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Current Events - 12/16/2002

Financial privacy: Speier threatens to compel testimony from industry

Last week, Sen. Jackie Speier used her Senate Insurance Committee to conduct an informational hearing on the subject of financial privacy. According to Sen. Speier, her office sent questionnaires concerning institutional financial privacy policies to unidentified financial institutions prior to the hearing. In addition, she invited a number of financial institutions to send witnesses to the informational hearing to testify on the subject. At the hearing, Speier noted that the written responses to her questionnaire were not adequate and that none of the FDIC-then announced that she would be conducting a second informational hearing in January 2003 and her office would be seeking responses to her requests for information and testimony at that time. If she determined that the responses were inadequate, she would consider seeking assistance from Senate Rules committee to compel responses and testimony. CBA believes that these statements indicate a willingness by Sen. Speier to pursue legislative subpoenas against targeted financial institutions to whom written inquiries or invitations to testify are sent. OCC has issued an advisory opinion on the issue and OTS reminded nationally chartered savings institutions to contact OCC to determine whether or not a response to the requests for information is necessary. CBA Legal Affairs Committee is reviewing the issue and will share any forthcoming information immediately, however, banks should consult with counsel (in-house and, where appropriate, outside counsel) to determine an appropriate course of action.

Proposed credit union expansion

Please note that included in this issue of Monday Courier, there is a memo from Jane Netherton, Chair of CBA's Federal Government Relations Committee, asking CBA members to voice their concerns about the proposed expansion of credit union fields of membership. The memo is followed by information forwarded by the American Bankers Association. Please read it carefully and respond accordingly.

Why the media passed on covering CBA's ID theft prevention program

Some of CBA's members have asked how much coverage the association received for the launch of its identity theft prevention campaign in early November. Though the press release was picked up extensively online, CBA is unaware of any coverage in broadcast or print media outlets. This lack of media coverage is a result of so few banks using the brochure in this initial launch phase.

Reporters are only interested in covering a program like this one if it has been fully embraced by the industry. During a conversation with the Redding Record-Searchlight, a small paper always hungry for stories, an editor actually laughed at the low number of banks participating in the program. If we want media coverage for the program, we have to have an overwhelming number of banks using the brochure. CBA is adding new banks to the ID theft brochure program every week and if your bank is not already using the brochure, please reconsider and place an order. CBA will also help secure local media coverage of your participation in the program once the brochures are "in play" in your branches. A copy of the brochure is available for your review at www.calbankers.com (and has been sent in past issues of Monday Courier), as is the order form. If you have more questions, please contact Anissa Yates at ayates@calbankers.com (916/441-7377 ext. 208) or Laura Thornton at lthornton@calbankers.com (916/441-7377 ext. 213).

Media Training for Senior Leadership

CBA is offering one-on-one media training to 10 executives on a first-come, first-served basis. Media training prepares executives to respond to effectively respond to media inquiries, which helps strengthen the industry's presence with the media on important issues. Anissa Yates, CBA's VP of Communications, will travel to train executives in their offices in the month of February. Individual training sessions will take approximately three hours, groups (limited to four, please) will take approximately six hours. All participants will be expected to complete about an hour of preparatory work prior to media training. To schedule your media training or for more details, please contact Anissa Yates at ayates@calbankers.com or 916/441-7377 ext. 208.