Shareholders and Friends, below is an update from Alex Sanchez of the Florida Bankers Association (FBA), the voice of Florida bankers.
Less than three months ago the FDIC announced a proposed special assessment on banks of 20 basis points on insured deposits. The FBA quickly recognized that nothing less than an all out aggressive grassroots effort by our bankers would have any significant impact on this proposed policy, so we asked you to get involved... Florida bankers sent FDIC Chairman Sheila Bair well over 2,000 letters letting her now just how critical lowering the special assessment from the proposed 20 basis points was to our industry.
Also thanks to Florida bankers, we sent 1900 letters to our two U.S. Senators asking them to support S. 896 that would increase the FDIC's Treasury borrowing authority from $30 billion to $100 billion, and allow the agency to substantially reduce its proposed 20-basis-point special assessment. In fact the special assessment came out to be 5 basis points not 20!
This new law, which is free of negative provisions, including the mortgage cram down or expanding the Credit Unions commercial lending authority provisions, was signed into law by the President. The new law also would, among other things, maintain the current $250,000 FDIC deposit insurance coverage for four years through 2013; allow the FDIC to take up to eight years, from the current five years, to recapitalize the Deposit Insurance Fund; and make it easier for mortgage servicers to modify loan agreements.
Many times busy bankers wonder if it is worth their time to get involved with FBA grassroots efforts, participate in Washington visits or build a relationship with their Members of Congress. In this case you can do the math and calculate the actual value of your effort to your bank.
Thank you again for getting involved. We could not have done it without you. The FBA has been the Voice of Florida bankers since 1888 and with your help, we will continue our strong efforts on television, the print media and of course with regulators and elected officials to advocate for our industry.