New-CFO Council: In a letter this week from IBANYS Chairman, Paul Mello, your association implemented a CFO Peer Group Council with Kevin Dattellas, CFO from Solvay Bank and Bob Dieterich, CFO from First National Bank of Scotia serving as co-chairs. We currently have received a number of CFO participant responses from our member banks. The charge of the Council is threefold and critical to community banking success according to Paul's letter. Click to see letter. Please encourage your CFO to participate. Participation Form

 

Governor's 21 Day Amendments-New-Department of Financial Regulation: While the Department of Budget at this time did not supply amendment details, a quick review indicates the definition of fraud in Section 104, which we were concerned about, no longer includes fraud as defined in the Penal and the General Business law, including violations of the Martin Act.

 

Section 307 of the bill is deleted, which permitted the Superintendent to confirm immunity from prosecution under Criminal Law, Section 50.20 in connection with a hearing under the Insurance or Banking Law.

 

Section 408 of the bill deletes the authority of the Superintendent to award damages on behalf of any person suffering economic harm arising from financial fraud. The Superintendent still retains authority to order restitution in addition to civil penalties up to $5,000.

 

In addition, the Budget appropriation of the Department of Financial Regulation was reduced by $8 million.

 

Your association advocated for the above changes and is pleased with them. We will remain vigilant, however, regarding the actual assessment calculation, a banking specific Deputy, a banking specific office, safety and soundness vs. consumer protection, and a banking council, among other items.

 

Assembly Bill 3315: The Assembly Banks Committee will meet to discuss an amendment to the Basic Banking account withdrawal law increasing the number of free withdrawal transactions from eight to twelve for account holders sixty-five  years of age or older. For those account holders under sixty-five free withdrawal transactions would remain at eight during any periodic cycle. Legislative counsel is discussing the issue with Chairman Towns and the committee. We will keep you informed on any developments.  

 

Economic Indicator Roundup:

New-Home Sales: Sales of new single-family houses were down in January 12.6 percent from the previous month and 18.6 percent from the year before, according to the Commerce Department.

 

Durable-Goods Orders: New orders for manufactured durable goods increased 2.7 percent in January, according to the Commerce Department. The increase followed three consecutive monthly declines.

 

House Prices: Home prices were down a seasonally adjusted 0.8 percent in the fourth quarter of 2010 and 3.9 percent from a year ago, according to the Federal Housing Finance Agency's  purchase-only index.

 

Mortgage Rates: Freddie Mac said rates on 30-year fixed-rate mortgages averaged 4.95 percent, down from 5 percent last week and 5.05 percent a year ago. Rates on 15-year FRMs averaged 4.22 percent, down from 4.27 percent last week and 4.40 percent last year.