IBAT News

Yes, it's that time again. The month's first Friday brings a fresh, new round of employment numbers from the Bureau of Labor Statistics, and, this time, the surprise is to the upside. If one sets the bar low enough, disappointment can be avoided. With the markets expecting an unchanged Unemployment Rate and a 140k rise in Non-Farm Payrolls, imagine the warm, fuzzy feelings generated by the reported 165k rise in NFP along with a .1% decline in the Unemployment Rate to 7.5%. And for those still disconcerted by last month's meager 88k jobs gain... Read more in the Baker Market Update.

Early last week IBAT Associate Counsel Shannon Phillips along with IBAT President and CEO Chris Williston met with Senior staff of the Consumer Financial Protection Bureau (CFPB) in Washington, D.C. urging the CFPB to expand its definition of rural areas for exemption from onerous new mortgage rules. Currently, the CFPB definition only excludes 158 or Texas's 254 counties.

IBAT has long advocated that all mortgage loans kept in portfolio by community banks be excluded.  The CFPB has chosen to adopt a rural exclusion model instead and final rules take effect on June 1, 2013.

Phillips reviewed the results of IBAT's analysis of why the CFPB rural definition was overly restrictive and encouraged the CFPB to carefully consider IBAT's findings.  CFPB made it clear that while no changes are contemplated before the June 1 effective date, bureau economists are committed to reviewing the definition in the future.  A copy of IBAT's analysis and recommendations can be found here.

"IBAT will continue to press forward for modification of the rules to exempt more banks domiciled in rural counties," said IBAT President and CEO Chris Williston. "We made our case that the consequences of the current rule would force many IBAT members to abandon their mortgage programs and disenfranchise many borrowers who otherwise do not qualify for traditional mortgage loan financing."

Board education and training are essential "best practices" in the new era of community banking.  Regulatory expectations and wise management both demand a skill set that many directors lack. 

The SW Graduate School of Banking Foundation (SWGSB) and the Independent Bankers Association of Texas (IBAT) have recognized this imperative and have formed the Community Bank Director Certification Program (CBDC) for director certification. A comprehensive curriculum has been created to address all areas of bank directorship - from duties and responsibilities to the fundamentals of bank finance. The first annual certification program will be held this fall at Southern Methodist University's Cox School of Business on November 1-2, 2013.

Who should Attend:
The Community Bank Director Certification is designed for new directors, including directors new to banking, and experienced directors looking to be certified on core director responsibilities and liabilities.

Registration will open soon.

It was an impressive showing.  That's how many members of the Texas Congressional delegation described the number of Texas community banker constituents and associates that packed their Congressional offices to lobby for comprehensive regulatory relief and a permanent legislative fix to end taxpayer subsidies of banks deemed too big to fail.  More than 100 Texans accompanied IBAT staff to our nation's Capitol last week as part of IBAT's and ICBA's Washington Policy Summit. Pictures capturing the event can be found here.

The group specifically lobbied some twelve regulatory relief provisions that should be enacted in the 113th Congress and encouraged members to support any Congressional efforts to end the unfair subsidies enjoyed by the so-called. "systemically important institutions." Senators Brown of Ohio and Vitter of Louisiana have introduced legislation (S.798) that would dramatically increase the capital requirements of the nation's largest banks. The legislation would also provide much-needed regulatory relief for community banks.

Following visits to more than 30 Texas offices, the group was briefed by several members of the Congressional delegation including Texas Representatives Sessions, Neugebauer, Hensarling and Cuellar.  Texas senior Senator John Cornyn and House Financial Services Subcommittee Chairman Shelley Capito (R, West Virginia) also briefed the attendees.

"It is time we quit talking about helping community banks out of the current regulatory quagmire and enact legislation that will do just that," said IBAT Executive Vice President Steve Scurlock. "IBAT members are growing weary paying for the sins of the big too big to fail banks."

Financial Services Committee Chairman Hensarling advised the group that his committee was determined to introduce and enact bipartisan regulatory relief legislation this year. "Discussions are already underway with House democrats to do just that," Hensarling concluded.

IBAT wishes to thank all those that made the trip at their own expense to work on this important agenda.

Risk is something that investors have always had to live with; credit risk, interest rate risk, exchange risk, event risk, lots o' risk. This week we learned about a new kind of risk: Twitter risk. Tuesday's fraudulent Associated Press tweet sent equity prices tumbling and bond prices soaring. Fortunately, the "anti-social" media hoax was short lived. As if there wasn't enough to worry about! Like this morning's initial Q1 GDP estimate of 2.5% which proved a disappointment for those experts expecting 3.0%. For those experts expecting 2%, the number was great. Apparently, there were more disappointed experts than not, as rising bond prices... Read more in the Baker Market Update.

HB 3068 by Menendez is on the Texas House floor TODAY.  Prohibits merchant surcharges on debit cards. Important for community banks and consumers. 

If you haven't called your Rep, please do so NOW. Retailers are opposed. A conservative group - TPPA - came out against last night.  Considered it government intrusion.  

All hands on deck!

The debit card surcharge prohibition bill, HB 3068 (Jose Menendez), is scheduled for floor action today. Please take a moment to call and/or e-mail your member of the Texas House of Representatives - right now - and let them know that this is an extremely important issue for your bank, that you strongly support this bill and you urge their support.

The various retailer/merchant interests are opposed, and will be attempting to defeat this bill. We need your involvement in this process to succeed! 

Here is the message -

HB 3068 is very important to community banking, my bank and to me. Please vote for HB 3068!

Talking points for the bill are available to download here.  Please feel free to forward this link or the downloaded document to any office requesting more information on the bill.

Again, you may look up and access your State Representative's phone number here.

The State of Texas has been deeply affected by the injuries and loss of life that resulted from the recent explosion in the City of West.  It seems fitting that flags should be flown at half-staff on the day of the memorial service as a mark of respect for all those who perished, including the brave souls who gave their lives while protecting their neighbors. 

Therefore, pursuant to Texas Government Code Chapter 3100 and acting in my capacity as the Governor of the State of Texas, I hereby direct the lowering of State of Texas flags to half-staff on Thursday, April 25, 2013.  Flags should return to full-staff on the next day, Friday, April 26, 2013. 

Please notify personnel within your agency and other state agency and university leaders of this directive.  Flags should be flown at half-staff for the same length of time at all State of Texas offices and facilities in other states and abroad.  Individuals, businesses, municipalities, counties and other political subdivisions are encouraged to fly their flags at half-staff for the same length of time as a sign of respect. 

Anita and I send our deepest condolences and prayers to the families and support personnel touched by this terrible event. 

Respectfully,

RICK PERRY
Governor