July 13, 2023

Bullard Resigns From St. Louis Federal Reserve Bank

James Bullard, president and CEO of the Federal Reserve Bank of St. Louis, is leaving the bank, effective Aug. 14, to become the inaugural dean of the Mitchell E. Daniels Jr. School of Business at Purdue University in Indiana.

Bullard’s career with the Federal Reserve Bank of St. Louis spans 33 years, including serving as president for the last 15 years. He stepped down from his position today but will remain available in an advisory capacity to help ensure a smooth transition. Kathleen O’Neill Paese, first vice president and chief operating officer for the bank, was named interim president and CEO.

Lawmakers, Groups, State AGs File Briefs Challenging CFPB’s Funding Structure

Three members of Missouri’s congressional delegation — Sen. Eric Schmitt and Reps. Blaine Luetkemeyer and Ann Wagner — are part of a bicameral group of 132 lawmakers who filed an amicus brief to the Supreme Court concerning the funding structure for the Consumer Financial Protection Bureau.

The lawmakers’ brief urges the court to uphold the decision from the 5th U.S. Circuit Court of Appeals that the CFPB’s funding structure is unconstitutional and to make the agency’s funding subject to congressional appropriations.

“We thank Sen. Schmitt, Congressman Luetkemeyer and Congresswoman Wagner for their support to make CFPB funding like other federal agencies,” said MBA President and CEO Jackson Hataway. “The CFPB should be held accountable to the same funding mechanisms and congressional oversight as other federal agencies.”

Several briefs have been filed this week in Consumer Financial Protection Bureau v. Community Financial Services Association of America. The American Bankers Association joined the U.S. Chamber of Commerce and other associations in filing an amicus brief to uphold the 5th Circuit’s ruling finding the funding structure illegal. Missouri Attorney General Andrew Bailey joined an amicus brief with 27 other state attorneys general in support of the 5th Circuit’s decision.

MBA: Tell Hawley, Schmitt to Oppose Government Mandate in Credit Card Market

MBA is urging bankers to contact Sens. Josh Hawley and Eric Schmitt to oppose legislation that would impose unnecessary routing restrictions and cap interchange fees on credit cards.

The Credit Card Competition Act would dramatically reduce interchange income from credit card transactions while increasing security and fraud risk. Reintroduced in June, the bill mirrors legislation from the last congressional session that failed to move forward thanks to the advocacy efforts of bankers and other stakeholders who recognized the potential harm to consumers.

If the new bill is passed by Congress, it would force card-issuing financial institutions to choose from routing networks selected by the Federal Reserve rather than choosing networks that may offer the best customer experience and security. It also would threaten consumer data security and limit popular credit card rewards programs that consumers enjoy.

“Our banks and their customers were successful in helping us to prevent the Credit Card Competition Act from becoming law last year,” said MBA President and CEO Jackson Hataway. “We need that support again if we want to protect consumers from fraud and keep credit card rewards programs.”

Send a message to Sens. Hawley and Schmitt now urging them to oppose the Credit Card Competition Act.

Bankers: Share Concerns About Small-Business Lending Rule With Customers

MBA encourages bankers to share their concerns about the Consumer Financial Protection Bureau’s rule implementing Section 1071 of the Dodd-Frank Act with their small-business customers. The finalized rule requires lenders to collect demographic information and certain data on small businesses’ applications for credit and report it to the federal government. Bankers and their customers should contact their members of Congress to urge them to address the problems with the rule before it takes effect.

The finalized rule will require banks and other lenders to collect and report 81 data fields on each application or loan by businesses that made $5 million or less in gross annual revenue in the prior year. In addition to creating a compliance burden for banks, the rule would likely restrict access to credit for small businesses and expose their personal and financial information to public scrutiny, raising serious privacy concerns.

MBA urges both bankers and their customers to voice their concerns about the rule with federal lawmakers.

