April 15, 2010 Vol. 5, No. 2 

NYBA’S SPRING CALENDAR: GREAT OPPORTUNITIES FOR SERVICE MEMBERS  

NYBA offers a wide range of quality networking opportunities for firms wishing to connect with the leaders and decision-makers of New York 's banking industry.

REGISTER NOW TO EXHIBIT & SPONSOR AT NYBA’S 7^TH ANNUAL TECHNOLOGY, COMPLIANCE & RISK MANAGEMENT FORUM

Don’t miss NYBA's Annual Technology, Compliance & Risk Management Forum May 17-19, 2010 at the Crowne Plaza Hotel in Albany , New York . The Forum offers IT, risk, information security, compliance, operations, audit and fraud management professionals the very latest on industry trends, best practices, regulatory developments and state-of-the-art technology. The program provides cost-effective and time-efficient face-to-face buyer contact during meals, receptions and breaks. Opportunities to network with more than 80 decision makers from over 40 New York financial institutions.  

Sponsorships and exhibit space are still available!  Raise your firm's profile by showcasing your products/services or sponsoring an event at the 2010 Forum. Sponsorships range from $1000 - $5000. Click here for registration forms and more detailed information.  For further information, contact Elisa Legg (Elegg@nyba.com) or Mary K. Robb (Mrobb@nyba.com). For Hotel Reservations, call 877-462-4441 and mention Group Code BHD; group room rate - $134. The room block will be held until April 26, 2010.  

 Senior Management Conference (June 16-18, The Sagamore, Bolton Landing) is a comprehensive educational program for CEO’s, CFO’s, COO’s and other members of the bank’s senior management team. Sponsorship and exhibit opportunities are available. Click here for more information.  

And, Save the Dates for these additional NYBA programs to be held later in 2010:

• Retail & Small Business Banking Conference 
  (September 22-24 - Crowne Plaza , Albany )

• 64th Annual Trust & Investment Conference
  (October 5-7, DoubleTree Hotel,   Tarrytown )  

• Financial Services Forum 
  (November 8-10, New York City ) 

For further information contact Elisa Legg (Elegg@nyba.com) or Mary K. Robb (Mrobb@nyba.com).  

Latest From Profit Solutions  

CSSI HELPS LEVERAGE TAX FLOW TO KEEP CAPITAL WORKING FOR YOU     

NYBA’s New York Bankers Service Corporation (NYBSCO) has endorsed Cost Segregation Services, Incorporated (CSSI) for Engineered Cost Segregation that helps owners of commercial property leverage tax cash-flow, keeping your working capital “working” for you! As an independent, qualified, fully compliant engineering firm that solely concentrates on engineered cost segregation studies CSSI is able to work with you and your accounting firm in applying their methodology and economic results. CSSI will provide a no cost analysis that will prove the economic feasibility of an engineered cost segregation study. Engineered Cost segregation is an IRS approved method that enables commercial property owners to re-classify approximately 30% - 40% of their buildings from real property to personal property. Real property is typically depreciated over a 39 year schedule; whereas personal property can be depreciated in 5, 7 or 15 years, thus generating tremendous cash flow.  Please contact Joe DeSanzo at 908.684.3244 or jdesanzo@cssi-associate.com to discuss CSSI’s no cost no obligation analysis on your branch network. 

NYBA’s 401(k) PROGRAM - AN ATTRACTIVE OPTION FOR SERVICE MEMBERS

NYBSCO and Milliman, Inc., a leading provider of retirement plan services, have teamed up to offer an attractive, affordable and reliable 401k program for NYBA Member Banks and Service Members. The plan includes access to a state-of-the-art, web-enabled system and best-in-class investment options. Each participating organization can choose its own plan provisions and investment options that include mutual funds, institutional share class funds, company stock and model portfolios. Participants can select from a menu of investment options developed by Milliman investment consultants, who continually monitor and analyze investments. For more information on this exciting program, please contact Paul Bonsee of Milliman at (973) 569-5541, or email him at: Paul.Bonsee@milliman.com. 

BUSINESS AS USUAL WHEN THE UNUSUAL STRIKES  

The New York Bankers Service Corporation (NYBSCO) recently announced its endorsement of Continuity Centers and their disaster recovery solutions. NYBSCO has made special arrangements for NYBA Members, and believes that Continuity Centers’ unique services will make recovery testing easier, help firms become more resilient, and save money in the process!  

