Tennessee Bankers

This Week Newsletter

March 27, 2017 - Issue No. 1712

Tennessee Bankers Advocate for Relief in Washington

Tennessee bankers traveled to D.C. to participate in the ABA Government Relations Summit last week, advocating for regulatory relief, passage of Chairman Jeb Hensarling's Financial Choice Act, repeal of the Durbin amendment, and CFPB structural reform. Tennessee bankers met with banking liaisons for both senators and several members of Congress, in addition to visiting with Senator Bob Corker and Congressman David Kustoff who represent Tennessee on their respective chamber's banking committee. The group also visited with Congressman Diane Black, chair of the House Budget Committee.


The Summit featured several keynote speakers including House Financial Services Chairman Jeb Hensarling and ranking democratic member of the Senate Banking Committee, Sherrod Brown. Chairman Hensarling illustrated the need for regulatory relief stating "there is something fundamentally wrong in America when you need to lay off a loan officer to hire a compliance officer." The Summit drew 1,500 bankers from around the country, and you can recap all of the action on Twitter by following #ABASummit.


TBA's Washington Conference is scheduled for May 1-3, 2017. A record number of bankers have already registered, but there is still time to join the conference. Contact Penny Powlas for details.

Hearings on TBA Legislation Expected This Week

The level of activity at the General Assembly has hit overdrive as Senate Committees announced final calendars, which may take several weeks to complete, and the deadline for submitting budget amendments passed. As a result, the steady flow of bills placed on committee calendars changed to a flood as members make sure to meet committee deadlines. TBA's legislation on tools to prevent and deter elder exploitation and increasing the permissible interest rate are both scheduled for House and Senate committees, along with TBA-opposed legislation enabling the PACE program in Tennessee. For a detailed update on legislative activity, contact Penny Powlas to join TBA's bi-weekly Friday government relations calls.

Fuel Tax Legislation Continues to Advance

The most closely watched piece of legislation moving this session, the Governor's gas tax proposal, cleared another hurdle last week. The House Transportation Committee approved, by a 11-7 vote, the same revised version of Gov. Bill Haslam's tax package that was approved by the Senate Transportation Committee. The current version raises the gas tax by six cents per gallon and the diesel fuel tax by 10 cents per gallon, both phased in over a three-year period, along with cutting the state sales tax on groceries from 5 to 4 percent. Next steps for the bill are hearings in Senate Finance and House Local Government.

DOJ Reverses Position on CFPB Structure

In an amicus brief filed in the case of PHH Mortgage versus Consumer Financial Protection Bureau March 17, the Department of Justice reversed its position on the constitutionality of the CFPB's structure, asserting that the Bureau's structure with a single director removable only "for cause" should be invalidated. This anticipated move by the Trump administration is the latest development in this closely watched case, which arose in 2015. Oral arguments in the "en banc" review of the case will be heard by the D.C. Circuit on May 24.

Pathway Lending Simplifies Loan Referral

TBA endorsed partner, Pathway Lending, has launched an online loan referral form. Pathway Lending makes loans to small business owners and micro-entrepreneurs that might not otherwise qualify for a bank loan. Tennessee's largest Community Development Financial Institution, Pathway Lending provides a high-touch model, and funding often comes with mentoring and other support. Working with Pathway Lending creates stronger, more sustainable businesses while participating bank partners keep their depository relationship and get CRA credit. Contact Pathway's Hank Helton for details.

Strategic Technology and Operations Conference Focuses Bankers' Technology Planning Needs

The Strategic Technology and Operations Conference, designed for community bank CEOs, CIOs, CFOs, COOs, senior department heads, and senior officers who have strategic planning responsibilities for their institutions, focuses on the community bankers' technology planning needs. It features nationally-known speakers who are experts in the areas of financial institution technology as well as technology vendors available on-site to answer questions regarding the latest in financial services technology.


Topics include:

  • Making Sure Your Board is on Board
  • Digital Kidnapping—Holding Your Data Hostage
  • Strategic Technology Planning for 2017 and Beyond:
  • A Briefing for Bank Executives
  • Hacker Hi-Jinks: Human Ways to Steal Your Data

The Strategic Technology and Operations Conference takes place April 4 and 5 at Embassy Suites/Conference Center in Murfreesboro. Click here to register.

BSA/AML Compliance School

TBA's BSA/AML Compliance School gives your bank an opportunity to listen to and interact with regulators from both the state and federal functional regulatory agencies. It allows for a rare opportunity to get some unique how-to instruction in BSA/AML compliance issues. Additionally, it offers attendees with the opportunity to network with other professionals interested in BSA compliance. Participants will receive an updated manual and will have ample time to ask about issues/situations within their own financial firm, and there is a reception the evening of day one. BSA/AML Compliance School takes place April 11 and 12 at the Sheraton Music City Hotel in Nashville.

Information Security Officer Education Scheduled for May 17

Has your bank provided formal continuing education for your designated information security officer (ISO)? If not, expect this to be an issue in your next IT examination. As noted in the recent updates to the FFIEC IT booklet on Information Security, "Management should designate at least one information security officer responsible for implementing and monitoring the information security program." Join us for Information Security Officer Education—an entertaining, informative, bank-specific session that will provide your bank's ISO with the knowledge and confidence necessary to take on this important responsibility. This event takes place May 17 at the TBA Barrett Training Center in Nashville. Early registration deadline is May 3.

TBA On the Road

  • Colin Barrett travels to Knoxville to meet with Dr. Tracie Woidtke, Finance Department Head at the University of Tennessee. As part of the TBA strategic plan, this is one of several meetings being held with Tennessee universities to identify ways to connect students and bankers throughout the state.
  • New bankers will participate in TBA's Introduction to Banking class in Nashville.

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