View from CBA - March 6, 2015

T-Minus 2 Weeks Until CBA LIVE
Remember, in just two short weeks we will be in sunny Florida for CBA LIVE. Join in the Twitter conversation at #CBALIVE now. Do not forget, our dress code is business casual, which means no ties. Also, now is a good time to familiarize yourself with the schedule, especially our forums, the can't-miss rapid fire general sessions, and the sold-out exhibit hall. Stay tuned as we prepare to launch our state-of-the-art mobile app!

 

Chairman Neugebauer Introduces CFPB Commission Bill
The CBA call for a CFPB commission is resonating and gaining steam. This week, Rep. Randy Neugebauer (R-TX), Chairman of the Financial Institutions and Consumer Credit Subcommittee, introduced the Financial Products Safety Commission Act of 2015 (H.R. 1266). Thanks to CBA's efforts, the approach to CFPB reform has changed this congress. Rather than one large CFPB reform package, which Democrats would surely oppose, Republicans have broken reform efforts into several small bills, making passage much more likely. H.R. 1266, for example, exclusively changes the Bureau's structure from Director-led to a bipartisan five-person commission appointed by the President. In 2009, as many of you may recall, Congress originally intended the CFPB to be structured as a commission, like the Consumer Product Safety Commission. Then-House Speaker Nancy Pelosi (D-CA), then-House Financial Services Committee Chairman Barney Frank (D-MA), and Ranking Member Maxine Waters (D-CA) led passage of the legislation in the House with strong Democrat support. Chairman Neugebauer's legislation is nearly identical to the 2009 legislation. I commend Chairman Neugebauer for his efforts to improve the CFPB and hope that both parties can come together to advance this reasonable legislation. Click here to read the joint trade letter in support of this legislation -- signed by CBA, the American Bankers Association, American Financial Services Association, Credit Union National Association, Financial Services Roundtable, Independent Community Bankers of America, National Association of Federal Credit Unions, and the U.S. Chamber of Commerce.

 

CFPB Director Testifies Before the House Financial Services Committee
On Tuesday, CFPB Director Richard Cordray testified before the House Financial Services Committee and provided the Bureau's Semiannual Report to Congress. See our CFPB Report for detailed information on the hearing. Of note: Rep. Lynn Westmoreland (R-GA) pressed Director Cordray on payday lending and asked where folks seeking a $50 loan should go, if not to payday lenders. Dir. Cordray said, "I don't generally stand in their shoes and tell them what to do.". Also, Director Cordray informed the Committee the Bureau is getting "close, very close," to releasing the second phase of its study on arbitration clauses. On Tuesday, March 10, 2015, the Bureau is holding a field hearing on arbitration in Newark, N.J. CBA will attend the hearing and update members.

 

All Time High: CBA-AOL Index
The CBA and AOL Inc. monthly Finance Optimism Index rose to 6.8 in January, climbing from 0.0 in December 2014, showing rising consumer financial optimism at an all-time high. This increase in American financial optimism suggests people are starting to feel a tailwind instead of unrelenting headwinds. Learn more about the Index at financeoptimism.org.

 

Lendkey Technologies and LenderLive Network, Inc. join CBA
CBA welcomes Lendkey Technologies and LenderLive Network, Inc. as our new Associate Members.

 

Lagniappe
Best wishes to Pamela Joseph, U.S. Bancorp's Vice Chair of Payment Services, who recently announced her retirement in mid-2015. She will be succeeded by veteran banker Shailesh Kotwal.

Scott Powell, a former JPMorgan Chase Consumer-Banking Operations Executove and CBA Board Member, has been named Chief Exevutive Officer of Santander Holdings USA. Roman Blanco remains Chief Executive of Santander's U.S. retail bank

CBA Board member Thong Nguyen was recently featured in the Charlotte Business Journal as one of "three rising-star execs make way into Bank of America annual report."