TUESDAY, JULY 28, 2020 | IN THIS ISSUE

• Wells Fargo closing another CR branch
• In the CBJ: Is New SEC 'Best Interest Standard' better?
• Empower by GoDaddy awarded Kauffman Foundation grant
• Collins Aerospace to supply systems for supersonic business jet
• Almost Famous Popcorn expanding to Des Moines
• Corridor events, KCRG-TV9 headlines and First Alert Forecast
Wells Fargo sets closing for CR branch
Wells Fargo confirmed it is permanently closing its branch office at 1800 First Ave. NE, Cedar Rapids, as the bank undertakes a major cost reduction effort. The branch will close Oct. 21.

Bank spokesman Steven Carlson said the branch had been considered for closing in 2020 before the COVID-19 pandemic, and was temporarily closed in mid-March as part of a decision to reduce branches operated during the pandemic.

"Since then, we have affirmed our decision not to reopen this branch, and we will be selling the building," Mr. Carlson wrote in an emailed response. He said customers are being redirected to other Wells Fargo branches, including the Lindale Mall branch at 3570 First Ave. NE.

Bank officials have said they plan to reduce the number of Wells Fargo branches from roughly 5,400 to about 4,000 as the company seeks billions of dollars in cost reductions. Wells Fargo reported its first quarterly loss in over a decade earlier this month, and is increasing its loan-loss reserves in anticipation of a loan default wave resulting from the economic downturn caused by COVID-19.

The 8,400-square-foot building housing the bank, built in 1996, is assessed at $4.2 million.

Mr. Carlson said that while branches remain important in serving the needs of Wells Fargo customers, "in general, we've seen customer traffic decline over the past few years as a result of more customers choosing digital options for many of their banking needs." He did not offer specifics on the reasons for the branch closing, saying only that such decisions are based on "customer trends, market factors and economic changes."

Analyst have projected that the COVID-19 pandemic will accelerate the trend, as customers grew more comfortable with using banking apps during the pandemic's branch closings. Wells Fargo continues to list three other branches in Cedar Rapids after a series of closings. They are at 3010 Williams Blvd. SW, 4051 42nd St. NE and 3570 First Ave. NE.

PHOTO: Wells Fargo Bank, 1800 First Ave. NE, Cedar Rapids
In the CBJ: Is new 'Best Interest' standard better?
Broker-dealers in the securities industry face a new layer of regulation from the Securities and Exchange Commission this month aimed at protecting investors against being sold investments that don’t suit their needs. But they don’t see it shaking the industry like a proposed Department of Labor fiduciary rule nullified by a federal court two years ago.

The new Regulation Best Interest took effect June 30, and requires that investment recommendations be in an investor’s “best interest.” It’s a higher standard than broker-dealers previously faced under the rules of their independent regulatory authority, FINRA. That standard only required that investments sold be “suitable” for investors.

The difference could be important to the thousands of investors who file complaints annually because they were sold complex financial products on a commission basis that did not provide the results they expected. Many of those products are annuities that can’t be liquidated without hefty surrender charges, or other alternative investments that can’t be easily sold.

Key provisions of Regulation Best Interest (Reg BI) fall into four main categories:

Disclosure: Firms must disclose their regulatory history of past violations and give customers disclosure Form CRS, containing all material facts relating to the scope and terms of the relationship with the retail customer, including the fees and costs that apply to the customer’s transactions and holdings, and limitations on the investment strategies it offers to clients. Form CRS also references other disclosures and includes “conversation starters” for discussing the contents of the document.

Duty of care: A registered representative is obligated to exercise reasonable diligence, care and skill to understand the risks, rewards and costs associated with the recommendation. They must have a reasonable basis to believe their recommendation is in the best interest of a particular customer based on the customer’s investment profile, and upon the potential risks, rewards and costs associated with that investment.

