Happy Holidays from the SDBA

Wishing You a Happy Holiday Season from the SDBA Whatever is beautiful. Whatever is meaningful. Whatever brings you happiness. May it be yours this holiday season and throughout the coming year.

During the holiday season, the SDBA likes to thank our membership by making donations to worthy causes. This year, we made donations to Make-A-Wish South Dakota and Capital Area United Way.

The team at the SDBA wishes you holidays filled with fun and laughter and very best wishes for a prosperous new year. View our holiday message.

Court Reinstates Vaccine Mandate; OSHA Sets New Compliance Dates

Late last Friday, a three-judge panel of the Sixth Circuit Court of Appeals, in a two-to-one decision, lifted a judicial stay of the COVID-19 vaccine mandate issued by the Occupational Safety and Health Administration. OSHA immediately announced set new dates by which employers must come into compliance with the vaccine mandate.

The agency said it will not issue citations for non-compliance with any aspect of the vaccine mandate before Jan. 10 and that it will not issue any citations for non-compliance with the mandate’s testing requirements before Feb. 9 “so long as the employer is exercising reasonable, good faith efforts to come into compliance with the standard.” The mandate requires employers with 100 or more employees to in turn require their employees be vaccinated or tested weekly for COVID-19. Unvaccinated employees also would be required to wear a mask when indoors except when alone in a private office.

The states and private entities that have challenged OSHA’s vaccine mandate are expected to seek review of the Sixth Circuit panel’s decision by the full circuit court. The Sixth Circuit’s final action in this case is also expected to be appealed to the Supreme Court.

Read the Sixth Circuit panel’s decision.
Read OSHA’s new compliance dates.
For more information, contact ABA’s Tom Pinder or Jonathan Thessin.

GOP Senators Sound Alarm on Maneuvers by FDIC Board Members

A group of 12 GOP Senate Banking Committee members wrote to President Biden last week raising concerns about the recent conflict between FDIC board members, which stemmed from the desire of at least two of the FDIC board’s four members to release a request for information about the agency’s bank merger procedures. CFPB Director Rohit Chopra sought to have the FDIC board vote on the RFI during a board meeting this week, but FDIC Chairman Jelena McWilliams ruled the motion out of order, stating that “it doesn’t comply with the previously stated information received from the general counsel about the legitimacy of that action.”

The lawmakers expressed serious concern over these attempts to circumvent the authority of a sitting FDIC chairman. “Director Chopra and Director Gruenberg’s statement and actions make clear that they violated FDIC procedures with the apparent goal of usurping the powers of the chairman and inhibiting her ability to carry out her official duties and responsibilities,” they wrote. “In addition to violating the FDIC bylaws and processes, their actions upended an 88-year tradition of the FDIC board working on a collegial basis with its chairman as well as working independent from partisan political influence.”

They also called on the President to “nominate promptly a candidate to replace Director Gruenberg, as well as a candidate to fill the vacant vice chairman position on the FDIC board.” Gruenberg has been on the board since 2005, first as vice chairman and then as chairman, but his most recent six-year term expired three years ago.

ABA continues to emphasize the importance of an independent FDIC and an orderly, transparent policymaking process and noted in a letter earlier this week that “it is vital from a governance and regulatory expectations standpoint that federal banking agencies not create ambiguity about what constitutes an official action.” Read the lawmakers' letter.

DOJ Seeking Public Comments on Bank Merger Guidelines

As part of the Biden administration’s broader competition initiative, the Department of Justice last Friday announced it is seeking public feedback on potential revisions to its 1995 bank merger competitive review guidelines. DOJ noted that with this request for comments, it is focusing on “whether bank merger review is currently sufficient to prevent harmful mergers and whether it accounts for the full range of competitive factors appropriate under the laws.”

Specifically, DOJ is seeking input on the extent to which its competitive scrutiny of bank mergers should apply standards and incorporate factors beyond those applicable to other industries, as well as feedback on what factors should be considered, how should they be incorporated into the review process and any additional remedies DOJ should consider obtaining.

This request builds on a 2020 request for feedback, through which DOJ sought information on the inclusion of non-traditional banks and nonbanks in its merger guidelines, among other things. ABA filed comments in response to the first request and is seeking input from bankers as it considers its next response. To join ABA's banker working group on this issue, contact ABA’s Hu Benton. Read more. Read ABA's previous comment letter.

