Commercial Real Estate Panel Discussion

On January 11, 2024, NYLIB hosted a commercial real estate panel discussion moderated by NYLIB President Edward T. Lutz. Panelists included Stijn Van Nieuwerburgh, Professor of Finance and Real Estate at Columbia Business School; Jade Rahmani, Managing Director at KBW; and Scott Singer, Principal and Co-Lead of Avison Young’s Tri-State Debt & Equity Finance team.

FROM LEFT TO RIGHT: Jade Rahmani (Managing Director, KBW), Scott Singer (Principal and Co-Lead, Avison Young Tri-State Debt & Equity Finance team), Stijn Van Nieuwerburgh, (Professor of Finance & Real Estate, Columbia Business School), Edward T. Lutz (President, NYLIB)

A wide-ranging discussion was held that explored valuations in various commercial real estate sectors, trends, the future of the office, and what individuals with CRE portfolio responsibilities should be doing today.

The Moderator

NYLIB President Edward T. Lutz moderated the panel discussion. Ed’s distinguished career in banking has spanned over five decades. He is a former Regional Director for the FDIC’s New York Region, as well as a former community bank President and CEO. Ed has also served as a Director for several community banks. He currently serves as Director and Chairman of the Audit Committee for First Central Savings Bank.

Our Panelists

Stijn Van Nieuwerburgh is the Earle W. Kazis and Benjamin Schore Professor of Real Estate and Professor of Finance at Columbia University’s Graduate School of Business, which he joined in July 2018.

Professor Van Nieuwerburgh’s research lies in the intersection of housing, asset pricing, and macroeconomics. He has also served as an advisor to the Norwegian Minister of Finance, and has been a visiting scholar at the Central Bank of Belgium, the New York and Minneapolis Federal Reserve Banks, the Swedish House of Finance, the International Center for Housing Risk, and has contributed to the World Economic Forum project on real estate price dynamics.

Jade Rahmani joined KBW in 2007. As a Managing Director, Jade covers the commercial real estate finance sector. Previously, he was an Equity Analyst at Prudential Securities, covering industrial companies including aerospace and defense. Jade was named the #1 Stock Picker in Housing Durables in 2012 and 2015, and #3 in Earnings Estimate Accuracy in 2016 by StarMine.

Earlier in his career, Jade worked at UBS on strategic marketing initiatives and at Sidley Austin on real estate finance transactions. He received a BA in English from the University of Michigan, Ann Arbor and an MBA in Finance and Accounting from New York University's Leonard N. Stern School of Business.

Scott A. Singer is Principal and Co-Lead of Avison Young’s Tri-State Debt & Equity Finance team and a member of Avison Young's U.S. Capital Markets Executive Committee. Prior to joining Avison Young, Scott was President of The Singer & Bassuk Organization. He has arranged more than $10 billion of construction and permanent debt and equity financing on behalf of highly regarded New York City-based real estate family offices, developers, and institutional owners.

Some of Scott’s major NYC projects include The Crown Building at 730 Fifth Avenue, multiple assets in the Brooklyn Navy Yard, One Seaport Plaza (three times), MetLife Plaza in Long Island City, The Mark Hotel, 110 East 59th Street, 1700 Broadway (twice), 75 Wall Street (twice), and 636 11th Avenue (twice).

The Audience

Demetris Giannoulias, CEO of Spring Bank, in attendance at the January 2024 COMMERCIAL Real Estate Event

As NYLIB continues to plan events and meetings, we are open to suggestions on topics or issues that are of interest to banks in the tri-state area. Subscribe to our mailing list below to stay informed on news and upcoming events.

Memorable Moments

Please enjoy more memorable moments from our evening here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!

Annual Regulator Roundtable on Supervisory Priorities & Risks

On September 14, 2023, NYLIB hosted a regulatory panel discussion on supervisory priorities and risks moderated by Steve Bush, Chairman, President and CEO of Apple Bank. The supervisory panel featured prominent guest speakers from the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Bank of New York (FRBNY), the New York State Department of Financial Services (NYSDFS), and the Office of the Comptroller of the Currency (OCC).