Conflicts of interest: Conflicts of interest, such as the fact that the sale of a recommended product would generate a sales commission, must be disclosed. The existence of undisclosed sales bonuses, tips or prizes for sales of certain products could become a regulatory issue when complaints arise under the new rules.

Compliance obligations: Broker-dealers belonging to FINRA are to be tested on their compliance, including their Reg BI disclosure documents and broker education programs.

Reactions to the Reg BI rulemaking covered a wide spectrum, from investor advocacy organizations that found it to provide inadequate protection to investors, to broker-dealers, who were considerably more supportive than they were of the fiduciary rule.

Read the full members-only story in this week's print or digital editions of the CBJ.
Empower by GoDaddy program awarded $100,000 grant
Jane Boyd Community House has been awarded $100,000 from the Ewing Marion Kauffman Heartland Challenge grant.

Funds will enhance and expand an entrepreneur education program offered through Jane Boyd to better serve entrepreneurs from communities systemically left behind in Eastern Iowa. Grant funding will allow an additional cohort of the program to be offered during the current fiscal year and will also support a move to virtual learning, which is especially important in the wake of coronavirus.
 
The Empower by GoDaddy program, a partnership with Jane Boyd, was launched in 2017 and has assisted more than 100 entrepreneurs. It is free to participants and includes an intensive 12-week curriculum designed to provide the basics an entrepreneur needs to launch or grow a business. Classes run as a cohort with up to 25 entrepreneurs.

The next cohort will begin this fall. Individuals interested in learning more or applying to participate in the program can visit   janeboyd.org/programs/empower   or contact Empower Program Manager Maurice Davis at (319) 784-1310 or   [email protected] .
 
Jane Boyd Community House Director Megan Isenberg said the award will support Empower’s efforts to engage and serve more diverse populations and address barriers to education often experienced by non-traditional entrepreneurs. “We will continue deepening our relationships with under-served communities and the partner agencies that are already connected to the people we want to reach,” Ms. Isenberg said.
Collins Aerospace to supply systems for supersonic jet
Supersonic aircraft manufacturer Aerion has selected Collins Aerospace Systems for four systems on its AS2 supersonic business jet.

Collins Aerospace Systems will supply the AS2's movable leading edge actuation system, elevons actuation system, horizontal stabilizer actuation system and the rudder actuation system.

“The very nature of supersonic travel presents some unique challenges when it comes to designing reliable and precise systems to guide the aircraft – and we are eager to address them head-on as part of the Aerion team," said Ed Dryden, vice president of Actuation Systems for Collins Aerospace, in a news release. "Collins Aerospace has a long history in advancing complex actuation systems for both commercial and military platforms, and we look forward to continuing this legacy with the AS2."

Aerion plans to begin production of the AS2 supersonic business jet in 2023. It is the first supersonic aircraft designed with the ability to accept 100% synthetic fuel and reach supersonic speeds without an afterburner. The company plans to manufacture 300 AS2s in the first decade of production. It will be assembled at the company's new global headquarters in Melbourne, Florida.

I MAGE: Aerion AS2 CREDIT: Aerion
Almost Famous Popcorn expanding to Des Moines
Almost Famous Popcorn Co. has announced plans to expand to Des Moines on Aug. 1 with a new store in the historic East Village.

The popcorn company was founded at Newbo City Market in Cedar Rapids by 10-year-old Carter Rieckhoff and 12-year-old Sydney Rieckhoff in 2012. Eight years later, the company has a successful retail location at 1121 Third St. SE, Cedar Rapids, a growing online business and plans for the new Des Moines location at 350 E. Locust St.

The Des Moines store will offer 50 flavors of hand-crafted gourmet popcorn, over 100 varieties of craft sodas, and prepackaged pints of ice cream from The Chocolate Shoppe of Madison, Wisconsin.

"Every business has been affected by the coronavirus pandemic in some form, especially small businesses," co-founder Sydney Rieckhoff said in a news release. "We've worked hard and are eager to be seeking new opportunities to expand our family-owned, Iowa-based business. Our business is a family affair with our parents, Bill and Robyn, working alongside us as we continue to expand our brand."

