As older Americans—those born before 1965—hold 65% of deposit balances in the U.S., banks have continued to offer more products with terms that are favorable to them, according to the ABA Foundation’s 2021 Older Americans Benchmarking Report released yesterday.

Dusty Pinske, First Interstate Bank, Rapid City, has been appointed to the Board of Directors for the South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry. SDBA Chair Kristina Schaefer, First Bank & Trust, Sioux Falls, appointed Pinske to fill a vacant seat on the SDBA Board of Directors through April 30, 2022.

Pinske has been with First Interstate Bank for 24 years (12 with First Western Bank and 12 with First Interstate Bank). She has worked at numerous First Interstate Bank locations in South Dakota and has held many positions including mortgage lending, small business lending and branch management. Pinske’s current role is VP, Retail Manager III for the bank’s Rapid City market. She enjoys building strong teams that work well together to achieve common goals.

A group of 21 Democratic representatives wrote to House leadership yesterday calling for the removal of the Biden administration’s controversial proposal for financial institutions to report information on gross inflows and outflows on all accounts above a certain de minimis threshold. “We respectfully request that this proposal be withdrawn from further consideration in favor of a more targeted approach,” the lawmakers wrote to House Speaker Nancy Pelosi (D-Calif.) and House Ways and Means Committee Chairman Richard Neal (D-Mass.).

Eighty-five emerging bank leaders from across the state gathered in Sioux Fall yesterday for the SDBA's NEXT STEP: Emerging Leaders Summit. The annual event is designed to help cultivate, connect, engage and empower South Dakota’s future bank leaders.

Topics at this year's event included the challenge of leadership, having tough conversations in the workplace, what not to say to handle complex and diverse situations, lessons in leadership, banking in the time of COVID-19 and self management versus crisis management. The event also included ignite sessions presented by five emerging bank leaders, speed networking and a reception the evening prior at Hotel on Phillips. 

Looking for ways to recruit new bankers to your organization? The Sound Dakota Bankers Foundation can help. Don’t miss out on the opportunity to apply for a $2,000 scholarship to award to a potential future banker.

Applications must be submitted through the parent bank, however, scholarships may be awarded through any of your organization’s locations. These scholarships must be awarded to South Dakota college juniors/seniors with an expressed interest in banking/financial services or second-year South Dakota technical school students with an expressed interest in banking/financial services. 

U.S. Sen. John Thune (R-S.D.) on Tuesday reiterated his strong opposition to Democrats’ proposal to double the size of the IRS and monitor everyday Americans’ bank accounts to offset the cost of additional spending programs in the American Families Plan.

In September, Thune led a letter to Senate Majority Leader Chuck Schumer (D-N.Y.) urging him to abandon the Biden administration’s unprecedented proposal to expand the reporting of the private, confidential financial data of law-abiding Americans from financial institutions to the Internal Revenue Service (IRS). Thune’s letter was signed by every Republican member of the Senate Committee on Finance and the Senate Committee on Banking, Housing, and Urban Affairs.

Natalie Likness is the newest face at the SDBA, having joined the Association on Oct. 12 as its member services coordinator.

By Karlton Adam, President and CEO, South Dakota Bankers Association

The Biden administration is proposing a sweeping expansion of tax information reporting aimed at raising revenue to help offset the cost of additional spending programs in the American Families Plan. If enacted, the proposal would require banks to report to the IRS detailed information on the inflows and outflows of every customer account above $600. Every South Dakotan should be concerned with this significant expansion of government data collection and abuse of consumer privacy.

The SDBA will hold the IRA Update Seminar on Nov. 4 at Hyatt Place, Sioux Falls South in Sioux Falls. This seminar builds on the attendees’ knowledge of IRA basics to address some of the more complex IRA issues their financial organizations may handle. The course will also include all changes that have occurred and discuss any pending legislation. This is a specialty session; previous IRA knowledge is assumed. The instructor uses real-world exercises to help participants apply information to job-related situations.  Learn more and register. 

Federal Reserve Governor Michelle Bowman, a onetime Midwest community banker, spoke about her outlook for the U.S. economy and what the Federal Reserve has been doing to support economic activity during the COVID-19 pandemic recovery during a presentation at South Dakota State University in Brookings last evening. She also touched on what she has learned of the economic conditions in South Dakota from meeting with business and community leaders throughout the state this week.

Bowman made a pre-dawn visit to Mount Rushmore on Tuesday while en route to the Pine Ridge Indian Reservation. Later on Tuesday, she met with state, business and tribal leaders in Pierre, including a visit with SDBA President Karl Adam and area agribusiness leaders at the SDBA's office. She also met with a group of SDBA bankers in Brookings yesterday prior to speaking to the public Tuesday evening as part of the Dykhouse Scholar Program in Money, Banking and Regulation in the Ness School of Management and Economics at SDSU.