FROM LEFT TO RIGHT: Steve Bush (Chairman, president & CEO, Apple Bank), Edward T. Lutz (President, NYLIB), Jessica Kaemingk (Deputy Regional Director, New York Regional Office, FDIC), Cassandra Huggins (Acting Principal Deputy Assistant Director, Office of Supervision Examinations, CFPB), Joanna McCarty (Assistant Counsel for Banking, NYSDFS), Michael Moriarty (Associate Deputy Comptroller for the Northeast Region, OCC), Won Chai (Assistant General Counsel, FRBNY)

The topics discussed included the lessons that banks should take away from the March 2023 bank failures; prudent management of risks arising from higher interest rates; commercial real estate market risks and discussion of recent interagency guidance on prudent loan accommodations for creditworthy borrowers; CFPB supervisory priorities (including with respect to junk fees, overdrafts, NSF fees, and artificial intelligence); regulatory expectations for relationships with fintechs; and cybersecurity best practices (including the critical importance of patch management). Resources highlighted by panelists are provided below.

Resources

• Lessons from Bank Failures

  • Review of the Federal Reserve’s Supervision and Regulation of Silicon Valley Bank (April 2023)

  • FDIC’s Supervision of Signature Bank (April 2023)

• CFPB Supervisory Priorities

  • Periodic Supervisory Highlights Publications

• Managing Fintech Relationships

  • Interagency Guidance on Conducting Due Diligence on Financial Technology Companies: A Guide for Community Banks (August 2021)

  • Interagency Guidance on Third-Party Relationships: Risk Management (June 2023)

  • Federal Reserve SR 23-7 Letter re: Creation of Novel Activities Supervision Program (August 2023)

Our Moderator

Steve Bush, President and CEO of Apple Bank, served as the moderator of the panel discussion. Steve previously served as Executive Vice President and Chief Operating Officer at Apple Bank, with oversight for the bank's lending units, as well as financial, risk management, planning, and operating functions. He joined Apple Bank in 1992 from Chemical Bank, where he was a Vice President in the Asset and Liability Management and Finance Divisions.

Panelists

Won Chai is an Assistant General Counsel in the Supervision, Markets & Financial Services division of the Legal Function of the Federal Reserve Bank of New York. Won’s practice focuses on regulatory capital, liquidity, and foreign banking organizations. He also supports the market operations of the FRBNY on governance and trading matters. He joined the New York Fed in 2013.

Cassandra (“Casey”) Huggins is a Principal Deputy Assistant Director (Acting) for the Office of Supervision Examinations at the CFPB. Casey provides executive-level supervision to senior managers in the operational areas that support the Bureau’s supervisory function. She served as examiner-in-charge for the CFPB’s very first examination in 2011. Prior to joining the CFPB, Ms. Huggins served as a consumer compliance examiner at the Office of Thrift Supervision.

Jessica Kaemingk has served as a Deputy Regional Director in the FDIC’s New York Regional Office for the Division of Risk Management Supervision (RMS) since January 2020, overseeing financial institutions in the Northeast and participating in regional and nationwide regulatory matters. Prior to this role, Jessica served as an RMS Assistant Regional Director in the New York Regional Office. In 2022, she served as the Acting Regional Director for the New York Region.

Joanna McCarty is Associate Counsel in Banking at the New York State Department of Financial Services, working on a variety of financial services regulatory matters. Joanna practice supports all four groups of the Banking Division, including Mortgage, Foreign and Wholesale Banks, Community and Regional Banks, and Licensed Financial Services. She joined DFS in 2017 after working at two banking institutions.

Michael (“Mike”) Moriarty is an Associate Deputy Comptroller for the Northeast Region at the Office of the Comptroller of the Currency. In this role, Mike serves as an expert advisor to the Deputy Comptroller for Community Bank Supervision on all financial institution matters and provides executive direction for Midsize and Community Bank Supervision operations, including bank and thrift supervision, as well as personnel management. Prior to serving as Associate Deputy Comptroller, he served in various leadership roles at the OCC.

Mac Wilcox, President at Hanover Bank, in attendance at the September 2023 Regulator Roundtable

As NYLIB continues to plan events and meetings, we are open to suggestions on topics or issues that are of interest to banks in the tri-state area. Subscribe to our mailing list below to stay informed on news and upcoming events.

Memorable Moments

Please enjoy more memorable moments from our evening here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!

Regulator Roundtable Dinner Focusing on Supervisory Priorities & Risks

From left to right: Frank Hughes, Regional Director (New York REGION), Federal Deposit Insurance Corporation; Bettyann Griffith, Vice President and Supervision Officer, Federal Reserve Bank of New York; Charles Shafer, National Bank Examiner, Office of the Comptroller of the Currency; Yolanda Ford, Deputy Superintendent, New York State Department of Financial Services; Steve Bush, President and CEO, Apple Bank

The NYLIB community gathered for dinner and a regulatory panel discussion focused on supervisory priorities and risks. The regulatory panel discussion was moderated by Steve Bush, President and CEO of Apple Bank, and featured prominent guest speakers from various government agencies, including the Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), New York State Department of Financial Services (DFS), and Federal Reserve Bank of New York (FRBNY).

