|September 26, 2014|
CBA-AOL Finance Optimism Drops 4 Points from July
CBA-AOL monthly Finance Optimism Index has found Americans' financial
optimism decreased to -7.0. This is a month-over-month drop of 4.0
points, bringing the Index to its lowest point in 2014. All four
components of the Index, including perception of current and future
finances as well as economic and political news, turned slightly more
pessimistic, resulting in the overall decrease for the Index in August.
The continued unrest in world news and the threat of war in the Middle
East might have contributed to the decline in Americans' optimism. The
Index is measured continuously with results calculated and reported
monthly at FinanceOptimism.org.
Board Members Top Most Powerful Women in Banking List
A number of banking leaders with ties to CBA have been named to American Banker's 25 Most Powerful Women in Banking. Congratulations to current CBA Board of Directors members Mary Navarro of Huntington Bancshares, and Maria Coyne of KeyCorp, as well as former CBA Board Member Carrie Tolstedt of Wells Fargo, and former CBA Government Relations Council Member Cathy Bessant of Bank of America. CBA is a proud sponsor of the 2014 Most Powerful Women in Banking Awards Dinner. We are excited to congratulate the many CBA bankers who were recognized by American Banker, as well as Bank of America, Bank of the West, and BMO Harris for being honored as "Top Teams" by the publication.
Rise of the Hackers
recently aired a program called "Rise of the Hackers," which covers the
specific process by which credit card numbers, banking accounts and
other personal information is transmitted through the internet. It also
looks at how hackers will use one account to gain access to another,
then another, and then another. One example they used was where hackers
obtained Amazon account information, and then used it to hack into two
other accounts and eventually a person's personal Twitter account. The
program is about an hour in duration and is available for online viewing.
With all the recent data breaches at retailers like Target, Home Depot
and now Jimmy Johns, it is worth knowing what we are up against.
Federal Student Loan Default Rate Remains in Double Digits -- Abysmal
U.S. Department of Education announced this week 13.7 percent of
federal student loan borrowers defaulted within three years of repayment
in fiscal year 2011. It is clear from its abysmal 13.7 percent default
rate the federal government has much to learn from the private student
lending market, which has a default rate of less than 3 percent. It is a
disservice to taxpayers who ultimately are responsible for these loans
-- and even more so to the students whose ability to repay the loan is
not a consideration in the federal aid approval process. Strong
underwriting standards, and the verification of a student's ability to
repay, is the most responsible way to ensure students begin their
education on sound footing. If the CFPB is so concerned with protecting
our nation's youngest consumers, they ought to turn their focus to
federal student loans which make up over 90 percent of the market.
CBA Committee Meetings
Automobile Finance Committee will be in Washington, D.C. for an
in-person meeting at CBA's world headquarters next week. In addition,
the CFPB Committee will be at the PNC Bank offices in Washington, D.C.
and the Small Business Committee will meet in Chicago, IL. We are
looking forward to seeing our committee members and continuing the
strong momentum of this month's in-person meetings.
U.S. Bank has named Beth Solomon
Director of the U.S. Bank Global Corporate Trust Services Government
Practice. Solomon was previously Chief Executive of the National
Association of Development Companies, representing U.S. Small Business
Administration (SBA) lenders and lender service providers.
BNP Paribas Chairman Baudouin Prot has decided to step down effective December 1, 2014 and will be succeeded by Jean Lemierre.