Richard's Rapid Fire - February 10, 2017

CBA Walking Capitol Hill

CBA is at its strongest when our Board of Directors comes together to chart a path forward. As CBA Board Chairman Ross Carey of U.S. Bank discussed with Morning Consult, we visited with 15 Senate offices (mostly Senate Dems) on Capitol Hill to advocate on behalf of our membership and the customers they serve. In 2017, CBA’s top legislative priorities remain enacting a five-person, bipartisan commission at the CFPB and repealing the Durbin Amendment (interchange). In addition, promoting balanced regulation and providing for next generation banking are key priorities for CBA as well. Needless to say, these issues are essential to advancing the financial well-being of consumers. For a deeper dive, Ross and I spoke with the American Banker about CBA’s advocacy efforts.

Gathering at CBA HQ for our in-person meeting, the board began the day by electing Carl Liebert of USAA to serve on CBA’s Board. Additionally, we are thankful CFPB Director Richard Cordray, and Oliver Jenkyn, Pace Bradshaw, John Brooks and David Cramer of VISA were able to join us.

Here are my top takeaways from the meeting:

  • A Republican President and Congress present the best opportunity for passing balanced financial regulations;
  • Consumer spending on credit cards outpaced debit cards by 1.2%;
  • Banks’ sales practices are under heavy scrutiny;
  • While the CFPB is reviewing its ability to issue new regulations, the Bureau noted it has other tools available, such as supervision and enforcement;
  • Director Cordray is not opposed to cross-selling, and would like banks to implement sales incentive management programs.

It was great to see our attending board members, including Mike Aust of Comerica, Todd Barnhart of PNC, Chad Borton of Fifth Third, Rafael Bustillo of BBVA, Ross Carey of U.S. Bank, Michael Cleary of Santander, Brad Conner of Citizens Bank, Dennis Devine of KeyBank, Rich Gold of M&T Bank, Andy Harmening of Bank of the West, Bob Kottler of IBERIABANK, Michelle Lee of Wells Fargo, Nitin Mhatre of Webster Bank, Cathy Nash of Woodforest National Bank, Mary Navarro of Huntington, Clarke Starnes of BB&T Bank, and John Owen of Regions. Thank you to CBA family members Ed Garding of First Interstate, Neil Hosty of M&T Bank, John Pataky of EverBank, and Maria Tedesco of BMO Harris for joining our board on Capitol Hill.

CBA' Board Chairman Ross Carey of U.S. Bank (middle-right) and CBA's President and CEO (middle-left) posing with House Financial Services Committee Members Rep. Blaine Luetkemeyer (R-MO) and Rep. Patrick McHenry (R-NC) in the LBJ Room at the U.S. Capitol.

 

 

What’s the Holdup on Financial Reform?

As I stated on CNBC’s “Squawk Box,” Dodd-Frank is imperfect – just like all 2,000 page bills. While there are many parts of Dodd-Frank which are good for banking, consumers, and the economy, there is no doubt parts of the law need to be reformed to reflect the changing times. Today, banking is much healthier than it has been in the past decade, and banks’ commitment to robust underwriting standards is as strong as ever. So when will reform come? Well, Chairman of the House Financial services Committee Jeb Hensarling (R-TX) believes Dodd-Frank reform is on the docket for 2017, and CBA looks forward to working with him, as well as the rest of Congress, to ensure financial policy aligns with the needs of consumers. While we work to pass needed reform, I know the banking industry is well equipped to meet the challenges ahead.

 

 

Banking Startups on the Rise

With Dodd-Frank reform in the air, applications for new bank charters are on the upswing. While just a drop in the bucket compared to the hundreds of applications received in past years, this uptick signals a shift in banks’ economic and regulatory outlook. This is good news for consumers and the banking industry as bank formation helps our economy flourish. As those who follow banking closely already know, the best is yet to come from our nation’s banks.

 

 

Member Spotlight: Flagstar Welcomes New Customers

Congratulations to CBA’s newest corporate member Flagstar. Expanding its business to countless new consumers, the bank has agreed to purchase Stearns Lending’s residential mortgage delegated correspondent lending platform. CBA wishes the bank well as it welcomes a host of new employees and customers to their family. The deal is expected to make Flagstar the fourth largest correspondent loan originator in the nation.

 

 

To Our Friends at TCF

Our thoughts and prayers are with TCF following the passing of their former CEO Bill Cooper. From everyone at CBA to Bill’s family, friends, and coworkers, we extend our deepest condolences.

 

 

Three Things to Know to Be In the Know 

SoFi to sell student loans to small banks through Promontory

Cedric Bru of Taulia on Building Trust Through Vulnerability

Senate kicks final vote on Mnuchin to Monday, tees up Trump's VA pick

 

 

Lagniappe

Former CBA Board Member Jamie Warder was hired by KeyBank as head of business banking.

Deborah Guild was named chief security officer and chief information security officer by PNC.

Chase hired three bankers to join their corporate client banking unit, including Brennan Spry, Nina Sprinkle, and Matt Tugwell. Brennan will head the bank's corporate client banking.

 

 

Sen. Joe Manchin (D-WV) (center) with CBA this week in Washington, D.C.

 

Sen. Jon Tester (D-MT) (Middle Left) with CBA members this week in Washington, D.C.

 

Members of CBA meet with Sen. Heidi Heitkamp (D-ND) (Center).

 

CBA Board Member Cathy Nash of Woodforest National Bank with Sen. Gary Peters (D-MI).

 

(L to R) CBA Board member Andy Harmening of Bank of the West, Board Chairman Ross Carey of U.S. Bank, Board member Mary Navarro of Huntington and CBA member Ed Garding of First Interstate Bank in front of the Capitol Dome.

 

CFPB Director Richard Cordray with CBA Board Chairman Ross Carey of U.S. Bank.

 

CBA member and Jacksonville-native John Pataky of EverBank talks with his Senator, Bill Nelson (D-FL) this week on Capitol Hill.