Moderator

View fullsize

Regulator Roundtable featuring Apple Bank’s Steve Bush

Steve Bush, the President and Chief Executive Officer of Apple Bank, served as moderator for the panel discussion. Steve previously served as Executive Vice President and Chief Operating Officer at Apple Bank, with oversight for the bank's lending units, as well as financial, risk management, planning, and operating functions. Steve joined Apple Bank in 1992 from Chemical Bank, where he was a Vice President in the Asset and Liability Management and Finance Divisions.

Featured Speakers

Frank Hughes is the Regional Director for the FDIC’s New York Region, which supervises almost 600 banks with $1.8 trillion in assets. In this role, Frank oversees the regional supervisory activities of over 400 team members for the Division of Depositor and Consumer Protection and for the Division of Risk Management Supervision. Frank is also a member of the FDIC’s Training Oversight Committee and Investment Advisory Group. Frank recently returned to his permanent position as the Regional Director in New York after serving as the Regional Director in the FDIC’s Atlanta Region.

Frank has over 33 years of industry experience and has been with the FDIC for a total of 30 years. Prior to his current position, Frank served as Deputy Regional Director and Assistant Regional Director, both for the Division of Risk Management Supervision in the New York Region. Before coming to the New York Region, Frank was a Senior Examination Specialist and Supervisory Examiner in the FDIC’s Kansas City Region. In addition, Frank has served as a Senior Capital Markets and Securities Specialist, Case Manager, and Instructor for the FDIC’s Asset/Liability Management School. Outside of the FDIC, Frank has served as President and Board member of a community bank in Kansas City, Missouri, and as a Senior Examiner with the Federal Housing Finance Agency.

Yolanda Ford is Deputy Superintendent of the Community and Regional Banks Unit within the New York State DFS, responsible for the regulatory supervision of community/regional banks and credit unions.

Yolanda was appointed as Deputy Superintendent in February 2016. Prior to that, she was appointed Assistant Deputy Superintendent in the Community and Regional Banks Unit in 2008 and spent 23 years in field examination and supervision roles in various sectors of the New York State DFS (formerly known as the New York State Banking Department).

Charles R. Shafer joined the OCC in 2009 and is currently a National Bank Examiner in the New York Field Office. Charles has spent the majority of his career examining community banks, but has experience participating in various examinations of large and midsized institutions as well. He recently served as a Team Leader in New York, focused on examiner training and development.

Bettyann Griffith is a Vice President and Program Head in the Supervision Group of the Federal Reserve Bank of New York; she leads the Regional and Community Financial Institutions (RCFI) function. The RCFI function is focused on developing and executing the supervisory strategy of regional and community state member banks and holding companies in the Second District that have total U.S. banking assets under $100 billion. The portfolio also includes supervised financial organizations headquartered in Puerto Rico. Prior to her current role, Bettyann was the department head of Risk and Analysis within the function. Bettyann began her career in the Federal Reserve Bank of New York as an internal auditor.

Links to resources discussed by the panelists during their remarks have been provided below.

FDIC Resources

Supervisory Insights (Summer 2022), https://www.fdic.gov/regulations/examinations/supervisory/insights/sisum22/si-summer-2022.pdf

Notification of Engaging in Crypto-Related Activities (Apr. 7, 2022), available at https://www.fdic.gov/news/financial-institution-letters/2022/fil22016.html

Computer-Security Incident Notification Final Rule (Nov. 18, 2021), available at https://www.fdic.gov/news/financial-institution-letters/2021/fil21074.html

Conducting Due Diligence on Financial Technology Companies: A Guide for Community Banks (Aug 27, 2021), available at https://www.fdic.gov/news/financial-institution-letters/2021/fil21059.html  

FRB Resources

Engagement in Crypto-Asset-Related Activities by Federal Reserve-Supervised Banking Organizations (Aug. 16, 2022), https://www.federalreserve.gov/supervisionreg/srletters/SR2206.htm

Contact Information in Relation to Computer-Security Incident Notification Requirements (Mar. 29, 2022), https://www.federalreserve.gov/supervisionreg/srletters/SR2204.htm

Community Bank Access to Innovation through Partnerships (Sept. 2021), available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210909a.htm

Conducting Due Diligence on Financial Technology Firms: A Guide for Community Banks (Aug. 2021), available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210827a.htm

