Richard's Rapid Fire - September 8, 2017

Welcoming CBA’s Board of Directors & Committee Leadership

We are excited to welcome our Board of Directors to CBA HQ next week for our September Board meeting. Each time we meet, it provides us an opportunity to chart a path forward for the retail banking industry and discuss how we can best serve consumers and small businesses. We also will announce our Board leadership team for 2018, as well as our legislative and regulatory priorities for the coming year. We look forward to connecting with our Board and getting down to business. 

 

Additionally, CBA’s Committee Chairs and Vice Chairs will join us as well. Our committees are vital to CBA’s overall success, and the meeting should be a productive one.

 

 

Senate Banking Committee Advances OCC & Fed Nominees

The Senate Banking Committee on Thursday approved President Trump’s nominations of Randal Quarles to serve as Federal Reserve Vice Chairman of Supervision and Joseph Otting, a former banker, to serve as Comptroller of the Currency. Next stop: a vote before the full Senate. At present, no date has been set for a vote.

 

Upon confirmation, Joseph Otting will replace Acting OCC Comptroller Keith Noreika and Randal Quarles will serve as the first Federal Reserve Vice Chair of Supervision since it was created by the Dodd-Frank Act. However, Fed Vice Chairman Stanely Fischer announcedhe will be stepping down in October. Fisher’s departure leaves four vacant seats on the Federal Reserve’s seven person board.

 

 

Fintech Firms Seek to Enter the Banking World

In hot pursuit of SoFi, Square announced its plans to apply for an ILC Charter. Square’s move marks the third Fintech firm attempting to enter the banking world. Should the firm get the necessary approvals, they then must comply with the same regulations as any other bank, including stress testing, leverage ratios, and capital levels. It also means they will fall under the FDIC’s authority. As the firm starts out the process, former GreenDot chief executive Lewis Goodwin will serve as Square’s acting CEO.

 

 

CFPB Watch: Big Decisions Looming?

Many expected CFPB Director Richard Cordray to announce his run for Ohio Governor at a Monday Labor Day picnic in Cincinnati: he did not. As we await Director Cordray’s decision, there are a few issues and items to watch at the CFPB. 

  • The Bureau may release its long awaited small-dollar rule, which will have significant implications for consumers access to short-term credit;
  • Some expect a debt-collection proposal to be released in the coming weeks. While this would be consistent with its rulemaking agenda, it would be earlier than expected; and
  • The PHH case, which calls into question the constitutionality of the CFPB’s governing structure, is expected to be ruled on this fall.

 

 

An image of Hurricane Irma captured in the Bahamas at 4:45 a.m. EDT by the National Oceanic and Atmospheric Administration's (NOAA) GOES East satellite.  For the most up to date tracking details, visit NOAA's Website.

 

Banks Aid Consumers, Employees Post Hurricane Harvey - Prepare for Irma

The work of CBA’s member banks to help consumers and their employees following Hurricane Harvey is truly heartwarming. From the millions of dollars donated to worthy causes to the modification of company policies to better aid those effected, our members are actively working to help the victims of Harvey recover. Additionally, many banks are offering grants, supplies, hotels stays, and fuel to help their employees. If you would like to contribute, here is a list of charities accepting donations.

 

 

Our thoughts are with those in the Florida and surrounding region who may be impacted by Hurricane Irma.  Please be safe!  In the wake of Hurrcane Harvey, many of our members are taking proactive measures and preparing for the potential impact of Irma on their customers.  

 

 

Equifax Data Breach

On Thursday, Equifax announced a data breach which could have potentially affected 143 million consumers in the United States. You may read Equifax’s press release here.

 

Three Things To Know To Be in The Know

Fischer to Step Down in Mid-October as Fed Vacancies Mount

CBA's Hunt: CFPB commission is best long-term plan

What BBVA Compass did to its mobile app to help Harvey victims

 

Lagniappe

John Stallings was named President of Union Bank & Trust.

 

Katie Mockler was promoted to VP of Marketing at Novantas.