Daily News

August 6, 2012

California Issues

Court grants CBA’s request to publish favorable arbitration decision

The California courts traditionally disfavor arbitration agreements, particularly in consumer contracts. They have often interpreted state laws, such as the Consumer Legal Remedies Act (CLRA), as prohibiting the enforcement of arbitration agreements because they include waivers of certain courses of action such as joining class actions or resolving disputes through jury trials.

Even after the U.S. Supreme Court issued its decision in AT&T Mobility v. Concepcion in 2011 reaffirming that the Federal Arbitration Act preempts state based authorities that invalidate arbitration agreements, several courts in California have ignored the Supreme Court and continued to invalidate arbitration agreements.

One court of appeal bucked the trend in Caron v. Mercedes Benz Financial Services USA LLC, which held that the CLRA cannot be interpreted in such a way as to invalidate an arbitration agreement (here, it was in an automobile installment sales contract.) The decision disagrees with other recent California decisions that are unfavorable to arbitration, and thus helps lay the groundwork to improve the body of case law supporting the enforceability of this efficient means of resolving disputes. Unfortunately, the Caron court did not certify the decision for publication, which means that it cannot be cited as precedent in future litigation.

CBA joined a number of other organizations requesting the court to publish its decision, and our request was granted. Will Stern with the law firm of Morrison & Foerster and a member of CBA’s Legal Affairs Committee prepared the letter request.

CBA Conducts Editorial Board Meeting with the San Francisco Chronicle

Last week, CBA conducted an editorial board meeting with the San Francisco Chronicle. The meeting, led by CBA President and CEO Rod Brown and with participation from local CBA member bank leadership, was an excellent opportunity for California’s industry leaders to interface with the editorial board staff (those who determine the direction of the newspaper’s opinion page) and discuss issues of concern to the industry and consumers, and communicate the positive role their bank plays in the local community.

The meeting with the Chronicle covered a wide range of topics including the recent enactment of two bills contained in the California Attorney General’s Homeowner Bill of Rights, small business lending opportunities and the overall economic health of California. Four members of the Chronicle’s editorial board were present, including editorial page editor, John Diaz, as well as business columnist Andrew Ross. CBA would like to acknowledge and thank the following bankers who joined us for this meeting: Steve Buster, Mechanics Bank; Kim Kaselionis, Circle Bank and Andrew Mastorakis from Fremont Bank.

This year, CBA has also conducted editorial board meetings with the Sacramento Bee, Los Angeles Times and Orange County Register.








Membership Issues

CBA Banker Benefits: New Plans for 2013

Last year, CBA launched a partnership with the Standard Insurance Company to offer members group life, accidental death and dismemberment, short-term disability and long-term disability insurance products through CBA Banker Benefits. This year, we have added dental and vision insurance plans to our product offering. Open enrollment will be available in the coming weeks, and CBA members are encouraged to take a look at this robust product offering. And while all of the insurance plans are competitively priced, to make the group dental insurance product offering even more attractive, banks that enroll for 2013 will receive an additional discount on the insurance plan, made possible by the CBA Group Insurance Trust.

Additionally this year, the CBA is affording your bank’s insurance broker the opportunity to participate in the offering of these plans. For more information please review the Banker Benefits Plan Selection Guide, or call Banker Benefits directly at 916/441-7377.

Community Bankers Credit Workshop

Join us for a day with the FDIC to hear about credit risk management, and have the unique opportunity to ask the examiners questions, and walk through case studies and table top exercises where you will rate the asset quality of a bank. FDIC regional directors, field supervisors, examiners and specialists will lead the workshops.

We will also discuss hot topics and best practices in the credit risk arena. Examination staff will share information on a variety of topics, including troubled debt restructuring (TDR), allowance for loans and leases losses (ALLL) and asset quality. Don’t miss this opportunity to dialogue directly with FDIC regional directors, field supervisors, examiners and specialists on their expectations regarding credit risk management.