Computer-Security Incident Notification Requirements for Banking Organizations and Their Bank Service Providers (Nov. 18, 2021), available at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211118a.htm

CECL Resource Center, https://www.supervisionoutreach.org/cecl

OCC Resources

Acting Comptroller of the Currency Michael J. Hsu, Remarks at the TCH + BPI Annual Conference, Safeguarding Trust in Banking: An Update (Sept. 7, 2022), https://www.occ.gov/news-issuances/speeches/2022/pub-speech-2022-106.pdf  

Acting Comptroller of the Currency Michael J. Hsu, Remarks before the Texas Bankers Association, Community Banking, Digitalization, and the OCC (Sept. 1, 2022), https://www.occ.gov/news-issuances/speeches/2022/pub-speech-2022-104.pdf

OCC Strategic Plan, Fiscal Years 2023-2027 (Sept. 2022), available at https://www.occ.treas.gov/publications-and-resources/publications/banker-education/files/occ-strategic-plan.html

Semiannual Risk Perspective, Spring 2022 (June 23, 2022), available at https://www.occ.treas.gov/publications-and-resources/publications/semiannual-risk-perspective/files/semiannual-risk-perspective-spring-2022.html

Computer-Security Incident Notification: Final Rule (Nov. 23, 2021), available at https://www.occ.gov/news-issuances/bulletins/2021/bulletin-2021-55.html

Conducting Due Diligence on Financial Technology Companies: A Guide for Community Banks (Aug. 27, 2021), https://www.occ.gov/news-issuances/bulletins/2021/bulletin-2021-40.html

Other Resources

Cybersecurity and Infrastructure Security Agency (CISA), Stop Ransomware, https://www.cisa.gov/stopransomware

Financial Services Information Sharing and Analysis Center (FS-ISAC), Community Institutions, https://www.fsisac.com/community-institutions

Upcoming Events

The NYLIB team is thrilled that we were able to provide an opportunity to bring our colleagues together to explore key issues of importance to members of the banking industry. Our organization’s mission is to provide a forum for networking and education.

Edward Lutz, President, NYLIB & President, Lutz Advisors, Inc.

As we continue planning events and meetings, NYLIB is open to any suggestions on topics or issues that are of interest to the community and foreign banks in the tri-state area. Don’t forget to subscribe to our mailing list below, to stay informed on news and upcoming events.

Memorable Moments

Please enjoy more memorable moments from our Regulator Roundtable Dinner here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!

Previous Events

Cybersecurity Panel Discussion Featuring GroupSense CEO Kurtis Minder

View fullsize

NYLIB’s Cybersecurity Panel Discussion, a Hybrid event at the St. Cloud Rooftop at The Knickerbocker Hotel.

NYLIB’s Cybersecurity Panel Discussion last Thursday, March 31 at the St. Cloud Rooftop Bar was a tremendous success.

View fullsize

Kurtis Minder, CEO of GroupSense, speaking at Cybersecurity Panel Discussion hosted by NYLIB.

Keynote Speaker

Our keynote speaker, GroupSense CEO Kurtis Minder, delivered a presentation that was filled with useful information on topics like the steps that banks can take to prevent cyberattacks, the importance of reviewing cybersecurity insurance policies, and lining up cybersecurity and legal professionals in advance of an attack, and the need to print out hard copies of important electronic documents, such as incident response plans, to prevent such documents from being rendered inaccessible at exactly the wrong time by a ransomware attack. Mr. Minder also touched on techniques for negotiating with ransomware attackers and the importance of letting an experienced professional handle such negotiations. Mr. Minder, who earlier on Thursday had testified before the Senate Committee on Homeland Security, was profiled last year in a New Yorker article entitled “How to Negotiate with Ransomware Hackers.”  

View fullsize

Regulatory Panelists

Our regulatory panel was capably moderated by John Verry of PivotPoint Security. We were honored that Jessica Kaemingk (Deputy Regional Director, FDIC), Jason Kang (National Bank Examiner and Bank Information Technology Specialist, OCC), and Danny Brando (Financial Institution Cybersecurity Policy Department Head, Supervision Group, Federal Reserve Bank of New York) joined us via Zoom. And we were both honored and delighted that Justin Herring (Executive Deputy Superintendent Cybersecurity Division, NYSDFS) was able to join us in person.

