The Consumer Financial Protection Bureau is walking away from the U.S. Supreme Court with its funding and rulebook intact, a victory that caps off years of constitutional wrangling over how the agency was set up and will usher in a wave of activity that has financial services attorneys bracing for impact.
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Analysis

Buckle Up: CFPB's High Court Win Will Thaw Frozen Docket

By Jon Hill

The Consumer Financial Protection Bureau is walking away from the U.S. Supreme Court with its funding and rulebook intact, a victory that caps off years of constitutional wrangling over how the agency was set up and will usher in a wave of activity that has financial services attorneys bracing for impact.

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Analysis

Thomas, Alito: Two Originalists, Two Takes On CFPB Case

By Katie Buehler

U.S. Supreme Court Justices Clarence Thomas and Samuel Alito — often birds of a feather — butted heads Thursday over the original meaning and purpose of the U.S. Constitution's appropriations clause in a decision upholding the Consumer Financial Protection Bureau's unique funding scheme, highlighting what experts describe as the pair's different approaches to originalism.

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Justices Say CFPB Is Constitutionally Funded

By Jon Hill

The U.S. Supreme Court ruled Thursday that the Consumer Financial Protection Bureau is constitutionally funded, rejecting a payday lender-backed challenge that threatened to incapacitate the agency and throw a wrench in the Biden administration's financial regulatory agenda.

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FDIC's Gruenberg Scolded By Senators Over Agency Culture

By Katryna Perera

Federal Deposit Insurance Corp. Chairman Martin Gruenberg on Thursday faced a second round of congressional reprimand from both sides of the political aisle over his agency's workplace misconduct scandal, but Senate Democrats seemed ready to let Gruenberg clean up the mess himself and continue his tenure.

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Judge Questions Colo.'s Power Over Out-Of-State Banks

By Thy Vo

A Colorado federal judge on Thursday asked U.S. banking regulators why the state should be able to cap interest rates for loans made to residents by out-of-state financial institutions, questioning why it was "consistent with federalism" to let an individual state have that far of a reach.

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Conn. Justices Snatch Debt Collection Practice Of Law Case

By Emily Sawicki

The Connecticut Supreme Court has opted to hear a case that questions whether the state's banking commissioner or its judicial branch has the power to regulate debt collection activities that occur under the purview of law firms, leapfrogging the case over the state's intermediate appellate court and into the state's highest court.

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2nd Circ. Backs Win For Big Banks In Forex-Rigging Suit

By Elliot Weld

The Second Circuit on Thursday backed a ruling in favor of a group of large banks accused of conspiring to manipulate the foreign currency exchange market in euros and dollars, agreeing with a lower court that the plaintiffs hadn't made qualifying transactions or shown how prices were distorted.

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POLICY & REGULATION

Senate Passes Bill To Block SEC Crypto Accounting Guidance

By Aislinn Keely

The U.S. Senate voted Thursday to send a bill overturning the U.S. Securities and Exchange Commission's controversial crypto accounting guidance to the president's desk, though without the necessary votes to override the White House's planned veto.

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African Tax Admins Promote Use Of Voluntary Disclosures

By Jack McLoone

Voluntary disclosure programs have been very effective when countries launch them in anticipation of complying with an international standard on automatic exchanges of financial account information, the African Tax Administration Forum said Thursday in guidance on the programs.

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Biden Admin Proposes To Loosen Restrictions On Marijuana

By Sam Reisman

President Joe Biden on Thursday announced that his administration has formally recommended relaxing restrictions on marijuana, marking the most significant federal policy shift on cannabis since the drug was criminalized more than 50 years ago.

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ENFORCEMENT & COMPLIANCE

Ex-Credit Union Worker Gets 3 Years After Copping To Fraud

By Emilie Ruscoe

A former employee of Indiana-based Financial Center First Credit Union employee faces nearly three years in prison and owes over $2 million after pleading guilty to financial institution fraud in connection with claims he received $100,000 in kickbacks after using his position to help unidentified accomplices siphon millions away from account holders.

