California Department of Business Oversight
Volume 6, Number 10 – May 2019
Manuel P. Alvarez Appointed Commissioner of the Department of Business Oversight
Governor Gavin Newsom has appointed Manuel P. Alvarez as Commissioner of the California Department of Business Oversight. He was sworn in on May 13.
Alvarez was previously general counsel, chief compliance officer and corporate secretary at Affirm, Inc. since 2014. Before joining Affirm, he was an enforcement attorney at the Consumer Financial Protection Bureau from 2011 to 2014, a deputy attorney general at the California Department of Justice from 2010 to 2011 and an associate at Dentons LLP from 2007 to 2010.
Alvarez earned a Juris Doctor degree from the University of California, Hastings College of the Law. He also serves as a volunteer board member of the Barristers Club of the San Francisco Bar Association and the San Francisco La Raza Lawyers Association. This position requires Senate confirmation.
Alvarez succeeds Commissioner Jan Lynn Owen, who has guided the DBO since its creation in 2013 as a merger of the former departments of Corporations and Financial Institutions.
2019 National Survey of Community Banks Release
The 2019 National Survey of Community Banks is a major component of the Community Banking in the 21st Century Research and Policy Conference sponsored by the Conference of State Bank Supervisors (CSBS), the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC).
At last year’s conference, CSBS announced the creation of an ongoing sentiment index of community bankers. Ten short questions have been included toward the end of the National Survey. These questions will be circulated on a quarterly basis for a more accurate understanding of how bankers feel about the current and future state of the industry.
In 2018, 521 banks from 37 states participated in the National Survey. Last year’s publication can be found here.
To add your voice to the 2019 National Survey, please complete the survey at: https://sri.cornell.edu/CB21/2019/. The survey takes about 20 minutes and should be completed by June 30 so that findings may be analyzed and presented in the national publication released during the seventh annual Community Banking in the 21st Century Research and Policy Conference at the Federal Reserve Bank of St. Louis.
CSBS Vision 2020 Progress Report
In recent years, state financial regulators, through the Conference of State Bank Supervisors (CSBS), have been making changes to modernize and enhance the regulation of nonbank financial services companies. Collectively, the regulators’ efforts are known as CSBS Vision 2020.
States are the primary regulatory authorities for more than 23,000 nonbanks nationwide, which include mortgage lenders, money transmitters, debt collectors and consumer finance companies.
In 2017, state regulators approved CSBS policy to move toward an integrated, 50-state system of licensing and supervising nonbanks. Vision 2020 is a plan to harmonize the multistate experience as a means of regulatory efficiency and better supervision.
Key Vision 2020 initiatives so far include:
- Formalize industry input from fintech firms
- Develop a next generation technology platform
- Harmonize multistate supervision
- Empower state departments
- Encourage banks to provide banking services to nonbanks
- Improve third-party supervision
Next steps for Vision 2020 include:
- Development of a model payments law
- Expansion of state licensing resources
- Launching a State Examination System (SES) prototype
- Increasing nationwide cybersecurity training
- Enhancing Money Services Business (MSB) supervision
- Building Support for H.R. 241 (Rogers), the Bank Service Company Examination Coordination Act of 2019
Governor Newsom Proclaims May as Small Business Month
Governor Gavin Newsom has issued a proclamation declaring May 2019 as “Small Business Month” in California. Now the world’s fifth largest economy, California has more than 3.9 million small businesses, more than 40 percent of which are minority-owned.
California’s small businesses represent more than 99 percent of total businesses in the state and employ 7 million people – nearly half of California’s private workforce. The 70,350 small firms that export goods from California generated 43 percent of the state’s $152 billion in total exports. By declaring Small Business Month, the Governor affirms his ongoing commitment to help California’s small businesses thrive.
SCO Unclaimed Property Division Spring 2019 Newsletter for Holders
The State Controller’s Office has released the Unclaimed Property Division 2019 Spring Newsletter for Holders. The newsletter includes information of interest to DBO licensees that hold unclaimed property, including banks and credit unions. The newsletter covers:
- Holder remit reports
- Holder due diligence for 2019 report year
- Ask an Analyst: When is an IRA escheatable
- Unclaimed property webinars
- EFT Guidelines at a glance
- Download records
The new Remitting Unclaimed Property to California fact sheet explains how to remit cash, securities and safekeeping property.
If you have any questions, please contact the Holder Outreach and Compliance Unit at UPDHolderOutreach@sco.ca.gov or call (916) 464-6088.
Commercial Bank Activity
Rabobank, N.A., Roseville, to merge with and into Mechanics Bank, Walnut Creek
Acquisition of Control
Mohamed Ahmar, to acquire control of Partners Bank of California
Purchase of Partial Business Unit
Exchange Bank to purchase approximately $80 million of fiduciary assets from American Trust and Savings Bank, Dubuque, IA
Change of Name
Redding Bank of Commerce to change its name to Merchants Bank of Commerce
Industrial Bank Activity
Change of Name
Rancho Santa Fe Thrift & Loan Association to change its name to Hatch Bank
Premium Finance Company Activity
New Premium Finance Company
C & A Funding, Inc.
600 West Broadway, San Diego
Mepco PFA, Inc.
10877 Wilshire Boulevard, Los Angeles
Sparta PFCA, Inc.
1476 North Green Mount Road, O’Fallon, Illinois
Credit Union Activity
Desert Communities Federal Credit Union, Needles, to merge with and into Arrowhead Central Credit Union, Rancho Cucamonga
Change of Name
Alliance Credit Union, to change its name to Excite Credit Union
Foreign (Other State) Bank Activity
Bank of George
18484 Highway 18, Apple Valley, San Bernardino County (Facility – Insured Bank)
Discontinuance of Facility
First National Bank in Howell
907 8th Street, Manhattan Beach, Los Angeles County (Facility – Insured Bank)
Money Transmitter Activity
Acquisition of Control
TF MC Acquisition Corp., to acquire control of Trans-Fast Remittance, Inc.
UAE Exchange International Holding Limited, to acquire control of Moneydart Global Services, Inc.
MANUEL P. ALVAREZ
Commissioner of Business Oversight
The May 2019 Monthly Bulletin covers the month ended April 30, 2019. It is issued pursuant to Financial Code section 376.
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to: https://dfpi.ca.gov/connect-with-the-dbo-via-email/.