CBA Publications >> Members' Only Publications >> Current Events

Current Events - 07/15/2002

CBA secures extensive changes to bad debt conformity

As a result of extensive negotiations between CBA's Taxation Committee and Governor Davis' staff, extensive changes to the bad debt conformity proposal were made. Chief among these changes are:

• Large banks and thrifts must change to the specific charge-off method in 2002;

• Large banks and thrifts will be required to recapture one-half of their existing reserves as income in 2002; and

• Small banks and thrifts will be able to use the reserve method for calculating bad debts using the federal tax rules for small banks (generally, the six-year moving average method). No reserve recapture will be required.

Under CBA's proposed changed, which were incorporated into AB 433 and will be voted upon by the Assembly, large banks and thrifts need recapture only half of their reserve balance as of December 31, 2001. The other half of the reserve will never be subject to tax.

Successful fundraiser for Rep. Becerra

CBA and its members raised $11,750 for Rep. Xavier Becerra at a fundraiser held for Rep. Becerra on July 1 at the Huntington Hotel & Spa in Pasadena. Participating organizations included: Affinity Thrift & Loan; Far East National Bank; Mardo Insurance; McPherson, Inc.; Pacific Crest Bank; Rob Evans & Associates LLC; Union Bank; Washington Mutual; Wells Fargo; and Zepko. One of the CBA's first fundraisers of the fiscal year, this event was particularly successful thanks to the participation of our valuable members.

CBA adds Longatti as VP, Member Relations

In an effort to further enhance CBA's grassroots and members relations programs, CBA has hired Bob Longatti as its vice president, Member Relations. Reporting to Mike Jones, Longatti will be contacting and visiting all our Northern California members to schedule meetings with legislators, determine our members' needs, and to bring an added resource to members on industry issues.

Prior to its sale in 2000, Bob served as an Executive Vice President and Chief Credit Officer for Regency Bank. Since that time, Bob has been serving as a consultant with small- and medium-sized businesses in the Central Valley. He is well-known to many CBA members and served as Region Chairman for the Yosemite Region and earlier in his career was Chairman of CBA's Agricultural Lending Committee. Please join us in welcoming Bob to CBA - he can be reached at blongatti@calbankers.com.

George Graziadio, Jr. dies

It is with great sadness that CBA announces the passing of George Graziadio, Jr., one of its long-time members. One of the co-founders of Imperial Bank, Graziadio is also known for his contributions to higher education and commitment to community service. George passed away on June 6 and the family asks that any gifts in George's memory be made either to the Torrance Memorial home Health and Hospice or Pepperdine University's Graziadio School of Business and Management.

FDIC ombudsman available to help answer questions

Do you have an issue about the examiners in your bank? Do you want to know how to interpret or apply a FDIC regulation? Do you think the FDIC is taking too long to process an application, or respond on some matter? For these types of problems and others, the FDIC's ombudsman is ready to help. For more information on the FDIC Ombudsman program or to request assistance from the ombudsman, please call 877/275-3342 or e-mail www.ombudsman@fdic.gov.

Secret Service Web sites

For five years, the U.S. Secret Service has allowed authorized financial institutions and law enforcement access to a select number of secure Web sites in an effort to prevent financial crimes. The two sites: www.elibrary.usss.treas.gov and www.usdollars.treas.gov can be accessed to find information on counterfeit checks, skimming, alerts, and fictitious instruments and to identify potentially counterfeit notes. If you do not have access to these sites and would like to gain access, just visit either site and register as a user by completing the authorization form.