FOR IMMEDIATE RELEASE
ICBA Applauds Rep. Baker’s Recovery Corporation Measure
Washington, D.C. (October 24, 2005) - The Independent Community Bankers of America (ICBA) applauds Rep. Richard Baker (R-La.) for introducing legislation, the Louisiana Recovery Corporation Act (H.R. 4100), to establish a special agency to promote economic stabilization to Louisiana as the state recovers from the devastating impact of Hurricanes Katrina and Rita.
"Rep. Baker's bill will help our nation use resources in a coordinated way so that this vital region of the country recovers fully," said David E. Hayes, ICBA chairman and president and CEO of Security Bank, Dyersburg, Tenn. "Community banks in the area were helping their customers in the immediate aftermath of the hurricanes. This legislation will ensure their efforts are built upon and through the recovery corporation help these communities continue to recover and grow."
Baker's legislation includes ICBA's recommendation to establish a fund to allow the federal government to purchase impaired loans of borrowers affected by the disaster. In addition, ICBA recommends that the recovery corporation include areas in Mississippi and Texas that also suffered severe storm damage.
"We thank Rep. Baker for introducing this bill," Hayes added. "In addition to this measure, ICBA urges Congress to enact even more targeted proposals to help those in the affected areas recover." Among the legislation ICBA is asking Congress to enact the Hurricane Katrina Financial Services Relief Act of 2005 (H.R. 3945) scheduled for a vote in the House of Representatives this week; the Hurricanes Katrina and Rita Flood Insurance Buy-In Act of 2005 (H.R. 3922); and the Hurricane Check Cashing Relief Act of 2005 (H.R. 3909).
These measures would provide needed capital flexibility to help community banks lend in their communities; cover flooded properties that were not in designated flood areas; and indemnify banks that cashed checks in the early days following the disasters.