October 8, 2014
Masthead 2

 
Contents:
Extension Granted
Millennials Rule!
Small-Biz Credit Initiative Funds $4B in Loans
The Daily Dose: Financial Edition



BKD 2010





Celerit


Harland Clarke


ICBA Securities





Travelers



 


 
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Real Community Bank
Extension Granted
The Federal Housing Finance Agency extended the comment period for a proposed rule to revise the requirements for financial institutions to apply for and retain membership in the Federal Home Loan Banks.

Among its provisions, the proposed rule would require all members to hold 1 percent or 10 percent of their assets in home mortgage loans at all times. The FHFA extended the comment period to Jan. 12, 2015. The proposal will have far-reaching impacts on the ability of community banks and other FHLB members to continue to access low-cost funding.

ICBA staff and members of the ICBA FHLB Task Force will meet with FHFA officials later this month to discuss community bank concerns with this proposed rule. ICBA raised concerns over the regulatory burden imposed by the proposal and urged the agency not to advance it.
Millennials Rule! 
The millennial generation does not like the biggest banks, opening an opportunity for community banks, according to a new study featured in National Journal. The study  found that one-third of millennials are open to switching banks in the next 90 days, and four in 10 of the generation's most hated brands are large financial firms.

The National Journal report quotes community bankers and cites their efforts to attract millennials through social media, mobile banking and the industry's locally focused model.
Small-Biz Credit Initiative Funds $4B in Loans 
States participating in the Treasury Department's
State Small Business Credit Initiative have expended $590 million to leverage more than $4 billion in new loans and investments. Funding has gone to approximately 8,500 businesses through 2013, Treasury said. The Small Business Jobs Act of 2010 created the SSBCI to fund state programs that support access to credit for small businesses and small manufacturers.

Provided by SNL Banker, an ACB Preferred Solutions Provider 


The U.S. Justice Department is carrying out an investigation into the role of some of the world's largest banks in altering the price of foreign currencies, The New York Times' DealBook reports. Citing sources, the publication says the probe is expected to result in several banks pleading guilty, with prosecutors looking to file charges against at least one bank by the end of this year. Citigroup Inc., JPMorgan Chase & Co., Deutsche Bank AG, UBS AG and Barclays Plc are reportedly among about 12 banks under investigation. The probe indicates that banks have compromised the integrity of rates such as LIBOR and the "4 p.m. London fix" for currencies in order to benefit their own trades.

Meanwhile, U.S. and British regulators are in discussions with Deutsche Bank to settle before the end of 2014 investigations into the bank's alleged involvement in rate rigging, sources told The Wall Street Journal. The sources said the CFTC, the DOJ and the U.K. Financial Conduct Authority are seeking sizeable penalties from the bank and that it could be forced to pay well into the hundreds of millions of dollars to settle the case.

In more regulatory news, President Barack Obama met with several financial regulators and his senior economic advisers to discuss the ongoing implementation of the Dodd-Frank Act. Acknowledging their collaboration, particularly in the case of the Volcker Rule, Obama asked them to evaluate the effectiveness of their actions and to find ways to create rules that adjust for the size and complexity of the institutions they govern. Issues raised during the session included coordination through the FSOC to identify risks, the delineation of agencies' jurisdictions and the need for additional resources.

In other news, the FSOC may consider changes to how it evaluates non-bank financial companies for systemically important designation, Reuters reports. "The council will begin to examine possible changes in the coming months," said Treasury Secretary Jack Lew. 
Thursday, October 9, 2014            Complimentary!

 
Wednesday, October 22

                         
2014 Arkansas Community Bankers Fall Conference
 

Thursday, October 23, 2014             Free to ACB Members!