Legal issues and news

A legal battle is being waged between a U.S. bank and its insurer over the insurer’s refusal to pay out on a cyber policy, in the wake of hacks on the bank which led to a loss of over $2.4 million. The case flags the problems of insurance in the fast-moving world of digital security.

The $2.1 billion settlement is likely to be the last of the big toxic mortgage cases from the financial crisis; the move pressures rivals to lower prices.

The agreement was likely the last of the big cases to be cleared by the Justice Department, and Wells paid less than its peers did to resolve the lingering mortgage probes stemming from the meltdown.

Ten years after faulty mortgages upended the global financial system, Wells Fargo agreed to pay $2.09 billion to settle a U.S. probe into its creation and sale of loans that contributed to the disaster.

Wire and other payments fraud affected a record number of businesses last year, and the FBI is warning in particular about real estate scams.

The former SoFi CEO raises funds for his new venture despite recent admissions about dating employees; female employee says Mel Watt harassed her.

The roster of potential witnesses at the trial of President Trump's former campaign manager includes current and former employees of Citizens Financial Group, Banc of California and The Federal Savings Bank.

A community bank in Virginia thought the $2.4 million hackers stole from its customers would be fully covered by its insurance policy, but its carrier begged to differ. Their highly technical legal fight is a cautionary tale for all bankers who assume they are sufficiently covered.

Small banks are being warned to slow down mobile tool development and check vendor arrangements, as researchers repeatedly find vulnerabilities that can be exploited by cybercriminals.

A ruling involving a Cleveland law firm casts doubt on CFPB claims that attorneys misrepresent their role to consumers.

Jack Remondi issued a direct call Wednesday for the agency to drop its lawsuit against the student loan servicer. “You’ve had five years to look for your evidence, you’ve found none,” he said.

An uptick in fines and a new tactic to counter claims about the CFPB’s authority contrast sharply with the agency’s rhetoric.

If credit union boards of directors don't shape the organization's culture and responsiveness for whistleblower situations, the institution will suffer consequences to both its balance sheet and reputation.

To make informed decisions about fraud prevention, merchants must understand the current fraud landscape, customer expectations, and the risks and rewards associated with internal and external fraud prevention approaches, writes Bernardo Lustosa, partner, co-founder and COO of ClearSale.

Several firms are touting tools to help financial institutions bank legal marijuana-related businesses, an industry expected to yield $10 billion in retail sales this year.

In a 2015 enforcement action, the San Francisco Fed said it had identified problems with the Pasadena, Calif., bank’s BSA and anti-money-laundering compliance programs.

Kathy Kraninger emerges “unscathed” in testy Senate confirmation hearing; the bank is reportedly refunding money it charged customers for add-on services.

Tokenization as a technology is suitable to support multiple payment use cases via a single system, ensuring emerging commercial models and the ability to adapt to new requirements are not constrained by an inflexible security framework, writes David Worthington, vice president of payments at Rambus.

The recent decision involved sales taxes, but Wells Fargo recorded a net expense of $481 million under the assumption that it will also lead to higher state income taxes. Other banks may have to follow suit.

The nine CUs will together pay a total of $3,109 to the U.S. Treasury.