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Banking
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November 20, 2024
Wells Fargo Must Turn Over E-Docs In TelexFree Litigation
A Massachusetts magistrate judge on Wednesday ordered Wells Fargo Advisors LLC to hand over electronic files maintained by a compliance manager who investigated potential misconduct by an employee handling accounts of TelexFree associates under investigation in a $3 billion Ponzi scheme.
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November 20, 2024
Hinshaw Brings On Ex-JPMorgan Counsel From Ballard Spahr
A Ballard Spahr LLP attorney and former in-house counsel for JPMorgan Chase & Co. has joined Hinshaw & Culbertson LLP as a partner in the firm's consumer financial services practice group in New York, where he will advise banks, lenders and fintechs on state and federal regulations, compliance matters and litigation.
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November 20, 2024
Biden Bank Regulators Punt Big-Ticket Rulemakings To Trump
Top Biden administration banking regulators told House lawmakers on Wednesday that they don't plan to move forward on efforts to strengthen banks' requirements for capital, liquidity or long-term debt before President-elect Donald Trump takes office, although the Federal Reserve's supervision chief said he's not leaving anytime soon.
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November 20, 2024
Archegos Founder Gets 18 Years For Massive Market Fraud
Bill Hwang, the founder of collapsed hedge fund Archegos, was sentenced Wednesday to 18 years in prison after he was convicted of lying to banks in order to secure billions of dollars in loans used to manipulate the market.
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November 20, 2024
Bankman-Fried Tech Deputy Who Parsed Code Avoids Prison
A Manhattan federal judge allowed tech expert Zixiao "Gary" Wang to avoid jail Wednesday for his role in the $11 billion FTX fraud, crediting his effort to detail programming "back doors" that enabled Sam Bankman-Fried to loot the bankrupt crypto exchange.
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November 19, 2024
Keep Colo. Interest Rate Opt-Out Law Blocked, 10th Circ. Told
A coalition of organizations representing the financial services industry has urged the Tenth Circuit to uphold a district court's injunction against a Colorado interest rate opt-out law, arguing the state's attempt to reframe the federal provision allowing the opt-out as a consumer protection measure ignores the underlying statute's history as rooted in federalist principles.
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November 19, 2024
11th Circ. Weighs Whether Tornado Cash Sanctions Overreach
An Eleventh Circuit panel on Tuesday dove deep into the mechanisms of cryptocurrency mixing service Tornado Cash as the judges weighed whether government sanctions intended to curb illicit finance on the protocol are permitted under the law.
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November 19, 2024
Online Lenders, Contractor Face Service Members' Fraud Suit
California-based contractor Multitaskr Construction Inc. and several online lending companies were hit with a consumer lawsuit in California federal court alleging they conspired to originate lucrative fraudulent loans for home improvement projects that were never completed.
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November 19, 2024
CFPB's Medical Debt Guidance Faces Industry Injunction Bid
Debt collectors asked a D.C. federal court on Monday to put an immediate hold on recent Consumer Financial Protection Bureau guidance aimed at the medical debt collection market, escalating their challenge to the document ahead of its looming effective date.
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November 19, 2024
Ex-Fed Examiner Cops To Insider Trading, Settles With SEC
A former senior banking supervisor with the Federal Reserve Bank of Richmond pled guilty Tuesday in Virginia federal court to insider trading, the same day he resolved the U.S. Securities and Exchange Commission's claims accusing him of inappropriately trading in shares of New York Community Bancorp and Capital One Financial Corp.
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November 19, 2024
Dentons Atty Owed No Duty In $54M Currency Swap, Jury Told
A Hunton Andrews Kurth LLP partner on Tuesday defended the actions of a former Dentons attorney in a failed $54 million bolivar-to-dollars currency swap, telling jurors that she did not owe a duty to the Venezuelan attorney suing her for malpractice because she never represented him as his attorney.
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November 19, 2024
Ex-Fed Staffer Says Vax Bias, DEI Initiatives Got Him Sacked
A former employee of the Federal Reserve Board sued the central bank's leadership alleging he faced discrimination as a straight, white man and "utter disdain" from his managers, and that he was ultimately fired days before his planned retirement after refusing coronavirus vaccination on religious grounds.
