Spring 2011

Corporate Trust
CONNECTION
Winter 2007
U.S. Bank MuniManager Enhances
TOB Administration
At U.S. Bank Corporate Trust Services, we
recognize the importance of keeping our
technology ahead of the curve and being
responsive to our customers’ needs. This
is why U.S. Bank is pleased to introduce
U.S. Bank MuniManager – secure access to
your Tender Option Bond (TOB) programs
via the Internet.
Real-Time Access
to Critical Data
U.S. Bank MuniManager is a
comprehensive system that handles the
administration of all TOB programs.
MuniManager provides real-time
data 24/7. This versatile tool provides
timely cash flow reports, daily position
balances, residual investor reports, fee
projection reports, fact sheets and more.
“The regulatory environment and
municipal marketplace volatility are two
factors that have made it more important
than ever for clients to have timely online
access to their TOB reports,” says Jason
Gregory, Vice President & Manager,
Tender Option Bonds. “Giving clients
real-time information could help them
make critical decisions.”
The process is streamlined and secure:
• Log in through Trust Portal to access
MuniManager.
inside
• Select the reports you want and retrieve via
secure website. In addition, you can also
request delivery of your reports by FTP.
• Choose from multiple viewing formats,
including onscreen, Excel or PDF.
“MuniManager enhances the customer
experience by creating efficiencies for us
and for our clients,” Gregory continues.
“In addition to the enhanced reporting
capabilities, MuniManager allows us to
run various daily internal reconcilements
to ensure accuracy of data.”
Help Is Here
Online help is available for each report when
you click the “Help” link in the upper-right
corner of the screen. Help directs you to
individual PDF files containing information
specific to the report you are working on.
Each PDF contains instructions for entering
parameters for running the report, as well
as information on interpreting the results.
For questions concerning the reports,
contact your Account Manager.
For more information on gaining access,
training or demonstration of the system,
contact your Account Manager or Jason
Gregory at 212-361-6171.
For technical problems accessing the
website, call the U.S. Bank Resolution Center
at 1-866-252-4360, Monday through Friday
from 6:30 a.m. to 7 p.m. Central Time.
2 Economic Outlook 2 Rose Parade
3 Washington Update – 2011 4 Spotlight on the Los Angeles Office
spring 2011
Did You Know?
Corporate Trust Services
Platinum Award Winners
The following employees received
the 2010 Security Services Platinum
Award. The Platinum Award,
introduced last year, honors the
year’s top performers in U.S. Bank
Corporate Trust Services, Fund Services,
Institutional Trust & Custody and
Trust Technology & Support Services.
Lars Anderson
Sheri Ball
Paul Bavis
Clay Bethune
Matt Beu
Susan Brown
Tom Campbell
Nick Caramanico
Teresa Caspary
Sheri Christopherson
John Doherty
Bob Dunn
Dennis Egan
Jeff Emerson
Greg Farley
Michael Farrell
Steve Finklea
Susan Freedman
Chris Gehman
Grace Gorka
Scott Graham
Lorraine Grill
Kyle Harcourt
Ray Haverstock
Brand Hosford
Dyan Huhta
Bob Jones
Greg Jordan
Ed Kachinski
Emily Katt
David Keys
Dave Massa
continued on page 3
Economic Outlook
By Keith Hembre, Chief Economist, U.S. Bank
In its second estimate, the Bureau of
Economic Analysis announced that real
gross domestic product (GDP) increased
to an annual rate of 2.8 percent in fourth
quarter 2010, compared with 2.6 percent
in third quarter.* The momentum should
continue into the early months of 2011
based on the continuing advance in leading
economic indicators and the reduction in
payroll taxes for 2011 that will provide an
incremental lift to disposable income and
consumption spending growth in the early
months of the year.
Tempering Factors
While activity indicators have accelerated
in response to the stimulative efforts of
the Federal Reserve (Fed) and tax policy
changes, the acceleration in activity
is likely to be tempered as the year
progresses by rising food and energy prices,
ongoing restraint from the state and local
government sector, renewed weakness in
home prices and expectations for payroll
tax rates to normalize in January 2012.
Furthermore, with national debt levels
likely to be approaching statutory limits
by the second quarter of the year, the
new House of Representatives will also
likely look to achieve cuts in discretionary
spending in return for agreeing to lift
the debt ceiling. Any reduction in federal
spending from planned levels will also
work to temper growth in the second half
following what should be a reasonably
strong pace of growth in the first half
of the year.
