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Financial Services Industry California Banking Sector

Allen Matkins

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

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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

Orrick, Herrington & Sutcliffe LLP

RegFi Episode 50: Navigating California’s Mortgage Landscape

Hosts Jerry Buckley and Sherry Safchuk sit down with Susan Milazzo, the CEO of the California Mortgage Bankers Association (CMBA), to discuss the current state and future of mortgage banking in California. As the voice of the...more

Allen Matkins

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

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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 Bill Would Deem Some Lenders As Licensed

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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

Allen Matkins

Bank Runs And Social Media

Allen Matkins on

In this post from 14 years ago, I speculated as to whether California Financial Code Section 1327 was constitutional.  Two years later, the California Court of Appeal declared the statute unconstitutional.   Summit Bank v....more

Allen Matkins

DFPI Issues 2023 CCFPL Report

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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

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

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

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

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

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?

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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

Allen Matkins

Bank Runs And Bank Libels

Allen Matkins on

The big financial news on Friday was the failure of Silicon Valley Bank.  According to the DFPI's order, an announcement of a capital raise by the bank triggered a run on the bank...more

Ballard Spahr LLP

DFPI releases modified proposed California Consumer Financial Protection Law regulations addressing certain commercial...

Ballard Spahr LLP on

On February 24, 2023, the California Department of Financial Protection and Innovation (“DFPI”) released a Notice containing modifications to previously proposed regulations addressing the Consumer Financial Protection Law...more

Allen Matkins

DFPI Issues Numerous Detailed Warnings Of Possible Cryptocurrency Broker Frauds

Allen Matkins on

Shortly after Christmas, the California Department of Financial Protection & Innovation began issuing consumer alerts with respect to possible cryptocurrency broker frauds.  These alerts generally involved alleged "Advance...more

Allen Matkins

What Is The List Of Central Locations For Service Of Process?

Allen Matkins on

The Department of Financial Protection & Innovation's website includes a link to an Excel spreadsheet listing the designation of of location(s) for service of legal process on financial institutions.  This listing is the...more

Allen Matkins

DFPI Says No MTA License Required To Issue Tokenized U.S. Dollars

Allen Matkins on

Earlier this month, the California Department of Financial Protection & Innovation issued a quasi interpretive opinion regarding whether the unnamed requestor must be licensed under California's Money Transmission Act to...more

Allen Matkins

Judge Rules CFL Applies To Cryptocurrency Lending

Allen Matkins on

The California Financing Law prohibits any person from engaging in the business of a "finance lender" without a license from the Department of Financial Protection & Innovation.  Cal. Fin. Code § 22100(a).  The CFL provides...more

Allen Matkins

Finance Lenders: It's Time To Pay Your Annual Assessment

Allen Matkins on

The California Financing Law requires each licensed lender, broker, and program administrator licensee to pay its pro rata share of all costs and expenses of the administration of the law, as estimated by the Commissioner,...more

Allen Matkins

Governor Newsom Nixes Digital Financial Assets Licensing Bill

Allen Matkins on

Last week, Governor Gavin Newsom vetoed  AB 2269 (Grayson) which would have created a "Digital Financial Assets Law" to be administered by the Department of Financial Protection & Innovation.  The Governor in his veto message...more

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