Happy Anniversary, GLBA
Where does the time go? The Gramm-Leach-Bliley Financial Modernization Act (GLBA) was signed into law five years ago last Friday following decades of Congressional maneuvering. Back then, in late 1999, many folks in the financial services industry couldn't decide which event would be more significant, GLBA or Y2K. As it turns out, it seems like it was Y2K…and that was a non-event. American Banker interviewed several industry leaders to mark the five year anniversary of the Act. Most spoke of surprise that so little has come of it. Said recently retired Comptroller Jerry Hawke, "It turned out to be far less significant than people expected", and Federal Reserve Bank Governor Mark Olson said he's been "disappointed to an extent by the lack of new product requests that have come to the Fed for approval." Well, maybe the reason people have stopped asking the Fed to apply GLBA is because when it's been tried (think real estate powers) Congress has tied them up... which is exactly the problem GLBA was designed to avoid. There has been one clear result of GLBA: privacy policies and disclosures. GLBA supporters note that major unforeseen events, (economic downturn, corporate scandals and 9/11), refocused many banks that might otherwise have more vigorously explored opportunities created by GLBA. While many policy makers thought the Act would have caused greater change by now, none called it a failure. They say GLBA prepared the banking industry for the future by removing statutory barriers to innovation…when and if it comes.
Williams Warns on New HMDA Data
Acting Comptroller of the Currency Julie Williams says bankers that need to track and report HMDA data should be reviewing their mortgage practices now. Recent legislation requires institutions that lend in HMDA regions to "report pricing information for higher-priced loans by borrower characteristics - race, ethnicity, income level and genders." Speaking to a recent meeting of the Consumer Bankers of America, Williams noted that data collected under the new requirement will become public for the first time in August of 2005. She recommended that HMDA reporters take an early, critical look at their data to see if it warns of any problems, real or perceived, that might be addressed prior to public release of the information.
FDIC Premiums Hold
The FDIC Board voted Monday to maintain the current premium rate assessed for deposit insurance. They are required to set rates that maintain 1.25% reserve ratios in the BIF and SAIF insurance funds. The BIF ratio increased from 1.31% to 1.33% in the third quarter and the SAIF held steady at 1.34%. Most banks are highly rated, so they do not pay premiums when the funds exceed the statutory minimum reserve ratios.
Simon says...
...state law doesn't apply to its gift cards. The NH, MA & CT Attorneys General beg to differ and filed lawsuits Monday against Simon Property Group for violating laws prohibiting certain fees on "gift certificates" of $100 or less. Simon filed pre-emptive suits on Friday saying their "gift cards" are co-branded VISA cards issued through federally regulated Bank of America. Simon owns the Mall of NH and the Rockingham Park and Pheasant Lane Malls.
Rob a Bank, Win a Trip
The U.S. Attorney's Office says a 31 year old New York man who was one of three convicted of trying to rob a Fleet Bank branch in Merrimack by cutting through the roof a year ago has been sentenced. Bujar Idrizi will spend 14 months in prison and pay $4,441 in restitution. Following jail, Idrizi will have three years of supervised release, if he's lucky. He was born in the Kosovo region of Serbia, and authorities say he'll likely face deportation after he serves his time behind bars.
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. |
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