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November 19, 2024
DC Sues Wage Advance Co. For 'Predatory Lending'
Pay advance app EarnIn deceptively lures in cash-strapped borrowers with promises of providing payday advances with no mandatory fees but ultimately causes users to incur interest rates that can exceed 300%, the Washington, D.C., attorney general said in a lawsuit filed Tuesday.
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November 19, 2024
FCC To Vote On More Credit Options To Back Broadband Aid
The Federal Communications Commission is poised to allow more financial institutions to issue letters of credit that broadband providers can rely on to secure federal funding for high-speed infrastructure projects.
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November 19, 2024
Senators Blast Visa And Mastercard, Promise Action On Fees
A bipartisan group of Senate Judiciary Committee members blasted executives from Visa and Mastercard on Tuesday over swipe fees charged to merchants, promising to rein in what the lawmakers called the companies' monopoly on credit card payments if they do not change their practices.
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November 19, 2024
Ballard Spahr Brings On Former Federal Prosecutor In LA
Ballard Spahr LLP is expanding its consumer finance services team, announcing Tuesday that a former assistant U.S. attorney is joining its Los Angeles office as of counsel.
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November 19, 2024
NY Judge Rejects Ozy Media CEO's DQ Bid Over Investments
U.S. District Judge Eric R. Komitee of New York's Eastern District on Tuesday refused to step aside from former Ozy Media CEO Carlos Watson's fraud and identity theft case, slamming as meritless Watson's effort to undo his convictions over the judge's financial investments.
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November 19, 2024
Trump Names Wall St. Exec For Chief Commerce Role
Donald Trump will nominate longtime Wall Street financier Howard Lutnick to head up the U.S. Department of Commerce, the president-elect announced Tuesday, selecting a top member of his transition team to oversee a vast bureaucracy that grapples with key trade policies.
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November 19, 2024
FDIC's Gruenberg To Exit On Eve Of Trump's Inauguration
The Federal Deposit Insurance Corp.'s embattled chairman, Martin Gruenberg, said Tuesday that he will step down and retire from the agency before President-elect Donald Trump takes office, clearing the way for a new, likely Republican leader at the deposit insurer.
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November 18, 2024
State Department Sanctions Official Rejoins Crowell & Moring
After more than three years working as a senior sanctions policy official in the U.S. State Department, Erik Woodhouse has returned to private practice at Crowell & Moring LLP in the firm's Washington, D.C., office, the firm announced Tuesday.
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November 18, 2024
Justices Urged To Pass On 3rd Circ. CFPB Loan Trust Case
The Consumer Financial Protection Bureau has asked the U.S. Supreme Court to deny an appeal by a group of student loan trusts fighting an enforcement action by the agency, arguing that industry concerns about the Third Circuit case are overblown and unavailing.
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November 18, 2024
Justices Urged To Deny TCPA Class Certification Challenge
A Florida-based financial services company found to have violated the Telephone Consumer Protection Act for sending fax ads to nearly 60,000 recipients is telling the U.S. Supreme Court to reject a petition from one of those respondents that sought to turn the case into a class action.
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November 18, 2024
Dems Probe Treasury On Effects Of Crypto Mixer Sanctions
A group of House Democrats pressed the U.S. Department of the Treasury on Monday to provide information on how effective its sanctions regime against cryptocurrency mixing services has been at detecting and curbing illicit finance.
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November 18, 2024
Treasury Finalizes Tougher Foreign Investment Law Penalties
The Treasury Department on Monday finalized a rule sharpening its enforcement authority to stop or demand additional information regarding foreign-investment deals that the U.S. deems potential threats to national security.
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November 18, 2024
Mo. Bank Properly Valued At $1.1M, Commission Rules
A Missouri property that is owned and operated by a bank branch was properly valued at $1.1 million, the state's tax commission ruled, saying the bank's appraiser was not persuasive in her argument that the value should be lowered to $725,000.
