“Is it possible to know the truth without challenging it first?”
- National Geographic Society
Established January 27, 1888
State Regulators Support McWilliams for FDIC Chair
This week, endorsed the nomination of Jelena McWilliams to lead the FDIC.
The official statement by CSBS President and CEO John Ryan:
“Jelena McWilliams has demonstrated a deep knowledge of community banking in her previous public policy roles. CSBS and our members have appreciated the opportunity to work with Ms. McWilliams during her time with the Senate Banking Committee. From our work with her, we know she has a great appreciation for the dual banking system and for the roles state charted banks and state regulators play in the U.S. economy. Most state charted banks are FDIC regulated, and we look forward to working with her to ensure safety, soundness and economic development on behalf of the consumer and business alike.”
CFPB Finalizes Updates to Prepaid Card Rule
The CFPB has finalized updates to its 2016 rule for prepaid cards.
Changes by the CFPB include that prepaid digital wallets linked to credit cards will be allowed to run a negative balance without credit card regulations applying to those services, based on certain conditions. Additionally, requirements to protect customers retroactively from theft and disputed charges will only apply once a customer has successfully verified their identity. Prepaid account users are already required to register their accounts to receive fraud protection.
Jerome Powell Confirmed as Federal Reserve Chairman
The Senate confirmed Tuesday Jerome H. Powell as 16th chairman of the Federal Reserve, with a final vote of 84-13. Powell will replace outgoing Fed Chair Janet Yellen on February 3.
State regulators endorsed the nomination of Jerome Powell as chairman.
CSBS President and CEO John Ryan: “State regulators have full confidence in Governor Powell. His deep knowledge and understanding of the financial system is essential to supporting the U.S. economy and protecting it against excessive risks. We look forward to working with him to enable a wide array of financial institutions to innovate on behalf of the consumer and business alike.”
Governor Powell has been a regular speaker at the annual CSBS-Federal Reserve community bank research conference. In 2016, he delivered remarks that explored the historical performance of community banking.
CSBS Bankers Advisory Board Member Named CEO of Sheltered Harbor
Trey Maust, a member of the CSBS Bankers Advisory Board, will lead as CEO an initiative designed to ensure consumers have access their assets in the event of a major incident.
Sheltered Harbor, a subsidiary of the Financial Services - Information Sharing and Analysis Center, is an initiative designed to enhance the U.S. financial services industry’s resiliency capability in the event of a major incident to ensure consumers have access to critical account assets. Sheltered Harbor is based on standards and the concept of mutual assistance. Its members access specifications for common data formats, secure storage and operating processes to store and restore data, and receive a Sheltered Harbor acknowledgement of adherence to the specification.
“Leading an essential organization like Sheltered Harbor is truly an honor,” said Maust. “I am pleased to carry the torch and build on the tremendous efforts of the extended Sheltered Harbor team. With the entire financial services industry behind us, I look forward to channeling our collective resources into protecting U.S. consumers.”
Maust has been a board member of Sheltered Harbor since 2016. Most recently, he served as the co-president and CEO of Lewis & Clark Bank, a bank he co-founded in 2006. Prior, Maust served as the chief financial officer at a Portland-area community bank. He began his career with Deloitte in audit and later in merger and acquisition services.