IBA E-News 1-11-19
STATE GOVERNMENT RELATIONS
Indiana Legislative Session Update
This week marks the first full week of the Indiana General Assembly 2019 legislative session. Lawmakers have until the end of April to conclude all legislative work. The state budget, sports betting, bias crimes and workforce development are only a few of the many issues that are expected to be debated over the coming months. More than 750 bills have been released for public review to date, with another 750+ still expected to be filed and released in the coming weeks. The IBA GR team will continue to review bills and will provide an update of several notable bills each week moving forward.
Bill Summary: This bill defines "crime of elder or adult abuse" and requires the Office of Judicial Administration to establish an electronic elder and adult abuse registry containing information relating to persons convicted of a crime of elder or adult abuse.
Current Status: The bill is scheduled to be heard in the Senate Family and Children Services Committee on Monday, Jan. 14.
Author: Rep. Jerry Torr, R-Carmel
Bill Summary: The bill provides that additional identifying information must be included when recording a judgment lien. The bill also provides that a judgment lien is extinguished when certain items are recorded with the office of the county recorder in the county where the judgment lien was recorded.
Current Status: The bill was heard in the House Judiciary Committee on Jan. 7. The bill was held for further consideration.
FEDERAL GOVERNMENT RELATIONS
Save the Date - Annual Washington Trip
Save the date for the Indiana Bankers Association 2019 Annual Washington Trip, scheduled for October 20-22, 2019. Plan to take advantage of the opportunity to visit with industry leaders, banking regulators and Hoosier legislators. Make your voice heard on the Hill, and spend time networking with banking advocates from the state of Indiana. For more information contact Michelle Long, 317-387-9380.
Fed Signals It May Slow Pace of Rate Hikes
The Federal Open Market Committee may slow its future progress on raising interest rates due to rising downside risks -- including slower global growth, trade tensions and recent market volatility -- according to minutes from the Dec. 18-19 meeting. At the conclusion of that meeting, members voted to move ahead with another 25 basis point increase in the federal funds rate.
Though the current economic indicators remained strong, “participants generally revised down their individual assessments of the appropriate path for monetary policy” due to downside risks. FOMC members noted that they “could afford to be patient about further policy firming.”
Members revised their post-meeting statement to indicate that “the Committee judges that some further gradual increases” may be appropriate in the future, signaling a slowdown in anticipated rate hikes and emphasizing that future determinations would be heavily dependent on incoming data.
Fed Proposes Rule to Harmonize Company-Run Stress Testing Requirements with S. 2155
The Federal Reserve Tuesday issued a proposed rule that would make changes to its framework for company-run stress tests to conform with Section 401 of the S. 2155 regulatory reform law. The OCC and FDIC released similar proposals for national banks and state nonmember banks, respectively, in December.
Consistent with the law, the rule would raise the minimum asset threshold for state member banks to conduct their own stress tests from $10 billion to $250 billion. It would also generally require firms above $250 billion to conduct company-run stress tests once every other year rather than annually. Finally, it would eliminate the hypothetical “adverse” scenario from the test. Banks would still be required to test themselves against the “severely adverse” scenario, and the “severely adverse” scenario will also remain a part of supervisory stress test, the Fed noted. Comments on the proposal are due Feb. 19.
Just before the 115th Congress adjourned last week, the Senate confirmed by voice vote the nomination of Geoffrey Starks to fill a Democratic seat on the Federal Communications Commission that was vacated when Mignon Clyburn resigned last summer. Starks will complete Clyburn’s five-year term, which runs from July 2017 to July 2022.
Prior to his nomination, Starks served as an assistant bureau chief with the FCC’s enforcement bureau. He has also held positions in the Justice Department and in the private sector working for a Washington, D.C. law firm. The Senate also confirmed by voice vote FCC Commissioner Brendan Carr to a new five-year term ending in June 2023.
With these appointments, the FCC now has a full complement of five commissioners and is expected to soon address -- among other topics -- changes to its interpretation of the Telephone Consumer Protection Act, which imposes restrictions on the calls that banks and other businesses can place to their customers.
Nellie Liang Withdraws from Fed Consideration
Nellie Liang, one of President Trump's nominees for the Federal Reserve Board, withdrew from the nomination process Monday. Liang's nomination had expired with the end of the 115th Congress, but with her action her nomination will not be resubmitted to the Senate. A longtime Fed economist who is now affiliated with the Brookings Institution, Liang had not received a confirmation from the Senate Banking Committee.