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CFPB Issues New Arbitration Rule – Are the Flood Gates Opening for Consumer Class Actions against Financial Institutions?

On July 10, 2017, the Consumer Financial Protection Bureau (CFPB) issued a rule (full text here), which prohibits many financial institutions from including mandatory arbitration provisions that limit their customers’ ability to join class action litigation. The rule, which may become effective as early as 2018 and only applies to new accounts opened after the … Continue Reading

What is the Impact of the Financial Choice Act on Small Business? It depends on who you ask.

The House of Representatives passed legislation this month aimed at erasing several key provisions of the 2010 Dodd-Frank Act. The Financial Choice Act (the Act), if enacted, would bring vast changes to the financial regulatory system. Proponents of the Act claim it will benefit small businesses, resulting in job growth. On its website, the Financial … Continue Reading

U.S. Supreme Court Holds Municipality Can Sue Banks for Financial Injuries Under the Fair Housing Act, but Whether There is Proximate Cause is for Another Day and Another Court

In a 5-3 decision in Bank of America Corp. et al. v. City of Miami, Florida (No. 15-1111 and No. 15-1112, May 1, 2017), the United States Supreme Court held that the City of Miami (“City”) was an “aggrieved person” authorized to bring suit under the Fair Housing Act (the “FHA”) for predatory lending by … Continue Reading

New York Steps Up To The Plate With Its Cybersecurity Regulations

Last fall, in response to the “ever-growing threat” posed to information and financial systems, the New York State Department of Financial Services (DFS) proposed cybersecurity regulations that were designed to “promote the protection of customer information and information technology systems of regulated entities.”  On December 28, 2016, DFS issued a press release effectively delaying the … Continue Reading

Trump Administration Continues to Indicate Tide Change Away from Support of the CFPB

As previously reported on this blog[1], President Trump’s issuance of an Executive Order and the subsequent introduction of bills seeking to eliminate the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) signaled a dramatic shift from the Obama Administration’s support of the CFPB, which was expected to continue under Clinton. Further evidence of this new administration’s … Continue Reading

Investors Contend “Smoking Gun” Evidence is the Silver Bullet Against Financial Institution Defendants in Silver Rigging Case

The plaintiffs in a multidistrict silver rigging case pending in New York, In re: London Silver Fixing Ltd. Antitrust Litigation (S.D.N.Y., Case No.: 1:14-md-02573), have sought to amend their complaint based on newly acquired “smoking gun” evidence concerning an alleged conspiracy by certain financial institutions to rig the price of silver and silver related financial instruments. With … Continue Reading

Every Rose Has Its Thorn: No D&O Coverage For Bad Loans To Flower Company, Fifth Circuit Says

In a recent decision, the Fifth Circuit ruled in favor of Markel American Insurance Company in a D&O liability coverage dispute centering on the application of the policy’s “Creditor Exclusion.” The panel affirmed a lower court’s holding that the exclusion precluded coverage for claims brought by lenders of the insured. Markel Am. Ins. Co. v. … Continue Reading

Royal Bank of Scotland to Pay $1.1 Billion for Role in 2008 Financial Crisis

The Royal Bank of Scotland (RBS) has agreed to pay the National Credit Union Administration (NCUA) $1.1 billion to settle claims over the sale of allegedly “toxic” mortgage-backed securities to corporate credit unions that later failed, the administration announced last Tuesday. The settlement will resolve claims against RBS in federal actions in California and Kansas … Continue Reading
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