View from CBA September 19, 2014

September 19, 2014

Changing of the Guard – CBA's New Chairman Tim Wennes Takes the Reins

We were excited to welcome CBA's Board of Directors and Committee Chairs to the Nation's Capital this week. They had a number of productive meetings; highlights include sit-downs with Small Business Administration Administrator Maria Contreras-Sweet, Sen. Rob Portman (R-OH), House Speaker John Boehner (R-OH), House Financial Services Committee Chairman Jeb Hensarling (R-TX), House Financial Services Committee Ranking Member Maxine Waters (R-CA), Reps. Randy Neugebauer (R-TX), Ed Royce (R-CA), Ed Perlmutter (D-CO), and Patrick McHenry (R-NC).
Our Board of Directors also met with CFPB Director Richard Cordray to hear the latest from the consumer agency. This followed a meeting with Independent Community Bankers of America President and CEO Cam Fine, who spoke about the regulatory burdens facing the nation's smaller banks. In addition, Committee Chairs received a deep dive presentation into consumer trends regarding mobile usage and finance optimism from AOL's Paul Kadin.

Tim Wennes who serves as West Coast President and Head of Retail Banking and Wealth Markets for MUFG Union Bank, officially was installed as Chairman. Last week he sat down with American Banker to preview his chairmanship of CBA and to discuss overdraft protection and changes at MUFG Union Bank. The Board also formally elected Will Howle, President of Citi's U.S. Retail Banking, as Chair-Elect. We would like to thank Andy Harmening of Bank of the West for his tremendous service this past year. Under his leadership CBA continued to grow both in terms of membership and participation. He continues his service to CBA as Immediate Past Chair and as a member of CBA's Administration Committee.
CBA's Board of Directors also approved two new members to the Board. Joining the Board are Todd Barnhart – PNC Bank and Thong Nguyen – Bank of America. CBA's 20-member board of senior retail banking executives guides the organization in its support of and advocacy for the retail banking industry, which provides banking services to America's consumers and small businesses. In addition, Susan Faulkner – Bank of America, Neil Hall – PNC Bank, and Chip Carlisle – Wells Fargo will be rotating off the board.
Marking our 95th year, CBA is in the strongest position in its history thanks to the dedication and commitment of our Board of Directors. They are leaders not only at their respective institutions, but also are at the top of the industry. I look forward to continuing to work with them as we tackle the issues transforming retail banking.


CFPB Unveils Proposed Larger Participant Rule – Steve Zeisel Participates in Field Hearing

On September 17, 2014, the CFPB released their proposed rule on larger participants in the auto lending market. This move by the CFPB will help to level the supervisory playing field between banks and other auto lenders. This is good for consumers as they should expect to receive the same fair treatment at any lender they go to. The CFPB is also providing more information about how lenders should use 'proxies' when monitoring for fair lending compliance. CBA has long advocated for the CFPB to provide clearer guidance in this area. CBA Executive Vice President and General Counsel Steve Zeisel participated in the CFPB's field hearing on this issue in Indianapolis, IN this week.

Meeting Our Bankers

I was excited to join current and future leaders of Santander in Boston, MA on September 12, 2014, as they discussed the future of their bank. They held a morning-long event which featured remarks from CEO Roman Blanco and other key Santander leaders. I was introduced by CBA Board Member Maria Tedesco, Managing Director of Retail Banking, and spoke about the way consumers, technology and regulation have turned retail banking on its head. Following the morning event, I met with Maria, Audrey ColtAmy PrebleJohn DiThomasManuel Baldasano, and Jeanne Lapak to discuss the current exam process, as well as possible implications from the upcoming midterm election.

CBA Committee News

This week CBA hosted in-person meetings of the Home Equity and the Default Management Committees. Committee members of both groups huddled on CBA LIVE 2015 planning, getting an early preview of next year's theme: The Consumer Agenda. The Home Equity Committee also received an update on issues surrounding the home mortgage disclosure act (HMDA), while the Default Management Committee received a presentation from the Debt Buyers Association.


CBA Board Member Richard Gold has been named Vice Chairman of M&T Bank and Chief Risk Officer. Gold will succeed Donald Truslow, who announced his retirement but will continue at the bank on a part-time basis.
SunTrust Banks in Atlanta has signed a 25-year deal for the naming rights to the new Atlanta Braves stadium.