its congressional charter to serve farmers and ranchers.

ICBA particularly thanks Chairman Frank and Congressman Bachus, both recipients of ICBA's Main Street Hero Award, for their strong leadership and decisive action to stand up against the FCS provisions and defend a level playing field for community banks. And a special thank you goes to all the many community bankers who took the time to contact their representatives. Without your action this victory would not have been possible. Congress heard your voices clearly!

ICBA urges Congress to complete its work to enact a final farm bill without the FCS provisions. An effective farm bill is vital to the nation's agricultural economy and communities. However, the defeat of the FCS expansion also represents a huge victory for community bankers, our customers and our communities. This victory demonstrates once again the political might of community bankers working together with ICBA, the nation's largest banking trade association and the only national association that exclusively serves community banks.