Richard's Rapid Fire - June 3, 2016

Thanks to CFPB, Pawn Star’s Rick Harrison Is the Happiest Man In America

At 12:01 a.m. Thursday morning, the CFPB released its highly anticipated small-dollar lending proposal.  The CFPB has indicated it would like to see banks provide small-dollar loans to consumers in need, like the nearly half of the country who cannot afford a $400 emergency expense.  But judging from its highly restrictive proposal, the Bureau continues to miss the mark for millions of Americans struggling to make ends meet and effectively forces most banks to stay on the sidelines due to greater compliance burdens.  Consumers across the country will now turn to pawnshops, offshore lending, and fly-by-night entities that will be more costly to them. While the proposal is good news for the likes of Gold & Silver Pawn Shop owner and Pawn Star’s TV personality Rick Harrison it spells bad news for consumers.  CBA will continue to work with the Bureau to develop products and services that are reasonable and meet consumer needs.

Rick Harrison, owner of Gold & Silver Pawn Shop in Las Vegas.

 

Richard Davis: Bank Relationships are Built on Trust

Former CBA Board Chair Richard Davis, Chairman and CEO of U.S. Bancorp, hit the nail on the head in his piece in the Wall Street Journal this week: Trust is a bank's true currency.  Davis writes, “We are stronger today on the Main Streets across the nation than we have ever been.  I am proud to be a banker.  I am proud to lead a bank that is an engine for economic growth.  I am proud that our first core value is ‘do the right thing.’ Most importantly, I am forward-looking and focused squarely on being the most trusted choice for our communities.”

 

The WSJ published a series of articles exploring the question: “What is a bank?” this week.  Take a few minutes to read through them this weekend.

Former CBA Board Chair Richard Davis, Chairman and CEO of U.S. Bancorp.

 

Dodd-Frank Overhaul on the Horizon

The House Financial Services Committee Chairman Jeb Hensarling is set to unveil details of his alternative plan to replace Dodd-Frank on Tuesday, June 7, 2016 at 8AM, ET during a speech to the Economic Club of New York.  As I told a reporter last week, we are not in favor of a full dismantling of the bill, especially given all the time, money and effort our member banks have spent enacting it, but we are certainly in favor of key reforms.  Chief among them is a change to the governance structure at the CFPB to ensure stability in the marketplace for consumers and the industry, regardless of a President Trump or Clinton.  We expect the full legislative text to be released closer to the end of June.  Industry will be allowed time to review and comment on the bill before any action is taken at the Committee level.

 

FDIC Quarterly Banking Profile Offers Mixed Review of the Economy

On Wednesday, the FDIC released its  Quarterly Banking Profile for Q1.  While there continue to be signs of improvement in the banking industry, energy sector’s lagging revenue has caused some concern.  FDIC Chairman Martin Gruenberg noted the challenging environment as well as “ the prolonged period of low interest rates” as reason some institutions have seen narrower margins.  For a full analysis of the report, click here.

 

Great Visit, Great Bank, Great Company

This week, we traveled to Cincinnati to visit CBA member Fifth Third Bank.  It was a pleasure meeting with Greg Carmichael, President and Chief Executive Officer, Chad Borton, CBA Board Member and Executive Vice President, Head of Consumer Bank, and Mike Butera, Senior Vice President, Head of Retail, and Mark Erhardt, Senior Vice President, Retail Product Management, to talk about a number of issues impacting retail banking.  We also had the pleasure of visiting with a handful of CBA Committee and Working Group members.  Many thanks to Jim Cross, Lee Ferris, Sue Grathwohl, Patty Hartsfield-Davis, Jason Kammer, Larry Magnesen, Chris Shroat, and Sharon Walker for your time and commitment!

Fifth Third's Mark Erhardt (left) and Mike Butera (center) with CBA's Richard Hunt during this weeks visit to Fifth Third in Cincinnati.

 

New Associate Member

The Data Entry Company joined the CBA Family this week as our newest associate member.  Welcome!

 

Three Things to Know to Be In the Know

How Online Banking Is Changing SMB’s Bill Payment Habits

Dear Grads, You Need a P&L

Advocate Group to CFPB: Can You Help with Translation?

 

Lagniappe

Former Deputy Director of the CFPB, Rajeev Date, was appointed by Green Dot Corp. as an independent director.

 

Ricky K. Brown, President of Branch Banking and Trust and President, Community Banking, and Steven B. Wiggs, Senior Executive Vice President and Chief Marketing Officer and Lending Group Manager, will retire from BB&T Bank later this year.

 

Citizens Bank, in partnership with Relay Network, was recognized by Celent with a 2016 Model Bank Award for excellence in Digital Banking Transformation.