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May 15, 2024
Senators Release 'Road Map' For Crafting Federal AI Policy
A bipartisan group of senators on Wednesday laid out a "road map" for artificial intelligence policy that calls for increased AI innovation funding, testing of potential harms posed by AI and consideration of the technology's workforce implications.
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May 15, 2024
Swiss Seek Feedback On Crypto Information Exchange
Switzerland's executive body, the Federal Council, is seeking feedback from the public on its plan to adopt two Organization for Economic Cooperation and Development standards that will update the country's automatic exchanges of information to account for crypto-assets, it said Wednesday.
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May 15, 2024
Archegos Ex-Accountant Tells Jury Of 'Vendetta' Inside Fund
A key cooperating witness had a "personal vendetta" against a former Archegos executive charged in the government's $36 billion market distortion case, according to testimony Wednesday by an ex-accountant at the fallen fund.
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May 14, 2024
In Hot Seat, FDIC's Gruenberg Pledges 'Fundamental Change'
Federal Deposit Insurance Corp. Chairman Martin Gruenberg will tell House lawmakers Wednesday that he is taking "full responsibility" for his agency's workplace misconduct scandal and eyeing "fundamental" structural reforms, striking a humbled but determined tone as he faces the first of two hearings that could be make-or-break for his job.
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May 14, 2024
FINRA Official Calls Off-Channel Flags 'Shockingly Common'
A Financial Industry Regulatory Authority official said Tuesday that firms often veer into issues with off-channel business communications thanks to what's on their representatives' business cards and email signatures, and that the biggest red flag of recordkeeping violations are the habits of firms' own leaders and managers.
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May 14, 2024
Asset Manager Cops To $1.2B Venezuelan Oil Co. Fraud
An asset manager pled guilty Tuesday to one count of conspiracy to commit money laundering for his role in a $1.2 billion scheme to embezzle money from Venezuela's state-owned oil company and launder it through false investment schemes in the U.S. and abroad.
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May 14, 2024
Berkshire Bank Sued For Customer's Alleged $90M Ponzi
Massachusetts-based Berkshire Bank is facing a proposed class action brought by an investor seeking to hold the bank liable for providing financial services to a bankrupt local business person whom the investor has accused of operating a $90 million Ponzi scheme.
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May 14, 2024
Ex-Wachovia Exec Owes $9M For Decade-Old Fraud, Feds Say
A former senior trading executive-turned-Christian novelist still owes over $9 million in restitution on a 17-year-old conviction for a Ponzi-like scheme he ran while working for what was then Wachovia's investment banking unit, according to federal prosecutors.
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May 14, 2024
Couple Attacks Chase's 'Pack Of Lies' In $20M Loss Case
An elderly couple claiming they lost tens of millions through bad investments with JPMorgan Chase Bank NA said in a heated Massachusetts federal court hearing Tuesday that the big bank shouldn't pocket a pretrial win based on a magistrate judge's "extreme" analysis.
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May 14, 2024
Fla. Man Get 13 Mos. For Trading On Goldman Insider Info
A Florida man was sentenced to 13 months in prison after pleading guilty to trading stocks on information provided by a former Goldman Sachs analyst, his attorney said Tuesday.
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May 14, 2024
EU Finance Ministers Strike Deal On Withholding Tax Refunds
European Union finance ministers agreed Tuesday to a withholding tax refund law, as previous holdouts Poland and the Czech Republic withdrew their objections.
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May 13, 2024
Bank Lobbies Rattle Sabers At Fed Over Debit Swipe Fees
Some of the same banking industry groups that sued over the Consumer Financial Protection Bureau's credit card late fee rule have urged the Federal Reserve to refrain from lowering a separate cap on debit card swipe fees, signaling it could be the next bank fee regulation to face a legal challenge if finalized.
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May 13, 2024
Banking Groups Oppose FDIC Position On Interstate Lending
Two banking associations have argued the Federal Deposit Insurance Corp. is trying to create a new regulation through its support of a Colorado state law aimed at reining in high-cost lending by claiming for the first time, in an amicus brief, that interstate loans are made in both the lender's and borrower's states.
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May 13, 2024
BofA Let 'Off The Hook' In ATM Fee Row, 9th Circ. Told
An attorney for a proposed class alleging Bank of America wrongly charged them for out-of-network balance inquiries at ATMs told a Ninth Circuit panel Monday that the district court erred in tossing all the claims by applying arguments about a different defendant.
