As the largest banking trade association in California, CBA is the voice of the industry when it comes to legislative, regulatory and legal advocacy. Our efforts strive to ensure a free and competitive market among financial service providers, a level playing field with our competitors, and promote financial education that empowers consumers to exercise real choice.
CBA’s state advocacy is multi-faceted. We are the only banking trade association in California with a full-time state legislative advocacy team dedicated to protecting our members’ interests. We are in the capitol every day talking with legislators, key staff, policy committee consultants, regulators and executives in the governor’s office. We submit comment letters and deliver testimony on measures that our members have identified as priorities. We build coalitions with other entities that share our view.
California joins 40 other states, the District of Columbia, and Puerto Rico by enacting CBA-sponsored AB 1858, which requires the use of a person’s name as it appears on his or her driver’s license or DMV-issued personal identification card on UCC financing statements. Under existing practices, various versions of a debtor’s name could be listed on different financing statements, making it difficult for creditors to ascertain the existence or priority of statements a debtor or the subject property.
Governor Jerry Brown signed into law AB 1522, which requires all California employers to provide paid sick days to any employee who works 30 hours or more in a year, at a rate of at least one hour for every 30 hours worked. Sick leave taken must be paid at the employee’s normal rate earned during regular work hours. See CBA’s Regulatory Compliance Bulletin for more information.
Welcome to the CBA Federal Government Relations section, where you’ll find the latest information on federal banking legislation. In addition, you can find information about federal legislative alerts. Much of the information on this page is available to members only.
As Congress prepares to consider the Financial Choice Act, the CBA is strongly urging all bankers to contact and encourage their members of Congress to support efforts to repeal the Durbin Amendment and eliminate the government-imposed price controls on debit card interchange.
To help bankers craft their messages to lawmakers, the American Bankers Association has created a customizable draft message and a fact sheet about the negative effects of the Durbin Amendment on both banks and consumers.
The Financial Accounting Standards Board has just issued its new loan loss accounting framework, also known as the current expected credit loss (CECL) model. The new standard is expected to increase the allowance for loan and lease losses throughout the industry. CECL will require significant operational changes at all banks, including collecting and analyzing the type of data that supports the modeling of the life-of-loan loss expectation, as well as forecasting and quantifying losses in the future.
This past November the National Credit Union Administration (NCUA) put out a proposal for comment regarding field of membership. This proposal, by NCUA’s own account, is the most sweeping change on membership limitations in the agency’s 45-year history and goes to the basic ability of credit unions to get new customers in the door.
New laws and regulations are constantly being proposed for the banking industry, both in Washington, D.C. and Sacramento. As well-intended as some of these proposals are, many of them contain language that conflicts with current law or conflicts with current regulatory requirements. Decision-makers need to better understand how their proposals translate into the real-world workings of California’s financial institutions, which is where our legal and regulatory advocacy unit is intrinsically valuable.
The California Supreme Court invalidated one of its own opinions, the 2007 Gentry v. Superior Court (Circuit City) decision, which held that class action waivers in employment agreements are unconscionable and thus unenforceable. The continued viability of Gentry has been in doubt since the U. S. Supreme Court’s 2011 decision in AT&T Mobility LLC v. Concepcion, which held that arbitrating on a class-wide basis frustrates the fundamental purposes of the Federal Arbitration Act. In the current case, Iskanian v.
The Financial Accounting Standards Board and the International Accounting Standards Board are jointly proposing new standards for accounting of ALLL and Other Than Temporary Impairment of debt securities (OTTI) called the Current Expected Credit Loss model (“CECL”). The proposal is intended to address the overstatement of assets caused by delayed recognition of credit losses under existing standards, which recognize a credit loss that is probable or has already incurred.
Last week the federal district court judge in San Francisco during oral argument indicated he is likely to dismiss the case against the City of Richmond, which has already approved a plan to use its eminent domain powers to take underwater mortgages to reduce loan principal and then resell the mortgages to other investors. While Judge Charles Breyer acknowledged that the plan raises serious legal issues, the law suit by certain trustees of mortgage backed securities was not “ripe” for consideration because the city council of Richmond has yet to adopt a resolution of necessity.