View from CBA January 31, 2014

January 31, 2014

Exam Format Changes May Expedite Exam Reports

The CFPB has announced it is changing the format of its exam reports. According to a statement by the bureau, they believe this change will expedite the time it takes banks to receive final exam reports: “We anticipate that these changes will reduce the amount of time necessary to finalize reports, thus enabling us to more efficiently provide the reports to supervised entities.” CBA has repeatedly raised concerns with the CFPB about the length of time before banks have obtained exam reports. We look forward to hearing from members whether the process is improved by the changes in the report format.

Data Breach

Over the past couple of weeks we have reached out to our member banks to find out how they proactively responded to the breach of consumer data caused by retail giant Target. Our membership has reissued over 15.3 million debit and credit cards at a cost to them of over $153 million. In addition to reissuing cards, member banks have enhanced transaction monitoring, added additional fraud rules on accounts, and extended call center operations to respond to consumer inquiries. These services have been provided to consumers at zero cost and are in addition to the already stringent requirements for banks to safeguard consumer data under the Gramm-Leach-Bliley Act.
With several hearings on this issue on the calendar in the House and Senate, we are working with our fellow trade associations to coordinate messaging and strategy. With the Target breach alone impacting 1 out of 3 Americans, prepare for this issue to stay in the news cycle for the foreseeable future.

State of the Union Address

On Tuesday, January 28, 2014 President Barack Obama gave his annual State of the Union Address to a joint session of Congress. I was more enthusiastic about what was NOT in the president’s address than in as he did not take this opportunity during primetime television to demonize companies employing millions of American citizens. With a divided Congress in an election year, the president is limited to what he can accomplish via the legislative branch. He vowed in his speech to use a “pen and a phone” to accomplish his goals via executive action.

Joe Belew Award

Keeping with the theme of CBA LIVE 2014: Red, White, and Banking, this year’s Joe Belew Award will go to our member bank with the most innovative program focused on helping our service members, veterans and their families. A big thank you to 10 of our banks who submitted applications this year: BBVA Compass, Capital One, Discover, Fifth Third, Key Bank, PNC, Regions Financial, USAA, U.S. Bank, and Wells Fargo. We look forward to announcing the winner at CBA LIVE in our nation’s capital in just 58 days!

News and Notes

Former FDIC Chairwoman Sheila Bair has joined the board of Santander, the company has announced.
U.S. Bank Twin Cities Market President Phillip Trier has been named to Gillette Children’s Specialty Healthcare’s board of directors.