Richard's Rapid Fire - September 27, 2019

As of August 31, 2019, a total of 176 M&A deals valued at $45.25 billion were announced this year, compared to 186 deals valued at $23.77 billion over the same period in 2018.
The number of U.S. bank deals jumped in the second half of August with 11 deals announced – the largest of which was First Midwest Bancorp Inc.’s purchase of Bankmanagers Corp., according to S&P Global Market Intelligence.
Cajun Thoughts:BNY MELLON'S CHARLES SCHARF TO LEAD WELLS FARGO Former Bank of New York Mellon Chairman & CEO Charlie W. Scharf will take over as CEO & President of Wells Fargo and become a member of the Board of Directors effective October 21, 2019. I am confident Scharf, replacing Tim Sloan who stepped down in March, will focus on culture, technology and customer's needs. His background in technology and retail banking makes him an excellent choice and we are very excited to continue our relationship with him ... MOST POWERFUL WOMEN IN BANKING Congratulations to all women featured in American Banker’s 2019 Most Powerful Women in Banking list, many of which represent our member banks! Shout out to CBA Board Member Ernie Johannson of BMO Harris Bank! … SMOKE IT IF YOU GOT IT The House voted 321-103 in favor of a bill making banking services available to legal marijuana businesses. The Senate seemed reluctant but may discuss the issue with many touting the bill as more about banking than marijuana. Senate Banking Chairman Crapo told POLITICO he wants to hold a vote on his own version by the end of the year … ONLINE BANKS GROW IN DEPOSIT MARKET Online banks, including CBA member Ally Financial, are continuing to grow and hold about 10% of U.S. deposits, according to analysis by Evercore ISI. The 10 largest banks have 48% of U.S. deposits … CFPB COURT CHALLENGE? The U.S. Supreme Court will decide next month if it will hear a challenge to the constitutionality of the Consumer Financial Protection Bureau. The court could rule the CFPB's single-director structure is unconstitutional or remove a clause that prevents the president from removing the director at will. Director Kraninger already announced she thinks it is unconstitutional … FINTECHS PARTNER WITH SMALL BANKS There’s been an uptick in fintech-small bank partnerships offering financial services, which in turn helps small banks grow and eliminates the need for fintechs to have bank charters of their own. Only two in total, Social Financial and Square, have applied for industrial loan charters … FIRST WOMEN’S BANK CHICAGO’S FIRST IN 12 YEARS A charter application for a Chicago bank that will market to women has been filed with state and federal regulators. If approved, First Women's Bank will be the first new bank in the area in 12 years!
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- Democrats focused on how the CFPB receives more complaints on debt collection than any other issue, and how indebtedness and predatory debt collection practices disproportionately affects minority communities.
- On the Bureau’s prosed third-party debt collection rule, Democrats believed it does not adequately create strong enough guidelines to protect consumers. They were most critical of allowing collectors to send unlimited emails and text messages to consumers.
- Republicans stressed the importance of collecting on debt and the role it plays in maintaining available and affordable credit for consumers. Several members noted communication is key to ensuring fair contact and for consumers to understand the responsibilities tied to their debt.
- Republicans largely commended the CFPB’s efforts on its proposed third-party debt collection rule. While they were pleased the proposal modernizes the FDCPA to reflect current technologies and encourages open communication between borrowers and collectors, several Republicans expressed concerns with validation of debt issues. They believe the proposed rule will provide certainty to consumers and clear rules of the road for collectors.
- Student loan debt and the affect it has on borrowers was a recurring topic throughout the hearing. Democrat witnesses supported an overhaul of the current federal student loan system. They also encouraged the use of income-based repayment plans by borrowers to better manage debt repayment. When asked on whether agencies acting on behalf of the government should be held to the same FDCPA standards as other collectors, all of the witnesses agreed the rules should also apply to those entities.
First Financial Expands into College Station, Bryan: In a $190 million stock deal, First Financial Bank announced plans to acquire TB&T Bancshares, Inc. of the College Station/Bryan area. The purchase will expand First Financial’s presence into the area which is home to Texas A&M University.
- Business Efficacy, Inc.
- MindTickle
- MOHELA
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