Richard's Rapid Fire - December 9, 2016

CBA, CUNA, NAFCU, ICBA Call for a Commission at the CFPB

This week, CBA, the Credit Union National Association, the Independent Community Bankers of America, and the National Association of Federal Credit Unions, which combined represent more than 12,000 financial institutions across America, wrote to Senate leaders calling for the creation of a five-member, bipartisan commission at the CFPB. The letter states, “The current single director structure leads to regulatory uncertainty for consumers, industry, and the economy.  In contrast, a Senate confirmed, bipartisan board or commission will provide a balanced and deliberative approach to supervision, regulation, and enforcement over financial institutions that is more in keeping with other financial regulators.”  As we approach the beginning of a new administration, it is crucial we finally put in place a governing structure at the CFPB to ensure it does not become a political weapon subject to shifting gears every four years, or each time we elect a new president.

You may read the letter, press release, news coverage and CBA’s op-ed in USA Today calling for a commission at the CFPB.


CBA Board of Directors Outline 2017 Priorities

This week, CBA’s Board of Directors met to discuss our legislative and regulatory priorities for 2017. During the meeting, CBA Board Chair, Ross Carey of US Bank, CBA’s Government Relations Council Chair, John Owen of Regions Bank, lead a discussion of key policy objectives, which include:

  1. Advocating for the creation of a bipartisan commission at the CFPB;
  2. Promoting balanced consumer-friendly regulations and encouraging the appointment of fair and responsible regulatory agency heads;
  3. Working to ensure the banking industry can evolve to meet the ever-growing needs and demands of consumers; and
  4. Positioning CBA’s Executive Banking School and OnSite Education program as a go-to resource for the retail banking industry.

Other notable highlights from this week’s board meeting include:

  1. With the new Administration, the leadership at the CFPB may face a shakeup early on.  The result could be a legal battle, but it is still too early to tell.
  2. House Financial Services Committee Chairman Jeb Hensarling (R-TX) will push for passage of the Financial Choice Act in the next Congress, which can serve as a viable means for CFPB reform, Durbin Amendment repeal, and changes to the rulemaking process.
  3. The CFPB and prudential regulators have begun their investigations of bank cross-selling and sales incentive practices. With multiple regulators reviewing the same practices, banks are hoping to see coordination between the agencies
  4.  Only one member of the CFPB’s Consumer Advisory Board is an active banker, CBA Board member Will Howle of Citi. It will be interesting to see how this board develops under the next Administration.

Additionally, the CBA Board of Directors elected Michael Cleary of Santander Bank, N.A. as its newest board member. We are excited to welcome Michael to the CBA Family, as he has years of experience working on solutions that benefit consumers and financial institutions. We look forward to his contributions to the board and his help in continuing to elevate CBA as the premiere retail banking trade association.


Team CBA Visits Harland Clarke in Nashville

Touching down in Nashville, Tennessee, on Thursday, to visit CBA’s newest premier sponsor, Harland Clarke. There, I joined CBA Board Members Todd Barnhart of PNC, Jeff Hooper and Bob Kottler of IBERIABANK at Harland Clarke’s annual summit to discuss “All Things Retail Banking” It was great sharing insights with the appreciative and gracious audience, which gave the panel a standing ovation at the end of the 90-minute discussion.

Additionally, our education team taught CBA’s Banking Business Acumen curriculum to 250 energized Harland Clarke employees. During the course, they discussed profitability, economic circumstances, competitive influences and risk limitations. CBA, has completed three OnSites with 18 more scheduled in fiscal year 2017.

Our esteemed faculty is second to none! Thank you Mike Allen, Jim Fugitte, Paul Leventhal, Pat Riley and Dale Roskom for teaching the curriculum. You may learn more about our industry-leading OnSite Education Program here.

This week, (L to R) CBA board member Bob Kottler of IBERIABANK, Rick Ebrey of Harland Clarke, board member Jeff Hooper, CBA President & CEO Richard Hunt, and board member Todd Barnhart of PNC Bank gathered in Nashville for Harland Clarke's Annual Summit.


Breakfast with President-elect Trump

I visited New York City this week to join other financial services and business experts at a breakfast with President-elect Donald Trump and his transition team. It seems clear the transition team is taking the President-elect’s cabinet appointments very seriously, and they talked briefly about the need for tax and regulatory reform. Of course, it is still too early to know what 2017 will bring, but CBA is poised to remain engaged with policymakers and leaders in Washington.


Early Bird Catches the Holiday Savings

Boy, time flies!  Can you believe we are just weeks away from the holidays?  While you’re surrounded by ribbons and bows, and scouring eBay for a Nintendo Classic and Hatchimals, don’t forget to wrap-up your CBA LIVE 2017 registration before the Early Bird deadline.  Register by January 13, 2017, to keep a little extra jingle in your pocket.  Get more details and register here.


Is Dodd-Frank Reform on the Horizon?

This week, The Wall Street Journal reported Republican senators are considering using a legislative maneuver, known as reconciliation, to change the Dodd-Frank Act. Instead of 60 votes to get legislation through the Senate, using reconciliation would only require support from the majority of the chamber. Per the report, the CFPB and the Office of Financial Research could be subject to reform through this tactic.


CBA Committee Works to Help Student Loan Borrowers

CBA’s Education Funding Committee met in Washington D.C., this week to discuss the latest actions from the Department of Education, CFPB and OCC. Additionally, the committee examined congressional legislation pertaining to student lending and discussed the direction the Department of Education may take under the Trump administration.  If you missed it, last week, I called upon the CFPB and Department of Education to institute a “Know Before You Owe” initiative for federal student loans in an op-ed published in Morning Consult. It was great to discuss our efforts on this topic with the committee.

Always a pleasure to see our attending committee members, including Seth Gelber of First Marblehead, Tom Lustig of PNC, Tom Levandowski of Wells Fargo, Michael McFarlane of Citizens, Tim Morrison of Sallie Mae, Mark Smith of SunTrust, Mary Dwyer Pembroke and John Vidovich of Discover and Paul Wozniak of College Loan Corporation.

Special thanks to Bob Moran of the Senate Committee on Health, Education, Labor and Pensions for speaking with our committee.

CBA's Education Funding Committee shared insights at its in-person meeting this week in Washington, D.C.


Three Things to Know to Be In the Know

Donald Trump names JPMorgan, Blackstone CEOs to advisory board

M&A activity may actually go down under Trump, Suntrust CEO Bill Rogers says

Hensarling, Waters chosen to lead House Financial Services Committee again



William Muir was named to Santander Consumer USA Holdings’ Board of Directors. William previously served as president of Ally Bank.

Congratulations to CBA’s Holly Braly and Kris Fallon on welcoming two new members of the CBA family into the world this year. I can’t wait to meet Kris’s new son Liam and Holly’s new daughter Maeve.

CBA's Holly Braly's daughter, Maeve (left).  Kris Fallon's son, Liam (right).


CBA's Richard Hunt and Board Members speaking on a panel at Harland Clarke's annual summit.


Looking good! Dawn Price of PNC Bank sporting her new CBA attire.


CBA's Mike Allen touched down in Nashville, Tennessee to teach CBA’s Banking Business Acumen curriculum to 250 Harland Clarke employees.