Legislative Update

Important Week Ahead in General Assembly for Banking Issues

Be sure to read this week's Legislative Update. On Monday and Tuesday next week, the House Banks and Banking Committee will hold hearings on the bill we've been telling you about that would limit the amount an acquirer of a loan or other debt obligation can recover from guarantors of the obligation under certain circumstances. GBA is opposed to the current version. Two other GBA priority bills passed the Senate last week. Click here to read our issue brief to learn why we oppose the note sale bill and get all the week's details from the State Capitol here...

Issue Update

ATM Fee Disclosure Suits Filed in Georgia

Make sure your ATM signage and fee notifications are up to date. At least four lawsuits have been filed against Georgia community banks during the past few weeks alleging lack of compliance with the physical ATM fee disclosure requirement in the Electronic Funds Transfer Act (Reg. E) that we've noted in previous GBA Bulletins (Feb. 17 & March 9). The regulation requires both a video screen notification and a prominent sign on the ATM about possible fees. The same individual is the named plaintiff each of the Georgia cases as we as cases across various other states. The plaintiff is represented in each of these law suits by the same law firm from Pennsylvania along with a local Georgia firm. GBA has encouraged Congress and the CFPB to change thse duplicate and unnecessary regulations to prevent such frivolous "gotcha" lawsuits and eliminate costs associate with compliance. Read more about the ATM disclosure issue here and see what you can do...

500-Shareholder Threshold and CU Update

The U.S. House last week passed a small-business jobs package (H.R. 3606) that includes a provision (H.R. 4088) that would raise the current 500-shareholder threshold for Securities and Exchange Commission registration to 2,000 for financial institutions. The Senate will consider the House's version of the package, rather than its own version. We're supportive of the shareholder registration provisions. However, there's a complication looming for the industry. Sen. Mark Udall (D-Colo.) has filed as a pending amendment to the package his bill (S. 509) that would raise the member business-lending cap for a handful of large credit unions from 12.25 percent to 27.5 percent of total assets. Industry support for the package will disappear if the amendment is allowed. Learn more about shareholder and Credit Union legislation here...

Interpreting the Fed's Stress Test

The Federal Reserve's annual stress test of large financial institutions drew lots of attention this week. The tests were designed to estimate the effects to banks' capital in a catastrophic economic scenario. By all accounts, the proposed scenario was dramatic – unemployment at 13 percent, stocks falling 50 percent and housing prices declining another 21 percent. The scenarios are not to be interpreted as predictions or forecasts. The tests showed a stronger overall industry than a few years ago, but estimated capital levels under the most adverse scenarios at four institutions, including SunTrust, would be lower than 5 percent. There are some important reasons to take the results with a grain of salt, though. Learn why and read how GBA weighed in about stress tests  with local media.

Fed Rates to Remain Low through 2014

The Federal Reserve this week announced it will keep the target range for the federal funds rate at 0 to 1/4 percent, and it expects the rate will remain at exceptionally low levels through late 2014. The Federal Open Market Committee cited moderate economic expansion, improving labor conditions and unemployment numbers and increased household spending and business investment in its overview statement from its meeting this month. It also noted the continued weakness in housing and the increase in gas prices as factors weighing on the economy.

Georgia's Job Outlook Bests National Rate

Georgia's second-quarter employment growth outlook is 12 percent, while the nation's is 10 percent. The second quarter should bring a stronger pace of hiring, especially for the for metro Atlanta, according to Manpower Employment Outlook Survey. From April to June this year, 20 percent of metro-Atlanta companies Manpower interviewed said they plan to hire more employees. Read more about the encouraging jobs and unemployment trends from the Manpower survey here...

Small Business Optimism Grows

Nationally, small businesses are more optimistic than they have been in four years. The February figure was its sixth consecutive monthly increase and its strongest level since December 2007. Part of the study also indicates continued soft loan demand, however. Financing remained low on the list of concerns for small-business owners. Only four percent cited financing as their top business problem, compared to 21 percent each citing taxes and unreasonable regulation. Ninety-three percent reported that all their credit needs were met or that they were not interested in borrowing. Here's a link to a helpful index and report...

Some Mortgage Settlement Funds in State Control

About $104 million of the national mortgage servicing settlement will be paid by banks to the State of Georgia. The settlement set aside such payments to go to the states to help investigate mortgage fraud as well as establish homeowner assistance programs. The money will go into the state treasury, and its ultimate appropriation will be guided by the state budget process. The Governor presents a budget to the legislature annually, and the legislature adjusts it through committees and approves a final version each year. Read more about possibilities for how the funds could be appropriated and used...

First CPP Investment Auctions Announced

The U.S. Department of the Treasury has announced its first auction of preferred stock Capital Purchase Program investments. Treasury intends to conduct public auctions to sell its preferred stock positions in six banks (none are in Georgia). Treasury expects to conduct the auctions, which will be registered public offerings, on or about March 26, 2012. These offerings will be executed using a modified Dutch auction methodology that establishes a market price by allowing investors to submit bids at specified increments similar to the process Treasury has used to auction warrants. More details about CPP investments here......

Attention Lenders: 14 New Online Courses Available

We have 14 new lending-focused courses, products of The Risk Management Association, available in our course catalog. We know these are areas of training important to members. They begin with two high-level curricula: The Lending Decision Process and The Commercial Real Estate Lending Decision Process. Each of the curricula has six components that can be purchased separately. These are all self-paced courses. All you need is a computer, printer and Internet access. Learn more about these valuable courses both starting soon...

Annual Meeting Brochures on the Way

Brochures detailing GBA's 2012 Annual Meeting, scheduled for June 10-13 at The Grove Park Inn in Asheville, NC, will be mailed March 19. "We have an excellent program packed with timely information, and it's all at a great location," said GBA Chairman Rick Whaley, President & CEO of The Citizens Bank of Americus. Attendees will hear nationally known speakers discussing many of the most pressing issues facing bankers today. Also scheduled are many great breakout sessions and networking opportunities. Learn more about the Annual Meeting here...

Key GBA Event Reminders

Marketing and Communications Conference March 22-23

Get Business-to-Business Marketing Strategies from an expert panel. Click here to see the full agenda and register

GBA HR Professionals Inst. March 22-23

Legal Update workshop with Steve Greene and Marian Exall and more. See the full agenda and register online here

FDIC's Dujenski, DBF's Braswell, Fed's Stanley on Agenda
Southeastern Community Bank Symposium March 28

Hear About Bank Director Roles and Responsibilities

Click here for more information and to register

Legal Issues for New-Account Documentation and Compliance April 10

This seminar will teach new account personnel proper account-opening procedures and current compliance requirements.

Click here for more information and to register

Newsmakers

Read about all the Georgia bankers making news this week...

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Send Us Your News

Please remember to include the Georgia Bankers Association on the list of recipients for announcements about promotions, new employees and special recognition your bank has received. We want to share your news with your colleagues across the state. Please forward your announcements and photos to GBA's David Oliver and Bogan Brannen.