DBA Digest for December 9, 2022

Tom Collins Honored at Retirement Reception

The DBA held a reception to honor the career and celebrate the retirement of Tom Collins, EVP, Government Relations, Wednesday night, December 7, at the Columbus Inn in Wilmington. Tom was joined by his wife and children (picture above), as well as colleagues from his long and distinguished career.


Tom joined the DBA in June, 2013 after an extensive banking career. Prior to joining the DBA, Tom served as Senior Vice President at JPMorgan Chase, and was Chief Counsel at Wilmington Trust Company from 1991-2000. As EVP, Government Relations, Tom assumed the State and Federal Government Relations activity for the Association.


“Tom’s contributions to the Delaware Bankers Association over the past nine years have been significant,” said DBA President, Sarah Long. Delaware is well-known for its strong financial services industry, and Tom played a vital role in strengthening and preserving Delaware’s reputation and standing in this area. We thank him for his outstanding service to the Delaware banking industry.”

Mark Wolfrey, Senior Manager - AML and Regulatory Compliance Consulting, RKL, conducts a class at Wednesday's Regulatory Compliance School.

Dozens of Compliance Officers; Auditors; Lenders; and Attorneys attended the first session of the DBA Regulatory Compliance School this past Wednesday, December 7th. The convenient format allowed participants to attend in person at Wilmington University Brandywine Campus or online via Zoom.


Thank You to Presenting Sponsors:

Latest Issue of Delaware Banker Now Available!

Read the Expanded Fall issue of Delaware Banker magazine on your computer, laptop or phone! Feature articles include: Why Delaware is Still the Leading Jurisdiction for Personal Trusts; Expertise in Tax-Advantaged Charitable Giving; Aging and Exploitation; and a special section on the 2022 Delaware Trust Conference.

Read Now!

Business Writing & Grammar Courses

Virtual Live: January 11, 2023, and January 25, 2023


Business Writing Workshop

January 11, 2023

9:00 am – 4:00 pm

$199 per person for members

($249 for non-members)

Register Online

Workshop Objectives: After attending this course, participants will benefit from an increased ability to: 

  • Identify varied audiences and purposes for writing;
  • Polish rough edges of their writing style in paragraphs, sentences, words, and format;
  • Write more effective documents; and,
  • Apply course concepts to their actual writing samples.

Taking the “Grr” Out of Grammar

January 25, 2023

9:00 am – 12:00 pm


$99 per person for members

($149 for non-members)

Register Online

Workshop Objectives: This course helps participants:

 

  • Analyze why correct documents are so important;
  • Identify the errors that tarnish a writer’s image;
  • Learn practical, current grammar and punctuation rules;
  • Practice correcting grammar glitches and punctuation pitfalls; and,
  • Demonstrate an understanding of the rules through a pre- and post-quiz.
Register

Tell Congress: Oppose Credit Card Routing Mandates

As Congress nears the end of its current session, supporters of the misguided Credit Card Competition Act – which would impose government mandates on routing networks - are hoping to sneak this bill language into must-pass-end-of-session legislation.

 

If this harmful legislation passes, community banks and consumers alike stand to have fewer credit card options, such as popular rewards cards, and be faced with potential exposure to greater data security risks.



Congress needs to hear from you about the real risks to community banks and consumers of this so-called “competition” legislation. Sponsors are still pushing this harmful bill, and they don’t seem to believe that community banks will be impacted. It’s time to remind them you know your business better than they do and that government mandates like this aren’t helpful to community banks or their customers.

 

Write your legislators today and urge them to oppose the Credit Card Competition Act.