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May 13, 2024
Student Loan Servicer Faces Suit Over Tax Form Data Breach
An education-focused subsidiary of payment processor Global Payments Inc. faces a proposed class action accusing it of negligence after it disclosed that part of its website allowed bad actors unfettered access to certain student tax documents for months at a time.
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May 13, 2024
SEC, FinCEN Propose Money Manager Customer ID Rule
The U.S. Securities and Exchange Commission and the Treasury Department's Financial Crimes Enforcement Network on Monday proposed a rule that would require money managers such as hedge funds and private equity firms to document and maintain customer identification programs.
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May 13, 2024
Kabbage Inks 2 FCA Deals With Feds Totaling $120M
Bankrupt online lender Kabbage Inc. has agreed to pay $120 million in two separate deals to resolve allegations it submitted thousands of false claims for loan forgiveness and operated without adequate fraud controls in place, the U.S. Department of Justice announced Monday.
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May 13, 2024
AIG Unit Decries Bank's 'Eleventh Hour' Fraud Claims
A bank owner's amended claims accusing an AIG unit of violating the Texas Insurance Code by refusing to cover certain defense costs must be tossed, the insurer told a Texas federal court, arguing that the bank made an "eleventh hour" attempt to expand the case beyond a simple contract dispute.
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May 13, 2024
Corp. Transparency Act An Overbroad Dragnet, 11th Circ. Told
Congress exceeded its authority in passing the Corporate Transparency Act, which prompted the U.S. Treasury Department to solicit personal information for law enforcement purposes from those that registered and owned state-registered entities, a small-business group told the Eleventh Circuit on Monday.
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May 13, 2024
Fla. Investor Duped Brokerages In Trading Scheme, SEC Says
A Tampa-area investor was sued Monday by the U.S. Securities and Exchange Commission in Florida federal court over a scheme that involved him opening brokerage accounts with insufficient bank funds and taking advantage of the credit broker-dealer firms offered to trade stocks.
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May 13, 2024
2nd Circ. Won't Revive UBS Suit Over Disclosed Account Info
The Second Circuit declined Monday to revive a couple's suit accusing UBS of fraudulently flagging an account to the Internal Revenue Service, finding that any alleged harm resulting from an audit would have been caused by the agency itself.
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May 13, 2024
Diaz Reus Attys Dodge Sanctions Over Last-Minute Dismissal Bid
Citing a lack of good cause for sanctions, a south Florida federal judge determined Monday that shareholders in a Venezuela-linked bank cannot penalize Miami-based Diaz Reus & Targ LLP lawyers over allegations they delayed an expected October 2023 trial in a suit alleging the bank's directors breached their fiduciary duty.
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May 13, 2024
BofA Says Suit By Commanders Ex-Partner Has Wrong Target
A former Washington Commanders minority owner's claim that Bank of America and others scammed him out of a bigger share of the eventual sale price of the NFL franchise is "implausible" and "incoherent,'' Bank of America told a Florida federal court in its motion to dismiss the minority owner's suit.
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May 13, 2024
Ex-Banker Tied To Murdaugh Says Juror Issue Merits Retrial
A former banker who was convicted of helping ex-attorney and convicted murderer Alex Murdaugh steal clients' money has urged the Fourth Circuit to give him a new trial, arguing two jurors were unconstitutionally removed.
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May 13, 2024
Investor Seeks Info On Visa Denied For Money Exchanger Use
A Vietnamese woman challenging U.S. Citizenship and Immigration Services' denial of her EB-5 petition hauled the agency into a D.C. federal court, accusing it of withholding information that may reveal why her use of a money exchanger doomed her petition.
Expert Analysis
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Banks Should Continue To Prep For CFPB Data Rule Rollout
Consumer Financial Protection Bureau-supervised banks should not expect industry pressure to delay the rollout of proposed Section 1033 open banking rules, which regulate how consumer financial information flows between financial institutions, and prepare their required data access portals and compliance procedures now, say attorneys at Troutman Pepper.
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Tips For CCOs Submitting Annual Compliance Reports
Recent settlement actions by the U.S. Commodity Futures Trading Commission, coupled with statements made by both CFTC and U.S. Securities and Exchange Commission leadership, demonstrate why this year's chief compliance officer annual report filing is no ordinary exercise, and highlight the increasing importance of the report and its usage, say attorneys at Steptoe.
