SDBA to Hold IRA Update Seminar

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 Visits South Dakota, Speaks with Bankers

Photo of Federal Reserve Governor Michelle Bowman visiting SDBA. 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.

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Pelosi: Budget Reconciliation Package to Include Tax Reporting Provision

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.

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U.S. Coin Task Force Urges Increased Circulation of Coins

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.

"Returning coins into circulation by spending them, or depositing or exchanging them at banks or kiosks will make a meaningful difference for the millions of American people and businesses that rely on coins to support cash transactions,” the task force said.

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U.S. Postal Service Launches Financial Services Pilot Program in Select Cities

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.

Offering postal banking services on a larger scale would require congressional authorization. However, the pilot program marks a concerning first step toward enabling USPS to enter the banking business. ABA has long been a vocal opponent of postal banking and has previously noted that it could be perceived as a government-endorsed provider competing with taxpaying banks and would create risks that USPS is ill-suited to manage.

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Biden Meets with Bank CEOs, Business Leaders to Discuss Debt Ceiling

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.

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SBA Issues Final Rule on PPP Loan Review Decision Appeals Process

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.

Under the final rule, borrowers have 30 days to appeal their loan review decision. The rule specified that “the clock for counting days will begin only after the borrower has received the actual final SBA loan review decision document.” The final rule also made several additional changes to streamline the appeal filing process.

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ABA Issues FAQs on Vaccine Mandates

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.

The federal government’s Safer Federal Workforce Task Force issued guidance last week that requires COVID-19 vaccination of all employees of federal contractors by Dec. 8, unless the employee is legally entitled to an accommodation for a disability or sincerely held religious belief, practice or observance. Banks that conduct business with the federal government or that have branches on military bases or other federal property are subject to the executive order and guidance. Read the guidance

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Sen. Thune Fights Proposal that Would Burden Banks and Compromise Customers' Privacy

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 costsbut 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.”

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GSB to Offer Hot Topic Online Seminar on New FFIEC AIO Booklet

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.

Released on June 30, this new guidance completely overhauled the previous IT "Operations" booklet from 2004. The new AIO booklet is a much-needed, modern take on how to manage IT operations at a financial institution and includes many new and forward-looking regulatory expectations.

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SDBA to Offer Next Week's IRA School Live in Sioux Falls and Virtually

IRA School image. 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.

Days one to three of the school, Sept. 28-30, will cover new and current IRA material, and previous topics covered at the school will be expanded. The optional day four, Oct. 1, is for anyone who is involved indirectly or directly in IRA operations, reporting, auditing or compliance and will cover how the SECURE Act will affect bank operations. 

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ABA to Hold Virtual Washington Fly-In

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. 

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Yellen Keeps Up Push for IRS Reporting Proposal in Spending Bill

Treasury Secretary Janet Yellen this week called on House Ways and Means Committee Chairman Richard Neal (D-Mass.) to include in the reconciliation package the Biden administration’s controversial provision that would require financial institutions to report information to the IRS on gross inflows and outflows on customer accounts above a de minimis level of $600—a provision strongly opposed by ABA.

In a letter to Rep. Neal, Yellen claimed that the proposals “were designed to ensure that there will be no increase in taxpayer burden associated with this regime” and that “for already compliant taxpayers, the only effect is a distinct benefit—a lowered likelihood of costly and burdensome audits.” In addition, the letter claimed that the provision is “designed to minimize costs for financial institutions.”

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First Interstate Bank to Partner with Great Western Bank

First Interstate Bank, headquartered in Billings, Mont., yesterday announced a definitive agreement to partner with Great Western Bank (GWB), which is headquartered in Sioux Falls.

Under the terms of the agreement, which was unanimously approved by both parties’ Boards of Directors, the companies will unite under the First Interstate name and brand. Pending regulatory and shareholder approvals, the transaction is expected to close during the first calendar quarter of 2022; the conversion of GWB branches to First Interstate is expected to take place during the second calendar quarter of 2022.

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SDBA's Fourth Annual Women in Banking Conference a Success

Photo of Women in Banking Conference attendees.Two hundred bankers from across the state came together in Sioux Falls for the SDBA's fourth annual LEAD STRONG: Women in Banking Conference. The event is designed to encourage, support and inspire women to succeed in the workplace.

The event began Tuesday evening with a reception at R-Wine Bar in Sioux Falls and continued on Wednesday with a full day of sessions at the Sioux Falls Convention Center. Topics included creating the most awesome version of you, strong communication and listening skills, how courage plays a part in leadership, overcoming imposter syndrome, building a powerful presence, roundtable networking and a panel discuss with women banking industry leaders. 

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Registration Open for SDBA's 2021 Annual Security Seminar

The SDBA will hold its 2021 Annual Security Seminar on Oct. 6 at the Hilton Garden Inn—Sioux Falls Downtown in Sioux Falls. This well-rounded seminar focuses on a range of issues of concern to security officers, facility personnel and management. 

Using current trends and examples, a variety of topics will be covered: workplace violence prevention: guideline for the employer, security blunders: show and tell, national update, interviewing techniques for the security officer and observation vs. perception.

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Bankers, Industry Experts to Discuss Cannabis Banking at Upcoming Webinar

ABA VP Tanner Daniel will join a panel of bank regulators and industry experts in a webinar on cannabis banking issues on Tuesday, Sept. 21 at 1 p.m. CDT. The webinar—hosted by Brennan Manna Diamond and co-sponsored by the Arizona and Colorado Bankers Associations and the Ohio Bankers League—will include banker perspective on offering cannabis banking service and address FinCEN guidance both deposits and lending, electronic payment systems, and legislative or regulatory changes that would promote bank participation in the cannabis industry. Learn more and register.

ABA Refreshes Credit Union Campaign

ABA’s campaign to educate the public about credit unions and their tax status has been rebranded as Reform Credit Unions. The campaign was updated to further emphasize the need to take action and demand reform to the laws and regulations related to credit unions.

The Association on Tuesday debuted a new website for the campaign that includes recent news and insights on credit union activity as well as resources to help bankers reach out to their member of Congress and voice their opinion.

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SDBA Asks Bankers to Urge Lawmakers to Oppose IRS Reporting Proposal

The SDBA is calling on bankers to contact Sen. John Thune, Sen. Mike Rounds and Congressman Dusty Johnson and express opposition to new reporting requirements for banks to track and report customer accounts and financial transactions to the IRS.  

The U.S. Senate will reconvene next week, and it is anticipated that lawmakers will develop details of the proposed $3.5 billion social spending infrastructure plan, which would have far-reaching tax reporting requirements including reporting bank account inflows and outflows to the IRS by banks. While this may do little to add revenue, it would come at a massive cost to the banking industry—and it would also heighten consumer concerns about the privacy of their banking relationships. 

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ABA Urges Bankers: Ask Lawmakers to Oppose New IRS Reporting Rule

ABA is calling on bankers to contact their lawmakers and express opposition to any new reporting requirements for banks to track and report customer accounts and financial transactions to the IRS. A vote on the issue is expected in the coming days.

The new reporting requirements would raise questions about customers’ right to privacy, create unnecessary and expensive burdens for banks and raise the cost of tax preparation for small businesses, ABA noted.

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