May bank directors and officers be held jointly and severally liable for negligence in a tort action challenging their decision making process?...more
Despite the existence of a prior acts exclusion in an insurance policy, the officers and directors of a failed bank were entitled to coverage for a lawsuit brought by the Federal Deposit Insurance Corporation (FDIC), the U.S....more
A state-chartered bank based in Missouri must pay $5 million pursuant to a Consent Order with the Board of Governors of the Federal Reserve System resulting from charges of deceptive marketing practices....more
In a new bulletin, the Office of the Comptroller of the Currency (OCC) outlined its updated “policy and framework for determining the effect of evidence of discriminatory or other illegal credit practices” on the Community...more
The Board of Governors of the Federal Reserve System requested public comment on a proposal intended to enhance the effectiveness of boards of directors, refocusing the regulator’s supervisory expectations of boards....more
The federal banking regulators proposed an increase in the threshold for commercial real estate transactions requiring an appraisal from the current $250,000 to $400,000, a move the agencies said was in response to “concerns...more
A federal jury in Georgia awarded almost $5 million to the Federal Deposit Insurance Corporation (FDIC) in one of the few suits against the directors of a failed bank that made it all the way to trial.
What happened...more
The federal bank regulatory agencies adopted revisions to the interagency guidance on the Community Reinvestment Act, focusing on alternative systems for delivering retail banking services, innovative or flexible lending...more
8/29/2016
/ Banks ,
Community Development ,
Community Reinvestment Act ,
FDIC ,
Federal Bank Regulatory Agencies ,
Federal Reserve ,
Innovation ,
Interagency Guidance ,
Lenders ,
OCC ,
Retail Banks
Institutional or corporate culture is much in the news lately, both inside and outside of banking. Amidst the uproar over Volkswagen's intentional compliance failure relating to emission standards, senior company management...more
The growth and expansion of FinTech service providers nationally and internationally over the last five years is reshaping the financial landscape. This evolution includes differentiation in how financial products are...more
2/10/2016
/ Behavioral Advertising ,
CAN-SPAM Act ,
ECOA ,
FDIC ,
FinTech ,
FTC Endorsement Guidelines ,
Popular ,
Social Media ,
TCPA ,
Truth in Lending Act (TILA) ,
UDAAP ,
Unfair or Deceptive Trade Practices
Why it matters -
Earlier this month, California Governor Jerry Brown signed into law Assembly Bill 506, a measure that amended the state's Revised Uniform Limited Partnership Act, making it easier for lenders to make...more
Madden v. Midland Funding, an important court case for marketplace lending may now be heard at the Supreme Court.
We have been following the Madden v. Midland Funding case as it makes its way through the court system....more
Why it matters -
Bank officers may be liable in a lawsuit brought by the Federal Deposit Insurance Corp. (FDIC) while the directors escaped liability, in a new ruling from the Fourth Circuit Court of Appeals interpreting...more
9/23/2015
/ Affidavits ,
Appeals ,
Articles of Incorporation ,
Banking Sector ,
Board of Directors ,
Breach of Duty ,
Business Judgment Rule ,
Corporate Officers ,
Enforcement Actions ,
Exculpatory Clauses ,
Expert Witness ,
FDIC ,
Fiduciary Duty ,
Gross Negligence ,
Loans ,
Negligence ,
Personal Liability ,
Rebuttable Presumptions ,
Reversal ,
Summary Judgment
Why it matters -
One Colorado credit union is taking matters into its own hands after the Federal Reserve Bank of Kansas City (FRB-KC) and the National Credit Union Association (NCUA) rejected the institution's...more
9/1/2015
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Banking Sector ,
Credit Unions ,
Declaratory Judgments ,
Department of Justice (DOJ) ,
Due Process ,
Financial Institutions ,
FinCEN ,
Marijuana Related Businesses ,
NCUA ,
Suspicious Activity Reports (SARs) ,
Tenth Amendment
Why it matters -
In a coordinated effort, the U.S. government identified another “poster child” to demonstrate its continued vigilance and earnestness in pursuing lax BSA/AML procedures and oversight and violations of...more
7/8/2015
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Banks ,
BSA/AML ,
Civil Monetary Penalty ,
Compliance ,
Department of Justice (DOJ) ,
Enforcement ,
Enforcement Actions ,
FDIC ,
FinCEN
Why it matters -
In a pair of joint statements, the Federal Financial Institutions Examination Council (FFIEC) cautioned financial institutions about cyber attacks compromising credentials and destructive malware. The...more
CFPB Fines Bank $7.5M for Overdraft Violations, With $49M More in Redress -
Why it matters:
In its first action targeting overdraft fees, the Consumer Financial Protection Bureau (CFPB) fined Regions Bank $7.5...more
This special edition of the Financial Services Law Newsletter includes a series of blog posts written by Peer-to-Peer Lending and Crowdfunding partner Brian S. Korn for the LendItUSA 2015 conference to be held April 13-15 in...more
Why it matters -
To encourage communication of problems and expediency of correction, the Office of the Comptroller of the Currency (OCC) updated its policy on “Matters Requiring Attention,” or MRAs, in a newly...more
Almost all cases brought by the FDIC in the last few years against former directors and officers of failed banks have been resolved by negotiated settlements. However, in a recent decision, a federal court judge in North...more
Risk management continues to be at the top of regulatory agendas, and the OCC has taken the opportunity to offer its heightened risk guidelines for large financial institutions of more than $50 million in average consolidated...more
In the context of Federal Deposit Insurance Corporation (FDIC) litigation against the former directors and officers of a failed bank, the Georgia Supreme Court has upheld the validity of the business judgment rule in the...more
Taxes remain a certainty in life, but in an effort to reduce confusion regarding the ownership of tax refunds—particularly in light of court opinions reaching varying conclusions when considering failed banks—the Board of...more
Court: FTC Can Regulate Payday Lenders Affiliated With Indian Tribes -
In what is being hailed by the Federal Trade Commission as a victory for regulators, a federal court judge in Nevada has ruled that the FTC has the...more
D.C. Circuit Court Upholds Fed’s Debit Card Fee Cap, Antiexclusivity Rules -
Dealing a blow to merchants nationwide, the D.C. Circuit Court of Appeals reversed a lower court and upheld the rules promulgated by the...more