MONDAY JULY 27, 2020 VOL. 185 No. 143 AMERICANBANKER.COM Follow us on Twitter @AmerBanker Lenders fear mass defaults 5 unless unemployment benefits are extended Problem credits climb The CEOs of the credit card lenders Discover Nonperforming loans at Huntington have risen 43% since and Synchrony are urging Congress to come year-end. The energy sector is a major culprit. through with another round of government stimulus so that struggling households can See story on page 4 continue paying their bills. Page 5 $750M Romney says he will oppose 6 Shelton’s Fed confirmation $700M Republican Sen. Mitt Romney of Utah said he will vote against Judy Shelton, one of $650M two Trump administration nominees to the Federal Reserve’s Board of Governors. Page 6 $600M Trump rolls back fair housing 7 rule with executive order $550M The Trump administration’s executive order to terminate and replace federal $500M enforcement of anti-discrimination policies at the local level, citing the burden it put $450M on municipalities, enraged advocates of 2Q19 3Q19 4Q191Q202Q20 equitable housing practices. Page 6 Source: The company U.S. Bank rolls out 8 virtual assistant Voice and text banking will be embedded in the Minneapolis bank’s mobile app through dailybriefing Huntington aims to contain a chatbot assistant that also caters to users 3 energy exposure, ride with disabilities. Page 7 consumer lending ABA offers political lifeline on The Ohio company, which has beefed up its HSBC, ABN Amro join 1 masks, and banks are relieved loan-loss reserves, raised the possibility of 9 large funding round for Financial institutions want to protect more sales of oil and gas credits and talked AML software startup customers and employees from the up strong retail segments such as its marine Quantexa, which uses artificial intelligence coronavirus but are caught in the middle of a and RV loans. (See chart above.) Page 4 to detect money laundering and other politically charged public health debate. The financial crime, is already being used by stance taken by the industry’s largest trade Fifth Third pushes ahead HSBC and Standard Chartered Bank. Page 8 group gives them cover. Page 2 4 with expansion in face of cost pressures NCUA is a bipartisan agency. Waters rejects GOP CEO Greg Carmichael says the 10 It’s time it acted like one. 2 request to cancel hearing Cincinnati company has cut expenses The credit union regulator can accomplish on pandemic relief bill but will proceed with branch openings so much more when board members work The House Financial Services Committee in the Southeast and investments in its in a good-faith, fair-minded manner, J. Mark chair vowed to stay focused on the HEROES commercial loan and mortgage origination McWatters writes. Page 8 Act after the panel’s top Republican said platforms to lay the groundwork for post- lawmakers should instead debate bills with pandemic growth. Page 5 bipartisan support. Page 3 MONDAY JULY 27, 2020 AMERICANBANKER.COM PAGE 2 adding that the ABA recommendation “has require masks for employees and for CORONAVIRUS really solidified it.” customers to follow local guidelines. Bank regulators have no formal mask- Nichols cited research by Goldman Sachs wearing policies, but acting Comptroller of that suggests a nationwide mask policy ABA offers the Currency Brian Brooks made waves when would help localities avoid economically he said in June that masks in branches could damaging shutdowns, by limiting the spread political lead to more bank robberies, even during a of COVID-19 cases. He also cited a Wall Street pandemic. Journal article about mounting scientific While public health experts consider face evidence that face masks slow the spread lifeline on masks an effective measure against spreading of COVID-19, the disease caused by the COVID-19, opposition to mask-wearing has coronavirus. masks, and intensified in some parts of the country. “We owe it to frontline bank staff to But after Target, Walmart, Kroger and most prioritize their safety and to contribute to other major retailers adopted face mask rules the wider effort to limit the spread of this banks are this week following a spike in COVID-19 infection,” Nichols said in a press release cases and deaths, the ABA urged financial Monday announcing the policy. In addition relieved institutions to follow suit. to Nichols’ letter, the ABA has also published “I encourage you today to adopt and a guide intended to help banks implement By Kate Berry publicly pronounce a policy requiring all face mask policies. July 23, 2020 who enter your branches to wear a mask,” Bankers are embracing the American ABA President and CEO Rob Nichols said in a Balancing public health against Bankers Association’s public backing of letter July 19 to bank CEOs. security mandatory mask-wearing in branches as the The Federal Deposit Insurance Corp., Early on in the pandemic mask-wearing kind