Richard's Rapid Fire - October 5, 2018




CBA CFPB Committee & Small Business Committee In-Person Meetings: This week, CBA HQ hosted two more in-person committee meetings: CFPB and its subcommittee, Consumer Complaints, as well as Small Business! Below are updates:


CFPB: CBA’s CFPB Committee focuses on all Bureau-related issues and such as enforcement, regulatory coordination and data collection.


We thanked Cindy Reeves with Frost for her leadership of the committee over the past year and welcomed new committee leader Tangie Holland of Regions Bank and Vice Chair Brian Cahoon ofBMO Harris Bank. The committee heard from Assistant Director, Supervision Examinations Paul Sanford and Assistant Director, Supervision Policy Peggy Twohig with The Bureau of Consumer Financial Protection about the agency’s current regulatory focus.


After lunch, we engaged in general discussion about issues of enforcement, self-reporting and complaints with Michelle CanterSteve Snyder and Jonathan R. Kolodzlei of committee sponsorBradley Arant LLP. We concluded the meeting with a peer discussion regarding how committee members’ respective institutions handle matters pertaining to exam change, compliance, artificial intelligence, marketing, workforce and talent management concerns.


Consumer Complaints: The Consumer Complaints Subcommittee kicked off their day with Paula Rose (P-R) Stark at Oliver Wyman, a former Bureau enforcement attorney, who spoke about complaints management programs, budget, compliance data optimization as well as potential risks associated with using AI and other technologies. Following the presentation, members heard from several guests with the Bureau of Consumer Financial Protection including Assistant DirectorChristopher Johnson, Stakeholder Engagement Program Manager Scott Steckel, Service Designers Dan Roan and Rebecca Frank from the Office of Consumer Response, as well as Policy Analyst Derek Standarowski from the Bureau’s Office of Financial Institutions. The discussion facilitated a robust two-way conversation and ended our meeting on a very high note. 


Small Business Banking: Shifting gears a bit… CBA’s Small Business Banking Committee met in-person on Thursday. Committee Chair Gail Gandy with Wells Fargo welcomed all members, reviewed committee structure and jumpstarted a discussion surrounding the Bureau. After lunch, the committee engaged in a discussion of market observations, fraud and the effects of digital transformation on banks. Members pointed out that "fraud rings" have been an increasing problem in the small business market. The rings are actively moving from bank to bank, scam to scam. They are organized, informed, sophisticated and have become difficult to detect.


Of course, all our committees discussed their forum tracts for CBA LIVE. I cannot wait to see what they have planned for CBA LIVE 2019: The Currency of Now …Register today here!



In Case You Missed It: On Wednesday, Morning Consult published my op-ed on the state of student lending, college debt and ways to address this looming crisis. In the piece, I correct some of the most common myths surrounding student lending as well as some of the policy proposals CBA has recommended to ensure federal funds help those most in need while helping students and parents responsibly finance higher education goals without taking on debt they will never be able to repay. As you know, right-sizing the federal government’s role in student lending is again a top priority for CBA.



OCC CRA Evaluation for 30 National Banks & FSA: On Tuesday, the Office of the Comptroller of the Currency (OCC) released a list of Community Reinvestment Act (CRA) performance evaluations for the period of September 1, 2018, through September 30, 2018. In all, 30 evaluations were made public this month: 23 satisfactory, one needs to improve, one substantial needs to improve and five outstanding. The OCC’s full statement and list of this month’s evaluations are available here.



PNC’s New Cities & Higher Rates: There is a War for Deposits going on right now and I am fascinated to see banks’ new offerings. The data shows large banks are in the lead, outpacing their competition. PNC is launching a new, digital-only savings account and opening branches in the  Dallas, Texas, and Kansas City, Mo., markets. The branch locations will be within a 30-minute drive of 80 percent of the population to address customer desire for physical location to run to and have the option to speak face-to-face with tellers. Citigroup and JPMorgan Chase are two other CBA Members who have recently launched similar digital programs. Learn more here.



Regulatory Relief for Midsize Banks: Last week, 30 House Republicans, led by Rep. Barry Loudermilk (R-GA), wrote a letter to the Federal Reserve Board Vice Chairman of SupervisionRandal Quarles urging the Fed to lift regulatory supervision for banks with less than $250 billion of assets and on Tuesday, Vice Chair Quarles, along with Federal Deposit Insurance Corp. ChairJelena McWilliamsComptroller of the Currency Joseph Otting and National Credit Union Administration Chairman J. Mark McWatters testified to the Senate Banking Committee on their implementation of regulatory tailoring authorized by S 2155. More here.



Big U.S. Banks Face Increase in Attempted Cyberattacks: While U.S. banks have been strengthening cyber-risk protection over the years, it is critical institutions continue to do so as hackers could affect bank operations and potentially block consumers from accessing accounts. Federal officials from the U.S. Department of Treasury have advised the largest banks – Bank of AmericaCitigroupJPMorgan Chase and Wells Fargo – to reinforce cybersecurity measures in light of recent threats. Full article here.






Tangie Holland, CBA CFPB Committee: The CBA New Committee Chair of the Week comes from the CFPB Committee – Tangie Holland of Regions Bank! As Senior Vice President of Fair and Responsible Banking, Tangie manages activities related to increasing customer experience and handles all regulatory complaints. She has been with Regions for nearly 19 years!


Traveling to and from Alabama to work with us, Tangie is a CFPB Committee veteran and kicked off her chair tenure with an awesome in-person meeting this week. Tangie had a busy two days with both our Consumer Complaints Subcommittee and the full CFPB Committee activities… we could not be more grateful for the work she has already put in and look forward to what’s to come! We will miss outgoing CFPB committee chair Cindy Reeves of Frost Bank, but look forward to her continued involvement.


Tangie is a proud Auburn Alum – I actually refer to her as “War Eagle” for that reason. She attends nearly all Auburn football games and is very involved in Tiger alumni activities, with a massive wardrobe of blue and orange! When she is not cheering on the Tigers, Tangie is home with her husband Jamie taking care of her small village of cats and dogs.



CFPB Committee Leaders (from left to right): Outgoing Chair Cindy Reeves, CBA Liaison Angie Berkey, New Chair Tangie Holland



Cajun Thoughts: Elizabeth Warren for POTUS… As I have publically stated for years, I see aTrump vs. Warren Election in 2020Senator Warren has made several moves of late on theSenate Banking Committee designed to excite her base, had staffers take political jobs in key primary states, and added international trips to round out her portfolio. Here is her latest inquisition of a Congressional witness, Comptroller Otting. At least 20 politicians will be running for the Democratic nomination, so one will only need 25 percent of the vote to secure first place…much like President Trump did in the 2016 Republican caucuses. The surprise ingredient: Bernie Sanders


The CBA Team recently visited with four of our member banks…CommerceCrescent, IBERIA andHancock Whitney… Issues of concern were CRA modernizationsmall-dollar loans and BCFP reform. All of the banks inquired about the economy and upcoming elections.



Remembering John Rayburn: CBA was very sad to learn Associate General Counsel John Rayburn of Capital One recently passed. John was a key member of several CBA committees and a highly valued member of the CBA family. He will be missed – thoughts and prayers go out to John’s friends, family and the Capital One team during this difficult time.






CBA State of the Week: In case you missed it last week, we added a new feature to Rapid Fire tohonor all the work CBA Members do in all 50 states. Our second State of The Week is OHIO…CBA Members in Ohio hold $368 Billion in total assets, employ 53,000 people, provide $8.7 Billion in small business loans and serve 1.5 Million customers! Stay tuned for next week’s featured state and check out CBA state by state numbers here!