Law and legal issues

The Consumer Financial Protection Bureau is challenging a recent appeals court decision that its funding through the Federal Reserve Board violates the separation of powers doctrine. That ruling "threatens to inflict immense legal and practical harms" on financial regulation, the CFPB says.

Voyager Digital Ltd. is trying to sign a deal to sell itself to one of the bidders that lost the auction for the bankrupt crypto lender, after the winner of that auction, FTX, was itself forced into insolvency proceedings.

The stunning collapse of the cryptocurrency platform FTX is being investigated by federal prosecutors in Manhattan, people familiar with the inquiry said.

Goldman Sachs Group paid out well over $12 million to a veteran executive who complained internally about a toxic workplace for women in the highest echelons of Wall Street's most prestigious firm.

In hindsight, Sam Bankman-Fried's April interview with Bloomberg's "Odd Lots" podcast was a harbinger of his epic collapse last week. He described a "box" that has value only because other people put money in it, and, when confronted with the idea that he described a Ponzi scheme, admitted there was a "depressing amount of validity" to that.

The ruling means that a lower court's pro-consumer decision cannot be used as a precedent in other litigation. Consumer advocates had hoped the case would make it more difficult for debt buyers in North Carolina to file a large volume of lawsuits, which often lead to default judgments against borrowers.

The crisis sparked by the collapse of Sam Bankman-Fried's FTX crypto empire ensnared BlockFi, a troubled digital-asset lender once worth $3 billion but which has now limited activity on its platform.

Spencer Savings in New Jersey is taking investor Larry Seidman to court, alleging he's conspiring with other customers to convert the bank to stock ownership. Seidman says it's a farce: "I'm in a conspiracy with people I don't know."

Sam Bankman-Fried's digital-asset empire filed for Chapter 11 bankruptcy in Delaware, capping a rapid downfall for the 30-year-old entrepreneur and onetime crypto king.

The Canadian-owned bank vowed to appeal the large verdict, which illustrated the risks that banks take on when they shoulder the liabilities of companies they acquire.

JPMorgan Chase agreed to settle a dispute with a London trader it fired during a spoofing probe and then refused to rehire after a judge said the investment bank had to give him his job back.

Both sides in the litigation over 2012 Federal Housing Finance Agency amendments to stock purchase agreements say they're weighing their options.

Some 16 million applications for student debt relief will be approved by this week, provided the White House plan survives court challenges, President Biden said Thursday. 

Following the verdict, the student-loan servicer could potentially owe Louis Beryl more than $4.4 million in severance money. Navient fired Beryl less than three months after acquiring Earnest, the student loan refinancing company that he co-founded.

U.S. Supreme Court justices questioned the legality of stiff penalties the federal government says it can impose on people who fail to file required reports listing their foreign bank accounts.

Legal experts are gaming out the various options for the CFPB after a three-judge panel of the U.S. Court of Appeals for the 5th Circuit ruled on Oct. 19 that the bureau's funding is unconstitutional.

An ex-Deutsche Bank precious-metals trader has asked the U.S. Supreme Court to overturn his conviction for manipulating gold and silver prices with fake "spoof" trade orders.

Custodia's lawsuit with the Federal Reserve over master account access is poised to advance to trial. Regardless of the outcome, the case will be consequential.

The agreement, which still needs court approval, should help what remains of the online small-business lender as it moves through bankruptcy proceedings. After Kabbage emerged as a major Paycheck Protection Program lender, some of its key assets were sold to American Express.

Tom Hayes, the former UBS Group trader convicted in the U.K. over the Libor-rigging scandal, had a criminal indictment against him dismissed by a New York judge.