Employment
and Inflation Trends
Employment growth should improve
moderately from the pace of last year
and be consistent with a decline in the
unemployment rate to about 9 percent
by the end of 2011. The sharp decline in
the unemployment rate in December was
partially a function of a new low in labor
force participation, a trend that should
reverse with ongoing employment gains.
U.S. Bank’s “Home Is Where the Heart Is”
float in the Rose Parade 2011.
page
2
The overall inflation rate should advance
with food and energy prices moving
higher, but core inflation rates are likely
to stabilize around current levels in the
coming year. Continued subdued core
inflation and unemployment well above
longer-term norms suggests that the Fed
is likely to maintain its current interestrate policy through the balance of 2011,
although the quantitative easing program
seems unlikely to be expanded or extended
beyond the June time frame given the
improvement in economic indicators and
the controversial nature of the program.
Nevertheless, Fed officials have also
suggested a relatively high threshold of
improvement would be necessary to alter
the program before its completion in
June. This should provide support to the
financial markets through the program’s
duration based on the pattern of prior
quantitative easing programs in the United
States and elsewhere. But the program
will leave the Fed with an extremely large
balance sheet, and the future challenge of
shrinking it back to normal levels in a nondisruptive manner.
From a fiscal perspective, the
Congressional Budget Office has yet to
issue official deficit projections as a result
of the tax agreement reached last fall,
but in all likelihood the federal budget
deficit will remain well in excess of
$1 trillion over the next two years, adding
significantly to the country’s future debt
burden and at some point necessitating a
significant adjustment in spending and/
or tax policies to return fiscal policy to a
sustainable level. While the level of debt
outstanding is not currently a binding
constraint on policy, deficits of the
magnitude expected over the next couple
of years are diminishing the fiscal flexibility
of the federal government. The policies will
bring about current growth benefits but
result in longer-term costs. The longer-term
costs are expected to be paid in subsequent
years when the economy is presumably
better prepared to absorb them.
* Source: Bureau of Economic Analysis, press release,
February 25, 2011, www.bea.gov.
Washington Update – 2011
By Walter Price, Director of Federal Government Relations, U.S. Bancorp
In the first few days of January, the new
112th Congress returned to Washington
for swearing-in ceremonies and to work
through organizational issues to prepare
for the upcoming legislative session.
In the U.S. Senate, following the
November election, the Democrats remained
in the majority, although by a narrower
margin than in the 111th Congress –
51 Democrats, two Independents who
generally caucus with the Democrats and
47 Republicans.
At the end of January, the decisions
were finalized regarding committee
leadership and composition. Sen. Tim
Johnson (D-South Dakota) became the
new Chairman of the Senate Banking
Committee, following Sen. Chris Dodd
(D-Connecticut), who retired at the close
of the last Congress. Sen. Richard Shelby
(R-Alabama) is the senior Republican on
the Committee.
Several new members were named to
the Senate Banking Committee including:
Sen. Kay Hagan (D-North Carolina), Sen.
Jerry Moran (R-Kansas), Sen. Pat Toomey
(R-Pennsylvania), Sen. Roger Wicker
(R-Mississippi) and Sen. Mark
Kirk (R-Illinois).
Shift in the House
In the U.S. House of Representatives, there
was a significant shift – as the Republicans
have taken over the majority – and now
have a 239-189 edge over the Democrats
in the lower chamber. In the first week of
January, the new members were sworn
in and formally elected John Boehner
(R-Ohio) as the Speaker of the House.
In the House Committee on Financial
Services, Rep. Spencer Bachus (R-Alabama)
was named as the Chairman of the
Committee, taking over from Rep. Barney
Frank (D-Massachusetts), who will now be
the senior Democrat.
It is anticipated that the House Financial
Services Committee will begin to ramp up
its activity as hearings are scheduled on a
number of policy issues of importance to
the financial services industry, including
housing finance reform (the role of Fannie
and Freddie), oversight of a number of the
rules and regulations that were included as
part of the Dodd-Frank regulatory reform
legislation, and a closer examination of the
debit card interchange legislation that was
passed as part of Dodd-Frank.
In March and April, two groups of U.S. Bank senior
leaders will be travelling to Washington to meet
with their respective congressional delegations.
At this point, we anticipate a series of
hearings taking a section by section, issue by
issue approach to Dodd-Frank. Committee
leaders plan to bring regulators up to
Capitol Hill for updates and testimony on
the status of the rule-writing process.
