Headlines 
DODD-FRANK – THE WORK IS NOT DONE
Although the President has signed the regulatory reform bill into law, this issue is not over.  In addition to the normal rulemaking process necessary to implementing such a complex piece of legislation, there are a number of problems with the bill, as we all know, and it is likely that there will be a cleanup bill once the dust settles.  The banking industry needs to make sure that we are fully prepared to actively engage in both efforts and to maximize our impact on these processes.  Despite some assertions to the contrary, the bill has significant consequences for community banks, which are summarized  in this document.  As we meet with Members of Congress during their summer recess and in our regular fall trip to in DC, we will continue to explain how problematic this legislation is for community banks and their customers.  This message is critical if the banking industry is to get any relief in a cleanup bill.

SMALL BUSINESS LENDING BILL AMENDMENT WOULD INCREASE SHAREHOLDER LIMITS
An amendment offered by four Senators (Hutchison, Bayh, Pryor and Kerry) to the small business lending bill would increase the number of shareholders a closely held business could have before being required to register as a publicly traded company.  Current law requires any company with more than $10 million in assets and more than 500 shareholders to register and comply with a wide variety of SEC security regulations.  Since banks virtually always exceed the $10 million asset mark, the 500 shareholder threshold effectively determines whether they will be subject to this additional regulatory burden.  This 500 shareholder threshold – and the extra costs it represents – is inconsistent with the emphasis bank regulators are currently putting on raising capital.  Banks with concerns on this issue are encouraged to check out an ABA fact sheet on the issue here and contact Senators Murray and Cantwell.

THANK YOU – AND YOUR EMPLOYEES!
Over the past year, we have been more active in asking local bankers in calls to action on various banking issues, including the regulatory reform package.   Many of you have answered this call, contacting both your state and federal elected representatives.   Thank you for these efforts – they make a real difference.  And many of you have encouraged your employees to do the same thing.  We encourage you take a moment to thank your employees for taking time out of their day to write a letter and giving these issues a voice.  Elected officials take notice when they are hearing their constituents loud and clear.  We hope that you – and your employees – will continue to answer the call as part of our grassroots efforts within the banking industry.   It has never been more important.