SDBA eNews

January 6, 2022

McWilliams to Resign from FDIC

FDIC Chairman Jelena McWilliams last Friday announced that she will resign from the agency on Feb. 4. Her resignation comes following a conflict among the FDIC’s directors over the powers of the agency’s chairman and board. Former FDIC Chairman and current board member Martin Gruenberg is expected to become acting chairman.

“When I immigrated to this country 30 years ago, I did so with a firm belief in the American system of government,” McWilliams said in her resignation letter to President Biden. “It has been a tremendous honor to serve this nation, and I did not take a single day for granted. Throughout my public service, I have been constantly reminded how blessed we are to live in the United States of America.”

ABA President and CEO Rob Nichols thanked McWilliams for her service. “In leading the FDIC since 2018, she has worked hard to build consensus around sound banking policies. Her efforts during the ongoing pandemic have allowed banks of all sizes to serve as a source of strength for the economy, while maintaining their commitment to safety and soundness,” he said. “We appreciate her willingness to listen to all stakeholders in addressing policy issues, and particularly appreciate her strong support for initiatives to reduce the number of unbanked Americans and promote financial inclusion.”

Late in 2021, following a purported notational vote, at least two other FDIC directors sought to release a request for information about the agency’s procedures for reviewing bank mergers. McWilliams and the FDIC’s general counsel argued that the agency’s chairman is in charge of the board’s agenda and the activities of the FDIC staff; in a Wall Street Journal op-ed last month, McWilliams described the effort as “a hostile takeover of the FDIC internal processes, staff and board agenda.”

Supreme Court to Hold Vaccine Mandate Oral Argument Tomorrow

The Supreme Court will hold oral argument tomorrow in the challenge to the employer vaccine mandate issued by the Occupational Safety and Health Administration. The mandate requires employers with 100 or more employees to ensure staff is vaccinated or tested weekly for COVID-19, among other requirements.

In December, a three-judge panel of the Sixth Circuit Court of Appeals lifted a judicial stay of the vaccine mandate. In response, OSHA stated that it will not issue citations for noncompliance with any aspect of the vaccine mandate before Jan. 10 and will not issue any citations for noncompliance with the mandate’s weekly testing requirements before Feb. 9 “so long as the employer is exercising reasonable, good faith efforts to come into compliance with the standard.”

In mid-December, business groups challenging the vaccine mandate filed an application with the Supreme Court for an emergency stay of the mandate. The Jan. 7 court date indicates that the Court is not likely to act on the stay requests until after that date. Read ABA’s staff analysis of the mandate. For more information, contact ABA’s Tom Pinder or Jonathan Thessin.

SDBA Prepares for 2022 South Dakota Legislature

Photo of State CapitolThe 2022 South Dakota Legislature opens on Tuesday, Jan. 11, in Pierre and is a 38-day session. The main run of the session ends on March 10, with March 28 reserved for consideration of gubernatorial vetoes. For the full legislative schedule, listing of bills, committee schedules and legislators’ contact information, visit the South Dakota Legislative Research Council’s website.

The SDBA Board of Directors and Legislative Committee met on Dec. 2, 2021, in Fort Pierre to discuss potential legislation that could be introduced during the 2022 South Dakota Legislature. Topics discussed included potential legislation dealing with the Second Amendment and banks restricting business with the firearms industry, cannabis, COVID-19 vaccination mandates, the state’s Appraiser Experience Training Program, provisions for virtual currency, IRS bank data collection, the state’s bank franchise tax, workforce housing, priority liens, long-term bank financing of manufactured homes and property assessed clean energy financing.

Bankers can stay current on legislative issues of importance by reading or listening to a podcast of the SDBA’s weekly Legislative Update and reading the Legislative Bill Watch. Publications are posted at online on Fridays during session. You can also request to receive email notifications when the publications are posted online by contacting Alisa Bousa.

Bankers can stay up-to-date on legislation which could affect the banking industry, visit with state legislators and constitutional officers, and make sure our industry is heard by attending the SDBA State Legislative Day on Feb. 9 in Pierre. Learn more and register to attend.

