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Steve Sounds Off - June 2, 2017
This week's guest author is Steve Zeisel, CBA’s EVP and General Counsel.
CHOICE Act Headed to House Floor for a Vote
If all goes as expected, the Financial CHOICE Act will head to the House floor for a vote next week. Per press accounts, an amendment will be offered to strip language repealing the Durbin Amendment, which instituted a government sanctioned price control on bank interchange fees. While we applaud the bill’s efforts to reform Dodd-Frank in a targeted, meaningful manner, CBA unequivocally stands in support of repealing Durbin. Simply put, it is a terrible policy for consumers. CBA will continue to push for repeal of Durbin as well as the establishment of a bipartisan commission at the CFPB.
Core Principles Initial Report from Treasury Expected Soon
The Treasury Department is expected to send its initial report to President Trump on the Core Principles Executive Order (EO) very soon. The President’s EO from February 3rd set forth seven “core principles” for financial regulation and called for Treasury to report to the President on how the existing regulatory agencies comply. We expect the report will be a roadmap for the future heads of the agencies, and may include some proposals for legislative changes. In testimony, Secretary Mnuchin said, “Our initial report will contain recommendations to provide relief for community banks and make regulations more efficient, effective and appropriately tailored.” Stay tuned!
A Word From Former CBA Board Member Nandita Bakhshi…
In a recent Q&A with CFSI, former CBA Board Member Nandita Bakhshi, President and CEO of Bank of West, makes an eloquent point: Bankers are dream makers. In Nandita’s own words, she says “every day [bankers] help families buy homes, manage their finances and plan for retirement; and we help businesses — from small entrepreneurs to corporations — expand and succeed locally and globally.”
Nandita, we at CBA could not agree more.
A New Direction for the Fed?
Advocates for a Fed rate increase seem to have found a new ally in Federal Reserve Governor Lael Brainard. Brainard, who has tended to err on the side of caution when it comes to bumping up rates, has said it is likely appropriate to raise rates “soon.” With futures traders placing a near 90 percent chance of a quarter-point increase in June, “soon” could be just a few weeks away. As one of the more cautious members of the Fed Board voices support for a rate increase, despite less than ideal conditions, could this mark a shift in policy at the Fed?
Bank of America Studies Consumer Use of P2P
Outpacing the general public in P2P app adoption rates, Bank of America found 62 percent of consumers 18 to 34 years use P2P apps, such as Venmo, regularly. Additionally, the bank’s study also found 50 percent of those who do not currently use P2P apps expect to do so in the future. Consumers, particularly millennials, no longer see cash as the sole, let alone primary, method of payment. This study reinforces the notion that digital technology is not only here to stay, but thriving, and industry, across all sectors, must adapt to meet consumer demands.
Membership Spotlight: It is Official, First Interstate Acquires Bank of the Cascades
First Interstate Bank of Billings, Montana completed its acquisition of Bank of the Cascades. The banks will continue to operate separately until they merge corporate identities on August 14. The CBA Family has grown even bigger this week.
Learn about CBA's membership footprint in Montana.
See what Montana voters had to say about the CFPB in a recent Morning Consult poll.
Three Things To Know To Be In The Know
Former CBA CFPB Committee Chair Cassi Chandler has retired from Bank of America.
Brendan Coughlin, President of Consumer Lending at Citizens, was named to the company’s Executive Committee.
(Pictured L to R) Past CFPB Committee Chair Cassi Chandler of Bank of America moderates of panel of former CFPB Regulators including Hudson Cook’s Lucy Morris, Buckley Sandler’s Kitty Ryan and Capital One’s Meredith Fuchs at CBA LIVE 2016.