Key Takeaways

The regulators, who each spoke in their personal rather than official capacities, provided information and pointed to guidance regarding threats arising from the current geopolitical situation. They emphasized the importance of robust incident response and business continuity plans that specifically address cybersecurity risks and disruptions. They further emphasized that banks should account for the possibility of disruptions to third-party service providers in their business continuity plans. They commented on the importance of a strong board-level commitment to cybersecurity, as well as ways that chief information security officers (CISO) and other cybersecurity professionals can engage bank boards on the critical topic of cybersecurity.

View fullsize

Considerations for Banks & Financial Institutions

The federal regulators spoke regarding the impetus for the new federal interagency rule requiring banks to promptly report computer-security incidents reaching a certain materiality threshold to regulators and requiring bank service providers to do the same with respect to banks. They commented on the materiality standard under the new rule, and Mr. Herring also provided valuable insights regarding the standard for materiality under the New York State Department of Financial Services’ Part 500.

View fullsize

Here’s a word from Ed Lutz, the President of the New York League of Independent Bankers (NYLIB).

“In short, this was absolute ‘Must See TV’ for the community and foreign bankers. Kurtis Minder’s presentation was on point, and John Verry did a spectacular job moderating the regulatory panel.”

Here’s a word from Pinchus Raice, the co-founder and a Board Member of NYLIB, as well as a partner and co-chair of the Financial Institutions practice group at Pryor Cashman LLP.

“NYLIB greatly appreciate the participation and insights from our regulators on what is truly the topic du jour given the surge in ransomware cyberattacks in 2021 and the current risk of state-sponsored Russian cyberattacks on U.S. financial institutions in retaliation for U.S. support for Ukrainian sovereignty and independence.”

Upcoming Events

The NYLIB team is thrilled that we were able to provide an opportunity to bring our colleagues together to explore key issues of importance to members of the banking industry. Our organization’s mission is to provide a forum for networking and education.

From left to right: Dustin Nofziger (Counsel, Pryor Cashman), Edward Lutz (President, NYLIB & President, Lutz Advisors, Inc), Bianca Reyes (Business Development Specialist, Pryor Cashman), Pinchus Raice (Partner, Pryor Cashman)

As we continue planning events and meetings, NYLIB is open to any suggestions on topics or issues that are of interest to the community and foreign banks in the tri-state area. Don’t forget to subscribe to our mailing list below, to stay informed on news and upcoming events.

Memorable Moments

Please enjoy more memorable moments from our Cybersecurity Panel Discussion here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!

Previous Events

2017 Summer Meeting Featuring FDIC Examination Specialist

On Wednesday, August 9, 2017, the New York League of Independent Bankers (NYLIB) held their Summer 2017 Meeting. The evening featured Michael Flynn, an Information Technology Examination Specialist in the FDIC’s Boston Area Office, who discussed the cybersecurity risks and challenges currently facing the banking industry. Mr. Flynn has been with the FDIC for 24 years and began as a Field Examiner in the former Holyoke, MA, Field Office. Over the past five years, he has focused primarily on supervising technology risks at large, complex, and problem banks and technology service providers.

Mr. Flynn’s presentation highlighted the increasing and inherent risk due to the banking industry’s ever-growing dependence on technology. Mr. Flynn identified specific technology, organization, human, and physical risks to financial institutions, and ways that institutions could minimize those risks, conceding that cybersecurity attacks were a “matter of when, not if.” He stressed that institutions were responsible not only for minimizing the possibility of such attacks, but for implementing a plan to deal with their aftermath. Mr. Flynn emphasized that the FDIC’s focus in examining institutions’ IT and cybersecurity would be on their preparedness and risk mitigation efforts.

Mr. Flynn took numerous questions from those in attendance both during and after his presentation. For example:

• One attendee asked how to deal with the possibility of cybersecurity attacks on third party vendors and core service providers. Mr. Flynn explained, in response, that financial institutions could outsource tasks but not the responsibility, and that they needed to provide sufficient oversight of third party vendors and the vendors’ systems.

• Another attendee asked whether New York State’s new cybersecurity regulations (Part 500) were more stringent than federal regulations and, therefore, whether banks could put off implementing more aggressive systems until a New York State examination year. Mr. Flynn stated that, just because the FDIC did not have regulations that paralleled Part 500, did not mean that the FDIC held banks to a lower level of cybersecurity. Instead, he explained that he believed cybersecurity issues could be tied back to safety and soundness and that the FDIC expected cybersecurity diligence equivalent to that required under Part 500. Mr. Flynn added that the Federal banking regulators continue to discuss and review issuing cybersecurity regulations, but that he did not know if, or when, these regulations would be passed.

Thank you to Mr. Flynn for coming to speak with the NYLIB community!