18 Hoosier Banker February 2016 As I’ve said time and again, having a place at the policymaking table in Washington isn’t simply important for community banks ‒ it’s essential. As I’ve also repeatedly assured, the Independent Community Bankers of America will always pursue and protect the interests of community banks, and only the interests of community banks, with unsparing energy and action ‒ and we do. ICBA’s recent, hard-fought legislative successes that protected community banks from steep Federal Reserve stock dividend cuts and enacted valuable community bank regulatory relief validate both longstanding statements. Some background details tell the story. First, when the idea to cut the Federal Reserve dividend was initially proposed last July, the ICBA immediately spoke out against it. We recognized right away how such a rash and shortsighted policy maneuver would upend a century-long underpinning of the U.S. banking system. The drastic 75 percent cut first introduced ‒ devised as an easy revenue raid for an intensely negotiated federal transportation funding package ‒ made the issue extremely serious for our banking system in general and for 1,800 community banks that are Federal Reserve members in particular. So ICBA mobilized to educate lawmakers, both publicly and behind the scenes. In many one-on-one meetings, we pressed our reasons for scuttling any Fed dividend cut. Soon we were backed impressively by nearly 2,700 letters from vocal community bankers, many of whom also spoke directly with their congressional representatives. A letter from 43 respected state bankers associations opposing the dividend cut was also an important boost to the cause. Along the way, the ICBA also continued to engage lawmakers on our association’s regulatory relief measures for community banks, the Plan for Prosperity. The groundwork for ICBA’s noncontroversial regulatory relief measures had been well prepared during the previous two years. Hearings had been held. Several bills cleared the House or the Senate. Key congressional leaders, including pivotally in this fight House Financial Services Chairman Jeb Hensarling, R-Texas, were on board. Through persistence, community banks were in prime position. When the dust settled after a burst of final calls, emails and meetings, unfortunately a decisive number of lawmakers wouldn’t abandon some form of a Fed dividend cut. But those same lawmakers, hearing our case and cause, supported final legislation that exempted the vast majority of community banks and mitigated the dividend cut on those banks not exempted. The really good news is that the final legislation included several key Plan for Prosperity regulatory relief measures. It also jettisoned an ICBA-opposed provision that would have extended higher mortgage-guarantee fees that lenders pay Fannie Mae and Freddie Mac. The outcome wasn’t exactly what ICBA advocated. Nevertheless, what’s more important is that nearly all community banks were protected, and many will avoid some regulatory costs and headaches ‒ significantly so, for some. All of this happened because of the dogged hard work of the ICBA, community bankers and our state association affiliates. None of it would have occurred without our already having had a seat at the policy table. The same must be said for numerous other policy victories— from winning broader Qualified Mortgage definitions for rural lenders to halting extreme IRS reporting requirements on depositors. With your continued support and involvement, there is almost no limit to what we can achieve this year. t Influence and Action FEATURE About the Author Camden R. Fine is president and chief executive officer of the Independent Community Bankers of America. He came to ICBA from Midwest Independent Bank, Jefferson City, Missouri, where he chartered and organized the bankers’ bank and served as president and CEO for nearly 20 years. A long-time member of ICBA prior to becoming the association’s president and CEO, Fine served on several association standing committees and on the ICBA board of directors. The author can be reached at: cam.fine@icba.org.
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