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Friday, December 2, 2016

Hensarling Elected to Third Term as Financial Services Committee Chairman

Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement today after he was elected to a third term as chairman of the committee for the upcoming 115th Congress:
“I am humbled by the support and trust of my colleagues to continue my service as chairman of the Financial Services Committee. In the coming Congress, we will continue our important work of helping to grow the economy for all Americans, not just those at the top. We will focus on ending taxpayer-funded bailouts and too big to fail. We will work to hold both Wall Street and Washington accountable, because consumers must be vigorously protected from fraud as well as the loss of their economic liberty. As chairman, I look forward to working with the incoming Trump Administration to advance bold and ambitious solutions that will help make America better, stronger and more prosperous.”

Thursday, December 1, 2016

BOLI and Nonqualified Benefits in a Change in Control

Banks establish and maintain various forms of nonqualified plans to attract, retain and reward key employees. What is the impact of these plans and considerations upon a change in control? Register for a webinar to discuss these issues to be held December 6 at 2:00 p.m. EST.
This session will provide you with a framework to use in evaluating your BOLI and nonqualified benefit plans from a change-in-control perspective. Speakers from ABA endorsed partner Equias Alliance - and an advisory panel including John Tanselle, an attorney with SmithAmundsen, and Harold Hanley, an investment banker with KBW - will present and discuss the following:
  • Common non-qualified plan agreement provisions
  • Balancing shareholder vs. executive needs and plans
  • Tax and accounting issues, compliance, IRC 409A, IRC 280G, vesting considerations upon a change in control
  • Post-acquisition alternatives for nonqualified plans (retain or terminate or alternatives)
  • BOLI acquisition due diligence and carrier issues
  • BOLI accounting and tax issues
  • Evaluation of a target bank’s programs
Register now.

Securities offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC. Equias Alliance LLC is independent of ProEquities, Inc.

Wednesday, November 30, 2016

CFPB Bulletin Outlines Incentive Compensation Expectations

The Consumer Financial Protection Bureau yesterday issued a bulletin outlining expectations for incentive compensation programs. The bulletin compiles guidance previously issued by the bureau in other contexts and highlights examples from the agency’s supervisory and enforcement experience. While the bureau acknowledged that properly managed incentive programs can benefit both companies and customers, and that the types of incentive programs used by banks vary widely, it cautioned financial institutions that inadequate oversight or setting unrealistic goals could lead to consumer harm.

To ensure consumer protection, the bureau reiterated its expectation that banks using incentive programs have proper compliance management systems in place to monitor and quickly respond to any potential violations of consumer protection laws. While the CFPB does not require any particular compliance management system, it recommended that a CMS be appropriately tailored to reflect the risk, nature and significance of the institution’s incentive programs.

Read the bulletin.

Monday, November 28, 2016

State Regulators Seek To Step Up Enforcement

By: McIntyre & Lemon, PLLC

Law360 reports that state attorneys general and financial regulators where President-elect Trump did not receive majority support are expected to step up their policing of state financial markets.

State officials are doing this in response to an expectation that a Trump administration may dial back on enforcement of financial regulations.

State attorneys general and financial regulators from so-called blue states like New York, California and Massachusetts have long been aggressive in enforcing state consumer financial protection laws and federal statutes where they have authority. But while regulators and financial regulators in those states in many ways had the support of their federal counterparts during the Obama years, it is possible they may run into fights with President-elect Donald Trump’s team.

Trump has stated his disdain for the 2010 Dodd-Frank Act, President Barack Obama’s landmark financial reform law, calling it a “disaster” on several occasions during the campaign.

It is widely believed that Republicans in Congress who share Trump’s view will work with him to defang the law and the regulators that enforce it — including the CFPB.

Several federal laws, including the Truth In Lending Act and the Fair Credit Reporting Act, specifically give state attorneys general enforcement authority. They also have the ability to enforce state consumer protection laws and go after unfair, deceptive acts and practices.

With the CFPB likely to be dialed back, state attorneys general are expected to increase their enforcement efforts.

Wednesday, November 23, 2016

Six Questions Every CEO Should Ask About Data Security

Data breaches are costing companies an average of $4 million per attack which has resulted in companies making huge investments and taking precautions to prevent and prepare for cyber attacks. What questions should CEO's be asking themselves to increase their understanding of their company’s potential cyber vulnerabilities, defense strategies, and response procedures in the event of a breach? For CEOs, knowing what questions to ask is vital in protecting a company’s interests and ensuring that a robust cybersecurity strategy is in place.
  • Which type of cyber threat is my company most vulnerable to?
    • Ransomware
    • Spear-phishing
    • Service attacks
  • What steps are we taking to prevent data breaches?
  • How are we monitoring for threats?
  • Is our sensitive data encrypted?
  • How much would a cyberattack cost our company?
  • How strong is our cyber insurance?