Illinois Bankers Association Chief Executive Linda Koch recently gave a piece of her mind to Ben Bernanke and Sheila Bair.
llinois bankers are “deeply concerned” about “overly conservative” financial examiners, the trade group head says in a letter to the chairmen of the Federal Reserve and the Federal Deposit Insurance Corp., as well as other regulators.
“Too often,” collateral-dependent loans are being downgraded to troubled status “based on atypically depressed property values” — even if the borrower is current with payments and there are no plans to sell the property in the distressed market, the letter from Koch said.
And Illinois bankers are being required to hold capital “well above” regulatory minimums, she said.
“It’s extremely difficult in today’s environment for banks to raise additional capital, especially when so many banks are being asked to do so concurrently,” she said. “This mandate to raise capital ratios leaves many banks with no choice but to shrink their business, which results in selling assets and curtailing their lending in the very communities they’re trying to serve.”
Koch’s letter also notes that Illinois bankers are “frustrated” by the way in which examiners are forcing them to treat many of their commercial real estate loans and brokered deposits, and the “significant impact” of the growing list of bank regulations.
The Fed and FDIC either couldn’t immediately be reached or had no immediate comment.
Golden touch?: Michael Krasny, the billionaire founder of CDW Corp., owns 910,000 common shares, or about 7.6 percent, of Taylor Capital Group Inc., parent of Cole Taylor Bank, according to its recently released proxy. Based on Taylor’s recent trading price, his stake is valued at nearly $14.8 million. He didn’t return calls.
Banking’s a bear: Brian McCaskey, whose family owns the Chicago Bears, is one of nine directors of ailing Lincoln Park Savings Bank. The FDIC is seeking healthy bidders to acquire the assets and deposits of Lincoln Park and six other local lenders. McCaskey is senior director of business development for the National Football League team. He didn’t return a call.
Tweet me: See twitter.com/beckyyerak for news, updates and consumer tips related to banking, private equity, insurance and other odds and ends
byerak@tribune.com