Financial institution presidents/chief executive officers, chief credit officers, chief risk officers, officers responsible for the ALLL, TDR and nonaccrual accounting and directors with responsibilities for lending should attend. CBA will be co-sponsoring this event with California Independent Bankers on Thursday, August 16 at the Westin Pasadena.

For more information/registration on the session please click here, or contact John Lingvall at 916/438-4428 or jlingvall@calbankers.com.

Capital Planning and the Future of Community Banking

As we begin to see the end of our second banking crisis in the past 25 years, we await the final rules from the Dodd-Frank legislation and assess the implications of Basel III. One thing is clear, that the ability to attract, acquire and maintain adequate capital levels has never been as challenging as it is today.

We are clearly in an era of banking regulation that’s being called “dynamic capital supervision,” in which regulators are not just evaluating the current capital position of a bank, but also doing a forward-looking analysis. In order to stay ahead of the game, stress testing is now as critical a part of capital planning as it is to your loan portfolio management. During our workshop, we’ll not only show you tools to assess your current and future capital adequacy, but give you sample reports for your banks.

We will discuss the importance of Basel III for community bankers, as it will set the methodology worldwide for how banks calculate their risk weighted assets and capital ratios. In addition, we will have sessions on core and non-core funding, the future of bank stocks, raising capital as well as the ever changing world of mergers and acquisitions. Our expert speakers come from a variety of disciplines and include:

• Karl Nelson, president & CEO, KPN Consulting
• Robert Colvin, senior advisor financial institutions, First Principles Capital Management
• Steven Miller, managing director & chief risk officer, First Principles Capital Management
• Eric Nelson, EVP, KPN Consulting
• Kamal Mustafa, chairman & CEO, Invictus Consulting Group
• Adam Mustafa, managing director, Invictus Consulting Group
• Jeremy Colvin, vice president, Bank of New York Mellon
• Jeremy Smith, chief strategy officer, SecondMarket
• Peter Weinstock, partner, Hunton & Williams LLP
• Aaron Axton, managing director, Keefe, Bruyette & Woods, Inc.
• Don Griffith, chairman and chief executive officer, Grandpoint Bank
• Kaveh Varjavand, partner, Moss Adams LLP
• Patricia Young, partner, Pillsbury Winthrop Shaw Pittman, LLP

Please join us for this very special event Thursday and Friday October 25 and 26, at the JW Marriott L.A. Live. For more information please visit the CBA website. For questions on this or any other CBA program, please contact Laurie Eaton at 916.438.4433 or leaton@calbankers.com.

FinovateFall 2012 – Announcing the Presenter Lineup!

In just under two months, 64 hand-selected companies will take the stage at FinovateFall in New York City to demo their latest innovations and provide unique insight into the future of fintech.

Each selected company will receive just seven minutes on stage to showcase their latest ideas to what is shaping up to be a packed house on September 12 and 13 at the Javits Convention Center. Come watch the future of finance unfold live on stage. And don’t forget, because of California Bankers Association’s partnership with FinovateFall, we’ve got a special discount for you (see below).

So without further ado, here is the demo lineup for FinovateFall 2012 (several stealth companies will be announced closer to the show):

• Actiance
• Akamai
• aSpark
• Backbase
• Banno
• Billhighway
• Blackhawk Network
• Bolstr
• Cachet Financial
• CommunityLend
• Compass Plus
• Credit Sesame
• Dashlane
• DigitalMailer
• eToro
• Euronovate
• Experian
• Finovera
• Guardian Analytics
• Handpoint
• Internet Biometric Security Systems
• ImpulseSave
• Leadfusion
• LearnVest
• Locaid
• Luminous
• MoneyDesktop
• MShift
• North American Ideon
• Ohpen
• Payfone
• PaySimple
• PayTap
• PlayMoolah
• Pindrop Security
• PreCash
• Prepaid Resources
• SecureKey
• Segmint
• ShopKeep POS
• Stockr
• The Currency Cloud
• Truaxis
• Tuition.io
• ValidSoft
• Waspit
• Yodlee

Please register now to lock in your spot. And don’t forget to use our special partner discount code CBAVIP10 on the registration page to save 10 percent on your purchase!






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