CBA Publications >> Members' Only Publications >> Current Events

Current Events - 06/03/2002

Industry Brief

• The Credit Union National Association has hired Leon Peace Jr. - formerly the senior counsel of tax legislation with ABA - as its new manager of legislative affairs.
  
  

• Five financial services trade associations -- including the American Bankers Association -- and several credit card issuers have filed a lawsuit against California Attorney General Bill Lockyer to block a state law that would require credit card issuers to "warn" credit card holders of the "dangers" of making only minimum payments. The suit seeks, among other relief, temporary injunction which, if granted, would delay the July 1 effective date of the law pending the final court outcome.
  
  

• The Bank of Montreal is aggressively looking for viable business opportunities in the U.S., including California. Bank of Montreal bought Harris Bank in Chicago in the mid-80s.

Local privacy legislation in San Francisco

At this week's Board of Supervisors meeting, Supervisor Aaron Peskin announced he is asking the City Attorney to draft legislation modeled after Senator Speier's "privacy" legislation, SB 773. The proposed ordinance would apply only to San Francisco businesses.

Peskin is taking this action because "special interests" have stalled SB 773 in Sacramento and action is needed locally to prevent companies from sharing financial information with third parties without consumer consent. Peskin claims that local action is not preempted by either state or federal law.

The proposed ordinance could be considered at the committee level by mid July. If anyone had any doubts about the need for federal preemption in the area of privacy, this should clear them up.

CBO study of FDIC reform

The long-awaited CBO study is out and concludes that the ceiling increases contained in the House passed bill will: (1) not raise significant new deposits; (2) do smaller institutions little good; (3) add several billion in insurance premiums which the industry would have to pay, and; (4) add considerably to the cost of FDIC payouts. For those who would like to read it (it's not very long), it's at the top of the CBO home page at http://www.cbo.gov/.

Update on CBA's Grassroots Program

In an effort to bring the banking industry's messages and viewpoints to the attention of elected officials, CBA has re-energized its Grassroots Program. The first step in developing meaningful relationships with elected officials is connecting with them on a regular basis in their district offices.

The following meetings have been scheduled between CBA members and their elected officials. If you would like more information on these meetings, or would like to participate in any of the meetings, please contact Mary Maybie at (916) 441-7377, ext. 207. If you are not available, please consider sending an officer from your institution.

* Rescheduled May 24, 2002 meeting date due to session

Pitney Bowes Equipment for Lease

As a result of the merger with the Western League of Savings Institutions, CBA has taken over the lease of Pitney Bowes equipment for which we have no current need. The equipment consists of:

• Paragon II Mail Processor;

• Series 5 Tabletop Inserting System;

• FD40 Folding Machine;

• SmartMailer Software for AddressRight Systems; and

• W700 Series Addressing System.

The lease cost is $5,200 per month and the lease expires on July 31, 2004. CBA is actively looking for a company to assume the lease and needs your help. If your bank is interested in any of this equipment or if you know of any organization that may be interested, please contact Elinor Heller in our San Francisco office at (415) 284-6999, ext.231 or by e-mail at eheller@calbankers.com. For more detailed information about the equipment, please contact Elinor Heller or log on to the Pitney Bowes Web site www.pb.com.