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Bank of America Market Minute

Closing out a November to remember, U.S. stocks logged consecutive monthly gains for the first time since the summer of 2021, gaining 14.1% total return over October and November. The S&P 500 and Dow Jones Industrial Average added more than 5.5% while the NASDAQ gained 4.5% over the month. All three indexes rallied midweek after Federal Reserve (Fed) Chairman Jerome Powell suggested a slowdown in the pace of interest rate hikes to half a percentage point at their next meeting, stepping down from a series of four .75 point rate rises. The yield on the benchmark 10-year U.S. Treasury note reached 3.60% on the last day of November—that’s down from more than 4% at the start of the month. Last week’s mix of economic data showed U.S. households ramped up spending in October, increasing a seasonally adjusted 0.8% compared with the prior month; the Personal Consumption Expenditures (PCE) price index rose 6% in October compared with the same month a year ago, decelerating from its September rate of 6.3%; the Institute for Supply Management (ISM) Manufacturing Index fell into contraction territory for the first time since May 2020; the U.S. labor market remains tight with employers adding 263,000 jobs in November, albeit trending down slightly from a three month average of 282,000 per month, while the jobless rate remained at 3.7% while average hourly earnings grew 5.1%, a slight bump up from the prior month.

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Ask the Fed®: A Discussion of Unrealized Losses at Community Banks in a Rising Interest Rate Environment

NEW DATE - Friday, December 16, 2022, 1:00 pm ET: A Discussion of Unrealized Losses at Community Banks in a Rising Interest Rate Environment 

Market interest rates have risen in 2022 at a pace not experienced in a generation. In this current environment, a bank may have unrealized holding gains and losses excluded from earnings, but report accumulated other comprehensive income (AOCI) for unrealized losses on its available-for-sale (AFS) securities portfolio. As a result, a bank may experience a dynamic change in its balance sheet, arising from the devaluation in its bond portfolio and lower or negative tangible common equity. 

 

Please join Governor Michelle Bowman, Senior Vice President Tara Humston, and Manager Brett Leavell as they discuss the Federal Reserve’s supervisory posture for a bank with falling bond portfolio values and low or negative tangible common equity. This session will also attempt to answer the question—what can a bank do now to address the risks associated with low or negative tangible common equity? 

Register

Jenifer Jurden is a Cartoonist from Wilmington who has graciously provided her Planet Jurdy cartoons for the DBA Digest. Jurdy® is her other-worldly "Hero of Happyness" whose cartoons bring levity to humans worldwide.

Kevin Gross Receives the 2022 Kimmel/Thynge ADR Award

Kevin Gross, a director of Richards, Layton & Finger, has received the Delaware State Bar Association’s 2022 Kimmel/Thynge ADR Award. The ADR Section of the DSBA created this award in honor of Morton Richard Kimmel and Chief Magistrate Judge Thynge’s significant contributions to alternative dispute resolution in Delaware. Kevin, one of two recipients this year, has received the award in recognition of his role in the development and implementation of mediation in the Delaware bankruptcy court and the caliber of his current ADR practice.



Kevin was a judge on the U.S. Bankruptcy Court for the District of Delaware for 14 years, including serving as chief judge from 2011 to 2014. During his tenure on the Delaware bankruptcy court, Kevin presided over some of the highest-profile reorganizations in the country. Renowned for his cheerful demeanor and his ability to forge consensus, Kevin also developed a national reputation as a mediator of choice to help resolve complex chapter 11 matters. 

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Consumer Financial Service Law Monitor: CFPB Focuses on Junk Fees, Credit Reporting, and COVID-19 Relief Funds in Latest Supervisory Highlights


On November 16, the Consumer Financial Protection Bureau (CFPB) released a new Supervisory Highlights report, focusing on the auto servicing industry, consumer reporting, mortgage servicing, and COVID-19 relief funds. The report highlights the CFPB’s continued focus on so-called junk fees and inaccurate credit reporting.


Among other findings from the report, the CFPB says that: Examiners identified unfair and deceptive acts or practices across many aspects of auto servicing, including violations related to add-on product charges, loan modifications, double billing, use of devices that interfered with driving, collection tactics, and payment allocation.


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Ballard Spahr Alert: FCA Proposes Extensions for 'Synthetic' Approach to Legacy USD LIBOR Contracts

The United Kingdom Financial Conduct Authority (FCA) on November 23 published its Consultation on ‘Synthetic’ U.S. Dollar LIBOR to advance some synthetic applications of USD LIBOR from June 30, 2023, until September 30, 2024. If the Consultation is adopted, here are some issues to consider when determining whether outstanding “tough legacy” USD LIBOR contracts will convert to the Secured Overnight Financing Rate (SOFR) or a synthetic USD LIBOR rate.

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Greg Koseluk at greg.koseluk@debankers.com