The FDIC held its first 2004 Bankers Outreach Meeting in Nashville, Tennessee, last week to discuss regulatory burden. Approximately sixty-five bankers attended the meeting led by FDIC Vice Chairman John Reich and a group of federal and state regulators, including Kevin Lavendar, the Tennessee commissioner of financial institutions.
William Fox, director of FinCEN, delivered the keynote address. Fox admitted that currency transaction reporting is a heavy burden on banks and that FinCEN could do a better job providing feedback to bankers. However, Fox said that he opposes raising the $10,000 threshold to $30,000 because law enforcement agencies claim that the most valuable reports are from the $10,000-$20,000 range.
Bankers were divided into groups and during the afternoon session reported on which laws and regulations they found the most burdensome and outdated. The Community Reinvestment Act (CRA), the Home Mortgage Disclosure Act (HMDA) and the Real Estate Settlement Procedures Act (RESPA) topped the list, but also mentioned was the Sarbanes-Oxley Act for public banks and holding companies, the Bank Secrecy Act (BSA), the USA PATRIOT Act, privacy rules, appraisal rules, and the Truth-in-Lending Act, particularly the right of rescission.
The FDIC plans to hold more outreach meetings later this year in Seattle (June 9) and Chicago (September 23).