Tennessee Bankers

This Week Newsletter

April 18, 2016 - Issue No. 1616

General Assembly Expected to Adjourn This Week

The Senate and House are close to wrapping up their business for the year, with an expected adjournment sometime early this week. The Senate and House last Thursday approved the state's fiscal year 2016-2017 budget by votes of 32-1 and 87-7, respectively. The nearly $35 billion budget includes a step towards reducing the Hall Income Tax by 1 percent; adding additional money to the state's Rainy Day Fund; and dedicating $104 million to teacher pay raises and $1.7 billion for higher education.
With the budget now behind them, lawmakers' remaining business will focus on taking up bills that were moved "behind the budget," meaning bills with a fiscal impact to the state. If they remain on track, the second session of the 109th General Assembly will adjourn sine die by Thursday.

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TBA's Barrett Responds to Misleading Op-ed on TBA HOA Legislation

As reported last week, TBA's legislation (SB 2397 / HB 2401) to protect lenders by ensuring the mortgages they make for condominiums cannot be extinguished by HOA-initiated foreclosures for delinquent dues overwhelmingly passed on the Senate and House floors. 
Legislators' strong support for the legislation came after intense lobbying by TBA's government relations team and outreach by bankers across the state. The opposition, primarily the Community Association Institute from Washington, DC, waged strong efforts to defeat the measure. Their efforts included having their local members write misleading op-eds in newspapers.

In response to the misleading information put forth by the CAI's members, TBA President Colin Barrett submitted a response letter to the editor to both The Tennessean and Knoxville News Sentinel. Barrett thanked the senators and representatives for supporting TBA's "common-sense" legislation and not "bowing to the lobbying pressures orchestrated by [the CAI]." He also rebutted claims that Tennessee banks were the cause of the 2008 financial crisis and, instead, credited them for being the "bedrock of economic growth in the state."

Credit Union Secures Name Rights to APSU Stadium

On Monday, April 11, Austin Peay State University announced Governors Stadium will soon don a new name through a partnership with Fortera Credit Union. The 25-year, $2.5 million agreement will see the home of APSU football be renamed Fortera Stadium.

In response to the announcement, The Leaf-Chronicle published a letter to the editor from TBA President Colin Barrett. Barrett said the name change should concern taxpayers. He pointed out credit unions such as Fortera pay no state and federal taxes, and their corporate tax exemption cost the state of Tennessee between $63 million and $81 million between 2001 and 2013.

OCC Releases Agency Risk Appetite Statement

The OCC has released a Risk Appetite Statement setting boundaries of acceptable risk levels in key areas of agency operations. The OCC said its management and employees will use the statement to evaluate their decisions and actions in overseeing national banks and thrifts. Click here to read the statement.

House Committee Votes to Place CFPB Spending on Budget

The House Financial Services Committee last Wednesday, April 13, approved a bill (H.R. 1486) that makes the CFPB more accountable to taxpayers by putting its spending on budget. Approved by a margin of 33-20, the measure would stop direct funding of the CFPB by the Federal Reserve and instead subject it to the congressional appropriations process. 

Tennessee Congressmen Stephen Fincher, who serves on the House Financial Services Committee, was one of 46 cosponsors of H.R. 1486.

Washington Post Article Spotlights Efforts to Rein in Farm Credit

A Washington Post article on Monday, April 11, focuses on the extensive nonfarm lending of the Farm Credit System and efforts by the banking industry to rein in the government-sponsored enterprise that has long exceeded its intended purpose.

The article features FCS excesses, such as its financing of "vacation homes, restaurants, car washes, and even casinos," and mentions now-famous FCS deals for big companies like Verizon and Cracker Barrel. Click here to read the article.

Friends of Traditional Banking Endorses Taylor Griffin

Friends of Traditional Banking (FOTB) is a non-partisan grassroots effort organized by bankers to identify and support individual candidates who are dedicated to preserving traditional banking. FOTB announced its support for Taylor Griffin who is running in North Carolina's 3rd Congressional district. His opponent is incumbent Walter Jones Jr., the last remaining Republican who voted for Dodd-Frank.

The race is vey close and neither candidate has raised a lot of money, so this is a situation where the industry can make a huge difference.  To learn more about Taylor Griffin or make a contribution to his campaign, please visit www.friendsoftraditionalbanking.com.

Trial Membership to Compliance Alliance

Spring is the perfect time for a fresh start. If you are considering a switch with your compliance service, it is time to give Compliance Alliance a try. With all-inclusive access for an unlimited number of users, each member of your team may enjoy:

  • More than 1,000 downloadable documents
  • Reviews of advertising, marketing, policies, procedures, disclosures and new products to ensure compliance
  • Hotline services available via online chat, phone and email

Compliance Alliance is owned by TBA and 24 other state bankers associations, and is designed specifically to meet the needs of banks. Visit the website to learn more about Compliance Alliance. Register today for a free demo on Thursday, April 21 at 1 p.m. CT to learn about the benefits of becoming a member of Compliance Alliance. Participants in this live demo will receive a complimentary 48-hour trial membership.

Early Registration Deadline for IT Audit for Financial Institutions is April 25

Boards of directors and senior management are responsible for ensuring that the institution's system of internal controls operates effectively. One important element of an effective internal control system is an internal audit function that includes adequate IT coverage. IT Audit for Financial Institutions seminar, taking place May 10 at Nashville's TBA Barrett Training Center, will examine several material areas of an IT audit.
For all who deal with internal control issues, this live, overview program will provide vital internal control information. It covers current issues that not only have an internal impact but also an external influence on the daily operations of the bank. This program will look at important regulatory requirements and provide information vital to examination processes.The early registration deadline is April 25. Click here to enroll.

Second Senior Human Resources Director Forum Set for April 21

The second Senior Human Resources Director Forum will take place this April 21 at the TBA Gilliam Board Room in Nashville. In this program, those responsible for human resource-related issues in their institutions have the opportunity to discuss their concerns and explore collaborative solutions to problems they face on a day-to-day basis. It is facilitated by C. Eric Stevens of Littler Mendelson, PC, the country's largest law firm devoted exclusively to representing management in employment and labor law matters. As necessary, subject matter experts are brought in to cover specific issues and topics. 

If you're interested in attending, please email TBA's Debbie Brickles.

TBA On the Road

  • The CSBS and TDFI Cybersecurity Conference and the Senior Human Resources Director Forum take place in Nashville.

See where TBA goes while "on the road" by following

@TNBankers or  #TBAontheroad

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