Monday Courier

September 16, 2013

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California Issues

General information

California Legislature Adjourns for 2013

Shortly after midnight on September 13, the California Legislature adjourned for the 2013 legislative year. Many bills were passed during the final hours on to the governor’s desk and he now has 30 days to sign or veto those measures by the October 13 deadline.

Compliance Bulletin

Bill Expands Types of Deposits Eligible for Local Agencies
September 12, 2013

Local government agencies are now eligible to place surplus funds with banks in a reciprocal “deposit” service beyond just certificates of deposit as currently permitted.AB 279 was enacted in recognition that more deposit products have become available in the market that have the same characteristics as the CDARS program.In addition to existing legal criteria, the bill requires that a depository institution accepting such deposits must meet regulatory capital standards related to brokered deposits.The bill also places a 10% limit on deposits placed with any one private sector placement serv

General information

Court Signals it Will Not Halt Richmond’s March Toward Eminent Domain

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.

Compliance Bulletin

New Law Heightens Scrutiny on Iran-related Accounts
September 12, 2013

Under AB 978 banks in California will be required to take measures to ensure they do not open or maintain correspondent or payable-through accounts by foreign financial institutions where those accounts facilitate certain prohibited activities related to Iran.The bill is intended to give authority to the Division of Financial Institutions to examine for and, if necessary, bring an action against financial institutions for not complying with a 2010 federal law.The prohibited activities include development of weapons of mass destruction, supporting terrorist organizations, facilitating transa

Compliance Bulletin

Bill Extends Financial Obligation Deferral Rights of Reservists
September 12, 2013

Under existing law reservists and members of the National Guard who are called to active duty because of the Iran or Afghanistan conflicts may defer certain debts.

General information

CBA Requests Publication of Opinion that Counters Recent Trend Toward Lender Liability

The financial crisis has spawned a raft of litigation arising from loan defaults and modifications, and courts have responded by judicially imposing on creditors heighted duties of care to borrowers. A court of appeal decision came down that bucked the trend but, unfortunately, the opinion was not published. Last week CBA requested that the opinion, Aspiras v. Wells Fargo Bank, N.A., be published so that it may be used as precedent. The case arose from the bank’s foreclosure on a defaulted home mortgage loan as modification negotiations faltered.

General information

State Controller’s Office Releases August Cash Update

Last Tuesday, the State Controller’s Office (SCO) released their monthly report detailing California’s cash balance, receipts and disbursements for August 2013. Revenues for the month totaled $6.91 billion, coming in just below projections contained in the governor’s proposed 2013-14 state budget by $27.1 million (.04 percent). The report shows personal income tax revenues $56 million below (1.5 percent) monthly estimates, while corporate income taxes came in at $27 million above (69.2 percent) projections.

General information

DBO Hosts Small Business Lending Conference in San Francisco

As we have shared with you in a prior Monday Courier, the California Department of Business Oversight (DBO) is holding a California Small Business Lending Fair in Northern California, on October 30. This is the event where you can learn about programs that expand access to credit for small businesses. This conference brings together lenders – banks, credit unions and community development financial institutions, with representatives of the state small business loan guarantee programs.

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Federal Issues

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California and Florida Bankers Hold Successful Joint Washington, D.C. Visit

The California Bankers Association, led by the association’s volunteer Chairman Jeff Ball and President and CEO Rodney Brown, and supported by EVP and Chief Operating Officer Maurine Padden and PAC/GR Administrator Mary Boruff, gathered last week with the Florida Bankers Association, September 10-12, in Washington, D.C. for the 11th annual joint visit.

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Membership Issues

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2013 CBA Compensation and Benefits Benchmark Survey Available Now

CBA’s 2013 Compensation and Benefits Benchmark Survey is now available to order.

The most useful and beneficial tool available to research all forms of compensation provides base salary, incentive and commission compensation data for 129 job classifications, as well as directors’ compensation information, human resources practices, comparative healthcare cost information and employee benefits summary statistics. Click here to download a copy of the Compensation and Benefits Benchmark Survey order form.

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Enterprise Risk Management 2013: Northern California

What do the regulators expect banks to consider when creating Enterprise Risk Management (ERM)?

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Enrollment Now Open for Our New Graduate School of Compliance Management
December 3 - 5, 2013 in Palm Springs

Based on the success our Regulatory Compliance School has had for the past six years, we asked our instructors to develop this program targeted to our graduates and more senior compliance officers. This two and a half-day program will  provide in-depth guidance on developing, implementing and maintaining an effective Compliance Management System (CMS) that fits your institution’s strategic plans and footprint.  

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Save the Date: CBA’s 123rd Annual Convention and 47th Annual Bank Counsel Seminar

Save the date for CBA’s 123rd Annual Convention and 47th Annual Bank Counsel Seminar, which will be held May 8-10, 2014, at the Ritz-Carlton Laguna Niguel in Dana Point, CA.

This is a valuable opportunity to hear important updates from federal and state bank regulators, CBA leadership and other industry representatives. This is the fourth year these two events will be held in conjunction; attendees are welcome to attend all social functions and sessions at either conference.

General information

CBA Strategic Partner Verafin to Demonstrate FRAML Software

Verafin product expert, Tony Fitzgerald, will be at the Sheraton University Hotel on Wednesday, September 25 providing a free live demonstration that shows you how Verafin’s FRAML (Fraud detection + AML) software can help your institution.

Attend for your chance to:

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Federal Reserve Bank of San Francisco to Host Webinar: “The U.S. Economy and 12th District Banking: Conditions and Outlook”

At the Federal Reserve Bank of San Francisco’s next Call the Fed webinar, on September 24 from 2-3 p.m., two of the bank’s experts on the economy and banking return with an interactive update on the conditions and outlook for the U.S. economy, and for banks in the 12th District.

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Upcoming Events

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