SDBA eNews: April 30, 2015

In This Issue

Plan to Attend SDBA 2015 IRA School

IRAs still have unlimited potential. Fewer people are qualifying for pension, and more than 50 percent of all employees work for an employer that doesn’t offer any type of retirement plan. IRAs are the alternative, so let’s work together to see how we can increase your IRAs.

The SDBA is offering the 2015 IRA School Sept. 9-11 at the Clubhouse Hotel & Suites in Sioux Falls. Learn about possible changes that will affect IRAs. The school will cover: traditional IRA, Roth IRA, health savings accounts, SEP-IRA and

Be watching for more details.

Webinar: Tips To Build a Better Board Package

The buzz about interest rates is sure to be a hot topic at your next board meeting. But you don’t want your board to get stuck on that topic alone. There is a lot of other content to cover and plenty of key decisions to make.

If you’re interested in keeping board members engaged and focused on relevant decision-making, register for Banker's Dashboard's upcoming webinar Banishing Boardroom Boredom: Tips for better board packages. The webinar will be held on May 1 p.m. CDT.

The webinar will cover how to keep board members engaged and focused on strategy and how to use live performance data to engage board members. Other topis include how to demonstrate performance models based on assumptions, such as interest rate movements, and how to save 20-30 hours of time while improving the accuracy of the board package.

Learn more and register.

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Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.

ABA, Financial Groups Caution on Patent Troll Bill

Patent troll legislation currently before the House Energy and Commerce Committee does too little to protect banks and other businesses from abusive patent infringement claims, ABA and several other trade groups said on Tuesday. Moreover, the bill would replace several states’ stronger standards with a weak nationwide approach to combating patent trolls.

The legislation the committee is considering would require recipients of abusive demand letters -- which assert vague or unclear patents on widely used processes or technologies in order to extract “licensing” fees from businesses -- to show that the patent troll sent the letter in “bad faith.”

The definition of bad faith “is a very difficult standard to meet and would make the transparency requirements virtually unenforceable,” the groups said. Instead, the groups yesterday urged the committee to adopt an amendment from Rep. Joe Barton (R-Texas) that would replace the narrow definition with a set of objective factors.

Meanwhile, they wrote, the bill would preempt and nullify more “constructive” state laws, but “[i]t does not make sense to do this and then put in place a weaker and ineffective federal standard,” the groups added. Read the bill letter. Read the amendment letter.

Neugebauer to Introduce Bipartisan Data Security Bill

Rep. Randy Neugebauer (R-Texas) said yesterday at an industry event that he plans to introduce a bill to enhance data security standards and post-data breach notification requirements. Neugebauer, a senior member of the House Financial Services Committee, said he would introduce the bill with Rep. John Carney (D-Del.)

Data security is a topic that touches on the jurisdiction of numerous congressional committees. "One of the things I’m trying to do with my bill is stay in the jurisdiction of my committee," Neugebauer said, adding that if he included provisions beyond the Financial Services Committee’s mandate, it would slow down the process.

He said the bill would be similar to the ABA-advocated S. 961, introduced by Sens. Tom Carper (D-Del.) and Roy Blunt (R-Mo.) to strengthen data security standards for all participants in the payments system and recognize the high standards for data security and breach notification already employed by the banking industry.

Discover Cardholders to Gain Apple Pay Access

Discover on Monday announced that its cardholders will be able to use Apple Pay starting this fall. The move will allow financial institutions that issue Discover Debit cards to give their customers access to Apple Pay, the company said. ABA endorses Discover Debit for signature debit.

“As the mobile payments landscape matures, Discover remains committed to giving cardmembers secure options for using their cards and mobile devices,” said Discover president of payment services Diane Offereins. “Discover’s focus on simplicity and value for our cardmembers aligns well with the way Apple Pay makes purchases easy and convenient.”

Apple Pay uses contactless technology to facilitate payment convenience and tokenization to make transactions more secure at the point of sale by avoiding transmitting customer card data to the merchant or storing it on the device. Apple Pay users can pay using late model iPhone and iPad models and Apple Watches.

FDIC Unveils 'Money Smart' Curricula for Youth

The FDIC last week unveiled Money Smart for Young People, a set of four financial education curricula aimed at young people from pre-kindergarten through high school.

Each curriculum -- targeted for a particular age range -- includes lesson plans and videos to help teachers integrate financial literacy into math, language arts and social studies. Money Smart for Young People also includes guides for parents and caregivers to complement classroom instruction with training at home. Access Money Smart for Young People.

ABA’s Teach Children to Save program also offers bankers, teachers and parents free resources for delivering financial education at any time via

New Infographic Shows How Farm Credit Lost Its Way last week posted a new infographic, “Betting the Farm,” that illustrates how the Farm Credit System has lost its way, providing credit for big non-farm businesses at the expense of small farmers and American taxpayers.

Lowlights of the FCS tour include its 1987 bailout, $8 million to finance a golf course (one of many), a $750 million financing agreement for the Cracker Barrel restaurant chain, and a $1.7 billion set of deals to fund telecommunications giants.

The infographic makes the case that “the stakes are getting too high,” noting that a bailout today comparable to the 1987 one would cost taxpayers $28.3 billion. View the infographic. Learn more at

ABA Supports Bills on Rural Designations, SEC Registration Threshold

ABA last week wrote to Congress to urge support for two recently introduced bills. S. 871, introduced by Sens. Dean Heller (R-Nev.), Shelley Moore Capito (R-W.Va.) and Rand Paul (R-Ky.), would establish a process for designating an area rural for purposes of Consumer Financial Protection Bureau exemptions. It is a companion to a bill that the House passed recently by a near-unanimous vote.

ABA also urged the House to pass the bipartisan H.R. 1334, which would correct a technical error by treating savings and loan holding companies the same as bank holding companies for purposes of registration and deregistration under the Exchange Act. ABA noted that this measure passed the House in the last Congress by an overwhelming vote. Read the letter on S. 871.  Read the letter on H.R. 1334.