News & Analysis as of

Banking Sector Department of Financial Protection and Innovation (DFPI)

Allen Matkins

Can A Carpetbagger Become DFPI Commissioner?

Allen Matkins on

The Commissioner of Financial Protection & Innovation is appointed by the Governor and is subject to confirmation by the Senate.  Cal. Fin. Code § 322.  The Governor, however, is not free to appoint just anyone.  To be...more

Allen Matkins

DFPI "Takes The Eleventh" In Suit Alleging Failure To Safeguard The Soundness Of First Republic Bank

Allen Matkins on

When an erstwhile shareholder of First Republic Bank sued the California Department of Financial Protection & Innovation for failing to safeguard the "financial soundness and structural integrity" of the bank, the DFPI "took...more

Allen Matkins

Will Your Industry Be On Deck For Registration With The California Department Of Financial Protection & Innovation?

Allen Matkins on

The California Consumer Financial Protection Law (CCFPL) authorizes the Department of Financial Protection & Innovation (DFPI) “regarding registration requirements applicable to a covered person engaged in the business of...more

Allen Matkins

California Court Upholds Daily Transaction Limits On Bitcoin ATMs

Allen Matkins on

A year ago, Governor Gavin Newsom signed two bills,  Assembly Bill 39 and Senate Bill 401, that created the California Digital Financial Assets Law.  SB 401 added Section 3902 to the Financial Code to prohibit an operator of...more

Allen Matkins

California Bill Would Deem Some Lenders As Licensed

Allen Matkins on

California generally requires that persons engaged in the business of making loans be licensed.  If not licensed under some other statute (such as the banking, credit union or residential mortgage lending laws), a lender will...more

Allen Matkins

California Bill Would Establish Registration Program With Respect To Commercial Financing Or Commercial Financing Brokerage...

Allen Matkins on

Recently, I wrote about the California Office of Administrative Law's rejection of regulations proposed by the Department of Financial Protection & Innovation.  These proposed regulations were intended to "implement,...more

Troutman Pepper

Troutman Pepper Weekly Consumer Financial Services Newsletter - April 2024 # 5

Troutman Pepper on

To keep you informed of recent activities, below are several of the most significant federal and state events that have influenced the Consumer Financial Services industry over the past week...more

Allen Matkins

DFPI Issues 2023 CCFPL Report

Allen Matkins on

Last week the California Department of Financial Protection & Innovation issued a report of its activities under the California Consumer Financial Protection Law.   The California legislature enacted the CCFPL in 2020 for the...more

Allen Matkins

It's Lupercalia! CFL Annual Reports Are Due In 30 Days

Allen Matkins on

Each year, licensees under the California Financing Law (Cal. Fin. Code § 22000 et seq.) must file an annual report with the Department of Financial Protection & Innovation.  The report is due on the Ides of March (the Ides...more

Perkins Coie

California DFPI Orders Consumer Financing Platform To Cease Hidden Junk Fees

Perkins Coie on

On January 9, the California Department of Financial Protection and Innovation (DFPI) issued an order against a consumer financing platform that enables merchants to offer installment contracts to their customers. The...more

Orrick, Herrington & Sutcliffe LLP

CFPB comments on California DFPI licensing provisions, income-based advances

On December 1, the CFPB posted a blog entry sharing its comment letter responding to the California DFPI’s notice of proposed rulemaking for “income-based advances” from earlier this year....more

Orrick, Herrington & Sutcliffe LLP

DFPI orders investment firms to desist and refrain

On November 16, under California Corporations Code § 25532, the California Division of Financial Protection and Innovation (DFPI) issued a desist and refrain order against a securities investment platform for allegedly making...more

Allen Matkins

Court Ruling Deals Blow To DFPI's "True Lender" Theory

Allen Matkins on

While the California Financing Law defines "finance lender", it does so in a very open-ended and nonspecific manner.  Cal. Fin. Code § 22009 ("'Finance lender' includes any person who is engaged in the business of making...more

Allen Matkins

Will New DFPI Lending Rules Reduce The Availability And Raise The Cost Of Small Business Loans In California?

Allen Matkins on

Three years ago, Governor Newsom signed AB 1864 into law.  This legislation gave the Department of Financial Protection & Innovation the authority to define unfair, deceptive, and abusive acts and practices in connection with...more

Paul Hastings LLP

Daily Financial Regulation Update -- Saturday, June 10, 2023

Paul Hastings LLP on

June 9, 2023- The Office of the Comptroller of the Currency (OCC) announced a request for information to gather input on a proposed annual trust survey with the goal of understanding, measuring, and tracking the public's...more

Orrick, Herrington & Sutcliffe LLP

DFPI, Fed to oversee bank’s self-liquidation

On June 1, the California Department of Financial Protection and Innovation (DFPI) announced that it issued a joint cease-and-desist order with the Federal Reserve Board to fulfill the voluntary liquidation of a...more

Allen Matkins

SEC Files Desist & Refrain Order Against Coinbase Alleging Failure To Qualify Staking Rewards Program

Allen Matkins on

Yesterday, the California Department of Financial Protection & Innovation announced that it had issued a desist and refrain order against Coinbase, Inc. The order alleges that Coinbase's staking rewards program involved the...more

Allen Matkins

DFPI Issues Self-Assessment Of Its Oversight And Regulation of Silicon Valley Bank

Allen Matkins on

Yesterday, the California Department of Financial Protection & Innovation published a 74-page report on its oversight and regulation of Silicon Valley Bank.  As explained in this earlier post, the bank was a state chartered...more

Allen Matkins

Will California's Bank Failures May Shine A Spotlight On California Corporate Law?

Allen Matkins on

As has been widely reported, the California Department of Financial Protection & Innovation announced that it has taken possession of another California chartered bank - First Republic Bank.  This is the second California...more

Holland & Hart LLP

What Does the Nation's Second Largest Bank Failure Mean for Business?

Holland & Hart LLP on

In what is now the second largest bank failure in United States history, the California Department of Financial Protection and Innovation closed embattled San Francisco-based First Republic Bank shortly after midnight...more

Orrick, Herrington & Sutcliffe LLP

DFPI cracks down on crypto platforms’ AI claims

On April 19, the California Department of Financial Protection and Innovation (DFPI) announced enforcement actions against five separate entities and an individual for allegedly offering and selling unqualified securities and...more

Allen Matkins

California's Commercial Loan Disclosure Requirements May Be Unconstitutional And/Or Preempted

Allen Matkins on

I have devoted several posts to a California commercial loan disclosure law that was enacted in 2018 - SB 1235 (Glazer).  Although the bill became effective on January 1, 2019, lenders were not obligated to comply until the...more

Allen Matkins

First A Failed Bank, Now A Spoofed Bank

Allen Matkins on

The closure of Silicon Valley Bank has understandably attracted a lot of attention.  There are, however, other ways to lose money when banking.  The California Department of Financial Protection & Innovation recently issued...more

Allen Matkins

What Was The DFPI's Role In Failure Of Silicon Valley Bank?

Allen Matkins on

Silicon Valley Bank was chartered by the State of California and was subject to the supervision of the California Department of Financial Protection & Innovation.  The DFPI was not the bank's regulator.  The bank had adopted...more

Foley & Lardner LLP

Borrowers at Failed FDIC-Insured Institutions: FAQs

Foley & Lardner LLP on

On March 10, 2023, the California Department of Financial Protection and Innovation (DFPI) closed Silicon Valley Bank (SVB). Upon closure, the DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The...more

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