Jeff Dick
President and CEO
MainStreet Bank

I just finished reading an advertisement that said; "Far from Wall Street, dreams still come true."    That ad was next to another which stated; "Just say no to Bailout Banks, Bank Responsibly."

It seems to me that the Obama Administration is doing a great job of bunching all banks together under one cloud as they talk about the troubles in our industry.  In actuality, most community banks are strong and continue to do business as usual.

The banking industry currently has $16.7 trillion in total assets.  Of that total, four banks (Bank of America, JP Morgan Chase, Citigroup and Wells Fargo) control $8.4 trillion, or 50%.  Add the next 70 largest banks to that group of four and they control 86% of the banking industry.  The remaining 14% is controlled by 6,428 community banks.

Community banks are a small piece of the banking industry, but we are stable and much better positioned to take America forward. 

Meanwhile, the Obama Administration is now talking about nationalizing our largest banks.  Here is where it gets weird...  The United States has spent countless dollars over the last 25 years helping third world countries de-nationalize their banking systems in an effort to establish free market economies.

Better to force these behemoths to shrink and divest.  To put it in perspective, if you add the assets of our 6,428 community banks together, the total equals the size of JP Morgan Chase.  It is simple to see that concentrating this amount of responsibility under one management team is completely irresponsible.

MainStreet Bank has Money to Lend - is it a Good Time to Borrow?

Interest rates are good and we have money to lend. 

But, with our current economy, we would be remiss if we didn't say that you should seriously consider all possible outcomes before you take on that "next project."  Having said that, there are still good opportunities, and we are here to work with you. 

Our lending team is very experienced in developing creative solutions to meet your lending needs.  This is where we shine!  Rather than trying to fit you into one of our solutions, we work closely with you to learn your needs and then develop a solution to meet those needs.  As a community bank, we can be very flexible.

Call (703) 481-4567 to speak with one of our experienced lenders today.

Creative Solutions - Online Banking

MainStreet Bank is hosting a series of “Town Hall” style meetings to discuss the economy, taxes, banking and financial services. 

MainStreet will be joined by Donna Miller, CPA, CFP, Partner with MillerMusmar and Neal Mufti, CFP, Managing Partner with Financial Strategies Group for a panel discussion on Wednesday, February 25, 2009 at 6:30 pm at the bank in Herndon  - 727 Elden Street, Herndon, VA  20170. 

We’ve already held two of these meetings, and I’ve learned something at each one.  If you aren't able to attend the meeting on the 28th, we are also planning a meeting for March 25th.

Seating is limited for this discussion.  Please give us a call at (703) 481-4567  or email dmaher@mstreetbank.com to reserve your seat today.

StreetSmart - IRA Distribution Update

SHRED, SHRED, SHRED: Fraudsters are becoming ever more creative in their efforts.  This - combined with rising unemployment rates and tougher economic times - means that there are even more people out there trying to find a way to make a quick dollar. 

You may think it can't happen to you, but it just happened to one of our customers last week.  We caught on to the scam, and we almost caught the fraudsters in the act.  Unfortunately, they realized we were on to them and ran off before the police arrived.

MainStreet Answers

Q.  I own a small business, and I'm thinking about establishing a retirement plan.  What options do I have?

A.  Your question is very timely.  A simple and inexpensive solution is a SEP (simplified employee pension plan).  A SEP is a great choice for self employed individuals or small businesses.  All SEP contributions made by the employer are tax deductible.   

The employer simply completes a written agreement and contributes money to their own or their employee's SEP IRA.  Once funds have been contributed, it becomes the responsibility of the recipient to direct and manage the IRA investments.  This means no paperwork or administrative headaches for the employer. 

The employer can make contributions in any percentage up to the lesser of 25% of compensation or 46,000 for 2008.  And, contributions can be made in the years when they are affordable and skipped when they're not. 

Beginning March 2nd, MainStreet Bank will be offering SEP accounts. Just stop by or call our Fairfax or Herndon branch for more information or to open an account.   

Reminder:  Tax rules can often be confusing.  Please be sure to consult your tax advisor regarding the advantages of a SEP for your business.