Tennessee Bankers

This Week Newsletter

March 20, 2017 - Issue No. 1711

TBA Joins Amicus Brief over CFPB Overdraft Lawsuit

Last week the TBA agreed to join an amicus curiae brief filed by the Minnesota Bankers Association to support one of its members, TCF Bank, in a case brought by the CFPB. The CFPB complaint centers around the Regulation E Opt-in rules for overdraft. The CFPB does not accuse the bank of failing to provide all the Regulation E Opt-in disclosures. The case alleges that the bank violated the UDAAP rules in the way the bank presented the Opt-in information to its customers, saying that because "consumers rarely read" written disclosures, the CFPB had the right to look at the verbal explanations that bank employees gave to bank customers.  The CFPB alleges that the bank gave only "cursory," "uninformative" descriptions of the written disclosures, therefore the bank was acting in a deceptive and abusive way. The focus of the brief centers around the CFPB statement that "customers rarely read" written disclosures, and that regardless of that statement, the CFPB's job is to enforce the regulations as written.

FDIC Enhances Tools to Prevent Elderly Financial Exploitation

The FDIC has updated its Money Smart for Older Adults curriculum to include new information and resources to help older Americans and their caregivers guard against fraud and other scams targeting the elderly. A joint effort between the FDIC and the Consumer Financial Protection Bureau, this program is a stand-alone, instructor-led module that bankers and other professionals serving older Americans can use to educate their customers about financial exploitation.

The program covers a range of topics including common types of elder financial exploitation, scams targeting veterans, identity theft, medical identity theft, scams that target homeowners, planning for unexpected life events, and how to be financially prepared for disasters. The FDIC is hosting a free webinar on March 30 to review the new edition. Register and learn more here.

Raphael Bostic to Lead Atlanta Fed

The Federal Reserve Bank of Atlanta has named Raphael Bostic as the bank's next president and CEO, succeeding Dennis Lockhart, who retired last month. Bostic, an economist, currently holds a named chair at the Sol Price School of Public Policy at the University of Southern California. He previously served as assistant secretary for policy at the Department of Housing and Urban Development in the Obama administration and worked as an economist at the Fed earlier in his career. Bostic will take office on June 5.

Fed Raises Rates

As numerous policymakers had signaled in recent weeks, the Federal Open Market Committee decided last Wednesday to raise the target federal funds rate to 0.75 to 1 percent -- the first rate hike since December's 25 basis-point increase to 0.5 to 0.75 percent. All but one committee member voted for the increase. Economic projections also released that day showed that most FOMC members expect two more rate hikes this year, leaving the rate target at year end between 1.25 and 1.5 percent.

ABA, ICBA and Other Industry Trades Support CDFI Funding

The ABA, ICBA and a coalition of other banking groups called on Congressional appropriators to support fiscal year 2017 and 2018 funding for the Community Development Financial Institutions Fund. The groups advocated $250 million for the CDFI Fund in fiscal 2017, including $23 million for the Bank Enterprise Award Program, and $250 million for the CDFI Fund with $35 million for BEA in 2018. Both requests are consistent with funding provided by Congress in fiscal year 2016. Since 1996, hundreds of banks have participated in the programs of the CDFI Fund, with a proven, documented track record of creating impact and have become invaluable in helping banks find ways to serve credit markets and communities that otherwise might not be served.

President Trump Honors the 7th President; Holds Nashville Rally

President Trump's visit to Nashville was the prime story of the week at the General Assembly.  Due to the visit on Wednesday, what is normally the busiest day of the legislative work week, legislative committees were cancelled and many state offices and public buildings were closed.  Members of the General Assembly and other invited guests attended a private wreath-laying ceremony with President Trump at The Hermitage, commemorating the 250th birthday of the 7th President, Andrew Jackson.  The last sitting president to visit Jackson's home was President Ronald Reagan in 1982. Trump then hosted a rally in downtown Nashville.