Expert Analysis
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What 2 Key Rulings Mean For Solicitation Under TCPA
Two recent rulings from federal district courts in New York and California — each of which came to a different conclusion — bring to light courts' continued focus on and analysis of when an alleged communication constitutes a solicitation under the Telephone Consumer Protection Act, say Felix Shipkevich and Jessica Livingston at Shipkevich.
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Series
NY Banking Brief: All The Notable Legal Updates In Q3
In a relatively light few months for banking legal updates in New York, the state Department of Financial Services previewed its views on banking sector artificial intelligence use via insurer guidance, and an anti-money laundering enforcement action underscored the importance of international monitoring processes, say Eric McLaughlin and Dana Bayersdorfer at Davis Polk.
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Series
Collecting Art Makes Me A Better Lawyer
The therapeutic aspects of appreciating and collecting art improve my legal practice by enhancing my observation skills, empathy, creativity and cultural awareness, says attorney Michael McCready.
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A Look At Recent Case Law On Expedited Judgment In NY
A number of recent New York state court decisions clarify and refine the contours surrounding Civil Practice Law and Rule 3213, providing landlords, lenders and other payees guidance on how to seek accelerated judgment in certain litigation, says Alexander Lycoyannis at Holland & Knight.
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Series
A Day In The In-House Life: Best Egg CLO Talks Power Of Prep
On a typical Monday in her life, Best Egg Chief Legal Officer Amy Thoreson Long chronicles a remote workday in which she makes time for everything from getting ahead on regulatory issues and researching recent Supreme Court decisions to dog walks and podcast breaks.
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Secret Service Failures Offer Lessons For Private Sector GCs
The Secret Service’s problematic response to two assassination attempts against former President Donald Trump this summer provides a crash course for general counsel on how not to handle crisis communications, says Keith Nahigian at Nahigian Strategies.
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Managing Sanctions Defense Across Multiple Jurisdictions
Companies called before multiple regulators to account for the same conduct in this era of increased global sanctions and import-control enforcement should consider national differences in law and policy, and proactively coordinate their responses in certain key areas, say attorneys at Baker McKenzie.
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Series
Colorado Banking Brief: All The Notable Legal Updates In Q3
In the third quarter of 2024, Colorado's banking and financial services sector faced both regulatory updates and changes to state law due to recent federal court decisions — with consequences for local governments, mortgage lenders, state-chartered trust companies and federally chartered lenders serving Colorado consumers, says Sarah Auchterlonie at Brownstein Hyatt.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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Series
In The CFPB Playbook: No Lazy, Hazy Days Of Summer
The Consumer Financial Protection Bureau is headed for a brisk fall season, on the heels of a heated summer, which included the U.S. Supreme Court's ruling that the CFPB funding structure is constitutional, and in advance of the November election, says Eamonn Moran at Holland & Knight.
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Payward And The Secondary Crypto Transaction Confusion
Following orders in cases against Coinbase and Binance, the recent California federal court ruling in U.S. Securities and Exchange Commission v. Payward raises even more questions about regulation of secondary transactions involving crypto-assets, as it tries to sidestep fundamental flaws in the SEC's legal theories, say attorneys at Cahill Gordon.
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Opinion
AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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A Class Action Trend Tests Limit Of Courts' Equity Powers
A troubling trend has developed in federal class action litigation as some counsel and judges attempt to push injunctive relief classes under Rule 23(b)(2) of the Federal Rules of Civil Procedure beyond the traditional limits of federal courts' equitable powers, say attorneys at Jones Day.
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Key Takeaways From DOJ's New Corp. Compliance Guidance
The U.S. Department of Justice’s updated guidance to federal prosecutors on evaluating corporate compliance programs addresses how entities manage new technology-related risks and expands on preexisting policies, providing key insights for companies about increasing regulatory expectations, say attorneys at Debevoise.
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The Key Changes In Revised FDIC Hiring Regulations
Attorneys at Ogletree break down the Federal Deposit Insurance Corp.'s new rule, effective Oct. 1, that will ease restrictions on financial institutions hiring employees with criminal histories, amend the FDIC's treatment of minor offenses and clarify its stance on expunged or dismissed criminal records.