July 20, 2012 Topline


Reviewed and monitored the 2,101 legislative measures introduced in 2012 and identified 397 as having a potential impact on or of interest to the financial services industry. Continued to monitor 597 remaining active measures from 2011 (first half of legislative session), with 101 bills identified as having a potential impact on or of interest to the financial services industry.

Participated in 206 meetings with state legislators and their staff.

Participated in meetings with 15 state agency departments, including: the state controller’s office in an on-going series to discuss the state’s financial status and cash management plans; with newly appointed Department of Financial Institutions Commissioner Teveia Barnes; with newly appointed Department of Corporations Commissioner Jan Lynn Owen.

Developed and led a coalition in response to the eleven-bill Homeowner Bill of Rights package sponsored by the California Attorney General (AG), conducted 15 coalition meetings and met with legislative leadership from both houses, representatives of the California Attorney General and other interested parties.

Provided expert testimony on behalf of the financial services industry before the Conference

Committee on AB 278 and SB 900, measures that are part of the Homeowner Bill of Rights Package.

Spearheaded multi-trade association commission of study by Beacon Economics Foreclosure

Reform in California: An Economic Analysis, which found that portions of the Homeowner Bill of Rights would negatively impact housing recovery, reduce home values and diminish the future availability of credit for California home buyers.

Represented the financial services industry regarding the impact of the governor’s reorganization plan on the banking industry by providing expert testimony before the Little Hoover Commission and the Legislature, meeting with representatives from the governor’s office, legislators and key staff, and authorship of advocacy letter.

Defeated a measure that made it more difficult for community banks to qualify for the Time Deposit Program.

Defeated a debt collection measure that placed onerous compliance burdens on banks.

Assisted in the defeat of a measure that allowed banks to use assets of medical marijuana facilities as collateral for extensions of credit.

Defeated a measure that created a state-owned bank.

Defeated a measure that allowed a consumer to place a freeze on a specialty consumer report.

Successfully negotiated amendments to a measure that required banks to pay delinquent homeowner association assessments when foreclosing on a property.

Negotiated an agreement between financial institutions and the grain and feed industry regarding dairy liens.

Hosted private industry events for Senate Republican Leader Bob Huff, Assembly Member Norma Torres and Assembly candidate Adam Gray, and co-hosted fundraisers for Assembly Member Jeff Miller, who is running for the state senate, and Senator Anthony Cannella.

Hosted non-political private industry luncheon with Assembly Member Ben Hueso.

Co-sponsored events benefiting the California Women’s Leadership Association, California Latino Caucus Institute and Bob Moretti Scholarship Foundation.

CBA members participated in fundraiser for Rep. Ed Royce featuring House Majority Leader Eric Cantor.

CBA participated in 27 Sacramento fundraisers for members of the state legislature and state legislative candidates.

CBA conducted seven meetings with state legislative candidates.

In June, 24 CBA members met with 23 members and staff of the California delegation and various members of the House Committee on Financial Services during the Annual Visit to Washington, D.C. Issues discussed included ATM fee disclosure requirements, opposition to increasing credit union business lending caps, support for government-sponsored enterprises (GSEs) reform, regulatory reform and the Transaction Account Guarantee (TAG) program extension.

During the D.C. visit meetings were also held with a number of regulatory officials including an FDIC breakfast briefing hosted by Director Jeremiah Norton, and a Federal Reserve Board briefing conducted by Governor Betsy Duke. Additionally, the group attended a third briefing with three OCC officials, Paul Nash who is senior deputy comptroller and chief of staff to Comptroller Thomas Curry; Julie Williams, first senior deputy comptroller and chief counsel; and Beverly Cole, senior advisor for midsize/community bank supervision.

CBA members participated in two district fundraisers for federal legislative candidates.

Conducted a grassroots campaign urging members of the House to sign on to a letter authored by House Financial Services Financial Institutions Subcommittee Chairwoman Shelley Moore Capito (R-WV) and Rep. Brad Sherman (D-CA), asking the Consumer Financial Protection Bureau (CFPB) to adopt a “safe harbor” for its pending Qualified Mortgage (QM) rule.