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Ga. Judge Cites 'Exemplary Life' In 3-Year PPP Fraud Sentence

By Chart Riggall

A Georgia woman convicted earlier this year of helping to launder the proceeds of a pandemic loan fraud scheme was hit with a three-year prison sentence on Thursday by a federal judge, who noted the woman has otherwise led an "exemplary life," warranting a sentence lower than what prosecutors had sought.

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Bitcoin ATM Operator Ran Illegal Money Transmitter, Jury Says

By Aislinn Keely

A New York state jury has convicted the operator of a network of bitcoin kiosks that allegedly catered to criminal activity of operating an unlicensed money transmitter and tax fraud, the Manhattan District Attorney's Office said Thursday.

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Ex-Minn. Public Defender Gets Probation For Tax Fraud

By Asha Glover

A former Minneapolis chief public defender who argued that he should receive a lenient sentence after resigning in disgrace amid accusations that he failed to pay taxes for years on his private law firm was sentenced to three years probation by a Minnesota federal court.

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LITIGATION

BofA Customers Get Final OK For $8M Deal In ACH Fee Suit

By Sydney Price

A North Carolina federal judge has granted final approval to an $8 million settlement for Bank of America customers who claim they were unfairly charged fees for Automated Clearing House transfers.

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MoneyLion Beats Investor Suit Over Reverse Stock Split

By Sydney Price

A New York federal judge has dismissed a lawsuit by shareholders of digital finance platform MoneyLion, who allege the company and its directors approved a reverse stock split that stripped preferred shareholders of their rights, saying the investors should have known the consequences of the vote.

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Ex-Execs Accuse Truist Of Hijacking Control Of Mortgage Unit

By Hayley Fowler

Three former executives who spearheaded the real estate finance arm of Truist Financial Corp. before they left for a competitor are countersuing the bank for allegedly usurping control of the business, saying Truist then tried forcing them out to skirt paying severance.

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BANKRUPTCY

Colombian Consumer Lender Hits Ch. 11 To Trim $55M Of Debt

By Clara Geoghegan

Colombian consumer lending giant Credivalores-Crediservicios filed for bankruptcy in New York on Thursday, with a prepackaged Chapter 11 plan to cut $55 million from its balance sheet and emerge from bankruptcy next month.

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PEOPLE

Haynes Boone Adds Sheppard Mullin RE Finance Pro In Calif.

By James Mills

Haynes and Boone LLP continues to grow its Orange County office, announcing Wednesday that a Sheppard Mullin Richter & Hampton LLP real estate finance ace is joining the office in Costa Mesa, California, as a partner.

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EXPERT ANALYSIS

Novel Applications May Fizzle After Fed Master Account Wins

Two recent federal court rulings that upheld decisions denying master account applications from two fintech-focused banks are noteworthy for depository institutions with novel charters that wish to have direct access to the Federal Reserve's payment channels and settle transactions in central bank money, say attorneys at Davis Polk.

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Exploring An Alternative Model Of Litigation Finance

A new model of litigation finance, most aptly described as insurance-backed litigation funding, differs from traditional funding in two key ways, and the process of securing it involves three primary steps, say Bob Koneck, Christopher Le Neve Foster and Richard Butters at Atlantic Global Risk LLC.

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LEGAL INDUSTRY

Analysis

Alito Flag Report Fuels Ethics Debate, But Likely No Recusal

By Katie Buehler

Responses to a report that an upside-down American flag flew outside U.S. Supreme Court Justice Samuel Alito's home following the 2020 presidential election broke along partisan lines Friday, with conservatives decrying it as a smear campaign and liberals calling for his recusal from pending election-related cases and for general court ethics reform.

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Solicitor General Says No High Court Case Is 'Hopeless'

By Thy Vo

Solicitor General Elizabeth Prelogar told lawyers Saturday that despite the U.S. Supreme Court's conservative majority, she has never thought a case she's overseen for the Biden administration was "entirely hopeless," and that there's always room to shape the court's opinion.