House Speaker Nancy Pelosi (D-Calif.) told reporters on Tuesday that Democrats plan to include a controversial tax reporting provision in their budget reconciliation package that would require banks to report information to the Internal Revenue Service on gross inflows and outflows on customer accounts above a certain de minimis threshold.

Pelosi did not specify what the threshold would be, though Democrats have eyed a $10,000 threshold in recent days, up from the $600 threshold originally proposed by the Biden administration. Despite Pelosi’s remarks, House Democrats have not yet agreed on the details of a final reconciliation package, and no vote has been scheduled at this time. Any final version will have to also clear the U.S. Senate, where some Democrats are pushing for a smaller package.

As part of October’s Get Coin Moving Month, the U.S. Coin Task Force—of which ABA is a member—is urging Americans to return their dormant coins into circulation. There is currently $46.8 billion in coins in circulation, according to the task force, but much of it is sitting unused in 128 million households.

The U.S. Postal Service (USPS) last month quietly launched a pilot program in four U.S. cities offering expanded financial services at certain post office locations in Washington D.C., Baltimore, Falls Church, Va., and the Bronx, New York according to news reports. Consumers may now access check-cashing services at these locations, and USPS is contemplating piloting additional offerings such as bill paying services, ATM access, expanded money order capabilities and expanded wire transfer capabilities, according to reports.

Failing to raise the debt ceiling and allowing the U.S. to default on its debt would have potentially catastrophic consequences for the economy and for Americans, CEOs of the nation’s largest banks told President Biden yesterday at a White House event. “America simply cannot default on the debt because the U.S. Treasury market is the bedrock of our financial system, domestically and globally,” said Citi CEO Jane Fraser. “Defaulting is going to cause lasting damage to the credibility of the U.S. with investors and markets around the world.”

Beyond that, Fraser added that a default “will hurt consumers, it will hurt small businesses. It’s not an exaggeration to say that even small distortions in the Treasury market can cost taxpayers tens of billions of dollars over many years.” JPMorgan Chase Chairman and CEO Jamie Dimon added that “an actual default would be unprecedented,” and that the “effects would be cascading,” and could range anywhere from “recession to a complete catastrophe for the global economy.” Dimon advocated for the removal of the debt ceiling, noting that “we don’t need to have this every couple of years.” Bank of America Chairman and CEO Brian Moynihan also participated in the meeting.

The Small Business Administration has issued a final rule outlining procedures for appealing final SBA Paycheck Protection Program loan review decisions to its Office of Hearings and Appeals. The final rule mostly adopts the procedures established in a previously issued interim final rule from August 2020, with minor changes. Most significantly, under the final rule, a timely appeal by a PPP borrower of a final SBA loan review decision will extend the deferment period of the PPP loan. Previously, a timely appeal did not result in deferral of payment under the PPP loan.

With President Biden issuing vaccine mandates for some employers, ABA has published a members-only set of frequently asked questions that breaks down whether the mandates apply to banks.

This week, Sen. John Thune lead his colleagues, including Sen. Mike Rounds, in sending a letter to Senate Majority Leader Chuck Schumer (D-N.Y.) requesting that Democrats abandon the Biden administration’s unprecedented proposal to expand the reporting of the private, confidential financial data of law-abiding Americans from financial institutions to the Internal Revenue Service (IRS). The administration’s proposal would force financial institutions to report customer information such as gross inflow and outflow information and transaction information directly to the IRS.

“This proposal represents a radical departure from existing reporting requirements associated with national security and actual taxable events,” the senators wrote. “Placing more requirements on financial institutions would not only adversely affect these institutions and their customers—who ultimately pay the price for compliance costs—but it would also inundate the IRS with layers of new paperwork and taxpayer data that is either redundant or irrelevant to improving federal tax compliance, as account inflows and outflows are not taxable events.”

The Graduate School of Banking in Wisconsin will offer the hot topic online seminar "New FFIEC Guidance—the Architecture, Infrastructure and Operations (AIO) Booklet on Wednesday, Sept. 29, at 2 to 3:30 p.m. CDT.

The SDBA will hold its 2021 IRA School next week live in Sioux Falls at the Clubhouse Hotel & Suites and has added a virtual option to attend the school.

Join banking industry peers and industry leaders from across the country for a virtual meeting with banking regulators and ABA policy experts next Monday to Wednesday, Sept. 27-29.

The ABA is hosting this year’s Washington Fly-in, in partnership with state bankers associations, to ensure policies critical to the banking industry remain front and center to agency officials and to provide a forum for bankers' questions. Don’t miss this opportunity to speak directly with regulators about the need for common-sense policies and smart reform that will help America’s banks better serve their communities and grow the economy.