Raised an additional $62,200 for the CBA State PAC (2012 total: $193,732 representing 117 percent of goal) and an additional $12,544 for the CBA Federal PAC (2012 total: $85,687 representing 102 percent of goal.)


During the second quarter of 2012, the communications team fielded more than 70 incoming media inquiries.

Worked diligently to field media requests, develop written statements and represent the California banking industry on the Homeowner Bill of Rights (HBR), fielding more than 50 media inquiries on the subject, resulting in interviews with the Wall Street Journal, Los Angeles Times, NPR Marketplace, Sacramento Bee, American Banker, Associated Press and various NBC, ABC and CBS affiliates throughout the state.

Drafted two opinion editorials related to the legislative debate on the HBR, authored by CBA President Rodney Brown, and published in the Sacramento Bee.

Conducted editorial board meetings with the Sacramento Bee, Los Angeles Times.

Facilitated with the development and the media release of a foreclosure economic analysis authored by Beacon Economics.


CBA conducted the second session of the annual Directors Certification Program in two locations with a total of 56 participants.

Hosted ‘A Day with the Regulators’ in two locations for a total of 160 participants.

Held the two-day workshop, Fundamentals of Credit Analysis for 33 participants.

Hosted the fifth annual Women in Banking Forum for a total of 130 participants.

Conducted the BSA/AML Seminar in two locations with a total of 126 participants.

Held the CBA Directors College with 46 participants.

Hosted the Human Resources Conference for 32 participants.


Hosted 320 participants at the 121st Annual Convention and 45th Annual Bank Counsel Seminar.

Hosted 87 participants at the Security Management Conference.


Distributed the 2012 Compensation and Benefits Benchmark Survey Questionnaire to 298 California banks. We had a total of 107 banks participate in the survey. The survey results will be published in August .

Amicus Curiae Activity

GECCMC 2005-C1 Plummer Street Office LP. v. NRFC NNN Holdings, LLC – CBA supports petition for review with Supreme Court in decision that dilutes secured lender’s rights as owner/landlord on foreclosed property and rights to enforce guarantees.

Caron v. Mercedes Benz – CBA requests publication of decision holding that the Federal Arbitration Act preempts the anti-waiver provision of the Consumers Legal Remedies Act.

Local Government Advocacy

CBA is supporting efforts to respond to local government actions related to banking in Oakland (maintenance of pre-foreclosure properties), Los Angeles (community investment), San Bernardino (eminent domain powers on mortgage notes), and San Diego (responsible banking).

CBA drafted the following Regulatory Compliance Bulletins:

New IRS Nonresident Alien Account Reporting Requirement – reporting of interest for all NRA’s (currently required only for Canadians)

Supreme Court Offers Guidance on Break/Meal Periods – analysis of California Supreme Court’s Brinker decision

Los Angeles Passes Responsible Banking Ordinance – analysis of LA’s new linked banking ordinance

California Court Finds Bank Libel Law Unconstitutional – analysis of Summit Bank v. Rogers, which struck down law against making false statements about a bank

Oakland To Require Lenders to Maintain Pre-Foreclosure Property – analysis of Oakland ordinance

California Supreme Court Affirms National Bank Act Preemption – analysis of decision that upholds preemption of state convenience checks law as to national banks


CBA welcomed the following new affiliate members:

  • BancAlliance
  • CNA Insurance
  • QuieTrack Insurance Services Corp.
  • Standard & Poors
  • Weintraub Genshlea Chediak Tobin & Tobin

Regional CEO roundtable meetings were held in South San Francisco and Los Angeles with 26 bankers participating.

One DFI roundtable meeting was held with 28 bankers participating.

One Federal Reserve Bank of San Francisco roundtable meeting was held with 21 bankers participating.

Eight bank visits conducted by CBA President & CEO Rod Brown.