Due to more than 80 bank failures nationwide this year, the federal government’s deposit insurance fund took a significant hit, but a banking industry leader in Iowa says the state’s residents have little to fear. The Federal Deposit Insurance Corporation, or F.D.I.C., saw the fund drop more than ten-billion dollars, or about 20%. John Sorenson, president and C.E.O. of the Iowa Bankers Association, says Iowa hasn’t seen a bank failure in nearly a decade. "Iowa banks, on the whole, remain strong, and I think in a very good position to serve our communities, especially during this particular recessionary period," Sorensen says. "If you look at the numbers closely, Iowa banks outperformed the rest of the country and 88% of our institutions were profitable through June 30 of this year." During the first six months of the year, Iowa banks saw 195-million dollars in profits, which is down 27% from a year ago. Sorensen relates that to "stress" in real estate loans, particularly in construction and land development, but not so much on the consumer side. "Overall, Iowans can take comfort in the fact our industry is strong," Sorensen says. "If you graded us on a curve, compared to the rest of the country, I think we’d get an ‘A’ and it’s also important for consumers to keep in mind that the FDIC continues to provide deposit insurance, so up to $250,000, you are covered should there be a bank failure." He says Iowa weathered the national financial storm better than other states. In 2008, Sorensen says the agricultural economy performed very well, as did Iowa’s manufacturing sector for at least part of the year, since exports were still very strong. "Obviously, we’ve been impacted now a little more severely during the first part of 2009 in both of those circumstances," Sorensen says. "We didn’t participate in the sharp increases in land values and house prices that they saw in other parts of the country. Iowa’s always been more stable and frankly, I’d like to think we have more responsible lenders than in other parts of the country." The FDIC report released Thursday said the number of banks deemed to be "in trouble" in the U.S. rose from around 300 to 416 at the end of the first quarter. This year, 81 banks have failed nationwide. Reports earlier this week said Sioux City-based Vantus Bank is at risk of failing and would be the first in Iowa to do so since 2000. Analysts say problems at Vantus stem from the recession and big loans it made to Regency Homes, Iowa’s largest homebuilder, which went out of business last year. On Vantus, Sorensen would only say the discussions are ongoing and that bank’s fate isn’t yet known.
Official says Iowa banks remain sound
Aplington-Parkesburg looks to move ahead with football
A national television audience will be watching as an emotional evening unfolds in Parkersburg. ESPN will televise the season opener for the Aplington-Parkersburg football team as the Falcons host Dike-New Hartford. It was just over two months ago long-time coach Ed Thomas was shot and killed while monitoring the school’s weight room. Long-time assistants Al Kerns and Jon Wiegmann are leading the team as co-coaches and Kerns says the players have done a great job of in the wake of such a tragedy. He says it sometimes seems like a long time ago and sometimes seems like just yesterday, but he says they wanted to move ahead with the schedule and now are ready to play football. Kerns says there is no way to replace Thomas. He says things happen on a daily basis and he is reminded that he misses Thomas every day. Kerns says they know as a coaching staff that they will all have to do a better job. Dike-New Hartford coach Don Betts says the death of Thomas was much more than just a local tragedy. He says it’s "an unspeakable tragedy for Aplington-Parkersburg" and also a tragedy for the entire state of Iowa. "He was a very good man and anytime a good man goes down, it’s a tragedy for all involved," Betts says. Betts says a lot of the kids know each other and that creates some of the most competitive games you can have.
Judge agrees to second mental evaluation of Becker in AP coach shooting
A Butler County district court judge has agreed to hear the state’s request for mental competency hearing for the Parkersburg man accused of killing Aplington-Parkersburg football coach Ed Thomas. Judge Stephen Carroll issued an order Thursday suspending the proceedings in the first-degree murder trial of Mark Becker at the request of the prosecution. The judge has agreed to a request by the state to have its own doctor examine Becker, and that will happen today. The state requested the review after Becker’s attorney filed paperwork saying a doctor hired by the defense has found Becker not competent to stand trial. His attorney said in the court documents that Becker suffers from schizophrenia and bipolar disorder and is unable to understand the charge against him or help prepare his own defense. Judge Carroll has set a hearing for September 1st to determine if there is sufficient evidence to hold a competency hearing for Becker. If the judge determines there is enough evidence, a competency hearing will be held on September 10th at 9:30 A.M. at the law enforcement center in Mason City. Becker is accused of shooting Thomas in the school weight room on June 24th. The state’s doctor is scheduled to examine Becker at 9:30 A.M. Friday.