Continuity Centers has more than 10 years’ experience specializing in disaster recovery, and they look forward to putting that expertise to work for NYBA members. A series of webinars beginning in early April -- exclusively for NYBA Members – will provide a detailed introduction to their services. To learn about special Members-only offers, including money-saving discounts, and to register for one of the upcoming webinars, please visit www.ContinuityCenters.com/NYBA.

For more information, please contact Amy Whissen at 516.704.0017, Amy@ContinuityCenters.com. 

E-MAIL ENCRYPTION IS CRITICAL

New York Bankers Service Corporation-endorsed ZixCorp addresses email security with a comprehensive suite of services that include an email assessment program, a manual desktop encryption function for individual users and a corporate-wide solution for automatic content scanning and encryption. The enterprise-wide ZixVPM (Virtual Private Messenger) monitors all company outbound email and automatically determines whether information should be encrypted based on policies set by the organization and a built-in, pre-configured lexicon. The lexicon detects and encrypts email that contains nonpublic information, including Social Security numbers, credit card numbers, personal financial details and other confidential information. NYBSCO has negotiated special terms for NYBA Members and Service Members. To learn how ZixCorp can help secure your organization’s confidential email, contact ZixCorp’s Steve Irons at (781) 993-6023; email sirons@zixcorp.com - be sure to identify yourself as a NYBA Service Member to qualify for your discount.  

XEROX OFFICE EQUIPMENT PROGRAM 
Negotiate Your Best Deal – Then Take Off Even More 

NYBA’s office equipment program provides NYBA members with additional discounts on purchased Xerox equipment. If you buy Xerox equipment, negotiate your best deal with the merchant, then receive a discount above and beyond what the dealer provides. The discount applies to equipment, supplies, training and systems management. Call (800) 275-9376, ext. 2265, and reference contract number 0706438 to qualify for the NYBA discount. For further information on this NYBSCO product, please contact NYBA’s Field Marketing Manager Gus Kananis at (518) 434-3556: e-mail gkananis@nyba.com.  

NYBA’S WORKERS COMP GROUP INVITES SERVICE MEMBERS TO COMPARE COVERAGE

Arthur J. Gallagher Risk Management Services, administrators of the NYBA Workers Compensation Safety Group, now has an additional Safety Group Available to NYBA Service Members! In addition to attractive cost benefits, the Safety Group makes it much easier for the HR professionals at participating clients to keep track of claims and the status of injured employees. The NYBA plans provide all participants with state-of-the-art on-line claims tracking and monthly reports. The Workers Compensation coverage available to NYBA Service Members offers significant up-front discounts off state mandated rates and the potential for dividends, depending on group experience. For more information on this valuable program, and to receive a non-binding quote to compare your current coverage, please call Lynn Cagnetta of Arthur J. Gallagher Risk Management Services at (203) 642-0502 [e-mail lynn-cagnetta @ajg.com]. Be sure to identify yourself as a NYBA Service Member.  

Professional Development   

Human Resources Management Seminars
May 25 – Syracuse ; June 2 – Tarrytown
This year’s programs will focus on important legal and regulatory matters affecting bank human resources departments, including: DOL Overtime Regulations, Negligent Hiring and Background Checks, Controlling Intellectual Property, Social Networking and Internet Use Policies, and more.  Ample opportunity will be provided for peer discussions.  

ONLINE COURSES PROVIDE HIGH QUALITY EDUCATION WITH ONLINE CONVENIENCE  
Help your employees build their banking knowledge

How well do your employees understand the business of banking?  AIB courses, offered in both instructor-led and self-paced online formats, offer a cost-effective, time-efficient way to provide training for employees new to the banking industry.  The AIB Service Provider Certificate provides a foundation in banking knowledge, including key terminology, concepts and an overview of the regulatory environment.   AIB Online courses go more in depth on such topics as Commercial Lending, Mortgage Lending, Analyzing Bank Performance, Analyzing Financial Statements, Trust Basics, and more.  AIB Online Course Schedule is now available for courses through August 2010.  

Using NYBA webinars, telebriefings and the GSB Online Classroom help to keep a lid on travel costs.  Use them to bring essential updates and nationally known instructors right to your office. Take advantage of these Webinars, Telebriefings and GSB Online Seminars .  