SDBA Conducting Annual Banks Make a Difference Survey

South Dakota Banks Make a Difference SurveyThe SDBA is calling on member banks to participate in its annual South Dakota Banks Make a Difference Survey, which provides a glimpse into how banks work every day to help South Dakotans grow and prosper. On Monday, the SDBA sent the survey link to all SDBA member bank CEOs and the person at each bank who completed last year's survey. 

The Association requests that banks supply basic data for calendar year 2021, or for the most recent 12-month period for which the bank has data available. The SDBA will present the findings during its State Legislative Day on Feb. 9.

SDBA is also requesting short narratives and photos of banks’ community service projects. If your bank has a community service project from this past year that you would like to be included, please submit a short narrative describing the project. If you have a photo of the project, email it to Alisa Bousa.

The names of all banks that participate in the survey will be listed in the survey piece. Banks do not need to answer all of the questions in order to be listed. All individual information will be kept confidential as to the amounts disclosed in any of the categories. Last year, responses were compiled from 34 SDBA member banks. The results of last year’s survey can be viewed online.

The deadline to participate in the survey is Jan. 28. If you have any questions on the project, contact Alisa Bousa via email or 605.224.1653.

New Article Spotlights Top Bank Risks for 2022

Changing client practices, supply chain issues, third-party relationships and cybersecurity top the list of bank risk priorities for 2022, according to a new article in the forthcoming January/February 2021 issue of the ABA Banking Journal. Additional risks for banks this year include shifting regulatory priorities as well as asset liability management and interest rate risk management.

Customers discovered they like the convenience of newly-launched digital channels and banks suddenly risked losing accounts if their digital game wasn’t top notch, writes author Julie Knudson. Industries that wouldn’t normally be affected by supply chain issues are feeling the pinch and the effects are rippling downstream in unanticipated ways. Due to increases in digital adoption driven by the pandemic, third-party vulnerabilities to ransomware and cyberattacks will also be high on the risk list for 2022.

“Given the uncertainty that’s still in front of us and the rapid changes we’re having to deal with, whether they’re internal or external circumstances, I think risk management oversight and decisioning has moved into a position that’s more critical for bank success than ever before,” says ABA SVP Ryan Rasske, who is quoted in the story. Read the article.

SDBA President Loses Bet Against MSU Bobcats

Photo of Karl Adam and Cary Hegreberg.

SDBA President Karl Adam made a friendly wager with Montana Bankers Association President Cary Hegreberg on last month’s MSU/SDSU football game. The Montana State University Bobcats beat the South Dakota State University Jackrabbits 31-17 to advance to the national championship.

According to the terms of the agreement, the winner sent a mascot coffee cup to the loser who had to put a photo of himself drinking from the mug in their newsletter and keep the mug on their desk for a year. Adam received his Bobcats mug and will be rooting for the Bobcats on Saturday for the FCS national championship when they take on the North Dakota State Bison in Frisco, Texas. 

ABA to Host Webinar on Market Outlook, Factors Affecting Investments in 2022

ABA will host a webinar on Jan. 19 at 1 p.m. CST about the market outlook and factors affecting investments in 2022. During the webinar, Baylor University adjunct professor of finance and retired Wells Fargo Private Bank Chief Investment Officer Erik Davidson will share insights for guiding clients through uncertainty and market turbulence.

Davidson will also discuss ideas for ensuring clients feel their goals and fears are being heard and implemented in the context of current market turbulence. Attendees are eligible for 1.25 Certified Trust and Fiduciary Advisor credits and 1.2 CPA (specialized knowledge) continuing professional education credits. Register now.

Registration Open for NDBA/SDBA Bank Management Conference

Does the biting cold of January have you thinking about a sunny getaway? Registration is open for the NDBA/SDBA Bank Management Conference on Feb. 18-19 in Scottsdale, Ariz.

Join banking colleagues to hear from experts on:

  • Top Trends for Banking
  • The Case for Crypto Currency
  • Battling Cybercrime and Persistent Phishing
  • The Hottest Mobile Banking Apps
  • Perspective on Market Conditions in 2022
  • Championing Servant Leadership

The deadline to register for the conference is Jan. 21. Learn more and register.

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Contact Alisa Bousa, SDBA, at 605.224.1653 or via email.