On March 30, a judge in the US District Court for the District of Columbia invalidated the determination by the Financial Stability Oversight Council (FSOC) to designate MetLife as a “systemically important financial institution” (SIFI) that would be subject to stringent prudential regulation and supervision by the US Federal Reserve Board and other regulatory authorities.
LATEST REGULATORY DEVELOPMENTS IMPACTING
THE FINANCIAL SERVICES INDUSTRY
THE FINANCIAL SERVICES INDUSTRY
In a spirited oral argument on April 12, a panel of the US Court of Appeals for the DC Circuit questioned the constitutionality of the Consumer Financial Protection Bureau’s (CFPB’s) governance structure.
As we reported in our LawFlash titled “ CFPB Issues First Appellate Ruling ,” in June 2015, the Consumer Financial Protection Bureau’s (CFPB’s) Director issued his first decision on appeal from his own administrative law judge (ALJ).
In an April 6 speech before the FDIC Community Banking Conference, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg discussed the FDIC’s interest in promoting the creation of new community banks.
Wasting no time after returning from a two-week recess, the US Senate Committee on Banking, Housing, and Urban Affairs (the Committee) is holding two full committee hearings this week to discuss consumer financial services and the Consumer Financial Protection Bureau (CFPB).
On March 22, the Consumer Financial Protection Bureau (CFPB) announced on its website that it has issued its annual summary and analysis of the 19,000 complaints it received from servicemembers last year, titled “ Servicemembers 2015: A Year in Review .” The CFPB’s report provides aggregate statistics concerning the sources, subject matters, resolutions, and financial products involved in those complaints.
The Federal Reserve Board, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, and National Credit Union Administration, together with the US Department of the Treasury’s Financial Crimes Enforcement Network (the Agencies), yesterday issued interagency guidance (Guidance) discussing the applicability of Customer Identification Program (CIP) requirements to holders of prepaid cards issued by banks.
The Federal Deposit Insurance Corporation (FDIC) approved a final rule yesterday to increase the Deposit Insurance Fund (DIF) to the statutorily required minimum level of 1.35%.
In a wide-ranging speech yesterday before the Consumer Bankers Association, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray forcefully defended his agency’s approach to consumer financial regulation and supervision against critics who call it “regulation by enforcement.” Saying that criticism of this practice (and even the term) is “badly misplaced,” he argued for the need to work “toward a pattern of actions that conveys an intelligible direction to the marketplace, so as to create deterrence that can be readily understood and implemented.” Director Cordray noted that the “vast majority” of CFPB enforcement actions involve some sort of deception or fraud and commented on the difficulty of creating specific rules to address fraud or untruth.
The Consumer Financial Protection Bureau (CFPB) has taken two notable steps that signal a new interest in regulating marketplace, or “peer-to-peer,” lending.