Page 25 - UMB Membership Guide

• For customers, the rules mean more paperwork, higher cost and less credit availability
• For banks the rules result in more compliance, more cost, more liability, less income,
less customer focus
Pictured left to right: Federal Reserve Act, Glass/Steagall, FDIC Act, Sarbanes Oxley, Gramm, Leach, Bliley, Dodd/Frank Act

Marijuana

• Will Trump’s “states’ rights” view, or AG Jeff Sessions’ “enforce federal

law” stance prevail?
• Congressional action is not expected in the near future despite majority
of states permitting
o 18 state AGs, including Colorado, wrote Congress in January

urging action to remedy state-federal law conflict
• Silver bullet du jour doesn’t work
o In 2018, “closed loop” system being pursued = state acts as bank
• Why try to resolve

o Help Colorado – can’t tax/regulate
o Help businesses & customers – legal
o Public safety – bad incident inevitable
• “Act of Congress” needed

Major recent CBA fights to minimize damage to banks and
customers

(Less credit and more expense for customers)

• Basel III capital requirements

• Trust Preferred Securities (TruPS)
• 7 new mortgage rules – tried to avoid bad customer impact – Low
income, rural , small businesses & professionals, hard to document

income – CFPB ignored implementation problems
• Volume of new rules, requiring major effort to reduce regulation
o Imposes compliance costs (huge, job growth), regulatory actions,
litigation risk… = less credit & higher cost for customers