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Parents, not Banks, Should Aim For Empty Nests

March 2, 2017

Authors

Crystal Homa

Parents, not Banks, Should Aim For Empty Nests

March 2, 2017

by: Crystal Homa

I recently happened to find myself among a group of young professionals who had grown up in the same rural area of Georgia, but had dispersed to not only different parts of the state, but also different parts of the country and even at times, the world. At some point in the evening, it became the topic of conversation that one of the members of this group still banked at his hometown community bank despite no longer living there and spending almost a decade traveling the world. His childhood friends were shocked, uttering things like “Wait, you still bank there?” and “Isn’t it time you leave the nest?”

As someone who did not grow up in Georgia and thus was an outsider to the conversation, I really began to think about this.

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Legislation Proposed to Facilitate Changing Banks

December 10, 2013

Authors

Robert Klingler

Legislation Proposed to Facilitate Changing Banks

December 10, 2013

by: Robert Klingler

On September 19, the “Freedom and Mobility in Consumer Banking Act” was introduced by Rep. Jan Shakowsky (D-Ill.) and Senator Tom Harkin (D-Iowa). The companion bills seek to make it easier for consumers to change banks by requiring, among other things:

  • Mandatory disclosures in a format that allows consumers to make meaningful comparisons between bank accounts.
  • Banks not prevent consumers from closing a covered account.
  • Banks not charge a fee for closing a covered account.
  • Banks not reopen a closed account to apply subsequent debits, whether preauthorized or not, unless the consumer asks to have the account reopened.
  • Banks to close a covered account within five days of a consumer’s request, unless special circumstances (such as a request from law enforcement) apply.

The term “covered account” includes “any check, savings or any other account that the [CFPB] may include by regulation.”

The proposed legislation may reduce the “stickiness”

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New Legislation Introduced on ATM Notices

April 20, 2012

Authors

Bill Custer and Jennifer Dempsey

New Legislation Introduced on ATM Notices

April 20, 2012

by: Bill Custer and Jennifer Dempsey

Legislation has been introduced in the United States House of Representatives that, if passed, would relieve banks of the responsibility of installing and monitoring the presence of physical notices on their ATMs notifying customers about the imposition of ATM transaction fees.

On April 17, 2012, Representatives Blaine Luetkemeyer (R-MO) and David Scott (D-GA) introduced H.R. 4367 which seeks to amend the Electronic Fund Transfer Act to limit the fee disclosure requirement for operators of ATMs to the electronic notice alone. The electronic notice allows a consumer to choose whether the consumer wishes to continue with the ATM transaction and pay the fee or exit the transaction.  This proposed bill comes in the wake of class action litigation filed against banks and other ATM operators nationwide (and most recently against several Georgia community banks) alleging that the banks failed to post or maintain the physical notice on their ATMs.

As

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JOBS Act Timing – Regulation D and Shareholder Thresholds

March 29, 2012

Authors

Robert Klingler

JOBS Act Timing – Regulation D and Shareholder Thresholds

March 29, 2012

by: Robert Klingler

On March 27, 2012, the House of Representatives approved the version of the JOBS Act, as amended by the Senate, by a vote of 380 to 41.  Accordingly the legislation has been sent to President Obama for signature, who has previously indicated his support of the legislation.  The White House has indicated that the President anticipates signing the JOBS Act early in the week of April 2, 2012.

The text of the final JOBS Act is available here.  We have previously summarized the provisions of the JOBS Act generally applicable to the community banks, as well as the impact of the Senate amendment to the JOBS Act.  In this post we focus on the timing implications for effectiveness of the amendments to Regulation D and shareholder thresholds for SEC registration and deregistration.

With regard to Regulation D, Section 201 of the JOBS Act requires the SEC

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Senate Adopts Slightly Amended JOBS Act Bill

March 22, 2012

Authors

Robert Klingler

Senate Adopts Slightly Amended JOBS Act Bill

March 22, 2012

by: Robert Klingler

On March 22, 2012, the U.S. Senate adopted H.R. 3606, the Jumpstart Our Business Startups Act (a.k.a., the JOBS Act) by a vote of 73 to 26.  Prior to its passage, the U.S. Senate adopted Amendment 1884 proposed by Senators Merkley and Brown that replaced the “Crowdfunding” exemption contained in the house-passed legislation with a narrower provision.  As the Senate and the House have adopted different versions, the House will have to consider and pass the Senate amendment before a bill could become law, or convene a conference committee to reconcile the House and Senate versions of the bill.  (The Senate rejected by a voice vote Amendment 1931 proposed by Senator Reed that would have changed the SEC’s shareholder counting rules from record holders to beneficial owners.)

As the bulk of the JOBS Act was approved without change, our summary of the impact of the JOBS Act on

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Impact of Proposed JOBS Act on Community Banks

March 21, 2012

Authors

Robert Klingler

Impact of Proposed JOBS Act on Community Banks

March 21, 2012

by: Robert Klingler

While still in proposed form, and subject to significant political uncertainty, we offer this summary of the impact of the Jumpstart Our Business Startups Act (a.k.a., the JOBS Act).  This summary is based on the version that passed the House on March 8, 2012, and was brought to the Senate floor on March 19, 2012.  On March 20, 2012, the Senate failed to achieve sufficient votes to substitute the JOBS Act for the INVEST in America Act of 2012 (technically, it would have been the “Invigorate New Ventures and Entrepreneurs to Succeed Today in America Act of 2012,” but I think the acronym is a LOT better in this case), which contained some similar, but not identical, provisions.  Accordingly, it appears that the JOBS Act, as adopted in the House, may be voted upon by the Senate this week.

Emerging Growth Companies

The bulk of the JOBS

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Senate Adopts Small Business Lending Fund

September 23, 2010

Authors

Robert Klingler

Senate Adopts Small Business Lending Fund

September 23, 2010

by: Robert Klingler

On September 16, 2010, the Senate adopted H.R. 5297, the Small Business Jobs Act of 2010, which includes the creation of the $30 billion Small Business Lending Fund.  The House passed the Senate’s version of the bill in full on September 23, 2010, thereby sending it to President Obama for his signature.  This legislation would (finally) implement the program described in President Obama’s State of the Union address (and first announced almost one year ago) from the beginning of the year to provide additional funds to community banks to lend to small businesses.

The version of the legislation is generally comparable to the version the Senate began considering in July but contains many differences from the version previously adopted by the House in June.  Most significantly, the Senate-adopted bill does not permit eligible institutions to amortize losses and write-downs on certain OREO and NPAs secured

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Senate Considering $30 Billion Small Business Lending Fund for Community Banks

July 6, 2010

Authors

Bryan Cave

Senate Considering $30 Billion Small Business Lending Fund for Community Banks

July 6, 2010

by: Bryan Cave

On June 29, 2010, the Senate voted to commence debate on the Small Business Jobs and Credit Act of 2010, a bill passed by the House on June 17, 2010 which includes a $30 billion fund for small business lending through the provision of capital to community banks. This legislation would implement the program described in President Obama’s State of the Union address earlier this year.  Obama has promoted the program by saying that it “takes money repaid by Wall Street banks to provide capital for community banks on Main Street” that can in turn help small businesses create jobs. In the latest version of the bill presented to the Senate,  certain banks with less than $10 billion in assets would be eligible for government infusions of capital, dividend payments on which would decrease with increasing levels of small business lending.  Banks are also generally permitted to use

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