The Three Percent Solution

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60 | Th e M Rep o RT O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SECONDARY MARKET local edition alabama senator named chair of senate Banking committee Republican RichaRd Shelby takeS the helm—and will likely Set hiS SightS on dodd-FRank. alabaMa // In a widely anticipated move, U.S. Sen. Richard Shelby (R-Alabama) was elected chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs for the 114th Congress last month. Republican members of the committee elected Shelby and the Senate Republican Conference confirmed his ap- pointment. Shelby previously held the position of chairman of the Senate Banking Committee from 2003 to 2006. Shelby, 80, is replacing retiring Sen. Tim Johnson (D-South Dakota) as chairman of the committee. "It is an honor to lead the Senate Banking Committee in the 114th Congress," Shelby said. "I look forward to working with my colleagues in the House and Senate to implement policies that will foster economic growth." The standing rules of the Senate say that the committee has jurisdiction over legislation concerning such subjects as public and private housing, in- cluding veterans' housing; federal monetary policy, including the Federal Reserve System; banks, banking, and financial institu- tions; deposit insurance; eco- nomic stabilization and defense production; and many others. Shelby will have just two years to lead the committee under GOP party rules. Despite working against the clock, many analysts and observers believe that his experience and longtime involvement with the committee will allow him to speed up the committee's activity. Analysts believe that one of Shelby's top priorities as Senate Banking Committee chair- man will be taking on issues with the Dodd-Frank Wall Street Reform Act in 2010 and in particular concerns over the activities of the Consumer Financial Protection Bureau (CFPB), which formed a year after the Dodd-Frank Act was passed. There are reported to be several proposed bills regarding financial regulation reform in the House that have yet to make their way to the Senate due to outgoing chair Tim Johnson's opposition to such reform. regulators shut down minnesota Bank; 2014 tally Hits 18 noRtheRn StaR bank waS the State'S FiRSt to cloSe laSt yeaR with lack oF capital, opeRating loSSeS, and pRoblem aSSetS cited aS ReaSonS. Minnesota // The national tally of insured bank failures last year ticked up to 18 follow- ing the closure of Minnesota's Northern Star Bank. The bank, which is Minnesota's first to close in 2014, was shuttered by the Minnesota Department of Commerce, which appointed FDIC as receiver. In a statement, the agency cited lack of capital, continuing operating losses, and a large vol- ume of problem assets as reasons for the forced closing. "The department acted in the best interests of all by closing this bank and appointing the FDIC as receiver," said department Commissioner Mike Rothman. Prior to its closure, the bank had operated under regulatory scrutiny for some time, having received a consent order from FDIC in 2009 regarding its inad- equate level of capital. To protect Northern Star's depositors, FDIC announced a purchase and assumption agree- ment with BankVista, which will take over the failed bank's charter location in Mankato and its branch in St. Cloud. In addition to assuming all of Northern Star's deposits (totaling an estimated $18.2 million), BankVista will also purchase all assets, which came to an estimated $18.8 million as of the end of September. FDIC estimates the closing cost its Deposit Insurance Fund $5.9 million. "I look forward to working with my colleagues in the house and Senate to implement policies that will foster economic growth." —u.S. Sen. Richard shelby (R-alabama)

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