Richard's Rapid Fire - April 1, 2016

GAO Report is a Must Read

When regulators fail to be efficient and effective, consumers are hurt the most.  This week’s GAO report on financial regulation validated this point and concerns CBA has echoed for years; the Dodd-Frank Act was not a panacea.  We must rethink our financial regulatory structure—this time, putting consumers first. 


Report Highlights:

  • “While changes made by the Dodd-Frank Act were consistent with some of the characteristics identified in this framework, the existing regulatory structure does not always ensure (1) efficient and effective oversight, (2) consistent financial oversight, and (3) consistent consumer protections. As a result, negative effects of fragmented and overlapping authorities persist throughout the system.”
  • “While coordination and collaboration among regulators help to manage some of the negative effects of fragmentation and overlap, the sheer number of regulatory bodies and differences in their regulatory approaches continue to make coordination challenging and time-consuming.”
  • “Fragmentation, overlap, and duplication also introduce significant challenges for efficient and effective oversight of financial institutions and activities. Fragmentation and overlap in the structure have resulted in inefficiencies in the regulatory process; inconsistencies in how regulators conduct oversight activities over similar types of institutions, products, and risks; the potential for duplication in regulators’ oversight activities; and differences in the levels of protection provided to consumers.”


OCC Calls for “Responsible” Innovation

On Thursday, Comptroller of the Currency Thomas J. Curry gave a speech on "responsible financial innovation" before the Harvard Kennedy School’s New Directions in Regulation Seminar.  We appreciate the OCC’s engagement on this issue because policies written decades ago do not reflect today’s environment.  We all are deeply committed to meeting the banking needs of all our communities.  It is important to remember consumers are driving this evolution.  Our regulators must be fully immersed in this new world of technology and consumer demand.  They must understand the needs and wishes of the consumers as well as we do.  Consumers are no longer restricted to a physical branch, especially since they can do their banking from a city bus.  Here’s the bottom line:  In order for the banking industry to fully innovate as their customers demand, and firmly establish ourselves in their hearts, minds, and smartphones, we must have a regulatory framework that can adapt to today’s fast-paced, ever-evolving marketplace.


The Story Everybody in Retail Banking is Reading… 

Per a new Citi Global Perspectives & Solutions (GPS) report, the “automation tipping point” aka the “Uber moment” for banks is fast approaching.  The report said there could be another roughly 30% reduction in staff during 2015-2025.  In total, this would mean a staff reduction from pre-crisis highs of 40-50%.  The report notes this does not necessarily correlate to job loss, rather “as more transactions are automated and done on a mobile phone, we believe there will be a rebalancing of staff from transaction-based roles to advisory-based roles.” 


Bankers Continue to Search for Right Candidate for President

Bankers continue to search for the right candidate.  In just over seven months, Americans head to the polls to cast their ballots, but if Donald Trump and Hillary Clinton receive their parties’ nominations, the American Banker reports many will be unhappy.  At CBA LIVE, we explored this potential reality and in a head-to-head matchup, Hillary Clinton squeaks by Donald Trump – 52% to 48%.  The dead heat dramatically shifts when Sen. Elizabeth Warren and Gov. Chris Christie are added as Vice Presidential running mates:  Trump/Christie 63% versus Clinton/Warren 37%.  When asked, 85% of CBA LIVE attendees wished for alternative choices.


CBA Hosts Exclusive Roundtable Discussion for Chief Retail Banking Auditors

CBA’s Internal Audit Governance Working Group returned to Washington, D.C. this week for their second meeting since being formed in November. We had a productive gathering with substantive discussion ranging from coordination across all three lines of defense, talent management, examinations, ERM, to audit governance best practices. We were pleased to welcome CFPB guest speaker April Breslaw, Deputy Assistant Director for Supervision, Enforcement, & Fair Lending, as well as industry experts from our guest sponsor Protiviti.  Many thanks to Dan VanSciver, Sallie Mae Bank, for his leadership in creating this forum, and to all attendees for your candid discussion and input.


CBA's Executive Roundtable for Chief Retail Banking Auditors met this week at CBA Headquarters in Washington, D.C.


Bill Jensen Retires

CBA congratulates Bill Jensen on his retirement from Chase and thanks him for his 45 years of service in auto finance and retail banking.  Bill has been an invaluable family member at CBA, including as Chair to our Auto Finance Committee for several years, and a champion of the industry.  Undoubtedly, we will continue to seek his counsel.  Bill tells me he has been honing his driving skills in case Uber comes a calling. 


At CBA LIVE 2016, Mark Pregmon of PNC Bank (left) and Nick Stanutz of Huntington Bank (right) honor Chase's Bill Jensen (center) for his commitment and dedication to CBA.  A long-time Auto Finance Committee member and former Committee Chair, Bill is retiring after decades of service in auto finance and retail banking.


Say Hello to CBA’s Newest Associate Members

It is always exciting to welcome new members to the CBA family. This week, I am pleased to announce that Protiviti, headquartered in Menlo Park, California, and CHP Consulting, headquartered in Birmingham, Michigan, will be joining CBA as our newest associate members.


Students of CBA OnSite Education walk through MarketSim exercises with colleagues at Chase Bank in Columbus, OH.


Three Things to Know to Be In the Know

Meeting Students Where They Are

The big questions surrounding Republicans' Dodd-Frank replacement

Banks Ramp Up Push for Home-Equity Lines




Daljeet Lamba was named Managing Director of Corporate Banking by Citigroup. Previously, Daljeet served as Managing Director of Global Corporate and Investment Banking for Bank of America.


Michael Fanous was hired as Vice President and Branch Manager of Banner Bank’s Sacramento Howe Avenue branch.