View from CBA September 27, 2013

September 27, 2013

Andy Harmening Chairs CBA’s 2014 Leadership

Andy Harmening, Senior Executive Vice President and Regional Banking Group Head of Bank of the West, was officially inducted as Chairman of CBA’s Board of Directors on Wednesday, September 25, 2013. Andy succeeds Bob Kottler, Executive Vice President and Director of Retail and Small Business for IBERIABANK. Bob Kottler remains on the Board as Immediate Past Chair. Union Bank’s Timothy Wennes, Vice Chairman and Chief Retail Banking Officer, has been named Chair-Elect. All three will serve on CBA’s Administrative Committee, which oversees CBA’s operations. 

I thank our Board for their time and contributions to the success of CBA. Their leadership is what makes CBA the voice of the retail banking industry. Our new leadership is not wasting any momentum in getting to work. An hour after the Board of Directors meeting concluded, Andy and I sat down with reporters and discussed a number of issues likely to arise in the coming months, including QM loans and auto lending.

CBA Board, GRC, Committee Wrap Up

We were glad to host our Board of Directors in the nation’s capital this week. While in town, the Board met with Senators on Capitol Hill and with the CFPB. There were a number of positive discussions about the future of CBA, and the state of the retail banking industry.

They weren’t the only CBA members in town this week. The Government Relations Council, the Default Management Committee, the Home Equity Committee and our Committee Chairmen held meetings at CBA’s headquarters. In addition to their in person meetings, they had the opportunity to engage with policymakers both on Capitol Hill and with various government agencies. 

Next week CBA welcomes the Digital Channels Committee to our world headquarters. Digital continues to break ground when it comes to how banks interact with their customers.

Government Shutdown, Debt Limit on the Brink

The Federal Government’s fiscal year comes to an end on Monday, September 30, 2013, and that means the House and Senate are locked in a battle over the future finances of our nation. Many are preparing for a government shutdown, which would be bad politics for both sides of the Capitol. The Senate is fast-tracking a House bill, so things are better than they appear. Look for a short term deal keeping the status quo in line for up to a week while differences are hashed out. 

Meanwhile, Treasury Secretary Jack Lew has said that the country will run out of money to pay the Government’s bill on October 17, 2013. How this will be resolved is less clear as the President has stated on a number of occasions this is an issue he will not negotiate on. 

CBA has signed onto a letter with over 200 other trade associations, pushing Congress to avoid a government shutdown which would be harmful to the American people and our economy.