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Richard's Rapid Fire - December 1, 2017
Commission Would Have Prevented CFPB Leadership Turmoil
Former CFPB Director Richard Cordray first assumed his position under a legal cloud and he left the same way. From his resignation to the appointment of two separate acting CFPB directors to legal battles and protests, this week has been a circus for the CFPB. To recap, here is an abbreviated version of what took place:
- On Black Friday: Former CFPB Director Richard Cordray resigned, naming his Chief of Staff Leandra English deputy director, some say making her acting director of the Bureau when he left.
- Hours later, President Donald Trump named Office of Management and Budget Director Mick Mulvaney Acting CFPB Director.
- Given conflicting laws, both Mr. Mulvaney and Ms. English sought legal authority to head the Bureau.
- A U.S. District Court judge denied Ms. English’s motion for a temporary restraining order, which would have immediately removed Mr. Mulvaney from the position. The decision is likely to be appealed to the D.C. Circuit.
If these developments have taught us anything, it affirms the fact that if the CFPB were structured as a bipartisan commission, as originally intended, the CFPB would not have descended into turmoil following Director Cordray’s resignation. As I mentioned in my op-ed in USA TODAY, for Americans seeking a mortgage or opening a bank account, there is nothing more important than ensuring the agency tasked with protecting them operates effectively. A bipartisan commission of experts directing and formulating policy would accomplish this, ensuring consumers receive a balanced, deliberative, transparent and thoughtful approach to regulations.
To discuss these events and more, I joined CNN’s Richard Quest and penned an op-ed alongside ICBA’s Cam Fine and CUNA’s Jim Nussle to make the case for a Senate-confirmed, bipartisan commission at the CFPB. You may watch the segment here and read the op-ed here.
Federal Reserve, OCC & FDIC Undergoing Leadership Transformation
The CFPB is not the only federal agency with new leadership on the horizon. This week, Joseph Otting was sworn in to serve as OCC Comptroller and President Trump’s Fed Chair nominee, Jerome Powell, took center stage in the Senate Banking Committee for his confirmation hearing. Here is what they are saving:
- Otting: “Job creation and economic growth are part of the president’s agenda and banks can support those goals.”
- Powell: “I think the case for raising interest rates at our next meeting is coming together. I think the conditions are supportive of doing that.”
- Powell: “It doesn’t help anyone for banks to waste money,” he said. “Our job is to be efficient and effective as well as (promote) safety and soundness.”
Additionally, Fifth Third’s Chief Legal Officer Jelena McWilliams is expected to be nominated to chair the FDIC. Talk about a breath of fresh air in Washington.
Why Am I So Animated About CBA LIVE 2018: Beyond the Bank?
With over 90-hours of energetic, info-packed programming bankers will not find anywhere else, it is easy to get excited over CBA LIVE. Senior leaders across the industry make the trip to CBA LIVE each year to learn and network. If you need more convincing, I know our short video below will change your mind. Remember, CBA LIVE is not your grandfather’s banking conference. Be sure to register by our January 5, 2018, early bird deadline to take advantage of our special rates. Bring your colleagues to help your bank get the most out of retail banking’s premier event — and save with our group rate.
2018 Joe Belew Award: Share your Achievements with Us
Nominations are underway for the 2018 Joe Belew Award honoring the most innovative and impactful program serving underbanked and unbanked consumers. The winner will receive this prestigious award in front of the who’s who of retail banking at CBA LIVE 2017. Applications are open to all CBA member banks and due by Wednesday, January 17, 2018. Get more details and download the application here. For questions, email CBA’s Maren Colon.
PNC's Fairfax Connection received the 2017 Joe Belew Award, celebrating digital access programs. At CBA LIVE 2017 in Dallas, (pictured L to R), PNC's Michael Taylor accepted the 2017 Joe Belew Award from Capital One's Jim Matthews, Past Chair of CBA's Community Reinvestment Committee.
Tax Reform Debate Continues, Senate Eyes Passage
The Senate worked feverishly overnight to rewrite portions of the bill to satisfy deficit hawks in the Republican caucus. The upper chamber reconvened this morning to continue debate and amend the tax bill before a vote on final passage. As of now, we are expecting a vote on the bill either later this evening or over the weekend. We will keep CBA’s membership informed as the bill moves towards final passage.
CBA Supports House Bill Aimed at Increasing Business Lending
You know each and every business loan is unique. Because of this, Section 1071 of the Dodd-Frank Act’s proposed data collection would offer regulators little meaningful information. The data collection requirements would reduce small-business lending, due to potential misuse of data once it leaves the bank as well as adding burdensome compliance costs. To help keep our economy strong, banks need to put capital to work by helping businesses create jobs instead of complying with new regulations that offer little benefit or insight for regulators.
We thank Congressman Robert Pittenger (R-TX) for introducing legislation to correct the issue and help spur small business lending.
Three Things To Know To Be In The Know
Jayne Opperman was named head of technology for the Asia-Pacific and Europe, Middle East and Africa regions of Citi’s Global Consumer Bank.