18 Hoosier Banker October 2016 HOOSIER BANKER HERITAGE: 2000-2009 The first decade of the 2000s, sometimes called the “aughts,” was anything but empty. Early in the decade, terror crashed out of blue skies on a crisp September morning. That day, 9/11, became an inflection point, marking the start of a forever changed world. On the closing side of the decade, economic disaster hit with the financial crisis of 2008. Tenuous deal-making by non-depository institutions, coupled with spiraling property prices, brought on the worst recession since the Great Depression. For the banking community, reputational insult added to economic injury, as misunderstandings led to miscast blame on the industry. Other notable events marked the early 2000s. The United States engaged in military action in Afghan1916 - 2016 YEARS istan and Iraq, in response to proliferation of terrorism. Hurricane Katrina caught victims off guard, spurring questions about emergency preparedness and disaster response. And in January 2009, President Barack Obama became the first African American to hold the highest office of the land. For better or worse, the early 2000s also ushered in virtual socializing. Facebook, LinkedIn, Twitter and YouTube were incubated during this timeframe. Initially dismissed by the business world, social media channels have since become workplace expectations. In banking, several milestones occurred during in the first decade of the century: • 2001 – The USA PATRIOT Act enhanced Bank Secrecy Act reporting responsibilities and requirements for banks; • 2002 – The Sarbanes-Oxley Act set heightened standards and oversight for accounting at public companies, including banks; • 2003 – The Check 21 Act streamlined electronic check processing via virtual check deposits; • 2004 – Basel II capital standards updated prior standards regarding how banks are capitalized; further updates took place in 2008 with Basel III; • 2008 – A $700 billion bailout plan and the Troubled Asset Relief Program addressed the needs of some financial institutions, yet also provided fodder for industry criticism. In Indiana, news was brighter than for the much of the nation. Hoosier banks were by and large able to weather the financial crisis, thanks to conservative lending practices, stable housing prices and a prior winnowing of banks in the 1980s. The Indiana banking community also benefited from two Association mergers during the decade. On Jan. 1, 2000, the Indiana League of Savings Institutions merged with the Indiana Bankers Association, and on Oct. 1, 2006, the Community Bankers Association of Indiana likewise merged with the IBA. Where once there had been three organizations representing Indiana banks, by late 2006 the best of each had been forged into a single, robust entity, one of the strongest in the nation. 2000 Discussing issues of the day are (left to right): Rep. Sue Scholer; Gary Neal and John Lippincott of Huntington National Bank, Indianapolis and Paul Ohmart, David A. Noyes & Company, Indianapolis. 2002 Bankers concentrate at a legislative briefing. 2001 Ben Bochnowski (far left), then a college junior, and his father David Bochnowski (far right), are pictured with family for an article about David’s service as chairman of America’s Community Bankers.
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