Illinois Bank, Credit Union Groups Balk at Fee Increase

The 600-plus page budget passed by the Illinois General Assembly for fiscal year 2004 has some crying foul.

The balancing act of the $5 billion deficit facing Illinois Gov. Rod Blagojevich led to the state Assembly passing legislation allowing for a 27.5 percent increase in examination fees paid by state chartered banks and credit unions. The state examines banks and credit unions annually to verify operations are proceeding properly. Examination fees are deposited into funds allocated to cover the expenses of the regulating agency.

Three trade groups, representing banks, thrifts and credit unions, filed a lawsuit Dec. 14 against Blagojevich and three other state officials: John Filan, director of the Illinois Office of Management and Budget; Michael Rumman, director of Central Management Services; and Fernando Grillo, secretary of the Department of Financial and Professional Regulation.

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