Of primary importance to U.S. Bank will
be any potential legislative action involving
the Federal Reserve’s proposed rules
regulating debit interchange fees (the Durbin
Amendment). These rules require the federal
government to set prices that banks and
credit unions can charge merchants for debit
card services. However, the rule does not
allow banks like U.S. Bank to consider the
value and cost of providing banking services.
This new rule has significant implications
for U.S. Bank and the financial services
industry as a whole.
The banking industry is urging Congress
to take the following actions regarding
interchange:
• Delay the effective date of the Federal
Reserve’s rulemaking for two years;
• Hold hearings on the Durbin Amendment
that includes economists, regulators and
business analysts focusing upon the effects
of price fixing;
• Require a governmental study to review
and analyze the impact of the Durbin
Amendment; and
• Take appropriate action based upon
hearings, research and the governmental
study and review.
The Financial Institutions Subcommittee
in the House was expected to have a hearing
on this topic in mid-February – we also
anticipate the Senate Banking Committee
to look closer at the Fed’s rule on
interchange later this spring.
In March and April (as we did in 2010),
two groups of U.S. Bank senior leaders will
be travelling to Washington to meet with
their respective congressional delegations to
advocate on public policy issues – such as
interchange – of importance to U.S. Bank.
Corporate Trust Services
Platinum Award Winners
continued from front
Tami Mawn
David Morrison
Barb Nastro
Jill Olson
Rich Ostby
Paula Oswald
Nancy Raabe
Mary Reyes-Ambriz
Diane Reynolds
Brad Scarbrough
Dan Sheff
Sheila Soares
Scott Strodthoff
Linda Verstuyft
Becky Warren
Ian Watson
Donna Williams
Cindy Woodward
Mike Zak
Tom Zrust
page
3
Spotlight on the
Los Angeles Office
From the iconic “Hollywood” sign to
the celebrities honored on the Walk of
Fame, Los Angeles is all about the stars.
U.S. Bank Corporate Trust Services has its
own star performers – the employees at its
Los Angeles office – who shine at providing
exemplary service to their customers.
Major Players in a Large Market
The Los Angeles office is one of the largest
U.S. Bank Corporate Trust Services offices,
with 51 employees averaging more than
20 years of experience.
“We offer a full range of corporate trust
products and services with an emphasis on
municipal bond transactions and corporate
escrow transactions, particularly merger and
acquisition indemnity escrows,” says Teresa
Caspary, West Region Manager. “U.S. Bank
is No. 1 in municipal market share in the
state and has been for more than 10 years.
Since California is the nation’s largest issuer
of municipal bonds, our office has closed
just about every type of municipal financing
that has gone to market.”
The office counts among its customers
cities, utilities, water districts, school
districts, redevelopment agencies,
The star performers of the U.S. Bank Corporate Trust Services Los Angeles office.
community facility districts, housing
agencies, and higher education and health
care institutions.
“Our customers are so loyal because
of the exceptional customer service they
receive from our highly seasoned and
professional staff,” Caspary says. “We are
always trying to improve the customer
experience and have earned their trust and
loyalty. We work in a very competitive
market, and that means each staff member
needs to be at the top of his or her game.”
If you’re in L.A., stop by the U.S. Bank
Corporate Trust Services office in the
U.S. Bank Tower to say hello. It’s easy to
spot – it’s the tallest building west of the
Mississippi. If you have questions about
our products and services, please contact
your Account Manager.
INVESTMENT PRODUCTS ARE:
NOT A DEPOSIT
NOT FDIC INSURED
MAY LOSE VALUE
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
NOT GUARANTEED BY THE BANK
The articles and information included in this newsletter are for your information and are not intended as legal, accounting or tax advice. U.S. Bank and its representatives
do not provide legal, accounting and/or tax advice. Clients are encouraged to contact their legal, accounting and/or tax advisor regarding their particular situation. While
the information is intended to be accurate, neither U.S. Bank Corporate Trust Services nor the publisher accepts responsibility for relying on the information provided.
Images may be from one or more of these sources: ©Thinkstock, ©iStock, ©Fotolia. ©2011 U.S. Bank Corporate Trust Services. Member FDIC.
Comments and suggestions for the newsletter are welcome and should be forwarded to Ashley Beukelman, Corporate Trust Connection, U.S. Bank Corporate Trust Services,
(651) 495-3941 (phone) or marketing.corporatetrust@usbank.com (e-mail). For more information, visit our website at usbank.com/corporatetrust.
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