The Support Group for Modern Banking has been launched by 18 industry leaders-from Paul Hazen at Wells Fargo & Co. to Charles E. Rice at Barnett Banks Inc.
While traditional trade association executives are nervous that the new group will splinter the industry and divert scarce resources, managing trustee Carter Golembe says it is simply filling a void as the only organization dedicated to preserving recent gains and expanding the national bank franchise.
Banking lawyer James C. Sivon, the group's secretary-treasurer, says no lobbying is contemplated. The Support Group plans to participate in litigation, file comment letters with the agencies, and prepare policy papers.
Banc One Corp. was "sorely and sadly dismayed" March 20 when home-state congressman Steven C. LaTourette introduced legislation to expand the membership base of federal credit unions.
In March 26 letters to lawmakers, Banc One lobbyist Annie Hall urged Congress to oppose the Ohio Republican's bill.
"Mr. LaTourette intends to create a new financial service organization which looks like a bank, walks like a bank, and talks like a bank but enjoys tax-free status," she said. "We simply do not believe that it is good public policy to provide everyone and anyone with tax-free financial services."
The Federal Deposit Insurance Corp. may be planning to cut 2,500 employees by 2000, but that isn't stopping it from hiring nine accountants.
Several accounting rule changes have prompted examiners and bankers to shower the agency with complicated questions, FDIC Director of Supervision Nicholas Ketcha said recently.
To answer these queries, he said, the agency plans to hire an accounting specialist for each of its eight regional offices by the end of summer, plus one in Washington.
"These rules have been coming out hot and heavy, and it's gotten to the level where we really need to add someone on staff in each regional office," Mr. Ketcha said.
The main sources of confusion: Federal Accounting Standard 125, which revised the way financial institutions report loan servicing rights, and the revamped March 31 call reports, under which banks must use generally accepted accounting principles for the first time.