Almost Famous Popcorn will be honored Aug. 20 as one of the CBJ Fastest Growing Companies for 2020.
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Short Term Event Planner

July 29 
1 Million Cups , by 1MC Iowa City, 9 a.m., online. Join for community connections and presentations by entrepreneurs, established companies, experts and more. Free. For more information, visit facebook.com/1MillionCupsIC .
 
Iowa Fraud Fighters - Shield Your Savings Series , by Iowa Insurance Division, noon-1 p.m., online. This webinar is for family members or caregivers of Iowa seniors and provides tips for caregivers to recognize the red flags of Medicare fraud and investment scams. Free. To register, visit bit.ly/3gBQX41 . 
 
July 30
Remote Leaders Online Roundtable , by Executive Coach Jennifer Zach, 10-10:20 a.m., online. Touch base with other leaders who are leading remote teams, exchange resources and share what's on your mind. Free. To join, visit bit.ly/3j5gXqm . 
 
Ignite ICR: Launching Your Career , by ICR Iowa, noon, online. The final Ignite ICR event will focus on job opportunities that exist within ICR Iowa. Jennifer Daly, president and CEO of ICR Iowa, will give a short overview of key industries and the businesses that represent them within the region. Free. To register, visit bit.ly/2Ys3LUw . 
 
How to Support Minority-Owned Business by Creating a Supplier Diversity Program , by Iowa Economic Development Authority, 2 p.m., online. Speaker Kathey Porter will share an overview of supplier diversity, its advantages to your business and how to successfully launch a supplier diversity program. Free. To register, visit bit.ly/3eyyLa5 . 
See something we missed?
Send tips, leads,  corrections,  etc. to  [email protected] .
Headlines from KCRG-TV9
These news items are provided by KCRG-TV9  
 
Firefighters received a report of flames coming from the roof of the Days Inn & Suites, located at 704 First Ave. in Coralville, at 6 a.m. today. Firefighters were able to get the fire under control quickly. No one was injured. The hotel is currently closed as firefighters continue to assess the damage and look for hot spots. The Coralville Police Department warned residents to avoid First Avenue as firefighters continue to work. In a Facebook post, Coralville police wrote, “Avoid 1st Avenue this morning if you can. If not expect significant delays due to a fire. Please stay clear of the area and allow crews space to work.”

With concerns that states are tracking COVID-19 differently, Iowa’s state auditor is joining a bipartisan effort to get every state on the same page. Rob Sand will join a group of 14 to audit state COVID-19 data. Sand said it’s about holding states accountable for their coronavirus response. To do that, they need to make sure each state is tracking and reporting data the same way. A lot of this will have to do with looking into the testing process for each state and what gets reported publicly. The group will also monitor treatments like hospitalizations and ICU bed use. The goal is for every state to report data in the same way. That will let experts clearly see what responses are working and what's not. “We’re going to be able to compare notes and hopefully really learn something looking at different state responses about what we maybe need to be doing for the second half of this pandemic or for future pandemics,” said Sand. He says this will also hold leaders accountable if they’re response is lacking. The states plan to start working on the project in the fall. The other states involved are Delaware, Pennsylvania, Florida, Mississippi, Ohio, Colorado, Louisiana, Michigan, and Tennessee. Three states chose not to be named. The District of Columbia and Puerto Rico are part of it as well.

These news items are provided by KCRG-TV9
Your KCRG-TV9 First Alert Forecast
Plan on another pretty nice day across the area. There remains a very low chance of a brief shower over northeast Iowa later today as a weak front settles in, but that's about it. Highs will at least be into the mid-80s with a few upper 80s as well. Looking ahead to Wednesday, plan on more of the same from a temperature standpoint with highs into the mid-80s along with a mix of sun and clouds. A ridge of high pressure will keep the storm track well to our south the rest of the week and right into the upcoming weekend.