LONDON - (Mealey's) Financial giant HSBC has agreed to
pay $1.9 billion to the U.S. Department of Justice and other federal agencies
to settle claims that it instituted "inadequate compliance with anti-money
laundering [AML] and sanctions...
The Consumer Financial
Protection Bureau has begun the process of issuing new rules to govern the
booming, multi-billion dollar market in certain reloadable debit cards. On May
24, 2012, the Bureau issued an Advanced Notice of Proposed...
The Consumer Financial
Protection Bureau will begin a notice-and-comment rulemaking to reverse a
portion of the "ability to repay" regulations under the CARD Act. The
CFPB will begin formal rulemaking to allow card issuers to consider household...
by Jeffrey E. Jamison
Bloomberg News is reporting that Raj Date, the influential deputy director of the Consumer Financial Protection Bureau (CFPB),
will be leaving the Bureau at the end of January. Date joined the Bureau in
February 2011 as the...
by Karl J. Ege, Mel Wheaton, Danielle
Benderly, and James T. Carroll
The SEC recently issued
long-awaited proposed rules to remove existing general solicitation and
advertising prohibitions for private offerings and sales of securities...
NEW YORK - Four Bernard L. Madoff Investment Securities
LLC feeder funds and several of their current and former owners and officers
have agreed to pay nearly $220 million to settle claims that they breached
their fiduciary duties under the Employee...
NEW YORK - (Mealey's) A federal judge in New York on Nov.
9 granted preliminary approval to the $7.25 billion class action settlement
between merchants and Visa, MasterCard and a large number of banks that the
proposed class alleges fixed the prices...
This morning, the three federal bank regulatory agencies
announced that their proposed new capital rules based on Basel III (and other
Basel standards) would not take effect on January 1, 2013, a date previously
proposed apparently in order to adhere...
by: Edward (Ted) W. Somers
and Jeffrey E.
Last week's announcement of the CFPB's new "appeal
process" for supervised entities offers little solace to those organizations
subject to an adverse finding or compliance rating...
WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court
heard oral arguments on Nov. 7 over whether a prevailing defendant in a Fair
Debt Collection Practices Act (FDCPA) lawsuit may be awarded costs even though
the lawsuit was not brought in bad...
NEW YORK - (Mealey's) Investors on Nov. 6 asked a federal judge in
New York to preliminarily approve a potential $80.25 million settlement of
claims that defendants concealed that the investors' funds were being placed in
accounts that were...
by Richard E. Gottlieb
and Jeffrey E.
By now you may have heard that the Consumer Financial Protection Bureau has now twice
denied petitions to modify or set aside a civil investigative demand
(CID). No surprises here, and the CFPB has...
E. Gottlieb and Jeffrey E. Jamison
On October 24, 2012, the Consumer Financial Protection Bureau (CFPB) announced that, beginning January 2, 2013, certain debt collection
agencies and debt collection firms will come under federal supervision...
NEW YORK - (Mealey's) The U.S. government on Oct. 24 filed a $1
billion lawsuit against Bank of America Corp., as successor for
Countrywide Financial Corp., alleging that Countrywide violated
provisions of the False Claims Act by engaging in...
by Benjamin P. Saul, Amanda M. Raines and Ann D. Wiles
In response to heightened
regulatory and enforcement scrutiny of non-mortgage consumer credit, this
Emerging Issues Analysis addresses important considerations for conducting fair
When states reached a $25 billion settlement in March
with five of the nation's largest mortgage lenders over charges they improperly
processed foreclosures, it was hailed as the biggest government-industry accord
since the multi-state tobacco...
Over the last ten years, the
far-reaching examination of the trading practices of the mutual fund industry,
numerous enforcement actions by the SEC against prominent broker-dealers and
fund complexes, and scores of civil lawsuits resulted in very significant...
WASHINGTON, D.C. - (Mealey's) The Federal Deposit
Insurance Corp. and the Consumer Financial Protection Bureau (CFPB) announced Oct.
1 that they have reached a settlement with American Express Centurion Bank,
Salt Lake City, Utah, for deceptive...
WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on
Oct. 1 denied a couple's petition for a writ of certiorari seeking
review of a Fifth Circuit U.S. Court of Appeals ruling that affirmed the
dismissal of their suit accusing a loan servicer...
FORT LAUDERDALE, Fla. - (Mealey's) The trustee for a
bankrupt feeder fund and the trustee of convicted Ponzi schemer Scott W.
Rothstein's law firm have agreed to an amended $65 million settlement with
Gibraltar Private Bank and Trust Co., a...
SEATTLE - (Mealey's) Student loan borrowers and a
subsidiary of SLM Corp. on Sep. 17 agreed to settle claims that the subsidiary
violated the Telephone Consumer Protection Act (TCPA) by making a number of
non-emergency autodialed calls and/or automated...
LOS ANGELES - (Mealey's) Capital One Bank NA USA has
agreed to pay $10 million to resolve claims that it promoted its credit card
services as offering low fixed annual percentage rates and then later abruptly
increased them, according to a document...
A report issued last month by California's state auditor
has raised questions about whether conflict of interest laws were broken by two
of the state's largest issuers of municipal debt. The audit's findings, though
inconclusive, cast suspicion...
SAN FRANCISCO - (Mealey's) Citibank NA on Friday settled a class
action suit alleging that it wrongfully suspended or decreased the value of
home equity lines of credit (HELOC), according to a document filed by the
plaintiffs in a California federal...
NEW YORK - (Mealey's) A federal judge in New York on Aug.
29 granted preliminary approval of a $590 million settlement between
shareholders, Citigroup Inc. and certain of its current and former executive
officers and directors on claims that the...