Richard's Rapid Fire - February 26, 2016

CBA LIVE 2016 – Customize Your Experience Via the App

We have a record number of bankers registered, a record number of regulators, and, if we continue our current pace, 2016 will be our sixth straight year of record attendance.  With essentially one week to go, we hope you are as excited as we are for CBA LIVE 2016!  This week, we launched the CBA LIVE 2016: Leadership Unplugged mobile app. Be sure to download it now to customize your schedule and plan your conference experience. Can’t wait to see you in Phoenix!


CBA's Vice President & Regulatory Counsel Dong Hong has his word.  How about you?  Gear up for #CBALIVE and share your #leadership word with us today @ConsumerBankers.


Fed Loses Confidence in Global Recovery

The Fed is communicating to the world it is losing confidence in the global recovery.  Ahead of this year’s round of stress tests, the Federal Reserve is turning up the heat on the biggest U.S. banks by making the test more demanding.  According to reports, qualifying banks will need to prepare for prolonged negative interest rates, higher rates of unemployment, cyber security breaches, class-action lawsuits and deeper economic downturns in Europe.  As one analyst noted, “Banks basically have to be ready for the 100-year flood every single year.”


FDIC Reports on Industry Health

The FDIC Quarterly Banking Profile is out and again it is a mixed bag. On Tuesday, the report showed bank profits are up $40.8 billion, an increase of $4.4 billion (11.9 percent) from earnings of $36.5 billion the year before.  The percentage of unprofitable banks dropped to a 20 year low, falling from 9.9 percent to 9.1 percent.  The number of banks on the “problem list” have dipped below 200.  The total loan and lease balances grew 2.3 percent, an increase of $197.3 billion during the fourth quarter.  And perhaps the most interesting data point from the report is the fact that mergers absorbed 81 institutions in three months. Though we are seeing growth, NIMs are still anemic.  The retail banking industry continues to make prudent financial decisions, as it better positions itself for any additional “disruptors” thrown our way.


Former Ally Financial CEO Michael Carpenter Speaks Out

This past week former Ally Financial CEO, Michael Carpenter, made news by putting his name to reports that the CFPB strong-armed Ally into agreeing to a $100 million settlement.  Carpenter is alleging the Bureau threatened to withhold pending regulatory approvals, if Ally resisted the settlement.  Speaking with the New York Post, Carpenter asserted the CFPB pursued the racial discrimination charges against Ally as a means to coerce other car dealers into adopting flat-rate financing.  These are the kinds of challenges the industry will continue to run into as long as the CFPB pursues policy-making by enforcement actions, rather than by rule writing.


Visiting CBA Headquarters

As you know, I am always happy when CBA members visit with us in Washington, D.C.  It was great to see Neil Hall, Head of Retail Banking at PNC and former CBA board member, as he was in town to attend the CFPB’s Community Advisory Board meeting.

It was also a pleasant surprise when Staci Glenn Short from Huntington Bank and Jerry Austin from Harland Clarke dropped by the office as well. Can’t wait to see you both at CBA LIVE!


Three Things to Know to Be In the Know

Who's Ready to Throw Out Dodd-Frank? Swing Voters

Banks Run by Women Might Be Less Vulnerable in a Crisis

In an Improving Economy, Places in Distress



Meredith Fuchs was hired by Capital One to serve as their Senior Vice President and Chief Counsel on regulatory issues. She formerly served as Acting Deputy Director and the Bureau's General Counsel.


Malcolm Griggs was appointed Chief Risk Officer at Citizens Financial Group.


Shamir Karkal was hired as Head of Open APIs for BBVA.


Jamie Walker, formerly the Chief Financial Officer at Elavon, was named Chief Administrative Officer for U.S. Bank Payment Services.


Bradley Herring, formerly with Fiserv, was hired as Chief Financial Officer for Elavon, a merchant acquiring subsidiary of U.S. Bank.


Patty Kellerhals was named to the Executive Management Committee and appointed Senior Vice President of Commerce Bancshares, Inc.


Team CBA is preparing its first shipment to Phoenix for CBA LIVE 2016.  Have you packed yet?