Tennessee Bankers

This Week Newsletter

February 26, 2018 - Issue No. 1808

TBA, State Associations to Sen. Hatch: Time to Change ‘Status Quo’ for Credit Unions

Taxpayers should no longer subsidize the nation’s largest credit unions, which effectively operate the same as taxpaying banks, TBA and 51 other state bankers associations said in a letter to Senate Finance Committee Chairman Orrin Hatch (R-Utah) last Tuesday.

The letter came after Hatch last month raised concerns to the NCUA about whether credit union activities and the NCUA’s supervisory agenda align with the purposes of the federal income tax exemption they enjoy.

Noting that Congress missed a critical opportunity to address the treatment of credit unions in the new tax reform law, the associations urged Hatch—the top tax policymaker in the Senate—to revisit the tax exemption this year. Read the state associations' letter.

Also last week, ICBA asked Hatch in a letter last week to convene a hearing on the credit union’s tax exemption. Read ICBA's letter.

Contact Your State Lawmakers—Urge Support of TBA Legislation

TBA encourages all bankers to contact their senators and representatives and ask them to support the association’s legislation (SB 2684 by Bailey/HB 1707 by Wirgau), which would allow banks to pledge out-of-state bonds as collateral for public deposits.

Specifically, the legislation would allow out-of-state bonds to be pledged if they are rated AA or better by a nationally recognized bond rating agency and are “bank qualified.” If a bond is downgraded, a bank would have two working days to re-pledge with eligible collateral.

When speaking to your legislations, we encourage you to share with them how this will help your bank and the local depositors you serve.

TBA-Opposed Legislation Fails in House Subcommittee

The House Consumer and Human Resources Subcommittee last Wednesday was scheduled to hear TBA-opposed HB 1967, which would have banned inactivity fees on open loop gift cards issued by banks. However, the legislation failed in committee when it did not receive a second motion by a committee to move on to debate.

TBA opposed the bill on the grounds that the dormancy fee—imposed after 12 months of inactivity—is clearly disclosed on the back of the cards and their packaging and would essentially put the General Assembly in a position of determining what fees banks can and cannot charge.

The bill’s sponsor, Rep. Tim Rudd (R-Murfreesboro) gathered nearly 60 cosponsors on HB 1967, but that number, even with his argument that the fees are unfair and deceptive was not enough to secure a second and proceed to a vote on the bill.

More Senators Sign on to Bipartisan Regulatory Reform Bill

Senate Banking Committee members Ben Sasse (R-Neb.) and Doug Jones (D-Ala.) have signed on as cosponsors of S. 2155, the bipartisan financial regulatory reform bill is expected to receive a Senate vote in the coming weeks. Sasse and Jones bring the number of cosponsors to 26—13 Republicans, 12 Democrats and one Independent aligned with Democrats.

The result of a bipartisan compromise between Senate Banking Committee Chairman Mike Crapo (R-Idaho) and four Democrats on the committee—Jon Tester (D-Mont.), Heidi Heitkamp (D-N.D.), Mark Warner (D-Va.) and Joe Donnelly (D-Ind.), S. 2155 includes several provisions including a Qualified Mortgage designation for mortgages held in portfolio, a substantial increase in the SIFI designation threshold, and relief from stress tests and exam requirements for certain institutions.

ABA, ICBA Looking for Bankers to Serve on Committees

Both ABA and ICBA are looking for bankers interested in serving on national committees. These committees cover government relations, cybersecurity, technology and more. If you have any interested in serving on an ABA or ICBA committee, please contact Colin Barrett at cbarrett@tnbankers.org.

Register Now for BSA/AML Compliance School and Save

Hotel reservation deadline is February 26
Early registration deadline is March 5

Maintaining or auditing a Bank Secrecy Act (BSA) compliance effort and an anti-money laundering (AML) program requires a solid foundation in current regulations and regulatory philosophies. This two-day program, led by Ken Golliher, Pegasus Educational Services, addresses the BSA/AML issues of the day. The curriculum is updated annually to include current BSA/AML compliance management issues, in addition to a review of technical compliance requirements. The program is supported by comprehensive materials that serve as a detailed reference for your BSA/AML compliance efforts.

The event takes place March 20 & 21 at the Airport Marriott Hotel, Nashville.

Click here to register.

Legislative Reception/Credit Conference Recap

The 2018 Credit Conference was another successful event, with outstanding attendance numbers hitting 580 and top-notch industry speakers. The Legislative Reception preceding the Credit Conference also attracted a record-setting crowd, and is one of the TBA's most important advocacy events of the year. Make plans to join us next year February 4 for Legislative Reception and February 5-6 for Credit Conference at the Omni Hotel, Nashville.

Click here for a Credit Conference photo recap, and click here for a Legislative Reception photo recap.

Welcome New Associate Member

TBA welcomes new associate member Hamilton Mortgage in the category of mortgage services. Please learn more about each of our associate member companies by visiting our online directory of associate members and thank them for their support of the Tennessee banking industry through membership.

TBA On the Road

  • TBA's Government Relations team will be visiting with legislators at the state capitol.

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