Volume 6, Issue 1
Page 7
State Bank Department
concern.
 CSBS has continued to
urge the federal agencies to
be realistic and flexible in
applying Prompt Corrective
Action rules.
 CSBS pushed to expand
FDIC coverage to all de-
mand deposit accounts and
did win an increase of cover-
age to $250,000 for both in-
dividuals and small busi-
nesses. The legislation to
increase deposit insurance
limits also provides the
FDIC with unlimited power
to borrow from the Treasury,
as needed, to protect insured
deposits.
 CSBS sought, but did not
win, a carve-out of federal
Banks join CSBS to support
funding to buy troubled as-
sets from community and
regional banks.
state charter in dual system
At the first TARP over-
sight hearing, CSBS told the
panel that policymakers
should consider reforms that
By Edward Smith That role is being tested the vast majority of which
Conference of State Bank this year as Congress de- are state chartered.
“promote diversity and cre-
Supervisors bates financial regulatory Among other things,
ate new incentives for the
The Conference of State restructuring – a process CSBS undertook the fol-
smaller, less troubled ele-
Bank Supervisors (CSBS), that, depending on the lowing initiatives:
ments of our financial sys-
based in Washington, outcome, could enhance
tem, rather than rewarding
 CSBS and the industry
D.C., is the professional or imperil the state bank- not only won a time limit
the largest and most reck-
association of state bank ing system. for the government’s
less.”

regulators. But in addition As the current eco- guarantee of money-
EDITOR’S NOTE: The
to the 54 state and territo- nomic turmoil began to market mutual funds but
author is Vice President –
rial regulators, it includes build last year, it became also secured a limit on the
Membership for the Con-
in any given year 1,800 or clear that Congress would guarantee to money in
ference of State Bank Su-
more voluntary bank act to address the prob- funds as of September 19.
pervisors. Arkansas bank-
members. lems that were then sur- This keeps the money-
ers who are interested in
Bankers who choose to facing. For many in the market mutual funds from
supporting CSBS can con-
give CSBS their member- banking industry, includ- siphoning off vital depos-
tact Luther Guinn, Deputy
ship support generally do ing regulators, the word its from community and
Bank Commissioner, Ar-
so because they under- “bailout” carries negative regional banks.
kansas State Bank Depart-
stand the organization’s connotations. Even so,
ment, at 501-324-9019 or
 CSBS urged the Fed-
role as the single national- when a bailout started eral Deposit Insurance
lguinn@banking.state.ar.us,
level group dedicated to looking inevitable, CSBS Corporation to be more
or Ed Smith at 202-728-
protecting and enhancing went to work to protect flexible in its treatment of
5718 or esmith@csbs.org.
the value of the state bank the interests of commu- brokered deposits and
The CSBS Web site is:
charter. nity and regional banks, continues to pursue this

http://www.csbs.org/
March 31, 2009
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