Expert Analysis

• Main St. Bank Bill Could Spur Lending, Ease Barriers To Entry

  

  Recently approved by the U.S. House Financial Services Committee, the Main Street Capital Access Act, if passed, would provide senior bank leadership with a framework that could influence how banks pursue growth, particularly at community and regional midsize institutions, says Melody Charlton at FBT Gibbons.

• DOJ Faces Key Hurdles In Proving SPLC Donor Fraud Theory

  

  The U.S. Department of Justice’s recent indictment of the Southern Poverty Law Center — on fraud and money laundering charges — illustrates the serious structural questions surrounding falsity, intent and materiality that prosecutors face when targeting donation-based fraud, say attorneys at Rogers Joseph.

• Series

  Playing Magic: The Gathering Makes Me A Better Lawyer

  

  The competitive card game Magic: The Gathering offers me a training ground for the strategic thinking skills crucial to litigation, challenging me to adapt to oft-updated rules, analyze text as complicated as any statute and anticipate my opponent’s next moves, says Christopher Smith at Lash Goldberg.

• How Banks And Fintechs Can Build COPPA-Ready Youth Apps

  

  Recent Children's Online Privacy Protection Act and state law activity expanding children's data protections underscore compliance considerations for bank-fintech partnerships offering digital financial tech products for youth, including age-gating, data minimization and parental control, says Erin Illman at Bradley Arant.

• Improving Well-Being In Law, 10 Years After Landmark Study

  

  An important 2016 study revealed significant substance abuse and mental health issues among lawyers, and while the findings helped normalize the conversation around these topics, a decade later, structural change is still needed, says Denise Robinson at PLI.

• Mapping Bank Exec Clawback Risk Ahead Of Revived Bill

  

  The reintroduction of the Failed Bank Executives Clawback Act would allow recovery of executive compensation after bank failures, making it important for executives and counsel to take steps such as mapping compensation, reviewing employment agreements, documenting decisions, and confirming D&O insurance, says Drew Jones at Diamond McCarthy.

• Small And Midsize Business Finance Faces More State Regs

  

  Recent developments in state credit disclosure, consumer debt collection, and lender licensing and registration requirements suggest that companies extending financing to small and midsize businesses are likely to encounter a significantly more stringent legal climate moving forward, say attorneys at Manatt.

• Structuring Bank-Fintech Ties To Avert Risk

  

  Bank-fintech relationships that can hold up to recent increased scrutiny must take into account a broad swath of structuring considerations including due diligence, compliance, documentation, and planning for a potential wind-down and termination, say attorneys at Nelson Mullins.

• What DOL Proposal Signals For 401(k)s, Alternative Assets

  

  The U.S. Department of Labor recently published a highly anticipated proposed rule that could establish more defined pathways for 401(k) plan fiduciaries to consider investment options with greater alternative asset exposure, and help fund sponsors and investment managers develop such options, say attorneys at Cleary.

• DOJ's Superseding Policy Muddies Trade Crime Disclosures

  

  The U.S. Department of Justice’s first agencywide voluntary self-disclosure policy is intended to standardize approaches across DOJ components, but the shift may prove difficult in trade controls cases under the National Security Division, which has long viewed sanctions and export control offenses as uniquely serious, say attorneys at Covington.

• Contract Language Reigned Supreme In Bancorp Dismissal

  

  A Minnesota federal court's recent dismissal of claims over U.S. Bancorp's cash sweep program underscores that clear contractual disclosures hold weight in class actions, demonstrating the power of contract language that plainly indicates terms, fiduciary limits and institutional benefits to customers, says Quin Seiler at Winthrop & Weinstine.

• Why Justices Seem Skeptical Of Curbing SEC Disgorgement

  

  Sripetch v. U.S. Securities and Exchange Commission presents an opportunity for the U.S. Supreme Court to clarify the disgorgement limits it set six years ago in Liu v. SEC, with recent oral arguments suggesting the court sees disgorgement as an equitable remedy akin to unjust enrichment, say attorneys at Hueston Hennigan.

• 4 True Lender State Laws And 1 Appeal For Fintechs To Watch

  

  The fintech industry faces increased scrutiny through proposed true lender laws from several states, as well as ongoing litigation regarding the impact of Colorado's opt-out from the Depository Institutions Deregulation and Monetary Control Act — all of which should heighten industry participants' vigilance, say attorneys at Womble Bond.

• OFAC Signals Sanctions Diligence Can't Stop At 50% Rule

  

  Recent guidance from the Office of Foreign Assets Control, along with several enforcement actions looking beyond the 50% formal ownership requirement, sends a clear message that sanctions due diligence must consider a variety of factors, including degree of control, practice of actual dealings and the involvement of proxies, say attorneys at Jenner & Block.

• Hungary CPAC Funding Probe Could Implicate US Entities

  

  A Hungarian anti-corruption investigation into claims that the former prime minister used taxpayer funds to support the Conservative Political Action Conference could include potential cross-border political and financial dimensions that create multiple touchpoints for U.S. regulatory and enforcement interest, say attorneys at Ballard Spahr.