Two charged after high-speed chase in Carroll and Crawford counties
Two Omaha men are in custody after leading deputies on a high-speed chase through portions of Crawford and Carroll counties. Twenty-six-year old Mark A. Lea Junior and 36-year-old Brian K. Thessen are being held in the Carroll County jail on charges of attempted murder, eluding law enforcement and reckless driving.
The chase began after eight a-m when a citizen reported two men were trying to break into a coin box at the Dow City Car Wash. The pursuit began six miles west of Denison on Highway 30, proceeded through Denison and continued east into Carroll County. About one mile and a half east of Arcadia, the suspects crashed into a sheriff’s department patrol car as a deputy was attempting to deploy stop sticks.
The suspect vehicle then rolled end over end into a ditch where Lea and Thessen were taken into custody. The Crawford County Sheriff’s Department says Lea was the driver. The pursuit reached speeds in excess of 100 miles-an-hour and involved the Crawford and Carroll County Sheriff’s departments, Denison Police and Iowa State Patrol.
One utility already offers rebates for old appliances
As the federal government considers a Cash for Clunkers-type of program for old appliances, Iowa-based MidAmerican Energy already has a similar statewide program in place.
Utility spokesman Mark Reinders says the program was launched a few weeks ago and works with contractors to pick up and dispose of old, yet still-working appliances.
The rebate offers $50 for refrigerators and freezers and $25 for window air conditioners. Reinders says the idea is to get rid of an older piece of equipment and purchase a more energy-efficient item. He says the program benefits customers with the cash as well as getting rid of the old appliance while helping them cut back on future energy use.
Rebates are also available for customers buying new appliances. For information, call 800-621-2757 or visit MidAmerican’s website .
Study shows gambling treatment program is working
An annual study of problem gamblers in the state shows Iowa’s publicly funded treatment services are helping people quit. Mark Vander Linden is the Gambling Treatment Program coordinator with the Iowa Department of Public Health.
He says the study found, six months following treatment, 95% of respondents reported they had reduced or quit problem gambling behaviors. In addition, 41% of people entering treatment said they had been late paying their bills.
By discharge, that number dropped to 21%. The study was conducted in partnership with the University of Northern Iowa’s Center for Social and Behavioral Research. Around 940 people sought help from Iowa’s Gambling Treatment Program in 2008. [Read more...]
Drake University hosts son of Nikita Khruschev
Sergei Kruschchev
To mark the 50th anniversary of Soviet Premier Nikita Khrushchev’s historic visit to Iowa, Drake University is hosting a dinner and lecture tonight on the Des Moines campus.
The guest list includes Khrushchev’s son, Sergei, who’s now 75. Drake President David Maxwell toured Russia as a teenager at the height of the Cold War as his father was a trumpet player in the Benny Goodman Band.
Maxwell recalls the band playing a party on July 4th of 1962 at the U.S. Embassy’s guest house in Moscow.
Maxwell says, “We’re at this party, a typical American 4th of July party, outdoor barbeque, lots of food and lots of fun, and then there’s this big hubbub and the word started getting around the crowd that Nikita Khrushchev had just shown up to congratulate us on the anniversary of our revolution.”
It was the first time an American jazz band had played “behind the Iron Curtain,” Maxwell says, so it was an incredibly big deal to be there. Seeing Khrushchev just added to the thrill. Maxwell says, “He and the ambassador said a couple of nice words to each other in front of everybody and then Khrushchev went around the crowd pressing the flesh, shaking hands with everybody, including this 17-year-old kid who was there, tagging along with his father.”
Given the political climate of 1962, Maxwell notes that when he returned, most people in his hometown in New York couldn’t believe he’d even been to Russia, let alone met Khrushchev. Maxwell says, “Nobody knew anybody who could actually go there so at that age to spend seven weeks traveling thousands of miles around the Soviet Union and then in the midst of this, shake hands with the Soviet premier, was really surreal and very exciting.”
He says the trip was a life-changing experience that placed him on the path to become a professor of Russian literature and ultimately a university administrator. About 40 Russian political and business leaders will be at Drake today. The featured speaker at tonight’s free lecture is scholar and author William Taubman, who won the 2004 Pulitzer Prize for his biography of Premier Khrushchev.
Sergei Khrushchev will also be speaking about his memories of his family’s visit to Iowa in 1959. The lecture’s at 7 P.M. in Sheslow Auditorium in Old Main. Additional information.