of political cover they need to enforce Federal Reserve and Office of the Comptroller wasn’t much of an issue because most strict public health practices at branches. of the Currency have left it up to individual branches were closed. But many have With coronavirus cases rising throughout banks to decide whether to require face reopened as states lifted lockdown orders. the country, banks’ efforts to protect customer masks be worn in bank branches. Branch managers are now in the and employees’ health have clashed with Many of the largest banks already instituted uncomfortable position of trying to balance opposition to mask-wearing. Differing mask policies. Earlier this month, Bank of the health of employees and customers guidelines across jurisdictions have forced America became the first big bank to require against longstanding concerns that face banks to shift their approach back-and-forth. face masks be worn at all branches. Wells masks are a security risk. Face coverings have “It got to the point a few weeks ago where it Fargo was a week ahead of the ABA, requiring traditionally been banned inside branches to was crazy, we were continually changing our on July 13 that all employees and customers deter robberies. policy for employees,” said Luanne Cundiff, wear face masks in bank branches, said Peter Stewart said concerns about the spread president and CEO of the $384 billion-asset Gilchrist, a Wells spokesman. About a fifth of the virus quickly took precedence over First State Bank of St. Charles, Mo., where of Wells’ branch network is still temporarily security concerns. two of the bank’s three primary markets closed, he said. “We’ve always said, ‘No masks in our are under mask–wearing orders. “Banks in Both JPMorgan Chase and Citigroup lobby,’ but bank holdups are down and different markets where [there are] different requirements were causing confusion,” she added. Established 1836 One State Street Plaza, 27th floor, New York, NY 10004 Cundiff expressed hope that the ABA’s Phone 212-803-8200 AmericanBanker.com recommendation will help establish consistent standards. Editor in Chief Alan Kline 571.403.3846 Copy Editor Neil Cassidy 212.803.8440 “It was good for banks in our position Managing Editor Dean Anason 770.621.9935 — banks in different markets where it was Reporters/Producers causing confusion — that our association Executive Editor Bonnie McGeer 212.803.8430 Laura Alix 860.836.5431, Kate Berry 562.434.5432 took the lead,” she said. “I think any kind of Washington Bureau Chief Joe Adler 571.403.3832 push to educate the general public and the Executive Editor, Technology Miriam Cross 571.403.3834 workforce is a benefit to us all.” Penny Crosman 212.803.8673 Jim Dobbs 605.310.7780 Laurie Stewart, president and CEO of BankThink Editor Rachel Witkowski 571.403.3857 the $738 million-asset Sound Financial John Heltman 571.403.3847, Allissa Kline 716.243.2679 Community Banking Editor Paul Davis 336.852.9496 Bancorp in Seattle, said employees have Hannah Lang 571.403.3855 been wearing masks voluntarily since the Contributing Editor Daniel Wolfe 212.803.8397 John Reosti 571.403.3864, Gary Siegel 212.803.1560 Centers for Disease Control and Prevention Digital Managing Editor recommended it in late April. “It was certainly Christopher Wood 212.803.8437 Jackie Stewart 571.403.3852, Kevin Wack 626.486.2341 mixed guidance in the beginning,” she said, For up to date and complete coverage go to AmericanBanker.com MONDAY JULY 27, 2020 AMERICANBANKER.COM PAGE 3 have not been an issue,” she said. “This is a requirements that individuals wear face under the Small Business Administration’s pandemic, so we are doing everything we can masks in many or even all public spaces Paycheck Protection Program. She donated to control this.” create the very real risk of increases in bank the masks to a nonprofit in her hometown Some banks placed greeters at branch robberies.” of Sequim, Wash., which is an underserved entrances to ask customers gently to wear medical community. a mask, but many institutions feared for Bank robberies less of a concern, “The town has a huge number of seniors employees’ safety when customers refused to according to data and the original need was in the nursing comply. But heightened security at branches homes,” Stewart said. “We don’t want our front-line personnel have made robberies increasingly rare. Cundiff also was on the front lines trying to be the mask police,” Cundiff said. “If our Bank robberies have plummetted in the to navigate the Paycheck Protection Program employees encounter an obstinate customer, past decade to 3,033 robberies reported in when her 17-year-old daughter overheard her we instruct them to distance from the person.” 2018, down from 6,849 in 2008, according talking about how the bank’s staff needed face Ed Mills, a policy analyst at Raymond to the latest data from the Federal Bureau of masks.