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Analysis

How A $3K Pro Se Claim Led To A 9-0 High Court Decision

By Daniel Wilson

A milestone victory at the U.S. Supreme Court for $3,000 in wages started with a Pentagon worker’s principled commitment to his employer — a dedication that ironically led to a decadelong fight against his own bosses. Stuart R. Harrow and his attorneys speak to Law360 about how a seemingly low-stakes conflict turned into a high-profile case with reverberations for hundreds of federal employees.

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Calif.'s Top Judge Launches Task Force To Probe AI Uses

By Lauren Berg

California Supreme Court Chief Justice Patricia Guerrero has created a new task force to look into how generative artificial intelligence could benefit the court system and its users, while also evaluating its potential risks, the court announced Friday.

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Trump Hush Money Judge Warned For Biden Donation

By Frank G. Runyeon

The judge presiding over Donald Trump's criminal hush money trial was quietly cautioned after making a political campaign contribution to President Joe Biden and a Democratic group, disposing of an ethics investigation into the donation, it was confirmed Friday.

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Analysis

Trump's Potential Witness Could Be Defense 'Dynamite'

By Phillip Bantz

As Donald Trump's hush money trial in Manhattan nears its end, experts say criminal defense attorney Robert Costello, who once advised the former president's ex-fixer and key prosecution witness Michael Cohen, has surfaced as a potentially bombshell witness for the defense.

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Menendez Bribery Trial: 5 Things To Know About Week 1

By Carla Baranauckas

Explosive opening statements, closed-door jury questioning and an FBI agent's recount of the moment he found a treasure trove of gold bars and cash highlighted the first week of trial in the government's second corruption case against U.S. Sen. Robert Menendez.

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Ga. Judge In 2020 Election Cases To Take Senior Status

By Courtney Bublé

U.S. District Judge Steve Jones of the Northern District of Georgia, who has presided over high-profile cases involving the 2020 election, voting rights and abortion, will take senior status on Jan. 1, 2025, according to an update Friday.

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AG Garland Held In Contempt By House Committees

By Courtney Bublé

Two House committees voted late Thursday to hold Attorney General Merrick Garland in contempt for not turning over audio recordings of the president and his ghostwriter speaking with special counsel Robert Hur for his investigation into President Joe Biden's handling of classified documents.

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Dozens Of Pro Bono Attys Back 3rd Circ. Nominee Mangi

By Courtney Bublé

Forty-nine pro bono partners, counsel and chairs from major law firms and organizations wrote to Senate leadership on Friday with concerns that the staunch opposition against Third Circuit nominee Adeel Mangi over his pro bono work will have a chilling effect on future attorneys seeking judgeships, according to a letter shared with Law360.

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Man Admits To Threatening Judge Over 'Don't Say Gay' Ruling

By Christine DeRosa

A retired teacher from Pensacola, Florida, has pled guilty to threatening to harm a federal judge in five voicemails he left after the jurist ruled against a challenge to Florida's "Don't Say Gay" law, federal prosecutors announced.

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Jenner & Block Sued For Firing Worker Over Vax Refusal

By Henrik Nilsson

A former Jenner & Block LLP employee filed a discrimination suit against the law firm Friday, claiming she was fired after the firm refused to provide a religious exemption from its COVID-19 vaccine mandate despite her belief that taking the vaccine would make her complicit in abortion.

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Ex-Baltimore State's Atty Says 20-Month Sentence Too Harsh

By Emily Sawicki

Former Baltimore State's Attorney Marilyn Mosby has asked a federal judge to cut down prosecutors' requested 20-month prison sentence after she was convicted of abusing a COVID-19-era program to obtain money from a retirement fund and conning a lender to obtain a vacation home, arguing the proposal "stray[s] from the reality of this case."

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'We Feel It': NJ Ranks 2nd In Ch. 11 Cases, Chief Judge Says

By George Woolston

New Jersey federal courts saw the second most Chapter 11 bankruptcy filings in the nation over the last year, Chief U.S. District Judge Renée Marie Bumb of the District of New Jersey said on Friday.

