KC Fed Head to Retire Next Year
As required by the Federal Reserve’s mandatory retirement rules, Federal Reserve Bank of Kansas City President and CEO Esther George has announced her intention to retire in Jan. 2023. A search committee consisting of Class B and C directors unaffiliated with the banking industry has launched a nationwide search for the next president and has retained executive search firm Ergon Zehnder. Applicant referrals should be directed to the search firm at KCFedSearch@egonzehnder.com.
CFPB: States Have CFPA Enforcement Authority
The Consumer Financial Protection Bureau (CFPB) issued an interpretive rule stating its view that state regulators and state attorneys general have enforcement authority with regard to all provisions of the Consumer Financial Protection Act (CFPA), based on its interpretation of Section 1042 of the Act.
Bank Net Income Down in Nebraska, Nationally
According to the FDIC Quarterly Banking Profile, first quarter profits for Nebraska banks were 15% lower than during the same period in 2021. Nationally, net income was down 22%. According to acting FDIC Chairman Martin Gruenberg, the decline was driven by an increase in provision expenses.
Lawmakers, ABA Raise CBDC Concerns
In separate letters to the Federal Reserve (Fed), a group of Republican representatives and the ABA both questioned the need for a Central Bank Digital Currency (CBDC). “The Fed should understand whether the benefits of a CBDC outweigh the risks to commercial banks, the existing payments system, and consumers,” the lawmakers stated. The ABA noted a CBDC would “fundamentally change the role of the central bank in the United States and reshape the banking system.”
The House Financial Services Committee will hold a hearing on a CBDC on May 26.
Read the House Letter
ABA Urges Five-Year NFIP Reauthorization
In a letter to the House Financial Services Committee, the ABA called for reauthorizing the National Flood Insurance Program (NFIP) every five years. Short-term extensions “destabilize the mortgage process,” according to the ABA. The Committee’s Subcommittee on Housing, Community Development and Insurance held a hearing on the NFIP today.
Read the Letter