Richard's Rapid Fire - April 28, 2017

April 28, 2017

CHOICE 2.0’s Day in the Sun: Here we go!

The House Financial Services Committee is planning to mark-up the Financial CHOICE Act 2.0 on Tuesday, May 2, 2017. For those not familiar with such political processes, a mark-up is when a committee debates, amends, and/or rewrites proposed legislation. Experts, politicos, and reporters have been weighing in on whether the bill will be able to generate the support it needs to pass. There is reason to believe CHOICE 2.0 will pass the House of Representatives. While we are certain some of the provisions in the 2.0’s latest draft would be a benefit for the banking industry, such as the repeal of the Durbin Amendment, our team remains cautious on the approach the bill takes with regard to the CFPB’s governing structure. We believe consumers would be best served by establishing a five-person, bipartisan commission at the Bureau. Needless to say, we are encouraged by Committee Chairman Jeb Hensarling’s actions to finally start the process of bring to light legislation capable of restoring balance to the regulatory landscape, giving banks a shot at putting capital and resources back into the economy at a much-needed faster pace.

In case you missed this week’s Committee hearing on CHOICE Act 2.0, we have you covered with this summary put together by CBA’s experts.

With a repeal of the Durbin Amendment included in the Financial CHOICE Act, CBA needs your help to ensure this provision remains in the bill. As you know, the Durbin Amendment was snuck into Dodd-Frank at the eleventh hour, just prior to passage, with no debate or study. This provision promised consumers billions of dollars in savings in the form of lower prices through a government-backed price control on bank interchange fees. However, it failed to deliver for consumers as promised.

With a vote expected on Tuesday, please contact Congress by Monday and voice your desire to repeal the Durbin Amendment.


A Bureaucratic Nightmare: CFPB Introduces Duplicative Data Collection Proposal

The CFPB’s proposal to collect private student loan servicing data is completely unnecessary as this information is already publicly available through MeasureOne. Not only is it duplicative, but the basis for this proposal — to provide benefit to “at risk” populations — showcases a grave misunderstanding of the private student loan market. Over the years, roughly 98% of private student loan borrowers have successfully repaid their loans. The private market has demonstrated an exceptionally strong track-record in this space. Gumming up the works with unnecessary paperwork diverts banks’ time, energy, and focus away from serving consumers and other meaningful tasks. The reality is the CFPB’s proposal will cause more harm than good. CBA made these concerns clear in a comment letter to the Bureau.


Digital Giants Amazon and Netflix Can Teach Banks a Valuable Lesson

Consumers are forcing industry, including banks, to restructure their footprint, plain and simple. According to a report from commercial real estate firm JLL, U.S. bank branches could decrease by up to 20% by the year 2022. With Netflix contributing to the demise of Blockbuster, and Amazon leaving Macys, Sears, and other retailers shaking in their designer boots, gone is the age of brick-and-mortar dominance. Banks, regulators, and activist groups must take note of digital’s impact on the economy. Consumers want to bank wherever, whenever, and however they so choose, and their calls for online and mobile banking options are growing louder. To best serve consumer demands, banks must have flexibility in this ever-evolving marketplace. OCC, I am looking at you.


Calling All Bankers: CBA Executive Banking School Gears up for 2017

With the deadline to apply for CBA Executive Banking School fast approaching, our faculty met to discuss and hone the curriculum for our third year banking school students. Each year, CBA provides rising stars with the vital skills to lead the banking industry into the future. Apply for banking school by our May 15th deadline to join hundreds of banking’s best and brightest at Furman University in South Carolina. Don’t just take it from me, IBERIABANK Executive and CBA Board Member Bob Kottler is one of our school’s biggest fans. According to Bob, CBA Executive Banking School helps broaden bankers’ perspectives.


CBA LIVE Photos are Now Available for Download

Photos from this year’s CBA LIVE are now available on our Flickr Page. Get a glimpse of our time in the Lone Star State and download your favorites now.


Membership Spotlight: Time Spent with CBA Members

I had a wonderful time in New York and Connecticut this week meeting with executives of Chase, Citi, Synchrony, TIAA, and Webster Bank. From tax reform to the CFPB to Fintech, there were no shortage of discussion topics, and I was happy to connect with CBA’s membership to chat about how things are transpiring in D.C.

CBA President and CEO meeting with CBA's newest Board Member Sol Gindi of Chase.


Welcoming Zions Bank to CBA

Hailing from Salt lake City, Utah, Zions Bank joins CBA as our newest corporate member. Through its network, the bank runs 125 full-service financial centers, operates more than 200 ATMS, and employs more than 2,500 people across Utah, Idaho and Wyoming. Welcome Zions!


Three Things to Know to be In the Know

How high-school branches extended Union Bank's minority reach

Trump orders another review of post-financial crisis regulations on Wall Street

Ocwen pulls a PHH: Asks court to declare CFPB unconstitutional, requests DOJ help



Former CBA Executive Banking School Graduate Richard K. Bynum was named regional president of greater Washington by PNC.

Jack Murphy was named President of Business Banking by Citizens Bank.


CBA's Richard Hunt was in New York this week visiting with TIAA's President and CEo Rick Calero.


From New York, Richard Hunt traveled to Connecticut to meet with Webster Bank's CEO Jim Smith.