Parson Signs Several Bills Supported by MBA

Gov. Mike Parson signed 31 pieces of legislation last Thursday, including several provisions supported by MBA.

• Senate Bill 186 creates a felony penalty provision for destroying an ATM or attaching a skimming device to an ATM.
• Senate Bill 63/Senate Bill 186 authorizes banks to access marijuana facility licensee information directly from the state agencies.
• House Bill 202/Senate Bill 138 authorizes an income tax deduction for land owners who sell or lease to or participate in a crop-share arrangement with a beginning farmer.
• House Bill 417 provides grants to employers who “upskill” employees or potential employees.
• Senate Bill 20 reauthorizes an income tax deduction for selling employer securities to a qualified employee stock ownership plan.

“This was an incredibly productive session for the banking and business communities, and we thank the governor for signing these important bills into law,” said MBA Senior Vice President David Kent. “We also want to thank our bill sponsors for their efforts and hard work ushering these bills through the legislative process.”

Bill sponsors are as follows.

• Senate Bill 186 — Sen. Justin Brown, R-Rolla, and Reps. Rick Francis, R-Perryville, and Alex Riley, R-Springfield
• Senate Bill 63 — Sen. Steve Roberts, D-St. Louis, and Rep. Chad Perkins, R-Bowling Green
• House Bill 202 — Reps. Francis and Dane Diehl, R-Butler, and Sen. Jason Bean, R-Holcomb
• Senate Bill 138 — Sen. Karla Eslinger, R-Wasola, and Rep. Hannah Kelly, R-Mountain Grove
• House Bill 417 — Rep. Mike Henderson, R-Bonne Terre, and Sen. Eslinger
• Senate Bill 20 — Sen. Mike Bernskoetter, R-Jefferson City, and Rep. Barry Hovis, R-Whitewater

The governor also signed legislation that will require auto dealers to collect and remit sales tax on motor vehicles once the Missouri Department of Revenue’s computer system has been upgraded (Senate Bill 398), NAIC model policy on lender-placed insurance for residential properties (Senate Bill 101) the Missouri Earned Wage Access Services Registration Act (Senate Bill 103) and the “Show-Me My Retirement Savings Plan” (Senate Bill 20).

Bills signed by the governor will take effect Aug. 28.

In early June, Parson signed an MBA priority bill that clarifies Missouri’s credit card lending law and modernizes Missouri Division of Finance statutes.

MBA Launches Free Service on Vendor Referrals
Banks could win $500 in MBA education credits for adding referrals

MBA had launched a new free service — vendorpro — for its member banks that provides a list of vendors used by other member banks. Created by MBA, vendorpro is a website that creates a pipeline for peer-to-peer vendor referrals online.

“The vendorpro site allows MBA members to add referrals and identify contacts from other banks who work with a vendor,” said MBA Vice President Rachael Preston. “The process is fast and easy, and it’s exclusive to MBA member banks.”

At vendorpro, bankers can look for vendors by name, category or keyword. Adding a referral takes seconds. Bankers list vendors that they have used (both current and past) and what the vendor did at the bank. No comments are needed about a vendor.

“The site creates an easy way for fellow bankers to connect and share insights about their vendor experiences,” Preston said.

To celebrate vendorpro’s launch, MBA is giving away three $500 education credits. For banks entering 10 referrals on vendorpro, they will be entered into a drawing to win one of three $500 education credits from MBA. The first drawing will be held Aug. 31.

“For vendorpro to be successful, it must have referrals from bankers,” Preston said. “I encourage bankers to enter their referrals for a chance to win $500 to attend MBA education programs.”

MBA VEBA Health Minute – Healthy Vision Month

MBA VEBA has launched a new resource for both VEBA participants and MBA members. VEBA Health Minute is a monthly newsletter that highlights various topics affecting an individual’s overall health. The first issue focuses on eye health. VEBA staff encourages sharing this information with your employees.