Tennessee Bankers

This Week Newsletter

February 06, 2017 - Issue No. 1705

Trump Orders Review of Dodd-Frank, Postpones Fiduciary Rule

President Donald Trump last Friday, Feb. 3, signed two executive orders to reevaluate several provisions of the Dodd-Frank Act, as well as the Department of Labor's controversial fiduciary rule. The first executive order outlines seven core principles for regulation of the financial system: promoting independent consumer choices, preventing bailouts, fostering economic growth, promoting international competitiveness, advancing U.S. interests in international negotiations, tailoring regulations and ensuring regulatory accountability. The second order delays the fiduciary rule's effective date until October.

Governor's State of the State Kicks Off Legislative Session

In his seventh State of the State address to the General Assembly on Monday, January 30, Gov. Bill Haslam introduced his proposal to make Tennessee the first state in the nation to offer all Tennessee adults without a degree access to community college tuition-free—and at no cost to taxpayers.


The governor also released his fiscal year 2017-2018 budget proposal. The $37 billion proposal makes investments in teachers, K-12 schools, higher education, state employees, the state's Rainy Day Fund and the tax cuts included in the governor's IMPROVE Act. The IMPROVE Act includes proposed increases in gas and diesel taxes (7 cents and 12 cents respectively), automobile registration fees, and alternative vehicles fees, offset by a reduction in the sales tax on food, franchise and excise taxes, and the Hall income tax—aimed at tackling the state's estimated $10.5 billion backlog of nearly 1,000 transportation projects.


Haslam has introduced legislation, the Tennessee Broadband Accessibility Act, which along with the administration's proposed budget, will provide $45 million over three years in grants and tax credits for service providers to assist in making broadband available to unserved homes and businesses, permitting Tennessee's private, nonprofit electric cooperatives to provide retail broadband service.

CFPB Issues Compliance Guide on Prepaid Rule

The Consumer Financial Protection Bureau last week issued a small entity compliance guide for its final rule on prepaid accounts. The rule brings prepaid accounts under Regulation E while also bringing certain credit-like features of some prepaid accounts under Regulation Z. The rule takes effect on Oct. 1, 2017. The guide covers definitions of various prepaid accounts, exclusions in the rule, entities subject to the rule, required disclosures at various points, change-in-terms notices, periodic statements and alternatives, error resolution, limitations on liability, receipts at electronic terminals, access devices, compulsory use, account agreements, overdraft credit features, remittances and record retention, among other topics. Download the compliance guide.

TBA Travels to Washington for Freshmen Fly-In

Colin Barrett, Tim Amos, and several bankers from the 8th Congressional district joined bankers from across the country for a Freshmen Fly-In to meet with newly elected members of Congress. The group had a productive meeting with Congressman David Kustoff who was appointed to the House Financial Services Committee. The main topics discussed were the industry's general support of Chairman Jeb Hensarling's Financial CHOICE Act, especially provisions removing the Durbin Amendment, treating loans held in portfolio as qualified mortgages, and tailoring regulations to a bank's business model.
The group visited with Senator Bob Corker, who said "it is a good time to be a banker" and was optimistic about regulatory relief moving through Congress. While Senator Corker is Chairman of the Foreign Relations Committee, he is still an active member of the Senate Banking Committee. The group also met Senator Corker's newly appointed legislative assistant for banking Jonathan McKernan as well as Senator Alexander's banking assistant Paul McKernan.
This is the first of five trips Tennessee bankers will make to DC this year. All bankers are encouraged to participate in the TBA Washington Conference that will be held from May 1-3. For more information, please contact Tim Amos or Penny Powlas.

Mnuchin Treasury Nomination Advances

The Senate Finance Committee voted February 1 to advance Steven Mnuchin's nomination as secretary of the treasury. The move came as Democrats boycotted the vote, with all Republicans voting in favor of Mnuchin. In a bipartisan 18-1 vote, the Senate Small Business Committee on Tuesday voted to confirm Linda McMahon as administrator of the Small Business Administration. Both must now be approved by majority votes in the full Senate.

Fed Maintains Rates

The Federal Open Market Committee decided to hold the target range for the federal funds rate at 0.5 to 0.75 percent, according to a statement from the committee released February 1. FOMC members said they expect the economy to continue to expand at a "moderate" pace and will "closely monitor inflation indicators and global economic and financial developments" to determine the pace and timing of future rate hikes. They also said they expect "only gradual increases" across the year based on incoming data. Read the FOMC statement.

Stay on Top of Cyber Threats with TBA's New Weekly Reports

TBA has partnered with the ABA and FS-ISAC in order to disseminate valuable threat information to our membership.  Many member bankers have already signed up to receive the complimentary weekly risk summary reports distributed on Friday morning from the TBA. To be added to the distribution list for this communication and other cyber threat related news, please email Steve Curtis, TBA's VP of Information Technology.

Learn the Latest about Compliance Issues through Senior Compliance Officer Forums

As the senior compliance officer for your bank, you need to stay up-to-date on all compliance issues affecting financial institutions. Your job requires many skills, much experience, and a lot of research and hard work—and no one knows that better than other people in your position. The Senior Compliance Officer Forum, taking place Feb. 28 at TBA's Barrett Training Center in Nashville, provides an opportunity to benefit from the skills, experience, expertise, and perspective of your peers.


These forums, facilitated by Connie Edwards, will bring together senior compliance officers, those for whom compliance is their primary responsibility within the institution, in a small-group setting to exchange ideas freely, dissect challenges openly, and discuss solutions that can improve the performance of your bank in the area of compliance. Click here to learn more.

Tennessee Deposit Account Administration Program Taking Place in Knoxville, Nashville

Tennessee Deposit Account Administration is a two-day program, focusing on Tennessee law regarding business, consumer, and fiduciary accounts, and federal requirements for onboarding new customers, including the beneficial ownership requirements for legal entity customers.


Day one is devoted to federal information required when onboarding new customers, and consumer and fiduciary ownerships permitted in Tennessee. Day two is dedicated to business accounts. Each type of business structure is dissected–corporations (for profit and nonprofit), partnerships (general, limited, and limited liability), LLCs (including series LLCs), and sole proprietorships.


This program prepares participants to understand and implement a Customer Due Diligence program in compliance with the new regulations. Other issues such as proper completion and purpose of resolutions, documenting changes, and use of the Secretary of State's website for verification, are also discussed in detail. It will be held March 6 and 7 in Knoxville, and March 8 and 9 in Nashville. Click here to register.

TBA On the Road

  • TBA's Credit Conference draws 560 bankers and industry partners to Nashville from around the state. Follow the action at #TBAcredit on Twitter.
  • More than 200 to join the state's elected officials for the Legislative Reception Monday evening.

See where TBA goes while "on the road" by following @TNBankers.

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