OCC Says: Simon, Sit
The Office of the Comptroller of the Currency has sided with the attorneys general of NH, MA & CT and says Simon Malls must make its gift cards comply with state laws limiting fees and charges on gift certificates. The three states joined in legal action against Simon, arguing that maintenance and dormancy fees attached to their gift card are illegal. Simon has asked the court to dismiss the charges, arguing that, since their gift cards are issued through VISA with the assistance of a national bank, they are exempt from state laws. National banks do not need to comply with many state laws. The OCC issued an opinion disagreeing with Simon, saying that the involvement of a national bank does not erase the fact that Simon is not a bank, therefore, their gift card is not a bank product. The courts have yet to rule.
MA Banks Win
A federal court has sided with the banking industry and ruled that certain provisions of Massachusetts law governing bank sale of insurance violate the Gramm-Leach-Bliley Act and the National Bank Act, as recently interpreted by the OCC. The Mass Bankers and several of their members challenged four sections of state law, arguing that they essentially prohibited banks in the state from selling insurance. The OCC agreed on three of the counts and preempted those sections so that national banks would not need to comply with them. The Commonwealth responded by challenging the OCC ruling in a federal court, which has now also sided with the banking industry…invalidating all four of the controversial sections.
NHBA Signs BSA Letter
The NHBA joined with its sister associations in the other 49 states to sign a joint letter to all of the federal regulatory agencies voicing our strong concern over current anti-money laundering examination practices. It appears that, nationwide, there are no clear standards to guide compliance and inconsistent application of a zero-tolerance policy. Our letter points out that we represent an industry with a very strong compliance culture, but that we need to know where the mark is before we can hit it. Expect BSA compliance to be a major point of discussion in early 2005.
Abernathy Joins ABA
Wayne Abernathy, Assistant Treasury Secretary for Financial Institutions, will join the senior staff of the ABA on February 1st. Mr. Abernathy spoke at two recent NHBA conferences, primarily on the immense challenges created for community banks by recent legislative actions like the Sarbanes-Oxley Act. Mr. Abernathy will fill the newly created position of Executive Director for Financial Institutions Policy and Regulatory Affairs.
Off & Running
NH's new Governor has been sworn in, our new Speaker of the House has completed committee assignments, and the Senate is back in pretty much the same shape (although they have combined the Banking and Insurance Committees). Public hearings began this week. Of particular interest to the banking industry is HB 35, which will be discussed in the House Commerce Committee next Tuesday. It'd require state-chartered banks to hold reserves equal to 100% of their time and savings deposits. This idea would bring lending to a halt and tank the NH economy. Our mission will be to explain to the lawmakers why they shouldn't do that.
FDIC's 2005 Agenda
FDIC Director of Supervision and Consumer Protection, Michael Zamorski, says their list of issues to consider during the coming year include consideration of new capital rules for noncomplex banks, work on outreach to make sure we understand what they expect for BSA compliance, provide additional guidance on dealing with ID theft, and continuing to promote financial literacy.
New Hampshire Bankers Association 122 North Main Street P.O. Box 2586 Concord, New Hampshire 03302-2586 For more information on above items: call (603) 224-5373, fax (603) 224-3381 or E-Mail jlittle@nhbankers.com. |
Current Issue
April 20, 2005
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April 7, 2005
March 24, 2005
February 25, 2005
February 17, 2005
February 3, 2005
January 21, 2005
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November 18, 2004 |
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