For information on all NYBA educational programs, visit nyba.com or contact Elisa Legg (elegg@nyba.com, 212-297-1679).   

You can sign up for automatic updates on all of NYBA’s educational programs via e-mail at: www.nyba.com/ education. 

 Government Relations Update  

ALBANY    

The State Legislature returned from its spring recess Wednesday, April 7, having concluded its March session without passing a State budget and with all the parties far apart on budget provisions. During the recess, NYBA continued its work in support of allowing municipal deposits to be deposited in thrifts, and in opposition to allowing the funds to be deposited in credit unions.  

At a recent news conference, several state legislators, Albany Mayor Jennings and Albany County Executive Breslin joined the state credit union association in supporting the proposal to allow public deposits to be deposited in credit unions. NYBA President Michael Smith responded that credit unions do not pay taxes on their profits like banks do: “At a time when the state of New York needs every penny to help balance its budget, we strongly oppose any new competitive advantages for credit unions, particularly those that come at the expense of the state’s taxpayers.” NYBA estimates the potential loss of revenue at between $15 million and $30 million. Mr. Smith noted: We feel that if you want to do this business, you should just become a bank.” 

WASHINGTON   

Congress returned from its spring recess on April 12.   

NYBA joined the ABA and other state bankers associations in urging Treasury Secretary Tim Geithner to oppose any expansion of credit union business lending authority and not to include any such proposal in the job creation package the Administration is preparing for Congressional consideration.  The letter noted that business lending is inconsistent with the basic mission of the credit union industry, that tax subsidies should not be used for competition with private businesses and that few credit unions are affected by the current business loan limits.   

New York City Mayor Michael Bloomberg went to Washington this week to tell Congressional leaders to stop bashing Wall Street. He also expressed dismay that New York 's Congressional delegation has not defended New York 's core industry and cash cow."  

NEWS & TRENDS  

New York City Council Speaker Christine Quinn and NYBA will co-host, along with the New York Business Development Corporation (NYBDC), a small business lending summit in New York City on Tuesday, April 20, to announce a New York City roll-out of the NYBDC’s “Second Look” program.  In addition to leaders of the banking and lending industry, the summit will include representatives from business organizations, Senator Schumer’s office, Rep. Nydia Velazquez’s office and local and State economic development agencies.  

NYBA President & CEO Mike Smith, along with a number of members of our Bank Security Task Force, recently attended a press conference at which the FBI announced the launching of a website which is designed to provide information about bank robbery suspects both to bank employees and the public at large.  The website enables police detectives to upload photos of suspects directly from the bank’s branch immediately after the robbery.  While New York bank robberies are down significantly from 2008 numbers, the FBI believes that this website will be a valuable way to enlist banks’ and the public’s help in identifying bank robbery perpetrators – particularly in armed robberies. As it has for many years, NYBA will continue its collaborative effort with the FBI and other law enforcement agencies to continue to reduce bank robberies in New York .   

The index of U.S. manufacturing reported its best reading since 2004, an increase of 3.1 points. Economists now say that, with growth like this, the U.S. has avoided a "double-dip recession." Also, U.S. auto sales rose 24 percent last month.  

The Institute for Supply Management reports the third consecutive month of growth in the service sector, a sign of a broadening economic recovery. Pending home sales also rose unexpectedly in February, as buyers moved to take advantage of tax credits. Construction spending fell for the fourth consecutive month.  

A report by State Comptroller Thomas DiNapoli found that state government raided nearly $3 billion intended for programs and services over the past decade to help close budget deficits. He called for a prohibition on most such “sweeps” of funds.  

In a new Gallup poll, about 47 percent of respondents said they would be voting for a Republican for Congress in November, 62 percent of voters said they can't wait to get into the voting booth.  

Former Governor George Pataki says he will not challenge Senator Gillibrand this fall, but rather will create a national organization aimed at repealing the Obama health care law.  

First Niagara Financial Group ( Buffalo ) has closed on its acquisition of Harleysville National Corporation, a Pennsylvania bank.  

“First Look” is published by the New York Bankers Association. Please send questions, comments or submissions to Stephen W. Rice, srice@nyba.com, Fax 518-434-1576, or call 518-434-3557. We are sending you this e-mail for your information. If you prefer not to receive any further messages from us, you may unsubscribe to “First Look” by contacting  Steve Rice at 518-434-3557 or srice@nyba.com. Thank you.