Former TBA Employee Carroll Hughes Passes Away

Long time TBA BancInsure representative Carroll Hughes passed away last week. Carroll was a great friend to many in the banking industry and will be missed. Carroll is survived by his wife Barbara, daughter Kimberlyn and granddaughter Sofia. In lieu of flowers, the family is asking that memorial contributions be made to the American Heart Association, Alive Hospice, or Brentwood United Methodist Church. Please keep the Hughes family in your prayers.

Make Plans to Attend Leadership Convention, April 23-25

The TBA Young Bankers Division is one of the most robust of its kind in the country, and the Leadership Convention is the division's foremost event. This convention annually draws more than 100 bankers from across the state and is designed to promote professional and personal growth for the industry's next generation of industry executives. The 2017 convention is at Hutton Hotel in Nashville April 23-25 and features an expanded business agenda and several networking events. Convention convenes Sunday, April 23 with an opening night networking reception and concludes by noon Tuesday, April 25.

Registration is available now at TNBankers.org/Leadership along with the brochure and detailed agenda. Early registration ends April 9.

Rooms at Hutton Hotel, the convention site, are available at the reduced rate of $205/night through March 31. To make reservations call 615-340-9333 and identify the Tennessee Bankers Association Group Block or reserve your room online here.

Last Chance to Save on The Southeastern School of Banking Branch Management

Tuesday, March 21 is the last day to save $50 when you register for TBA's Southeastern School of Banking Branch Management. The first of four sessions is April 4 at TBA's Barrett Training Center.


As TBA's newest Southeastern School, it is designed to focus on the critical success elements of managing and leading a performance-focused sales and service team. Led by Dianne Barton of Performance Solutions, Inc, each workshop is designed and packaged full of checklists, job aids, case studies, examples, and real-world situations. The school offers the branch manager and the branch management team with current, proven solutions to managing a successful branch in today's ever-evolving banking environment.


Invest in your bank's future and enroll today!

Order Your 2017/2018 Bankers Directory

TBA is now accepting orders for the 2017/2018 edition of the Bankers Directory. The deadline to order is May 15, and it will ship in mid-August. The directory is a compact, handy reference that puts information about all of Tennessee's commercial banks and trust companies at your fingertips. CEOs, out-of-county main office branches, and associate members each receive one complimentary copy of the directory. Additional copies are available for purchase at TBA's Online Store. The directory contains complete financial data for Tennessee institutions taken from the 2016 year-end FDIC Call Reports.

See Photos from TBA's Human Resources Conference

The Human Resources Conference wrapped up a successful two days at the Embassy Suites/Conference Center in Murfreesboro on March 14 & 15. Nearly 100 attendees came out to participate in informative general sessions, helpful break out sessions, and a networking reception sponsored by Financial Products and Services, Inc. Lunch was sponsored by Morgan Stanley Wealth Management from Memphis, and massages were sponsored by BlueCross BlueShield of Tennessee.


Click here to see the photo recap.

FinancialPSI This Week: The Rising Risk of Ransomware

Ransomware is the latest cyber extortion tool devised to threaten both businesses and individuals. Similar to a virus, ransomware is malicious software that infects a computer. It can arrive via several mechanisms: a malicious email attachment, embedded in a malicious website download, attached to a phishing email, or even a Web link that automatically downloads the ransomware when it is clicked.


Once a user's files and documents are encrypted, they become inaccessible until a ransom is paid. A user is instructed to pay ransom within a certain timeframe and through a method that is fairly convenient yet difficult to trace back to criminals. This may include wire transfers, pre-paid payment cards, Bitcoin or premium cost SMS services. While some affected have paid the ransom and recovered their computer data, others have lost theirs forever.


Having affected financial institutions, hospitals, and many other types of organizations, the Federal Bureau of Investigation (FBI) reported 2,400 ransomware-related complaints totaling a loss of more than $24 million in 2015 alone.


Contact FinancialPSI's Ted Frizen and Jon Goodson to learn how banks can protect themselves against this formidable risk.

TBA On the Road

  • TBA and bankers from around the state travel to Washington to meet with Congress and participate in the ABA Government Relations Summit.

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

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