Tennessee Bankers

This Week Newsletter

February 21, 2017 - Issue No. 1707

TBA Files Elder Financial Exploitation Protection Legislation

After two years of meetings and legislation aimed at studying elder and vulnerable adult exploitation, three bills have been developed to address various components of this growing problem. In addition to bills brought by the district attorneys and Department of Commerce, TBA has filed legislation (SB 1267 by Senator Mark Norris, Collierville and HB 1064 by Representative Kevin Brooks, Cleveland), adding tools and greater flexibility as to how bankers can protect their customers when they suspect financial exploitation. TBA's legislation provides banks the ability to delay or refuse to conduct transactions, refuse power of attorneys for vulnerable adults, and develop a list of trusted family members or friends to contact, all under the circumstances that financial exploitation is suspected, and with no liability for the bank or the bank's employees.

TAILOR Act Introduced in U.S. Senate

Sen. Mike Rounds (R-S.D.) last week reintroduced the Senate version of the TAILOR Act (S. 366), which would require financial regulators to consider bank risk profiles and business models when taking regulatory actions. The bill was strongly advocated by TBA. In addition to requiring a tailored approach for future rulemakings, Rounds' bill would require a review of regulations issued in the past seven years and a report on how they might be better designed. Regulators would be required to state in notices of proposed rulemaking how they applied the TAILOR Act. Championed by Rounds and Rep. Scott Tipton (R-Colo.) in the 114th Congress, the bipartisan TAILOR Act cleared the House Financial Services Committee. A new House version of the bill is expected to be introduced soon.

General Assembly Reviews Budget Proposals

Legislative action was light at the Tennessee General Assembly last week as the bills continue to work through the process of being assigned to committees. The pace will increase this week when lawmakers return to Nashville after the President's Day holiday and are met with lengthy committee calendars.


There was, however, action taken on a bill brought by the TILT industry to raise their maximum interest rate, currently at 24 percent, to a blended rate ranging from 24-36 percent depending on the loan amount. This bill, HB 390/SB256, was recommended by the House Insurance & Banking Subcommittee to advance to full committee and was approved by the Senate Commerce & Labor Committee with little discussion. Committees also heard presentations on the Governor's infrastructure and transportation initiatives IMPROVE and Next Tennessee, an ECD budget presentation, and a report by BCBS of TN on efforts to combat Tennessee's opioid crisis.

Bob Rolfe Named Economic and Community Development Commissioner

Governor Bill Haslam last Thursday announced Nashville business executive Bob Rolfe as commissioner of the Tennessee Department of Economic and Community Development (ECD). Rolfe, 56, has more than three decades of experience in business and investment banking in Tennessee. He will join the administration on March 1, replacing Randy Boyd who left ECD last month to return to the private sector.


Rolfe comes to the administration from Medical Reimbursements of America (MRA), a 250-employee Franklin company that provides specialty reimbursement solutions for more than 500 hospitals and health systems across the country. In 2011, Rolfe co-founded West End Holdings, a Nashville-based private equity partnership that acquires and manages underperforming companies, and he spent the first 18 years of his career as an investment banker at J.C. Bradford and Co. A native of Nashville, Rolfe received his executive MBA from the Owen Graduate School of Management at Vanderbilt and his bachelor's degree from the University of Alabama.

Full Circuit Court to Hear Appeal of CFPB Structure Case

The full D.C. Circuit Court of Appeals last week agreed to hear the appeal in PHH Mortgage v. Consumer Financial Protection Bureau, a closely watched case over whether the CFPB's leadership structure—a single powerful director who cannot be removed at will by the president—is constitutional. The order also vacated an October 2016 ruling by a three-judge D.C. Circuit panel finding the structure unconstitutional and allowing the director's removal not just "for cause" but at the president's discretion—thus preventing President Trump from removing current director Richard Cordray before his term ends in 2018. Oral arguments in the "en banc" review of the case will be heard by the D.C. Circuit on May 24.

Treasury Secretary Mnuchin Confirmed

The Senate last week voted 53-47 to confirm Steven Mnuchin as secretary of the treasury. Prior to confirmation, Mnuchin made remarks that indicated his support of Dodd-Frank reform, saying "we want to strip back parts of Dodd-Frank that prevent banks from lending." Comprehensive tax reform is also a priority of Secretary Mnuchin. It was also announced last week that Eli Miller was appointed to serve as Treasury chief of staff. Miller will manage the day-to-day operations of the department and office of the secretary.

Deadline for PEP Report Cards

The deadline for the 2016-2017 PEP Awards is March 3 to submit all activity report cards to qualify for most of the awards presented at the Leadership Convention. Don't delay! There is still time to schedule PEP presentations in order to qualify for awards, certificates, and recognition by your peers. If you have already made presentations but not reported them, be sure to get those reports in by March 3. The Leadership Convention takes place April 23-25, at Nashville's Hutton Hotel.

Office Depot Keurig Offer

TBA's program with Office Depot extends well beyond pens and paper; it includes more than 800 items regularly ordered by banks around the country, free delivery on orders over $50, and discounts that extend to all employees of TBA member banks. As a special treat for TBA coffee lovers, take advantage of this offer on two models of Keurig brand coffee makers. To learn more about getting set up on the TBA Office Depot program, contact Stacey Langford or Office Depot's Kevin Delesk.

Tennessee Deposit Account Administration Held in Knoxville, Nashville

TBA's annual Tennessee Deposit Account Administration is scheduled at two sites, March 6-7 in Knoxville, and March 8-9 in Nashville. Since many changes have taken place, there are numerous additional issues that will be covered in the two-day program. Here are some highlights:

  • Compliance with the NEW CDD regulations that is mandatory in 14 months
  • Critical gathering of the correct documentation for compliance with BSA/AML CDD regulations starting with the initial customer contact
  • Additional information on legal entities in Tennessee including the NEW series limited liability companies
  • Providing banking services to licensed growers of industrial hemp—there are 74 licensed growers in Tennessee

Click here for additional program information.

Welcome New Associate Members

TBA welcomes new associate members NewGround in the category of facility planning, Payscape in the category of processing services, TraceSecurity in the category of security services, Quality Data Systems in the category of bank equipment/supplies. Please thank these new member companies for their support of the Tennessee banking industry. Bankers can review the full list of associate members in our online directory.

TBA On the Road

  • The Southeastern School of Advanced Commercial Lending and Essentials of Commercial Lending take place in Nashville.

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