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intimidating to average consumers and overly complex and ambiguous calculations increase cost and
liability for banks.

3A) – DURBIN AMENDMENT ON INTERCHANGE FEES – In lieu of repealing the unfair and damaging
Durbin repealed, we endorse a free market (requirement for multiple networks on a card and the increased
competition that produces), while anti-free market price setting by the Fed should be repealed.

3B) – CFPB – CFPB needs major reform. We favor Congress requiring the CFPB to be subject to
Congressional appropriations and creating a board versus a single directorship, and returning the
enforcement of the 18 consumer protection and fair lending laws applicable to FDIC-insured institutions to
the prudential regulators. There are other options.

There are many other important issues (not prioritized since we will get what we can as opportunities arise):
a) AML/BSA – Banks play an important role in the fight against terrorist financing, money laundering, and
other financial crimes. We support government efforts to track illegal financial transactions, but banks
should not be burdened with massive reporting of legitimate activity by law-abiding people. FinCEN,
federal bank regulators and law enforcement should administer BSA by giving due deference to a
bank's risk-based compliance judgments to use AML resources wisely. Banks should report suspicious
transactions but should not act as “deputized” law enforcement agents on unusual or suspicious
transactions.

b) DATA ON SMALL BUSINESS LENDING – Although not implemented yet, Sec. 1071 of DFA
essentially requires the equivalent of HMDA reporting for small business loans by amending the Equal
Credit Opportunity Act to require institutions to collect data about commercial loan applicants,
identifying whether the loan applicant is a small business, female-owned business or minority-owned
business. The ECOA already covers the area of concern. 1071 should be repealed.

c) EXAM APPEAL/REFORM – Banks need a better avenue for appealing examination findings. This
issue is particularly important now, given the role of CAMELS ratings in risk-based deposit insurance
premium assessments.

d) FAIR LENDING – The Equal Credit Opportunity Act and the Fair Housing Act should be amended to
require actual intention to discriminate rather than using the disparate impact standard. Further, there
have been abuses in the referrals of community banks for minor infractions to the Justice Department.
DFA language regarding federal banking agency referrals to the Attorney General should be amended
to replace “shall” with “may, where warranted”.

e) FCS OVER-REACH – It is important to prevent FCS from expanding its charter and further exploiting its
tax-advantage and GSE retail lending authority to compete unfairly with banks, in light of the FCS’ loss
of mission focus, the dire state of the U.S. government’s finances and policymakers’ desire to make
the tax code more equitable.

f) TAX REFORM – In reform of the tax code Congress needs to make sure all appropriate parties are
taxed, such as credit unions and the Farm Credit System, and that existing deductions are maintained
such as interest expense.

g) OTHER ISSUES
i) Remove the “Abusive” standard from UDAAP and return to UDAP
ii) Raise the automatic SIFI threshold from $50 billion

ABA Government Relations Summit | Spring 2017 | Participants’ Guide Page 5.