Sex, SARs, And Politicians

March 6, 2018 at 9:14 am Leave a comment

I knew that would get your attention. I’ll be talking about that soon enough but first, here are some things of more immediate concern.

Senate Begins To Debate Regulatory Reform Bill

The first big test vote for S.2155 is expected to come today. Right now it appears that there is more than enough support to take up the bill on the merits, with Senator Mark Warner, (D-Va.) predicting that the vote for ending a procedural filibuster could pass with 70 Senators supporting it. While it doesn’t appear that New York can count on either of its Senators to support the measure, the increasing likelihood of Senate passage means that the attention will turn quickly to the House. Right now the usual suspects opposed to the bill are focusing on the fact that it raises the threshold before banks are subject to heightened oversight to $250 Billion as opposed to the well-deserved and much needed mandate relief it would give to credit unions and community banks.

Ready Or Not The Amazon Bank Is Coming

Amazon’s well-coordinated, ultimately game changing entry into the banking industry is set to take another step in the coming months. This morning’s WSJ is reporting that Amazon is in talks to open up checking accounts with JPMorgan. As the Journal explains, “With millions of customers, troves of data, access to cheap capital and seemingly unlimited leeway from its investors to enter new businesses, Amazon is a fearsome competitor. It’s more-than $700 billion market value eclipses the combined value of JPMorgan and Bank of America Corp, the two biggest U.S. banks.”

Remember when Walmart was the latest unstoppable threat to capitalism as we know it? Remember the fierce backlash against Walmart’s attempts to expand into banking services? Perhaps it’s just a reflection of changing times but I don’t sense a similar backlash this time. This intrigues me because with 38% of millennials saying they would trust Amazon with their money, the company could do to retail banking what it’s done to retail.

Sex, SARs, And Politicians

Let’s say you have a member who is a lawyer working almost exclusively for the Republican candidate for President. Less than two weeks before the election he withdraws $130,000 and wires it to a lawyer representing a porn star. Is this worthy of a Suspicious Activity Report? Would you go back and review the transaction if you found out that the payment was part of a Non-Disclosure Agreement? It appears that at least for one bank the answer is yes. The WSJ is reporting this morning that a SAR was filed by at least one bank where money was sent to Stormy Daniels who was allegedly threatening to disclose the fact that she had an affair with President Trump after they met at a celebrity golf tournament.

You would think that politicians would learn from the mistakes of other politicians. Remember it was a SAR which helped uncover then Governor Elliot Spitzer’s rendezvous with Client Number 9.

Entry filed under: Advocacy, General, Technology. Tags: , , .

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Authored By:

Henry Meier, Esq., Senior Vice President, General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association. In addition, although Henry strives to give his readers useful and accurate information on a broad range of subjects, many of which involve legal disputes, his views are not a substitute for legal advise from retained counsel.

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