Around the Capitol



Written by Joe Gendron, LBA Director of Government Relations

As we approach the end of another year, it is a good time to reflect on the happenings of the last 12 months and to evaluate successes, failures and ways to improve for the future. 

I believe 2018 will be remembered for notable accomplishments in the banking industry. It was a year when Congress finally took action and passed some commonsense regulatory relief. These results could not have been accomplished without bankers in Louisiana, and from around the country, continuously showing up and telling their story to policymakers. 

2018 was also a year when the federal banking agencies, with new leadership in place, made notable strides in changing the tone and focus within their agencies. I have also heard accounts from a number of bankers that the tone in their exam experience shifted from a “gotcha” mentality to a more constructive approach. 

Sure, many challenges remain for our industry, but any change in approach by federal regulators should be viewed as a meaningful accomplishment, giving optimism for continued improvement in 2019. 

Our LBA meetings with federal regulators this year were also more positive and productive than in year’s past. A number of bankers attending our annual Washington Visit in July commented that it was the best round of visits with banking regulators they could recall in all the years they attended the trip, especially the meeting with FDIC Chairman Jelena McWilliams. 

Bankers also gave very positive feedback regarding our October meeting with senior FDIC staff from Washington, which took place here in Louisiana. FDIC Director of Compliance Mark Pearce and Deputy Director Sylvia Plunkett met with LBA staff and bankers at LBA. Mr. Pearce and Ms. Plunkett also made visits to two Louisiana community banks while in town. These meetings were prompted by a conversation that took place during our FDIC meeting in July in DC, and gave bankers another opportunity to relay concerns and provide constructive feedback to top staffers within FDIC. 

LBA also achieved strong results at the State Capitol during 2018. Although the state legislative sessions were dominated by seemingly endless wrangling by legislators over budget concerns, several important LBA-sponsored bills were passed into law. One of those measures was Act 434 of the Regular Session (click here to view) by Rep. Thomas Carmody (R-Shreveport), which will help bankers and their communities by giving banks additional tools to combat exploitation of vulnerable adults. Another very important LBA-supported measure was Act 154 (click here to view) by Sen. Francis Thompson (D-Delhi) and former Rep. Gene Reynolds (D-Minden), which will improve financial literacy education in Louisiana’s public high schools. It was very rewarding being able to advocate for these bills, as one helps protect our most vulnerable citizens and the other will help better prepare the younger generation to achieve financial stability. The Louisiana Legislature overwhelmingly supported these measures. 

I am also proud to report that despite continued consolidation in the industry, and fewer advocacy foot soldiers in our industry’s army, we were able to maintain strong collections for our LBA Political Action Committees (PACs). Louisiana bankers really stepped up to the plate for this effort in 2018. 

Looking forward to 2019, important dates for LBA Government Relations events are set: Bankers Day at the State Capitol will be held on May 1 and the LBA Washington Visit will be held July 9-11 at The Mayflower Hotel in Washington, DC. 

Please continue working with us to improve the environment for Louisiana banks and their communities. 

Thanks for your support!