CBAI Meets with FDIC’s New Deputy Regional Director

On October 24, 2016, CBAI’s Vice President of Federal Governmental Relations, David Schroeder, met with Christopher Newbury, the Federal Deposit Insurance Corporation’s new Deputy Regional Director – Chicago Region, Division of Risk Management Supervision. The purpose of the meeting was to introduce Newbury to CBAI and to learn more about his background and experience.

Shcroeder Newbury

Newbury was named Deputy Regional Director for Risk Management Supervision (RMS) in September 2016. He oversees the risk management supervision of FDIC-insured financial institutions in the states of Illinois, Indiana, Kentucky, Michigan, Ohio, and Wisconsin.

Newbury joined the FDIC in 1989. Prior to moving to Chicago, his most recent assignment was as Associate Director for Risk Management Examinations in the RMS Washington Office. In this role, he led a group overseeing problem bank supervision, recommending enforcement actions, processing applications, and coordinating offsite monitoring. From 2007 through 2013, he was Associate Director for Risk Analysis in the Division of Insurance and Research (DIR), leading economists and financial analysts who assessed conditions and risks in the economy and the banking industry. He oversaw production of the FDIC’s Quarterly Banking Profiles and was a primary contributor to the FDIC’s 2012 Community Banking Study. He previously served for three years as a Section Chief in DIR. Earlier, he worked in the RMS Washington Office as a review examiner, as an examination specialist working on policy matters, and as a senior capital markets specialist. He began his FDIC career as an examiner in the Tulsa, Oklahoma and Atlanta, Georgia field offices.

During this introductory meeting, Schroeder highlighted the importance of CBAI’s exclusive representation of Illinois community banks and delivered a copy CBAI's 2016 Federal Policy Priorities, which prominently include the continuing need to address too-big-to-fail and support for tiered regulation for community banks. Schroeder discussed with Newbury the following three current issues of importance to Illinois community banks:

Wells Fargo fraud and scandal

    Schroeder expressed concern that the criminal behavior at the second largest bank in the country will stall current and well-deserved regulatory relief for community banks and discourage future relief measures.

Call Report regulatory relief

    Schroeder communicated the increased regulatory burden with the preparation of the Call Report and how CBAI, in a recent comment letter to the regulators, urged a streamlined version for well-capitalized and highly-rated community banks in the first and third quarters.

Payday and Vehicle Title lending

    Schroeder stated CBAI’s concerns, which were detailed in a recent comment letter to the CFPB, that if the Bureau implements its proposed small-dollar consumer credit rules, community banks will likely be forced to stop making these types of loans, which will harm community banks and the consumers the CFPB is tasked with protecting.

Additional topics discussed included the increased importance of succession planning at community banks and incentive compensation plans at banks of all asset sizes that are properly aligned with the long-term success of the bank.