SJ0081 96TH GENERAL ASSEMBLY

SJ0081 LRB096 16323 MJR 31585 r

SENATE JOINT RESOLUTION

WHEREAS, Illinois' community financial institutions provide the local support our communities need to prosper and grow; and

WHEREAS, With more than $130 billion in assets, community banks know that when money stays in communities it becomes a renewable resource, creating an economic cycle that constantly revitalizes and stimulates local communities; and

WHEREAS, These banks have made significant contributions to the economic well-being of the communities they serve through their financial support, their dedication as good neighbors, and above all, their service as financially sound and reliable sources of economic lifeblood in our communities; and

WHEREAS, Park National Bank was a model community bank that successfully provided the quality services, access to capital, and commitment to community reinvestment that all financial institutions should provide, such as creating jobs for local residents; investing in new schools, start-up businesses, and affordable housing; supporting the work of local non-profit and cultural organizations; and exemplifying innovation, fairness, and flexibility; and

WHEREAS, On October 30, 2009, after denying FBOP Corp.'s request for $500 million in Troubled Asset Relief Program assistance, the Federal Deposit Insurance Corporation seized the assets of FBOP Corp. and its Chicago-metro-area banking facilities known locally as Park National Bank, and sold them to U.S. Bank; and

WHEREAS, The closure of this profitable bank came hours after Treasury Secretary Timothy Geithner attended a ceremony in Chicago that awarded Park National Bank $50 million in tax credits to help spur community-development projects in low-income communities; and

WHEREAS, the rules of the FDIC create a double standard that harms our communities because community banks get seized and sold, even though the Treasury Secretary says Park National Bank is doing all the right things to help turn itself around; and

WHEREAS, Other community banks that make the spirit and letter of the Community Reinvestment Act their core mission, such as ShoreBank, Highland Bank, and Second Federal Savings, may be in jeopardy; and

WHEREAS, A coalition of church and community leaders from across Chicago's neighborhoods have taken the initiative to raise awareness about the FDIC's actions against Park National Bank; the Coalition's initial steps have included conducting research on U.S. Bank's minority lending and mortgage foreclosure track record; developing a petition drive calling for a Congressional Hearing investigating the FDIC's actions and the apparent lack of federal aid for a model community bank, and holding a Community Town Hall Meeting; and

WHEREAS, For community banks to continue being an integral part in the development of our communities and this State as a whole, the federal government needs to consider reforms to assist and preserve community banks; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SIXTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE HOUSE OF REPRESENTATIVES CONCURRING HEREIN, that we urge the United States House of Representatives Financial Services Committee and the United States Senate Committee on Banking, Housing, and Urban Affairs to hold hearings to investigate the FDIC's seizure of Park National Bank/FBOP and sale to U.S. Bank, for the impacts that this action will have on the communities that Park National Bank has served so well, and the wider implications for the future of community banking; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the members of the Illinois congressional delegation, United States Representative Barney Frank, and United States Senator Christopher Dodd.