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Avoiding Jurisdictional Risks From Execs' Remote Work
Following a California federal court's recent decision in Evans v. Cardlytics — where the case was remanded to state court because the company’s executives worked remotely in California — there are several steps employers can take to ensure they will not be exposed to unfavored jurisdictions, says Eric Fox at Quarles & Brady.
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Fintech 'Prenups': Planning For A Card Program Breakup
After a year of economic downturns, some banks and their fintech partners are realizing they may have rushed to the altar without a good prenup, but planning ahead can curb both foreseeable and unexpected issues in the event of a termination of a bank-fintech card-issuing agreement, say Andrew Grant at Ketsal and Richard Malish at Community Federal Savings Bank.
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SEC's Final Climate Disclosure Rules: What Cos. Must Know
While the U.S. Securities and Exchange Commission's scaled-back final rules requiring public companies to disclose certain climate-related information still face challenges in court, companies should begin preparing now to comply with the rules, say Celia Soehner and Erin Martin at Morgan Lewis.
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3 Notification Pitfalls To Avoid With Arbitration Provisions
In Lipsett v. Popular Bank, the Second Circuit found that a bank's arbitration provision was unenforceable due to insufficient notice to a customer that he was bound by the agreement, highlighting the importance of adequate communication of arbitration provisions, and customers' options for opting out, say attorneys at Covington.
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BIPA's Statutory Exemptions Post-Healthcare Ruling
The Illinois Supreme Court's November opinion in Mosby v. Ingalls Memorial Hospital, which held that the Biometric Information Privacy Act's healthcare exemption also applies when information is collected from healthcare workers, is a major win for healthcare defendants that resolves an important question of statutory interpretation, say attorneys at Quinn Emanuel.
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2nd Circ.'s Nine West Ruling Clarifies Safe Harbor Confusion
The Second Circuit’s recent ruling in Nine West’s Chapter 11 suit clarifies that courts in the circuit will apply a transfer-by-transfer analysis to determine the applicability of Section 546(e) of the Bankruptcy Code, and that to be safe harbored, a financial institution must act as an agent with respect to the specific transfer at issue, says Leonardo Trivigno at Carter Ledyard.
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What Fed's Credit-Linked Note FAQ Means For Capital Relief
U.S. banks that seek to mitigate their loss of liquidity under the Basel III capital requirements by issuing direct credit-linked notes should turn to recent Federal Reserve FAQs for insight into how this new use of synthetic securitizations may reshape risk and regulation in the U.S. market, says Cris Cicala at Stinson.
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Fintech Compliance Does Not Always Equal Bank Compliance
Recent enforcement actions are a reminder for banks working with financial technology providers — whether as partners to extend their reach or as internal resources to support existing operations — that few areas of risk need more frequent attention than Bank Secrecy Act and anti-money laundering compliance, says Christopher Couch at Phelps Dunbar.
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Del. Dispatch: How Moelis Upends Stockholder Agreements
The Delaware Court of Chancery's Moelis decision last month upended the standard corporate practice of providing governance rights in stockholder agreements and adds to a recent line of surprising decisions holding that long-standing, common market practices violate Delaware law, say attorneys at Fried Frank.
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Litigation Inspiration: A Source Of Untapped Fulfillment
As increasing numbers of attorneys struggle with stress and mental health issues, business litigators can find protection against burnout by remembering their important role in society — because fulfillment in one’s work isn’t just reserved for public interest lawyers, say Bennett Rawicki and Peter Bigelow at Hilgers Graben.
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Fla. Bankruptcy Ruling Is Cautionary Tale For Debt Collectors
A Florida bankruptcy court recently rejected the assertion that a debt purchaser was entitled to enforce a debt not correctly listed on the debtor's bankruptcy schedules, and the sanctions imposed provide a stark reminder on due diligence in debt collection practices, say Deborah Kovsky-Apap and Stefanie Jackman at Troutman Pepper.
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A New Push To Clear Up Marijuana's Foggy Legal Status
A recently publicized U.S. Food and Drug Administration recommendation to reschedule marijuana has reignited discourse over the drug's federal legal status — and although rescheduling would mitigate the legal risks for the industry and drastically increase the resources available for industry participants, the path forward will not be clear cut, say Joseph Cioffi and Louis DiLorenzo at Davis+Gilbert.
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Series
Skiing Makes Me A Better Lawyer
A lifetime of skiing has helped me develop important professional skills, and taught me that embracing challenges with a spirit of adventure can allow lawyers to push boundaries, expand their capabilities and ultimately excel in their careers, says Andrea Przybysz at Tucker Ellis.