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NJ Courts Chief Warns Plan To Pick Appeals Bench A 'Mistake'

By George Woolston

Chief Justice Stuart Rabner of the New Jersey Supreme Court on Friday defended how the state judiciary assigns appeals court judges, criticizing a proposal to move the power to appoint appellate judges from the chief justice to the state Senate and the governor's office.

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1st Circ. Rejects Ex-Immigration Judges' Bid For Asylum Redo

By Elliot Weld

The First Circuit's full bench refused to reopen a Salvadoran woman's case seeking asylum, despite former immigration judges weighing in to say that the judge who denied her asylum didn't follow a legal requirement to ensure her record was complete.

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Law360's Legal Lions Of The Week

By Kevin Penton

Haynes and Boone LLP and Lubin & Enoch PC lead this week's edition of Law360's Legal Lions, after the U.S. Supreme Court unanimously determined that federal courts do not have discretion to toss a case once it's decided that the claims belong in arbitration.

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GC Cheat Sheet: The Hottest Corporate News Of The Week

By Michele Gorman

The SEC adopted cybersecurity rules to require investment advisers and broker-dealers to put procedures in place for detecting data breaches and for notifying customers when their personal information may have been compromised, and lawyers said SPACs won't get sought-after relief from a new 1% tax on stock buybacks under a recent Treasury Department proposal. These are among the stories in corporate legal news you may have missed in the past week.

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UK Litigation Roundup: Here's What You Missed In London

By Laura Stewart Liberty

This past week in London has seen a wave of claims filed against Verity Trustees Ltd., Harley-Davidson hit retailer Next with an intellectual property claim, Turkish e-commerce entrepreneur Demet Mutlu sue her ex-husband and Trendyol co-founder Evren Üçok and the Solicitors Regulation Authority file a claim against the former boss of collapsed law firm Axiom. Here, Law360 looks at these and other new claims in the U.K.

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In Case You Missed It: Hottest Firms And Stories On Law360

For those who missed out, here's a look back at the law firms, stories and expert analyses that generated the most buzz on Law360 last week.

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Promo that reads Law360 2024 Titans of the Plaintiffs Bar Promo that reads Law360 Pulse 2024 AI Survey

COMPANIES IN TODAY'S NEWS

ACON Investments LLC

Allianz SE

American Bankers Association

American Bar Association

American Civil Liberties Union of New Jersey

Apple Inc.

Atlantic Global Insurance Services

BHP Group PLC

BP PLC

Bank of America Corp.

Beam Suntory Inc.

Bed Bath & Beyond Inc.

Bibby Financial Services Ltd.

Blackbaud Inc.

Brennan Center for Justice

Change Healthcare Inc.

Citigroup Inc.

Clarkson PLC

Community Financial Corp.

Consumer Bankers Association

Cresco Labs Inc.

Enel SpA

Exxon Mobil Corp.

Federalist Society

Financial Center First Credit Union

Google LLC

Grandbridge Real Estate Capital LLC

Graycliff Partners

HSBC Holdings PLC

Harley-Davidson Inc.

Invitae Corp.

JPMorgan Chase & Co.

Johnson & Johnson

Last Prisoner Project

LinkedIn Corp.

Lloyds Bank PLC

Mercedes-Benz USA LLC

Microsoft Corp.

NASDAQ Inc.

New Jersey State Bar Association

New York University

Organization for Economic Cooperation and Development

Paypal Holdings Inc.

Permira

Rite Aid Corp.

Ryan LLC

Seattle University

Smart Approaches to Marijuana

Snap Inc.

Solicitors Regulation Authority Ltd.

Tesla Inc.

The Catholic University of America

The New York Times Co.

The Royal Bank of Scotland Group PLC

Thrasio Holdings Inc.

Truist Financial Corp.

U.S. Chamber of Commerce

UBS Group AG

UnitedHealth Group Inc.

WeWork Inc.

