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Hensarling Request GAO Study Reducing Dividends

Sep 12, 2015

With a provision in the Highway Trust Fund reauthorization bill that would reduce the dividends paid on Federal Reserve Bank stock to Federal member banks still being floated as a revenue-raising measure on Capitol Hill, House Financial Services Committee Chairman Jeb Hensarling (R-TX) has asked the Government Accountability Office (GAO) to study the implications of reducing the annual dividend rate that the Federal Reserve pays to member banks. “Hensarling asked GAO to study the historical rationale for the arrangement, the historic rates of return on other government securities, the budget and policy ramifications of reducing the annual dividend or changing it to a floating reference rate and the impact of making the system voluntary instead of mandatory.” “I ask that the GAO engage with all relevant public and private sectors stakeholders, including, but not limited to, relevant federal and state regulatory authorities and affected banking organizations of all sizes.” Hensarling wrote in a Sept. 10 letter to Comptroller General Gene Dodaro. Hensarling-Letter-Fed-Dividend    Read more

Regulatory Relief Roundup

Sep 09, 2015

On September 8, four trade associations representing 14,000 financial institutions – the American Bankers Association, the Credit Union National Association, the Independent Community Bankers of America, and the National Association of Federal Credit Unions – submitted a letter to Senate Banking Committee Chairman Richard Shelby and Ranking Member Sherrod Brown urging them to enact bipartisan legislation that would provide “regulatory relief to community financial institutions.” The letter describes the measures that community banks have been forced to make to address the “growing volume and complexity of regulations,” including cutting back on their loan officers ranks in favor of additional compliance staff and adjusting or eliminating financial products and services offered to consumers. The letter urges the Senate to pass the Financial Regulatory Improvement Act of 2015, S. 1484, which was approved by the Senate Banking Committee in May. This legislation, the letter claims, will “addresses statutory and regulatory obstacles that thwart the ability of community banks and credit unions to fully serve the diverse financial services needs of consumers.”  Read the letter  Read more

Community Bank Sensible Regulation Act

Aug 03, 2015

Senator Susan M Collins [R-ME] on July 21, 2015 introduced S. 1799, The Community Bank Sensible Regulation Act. The legislation would allow for banking regulators to have more discretion in reducing community bank burden. Last week, Senator Collins successfully was able to add the legislation to the financial services appropriations bill before it was approved by the Senate Appropriations Committee. It was included along with legislation from Senate Banking Committee Chairman Richard Shelby (R-Ala.) containing various provisions from ICBA’s Plan for Prosperity. Should the legislation be enacted community and regional banks under $10 billion in assets would greatly benefit and become exempt from regulations like the Volker Rule.  Read more

Community Bank Flexibility Act

Jul 28, 2015

Congressman Kenny Marchant (R-TX-24) has introduced the Community Bank Flexibility Act. H.R. 3287, The Community Bank Flexibility Act, was introduced on July 29th and to date has two cosponsors: Congressman Lamar Smith (R-TX-21) and Congressman Diane Black (R-TN-6).   Read more

The Sub S Bank Report Volume 18, Issue 2

Jul 06, 2015

The Latest Edition of The Sub S Bank Report is Now Available for Registered Members Learn More About: The Capital Access for Small Business Banks Act, H.R. 2789 Shareholder Succession Planning Part 1: ESOPS as a Tool for Shareholder Succession Planning & Employee Engagement Regional Sub S Meetings Recap Legislation to Watch Important Dates To read it log in with your membership information. If you need assistance resetting your log in information or did not receive the email copy to your inbox email Amy Trevino at   Read more