Spring Half-Day Conference Featured Key Topics for the Financial Executive
Chapter Jointly Sponsored Event with New Jersey Bankers Association
Members of the FMS NY/NJ Chapter joined Members from the New Jersey Bankers Association (“NJBA”) at the Spring Half-Day Conference recently held at the Stony Hill Inn in Hackensack, NJ on Monday April 20, 2015. The Chapter co-sponsored the event with the NJBA. The conference featured quality sessions presented by top industry speakers. The economy, interest rates, capital management and a federal and state tax update were among the topics presented. Members enjoyed a hot buffet breakfast before the first session. A full course luncheon was served during the final session.
Glenn James CPA from BDO, discusses the latest trends in state and local taxes during his tax update presentation. 
FMS and NJBA Members closely follow the presentation by CFO Consulting Partners at the Sping Half-Day Conference.
Members earn valuable CPE credits while hearing an expert view on a wide range of topics for the financial executive.
The program opened with a very informative session presented by Peter Badger and Jim Clarke that provided strategies for effective balance sheet management in anticipation of rising short-term interest rates. Peter is an Executive Director with Morgan Stanley Institutional Fixed Income Capital Markets Group and formerly served as Chairman and as a Board Member of FMS National. Jim is a consultant to the financial industry. Jim Clarke noted that despite the weak March employment reports, the Fed will likely increase short-term rates later this year and that interest rate risk is the leading focus of regulators. Peter Badger reviewed the current state of the economy and provided key investment strategies to reduce interest rate risk and increase net investment income when interest rates begin to rise later this year.

Glenn James CPA, tax partner from BDO presented a timely Federal and State Tax Update. Glenn is the practice leader for the BDO financial institutions tax group with more than 25 years of experience providing tax consultancy to financial institution clients. Glenn primarily discussed the six key principles of the Basel III deferred tax asset call report adjustments. He reviewed specific examples of the net effect on taxable income which are provided in his slide presentation. Glenn also discussed certain revisions to charges for bad debt losses and cancellation of indebtedness income. He also discussed the local tax reforms affecting New Jersey and New York City.

Eric Segal, Managing Director and Tom Van Lenten, Director from CFO Consulting Partners presented the CFO’s Role in Enterprise Risk Management (“ERM”) after attendees returned from a relaxing “networking” break. Eric defined ERM as a “process, effected by … the Board of Directors … designed to identify potential risks …and manage risks within its risk appetite”.

Eric noted that the structure and focus of community bank ERM has been organized around a traditional bank risk profile. Tom stressed that the traditional institution’s ERM approach has failed to evolve fast enough to effectively manage cyber risks. He identified the basic components of cyber controls as well as a governance framework to minimize potential risks. Eric noted that the most significant ERM risks are managed by the CFO including ALM, internal controls, accounting policies and elections, valuation and budget. He emphasized how the importance of a progressive approach by the CFO is critical to meeting new ERM challenges.

While Members enjoyed a full-course luncheon, Craig Dismuke, Chief Economist at Vining Sparks presented an expert view on the economy entitled Short-Term Tailwinds, Long-Term Headwinds. Craig described how current equity prices driven by strong corporate profits reflect short-term economic tailwinds, while bond prices reflect longer term challenges. He discussed the specific factors that influence the economic challenges ahead:

·         Aging U.S. population

·         Debilitating debt burden at Federal level

·         Tenuous housing market

·         Potential asset-bubble correction

·         Weak global growth

Craig provided his analysis of the current Fed economic policy along with his outlook on short-term interest rates. He noted the Fed’s increased focus on inflation and that the strong dollar combined with commodities prices have resulted in market expectations for continued lower inflation. Although earnings growth remains weak, Craig noted that the Fed anticipates that overnight rates will increase during 2015, but likely no more than once. He noted few changes from the first quarter 2015 outlook with housing being stronger than expected and a continued flattening of the yield curve.

Topics and Speakers

CFO's Role in Enterprise Risk Management

Eric Segal FMS Photo
Eric Segal
Managing Director
CFO Consulting Partners 646 650-2028 Ext. 702


Slide Presentation

Managing Assets/Liabilities in Anticipation of Rising Interest Rates

Peter Badger FMS Photo
Peter Badger
Executive Director
Morgan Stanley Fixed Income Securities Group

Slide Presentation

Federal and State Tax Update

Glenn James FMS Photo
Glenn James CPA

215 241-8959

Slide Presentation

Short-Term Tailwinds,
Long-Term Headwinds

Craig Dismuke FMS Photo
Craig Dismuke
Chief Economist
Vining Sparks
800 829-0321

Slide Presentation

Tom Van Lenten, Director from CFO Consulting Partners presented the CFO's Role in Enterprise Risk Management.
Craig Dismuke, Chief Economist from Vining Sparks presented an expert economic outlook during the luncheon session. 
Members enjoy a full course luncheon while listening to the presentation on the economy by Craig Dismuke.