View from CBA March 8, 2013

March 8, 2013

Packing for Phoenix - CBA LIVE

My shoes are shined. My shirts are folded. But there is no tie in my bag for Phoenix. Remember we are business casual, and as a result, ties are banned from CBA LIVE and will be confiscated. Team CBA looks forward to welcoming you and more than 1,000 attendees from 71 national and regional banks to “The Future of Money.” The United States banking system is the healthiest it has been over the past two decades. Still, we’re facing strong headwinds, like the digital transformation and an unprecedented volume of regulations.

We want to help you prepare for these headwinds. That is why in addition to the general sessions, 200 speakers will present more than 75 hours of customized forum programming across nine areas of retail banking. Among the speakers are 14 government officials from six federal agencies: CFPB, DOJ, FDIC, FRB, OCC and SBA. 

We want you to leave Phoenix inspired, connected, smarter and happy with how you spent your time. Don’t forget to download the free CBA LIVE app for your tablet or smartphone.

Passing the Fed Stresser

On Thursday we learned the nation’s 18 largest banks are better prepared to withstand a severe downturn than at any time since 2008, according to the Federal Reserve. The big banks hold fewer bad loans compared with last year. The Fed stress test reaffirms our position that retail banks are in a significantly better position today than in the past two decades. The capital increases over the past few years are not temporary, but permanent changes in our industry. Banks are significantly safer and sounder today and will continue to be so in the future. But – wait there’s more. The Fed, next week will announce results of CCAR and whether it will approve the banks’ plans to issue dividends or repurchase shares.

Director Cordray Gets a Hearing

Recess/non-recess-appointed CFPB Director Richard Cordray will finally get his day before the Senate when they hold his confirmation hearing on Tuesday, March 12, 2013. Mr. Cordray, currently directs the CFPB, pursuant to a controversial recess appointment in January 2012 after his nomination was held up in the Senate. His term will expire in January 2014, but if his nomination is confirmed by the Senate he would remain director for a term of five years, and would be removable by the President only for cause. CBA continues to call for changes to the CFPB structure from a sole director to a commission, so it endures the test of time, not just the next election. This is the preferred leadership structure at independent regulatory agencies since the OCC was created in 1863, as it provides for a balanced and deliberate approach to supervision and enforcement.

Newest Member

I am excited to welcome CBA's newest corporate member, Bank of Hawaii, headquartered in Honolulu. Many thanks to CBA Board Member, Rich Gold for his assistance reconnecting Bank of Hawaii and CBA, and to Peter Biggs for his leadership in helping Bank of Hawaii rejoin the CBA family!