ABA Updates #BanksNeverAskThat with Holiday Scam Resources

With fraud and phishing scams on the rise during the holiday season, ABA has added several new, holiday-themed posts to its #BanksNeverAskThat toolkit. Banks can use these resources to help educate their customers on common phishing tactics and how to protect their personal information.

All banks can register for free to participate in ABA’s award-winning campaign. Once registered, banks will have access to the full toolkit, which includes ready-to-use graphics, social posts, digital signage, printables and more. The toolkit may be co-branded, bank-branded or ABA branded. Register for #BNAT.

Scholarships Available for Graduate Banking and HR Management Schools

Scholarships are available to South Dakota bankers planning to attend their first year of the Graduate School of Banking in Wisconsin and the Graduate School of Banking in Colorado.

The Prochnow Educational Foundation in conjunction with the SDBA offers a scholarship at the Graduate School of Banking in Wisconsin. The scholarships pay $1,500 (approximately one-third) of the annual tuition for each of three GSB resident sessions, for a total value of $4,500. Applicants must be entering their freshman year at GSB. The 2022 school will be held July 31 to Aug. 12 at the University of Wisconsin in Madison, and the deadline to apply for the scholarship is May 2. Learn more.

A Future Leaders Scholarship is offered through the SDBA for the Graduate School of Banking at Colorado and awarded to one banker per state, per year. The scholarship amount is $1,500 per year, and recipients must be enrolled as a first-year student. The 2022 school will be held July 17-29 at the University of Colorado in Boulder, and the deadline to apply for the scholarship is March 1. Learn more.

A scholarship is available for the GSB Human Resource Management School at the University of Wisconsin in Madison. The scholarship pays $1,050 toward tuition for the one-week school. The 2022 school will be held April 4-8, and the deadline to apply for the scholarship is Feb. 1. Learn more.

If you have questions on the scholarships, contact the SDBA's Halley Lee.

SDBA to Offer Virtual Breaking into Banking 101 Seminar

Commercial banking can be intimidating because of its complexity and the risk-oriented nature of the work. The SDBA will offer the virtual Breaking into Banking 101: Fundamentals of Commercial Banking on Feb. 23 via Zoom.

This course is a clear and thorough introduction to the key concepts, terminology and processes involved in credit and lending. It doesn’t assume much prior knowledge of the topic, so it’s ideal for those in their first year in the industry. Learners will walk away with a clear understanding of their job and how their specific role fits into the bank’s overall profitability goals. Learn more and register.

ABA Washington Summit to Be Held In Person and Virtually

Make plans to attend the ABA’s Washington Summit on March 7-9 either in person or virtually to make your voice heard by policymakers on Capitol Hill, at the regulatory agencies and in the White House. You’ll hear directly from these decision makers about the major issues facing your bank, your customers and your communities.

Don't miss these additional key ABA events that will help you stay a step ahead and build lasting industry connections:

Mutual Community Bank Forum on March 6-7: Be a part of the largest gathering of mutual bankers and explore the challenges faced by your institution.
Emerging Leaders Forum on March 7: Share challenges and strategies with peers as you work to cultivate a strong, dynamic and diverse banking industry for the future.
Women and Allies Sessions and Networking Lunch on March 9: Join women leaders and allies in elevating women’s leadership in financial services. ABA is bringing the great content and networking of the Women’s Leadership Forum to a bigger stage. No separate registration required.

Learn more about the Washington Summit and additional key events.

Compliance Alliance logo

Question of the Week

Question: Our bank utilizes the exception notice for the Regulation V, risk-based pricing credit score disclosures. If a loan applicant withdraws the loan request, is the bank still required to deliver the credit score exception notice to the applicant?

Answer: Regulation V, § 1022.72, only requires providing the risk-based pricing notice for loans where the terms of credit are set in accordance with the applicant’s credit score. Therefore, there is no requirement to provide the notice for loans that are not approved.

Regulation V, § 1022.72 - https://www.consumerfinance.gov/rules-policy/regulations/1022/72/

Not a member? Learn more about membership with Compliance Alliance by attending one of our live demos:

Tuesday, Dec. 28, 10-11 a.m. CST

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email and ask for our Membership Team.

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