Wolters Kluwer

LAW FIRMS IN TODAY'S NEWS

A&O Shearman

Alioto Law Firm

Alston & Bird

Ashfords LLP

Baker McKenzie

Ballard Spahr

Bayard PA

Berger Montague

Bishop & Sewell

Bradley Arant

Buchalter APC

Buchanan Ingersoll

Burr & Forman

CMS Cameron McKenna Nabarro Olswang

Cantey Hanger

Charles Russell Speechlys

Clark Hill

Cleary Gottlieb

Clyde & Co

Commonwealth Law Group

Cooley LLP

Cooper Barton & Cooper

Covington & Burling

Crowell & Moring

Davis Polk

Davis Wright Tremaine LLP

Dentons

Duane Morris

Duffy & Young

Edelsberg Law

Fox Rothschild

Freeths LLP

Gibbons PC

Gibson Dunn

Goodwin Procter

Haynes & Boone

Hogan Lovells

Holland & Knight

Jenner & Block

Jones Day

Kaliel Gold

Kaplan Marino

Kassius Benson Law

King & Spalding

Kirkland & Ellis

Latham & Watkins

Lewis Baach

Locke Lord

Lubin & Enoch

Manatt Phelps

Mayberry Law Firm

Mayer Brown

McGuireWoods

Miller & Chevalier

Morgan Lewis

NechelesLaw

Nelson Mullins

Osborne Clarke

Patterson Belknap

Paul Hastings

Paul Weiss

Pinsent Masons

Poole Huffman

Proskauer Rose

Pryor Cashman

Quinn Emanuel

Rathje Woodward

Rayburn Cooper

Ropes & Gray

Schertler Onorato

Schulte Roth

Seila Law

Shamis & Gentile

Sheppard Mullin

Skadden Arps

Skiermont Derby

Squire Patton

Sullivan & Cromwell

Teacher Stern

Troutman Pepper

Trowers & Hamlins

Tydings & Rosenberg

Van Winkle Law Firm

Webster & Garino

Weightmans LLP

Willkie Farr

de Castro PC

GOVERNMENT AGENCIES IN TODAY'S NEWS

Bureau of Alcohol and Tobacco Tax and Trade

California Supreme Court

Colorado Supreme Court

Connecticut Attorney General's Office

Connecticut Department of Banking

Consumer Financial Protection Bureau

Defense Contract Management Agency

Equal Employment Opportunity Commission

Executive Office of the President

Federal Bureau of Investigation

Federal Deposit Insurance Corp.

Federal Election Commission

Federal Judicial Center

Federal Reserve Bank of Kansas City

Federal Reserve Bank of New York

Federal Reserve Bank of San Francisco

Federal Reserve System

Federal Trade Commission

Food and Drug Administration

Internal Revenue Service

Manhattan District Attorney's Office

New Jersey Supreme Court

New York Department of Financial Services

New York State Commission on Judicial Conduct

Serious Fraud Office

U.S. Attorney's Office

U.S. Attorney's Office for the District of Maryland

U.S. Attorney's Office for the Middle District of Florida

U.S. Attorney's Office for the Northern District of Georgia

U.S. Attorney's Office for the Southern District of Indiana

U.S. Attorney's Office for the Southern District of New York

U.S. Bankruptcy Court for the Southern District of New York

U.S. Court of Appeals for the First Circuit

U.S. Court of Appeals for the Second Circuit

U.S. Court of Appeals for the Tenth Circuit

U.S. Department of Defense

U.S. Department of Health and Human Services

U.S. Department of Justice

U.S. Department of Labor

U.S. Department of the Treasury

U.S. District Court for the District of Idaho

U.S. District Court for the District of Maryland

U.S. District Court for the District of Minnesota

U.S. District Court for the Middle District of Florida

U.S. District Court for the Northern District of Georgia

U.S. District Court for the Northern District of Illinois

U.S. District Court for the Southern District of New York

U.S. Drug Enforcement Administration

U.S. Postal Service

U.S. Securities and Exchange Commission

U.S. Senate

U.S. Supreme Court

United States District Court for the District of Colorado

United States District Court for the Southern District of Indiana