ABA Banking Journal
March 31, 2017

This ABA Banking Journal newsletter is a free, twice-monthly supplement to the ABA Banking Journal magazine intended to help you stay on top of industry and policy news. You can also stay abreast of banking news by visiting aba.com/BankingJournal, home to ABA Daily Newsbytes and other email bulletins.

Industry News
Since taking office, President Donald Trump has been swift to issue no less than six executive orders and memos (and counting) that could directly impact the regulation of the banking industry. With the president stating flatly that "we’re going to be doing a big number on Dodd-Frank" shortly after being sworn in, it may come as no surprise that major news media outlets have described these early steps as a "rollback" of Dodd-Frank. (ABA Banking Journal)
"Sheltered Harbor" allows financial institutions to securely store and quickly retrieve account information after an incident. It acts as a firewall of sorts, supplementing the defenses financial institutions already have by separating the information away from their own networks. The consumer data is stored and kept private by each institution, and is encrypted and protected from changes. Sheltered Harbor is also distributed, with no central repository of information. (ABA Banking Journal)
Billing disputes account for 17 percent of consumer complaints about credit cards, with identity theft and fraud concerns accounting for an additional 10 percent, according to the Consumer Financial Protection Bureau’s periodic summary of consumer complaints. Other credit card complaint topics include account closures, interest rate disputes and late fees. (ABA Banking Journal)
After Stan Jenks graduated from Western Illinois University, he became a teacher, a profession that the Monmouth, Ill., native was quite happy to pursue. A year later, when Security Savings Bank, also based in Monmouth, came calling with a job opportunity, he decided to give banking a chance. The year was 1976 and since then, Jenks and Security Savings Bank haven’t looked back. (ABA Banking Journal)
Data Center, Inc. (DCI)
Verint Systems
About a third of the risky car loans that are bundled into bonds are considered "deep subprime," a level that has surged since 2010 and is translating to higher delinquencies on the loans, according to Morgan Stanley. Consumers are falling behind on most subprime car loans, but deep subprime borrowers have deteriorated fastest, the analysts said. (Bloomberg)
In an increasingly digital world, an individual’s personal data can be as valuable—and as vulnerable—to potential wrongdoers as any other possession. Despite the risk-reducing impact of good cybersecurity habits and the prevalence of cyberattacks on institutions and individuals alike, a Pew Research Center survey finds that many Americans are unclear about some key cybersecurity topics, terms and concepts. (Pew Research Center)
Under piles of debris, young researchers from the College of William & Mary found about 30 boxes filled with old documents telling the story of Maggie Lena Walker, an African American whose accomplishments in the early 20th century are just beginning to be widely recognized. Walker was the first African American woman to run a bank in the United States. She spread the tools of economic independence while Jim Crow was perpetuating bondage, and she hired and trained black women at a time when even white women struggled for opportunity. (Washington Post)
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Policy News
Excessive regulation discourages investors from launching de novo banks, thus reducing capacity for economic growth and financial choices for consumers and businesses across the country, ABA Chairman-Elect Ken Burgess said in congressional testimony last week. Burgess—chairman and co-founder of FirstCapital Bank of Texas in Midland—was the only banking industry representative to speak before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. (ABA Banking Journal)
The Federal Reserve, which raised its benchmark rate this week for the second time in three months, this time to a range between 0.75 percent and 1 percent, is finally moving toward the end of its nine-year-old economic stimulus campaign, which began in the depths of the financial crisis. But Janet L. Yellen said at a news conference after the decision was announced that the Fed did not share the optimism of stock market investors and some business executives that economic growth is gaining speed. (New York Times)
Computer Services Inc
LexisNexis Risk Solutions
In an amicus brief filed in the case of PHH Mortgage v. Consumer Financial Protection Bureau earlier this month, 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. (ABA Banking Journal)
Harland Clarke
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