Legal issues and news

The plaintiffs' 2nd Circuit filing in the Bank of America escrow preemption case is the first since the Supreme Court sent it back for more analysis.

The New York State Department of Financial Services issued a consent order against Finland-based Nordea Bank, citing deficiencies related to the Bank Secrecy Act and anti-money-laundering requirements.

The wealth management giants join their rivals Wells Fargo, Morgan Stanley, UBS, LPL Financial and Ameriprise in being accused of using uninvested cash in advisory accounts to boost their bottom lines rather than benefit clients.

The Federal Deposit Insurance Corp. is trying to limit the impact of a Supreme Court decision that curtailed federal agencies' use of administrative law judges.

A federal judge excoriated banks for inflating data in a challenge to the Consumer Financial Protection Bureau's data collection on small-business loans.

Most financial institutions are seeking ways to speed up payments, but one neobank is looking to slow them down to protect a segment of the population frequently targeted by scams.

The Toronto-based bank also expects a "global resolution" of investigations by U.S. authorities to be finalized by the end of the year.

Vice Chair for Supervision Michael Barr says generative AI could present financial-stability risks if certain models are used ubiquitously.

California has a pending law that would hold banks liable for three times the amount of a loss if they had reason to suspect financial exploitation of an older customer and did nothing about it.

Shan Hanes, the former leader of Heartland Tri-State Bank, previously pleaded guilty to embezzling tens of millions of dollars in a cryptocurrency scheme that caused the Kansas bank's failure.

Four companies are fighting CFPB enforcement actions by claiming the agency cannot be funded by the Federal Reserve, which has not been profitable since 2022. The consumer bureau calls the new legal theory "meritless."

Royal Bank of Canada's onetime chief financial officer was allegedly in a relationship with an executive in the bank's corporate treasury group for more than a decade. A court filing offers a remarkably detailed look at how the bank alleges it played out.

Loandepot and Mr. Cooper said they've spent tens of millions of dollars this year following recent, major hacks.

The American Bankers Association and the Illinois Bankers Association, among other groups, say a state law barring swipe fees for taxes and tips should be preempted by federal law.

Missouri Secretary of State John Ashcroft's office said the ruling was "not just legally deficient but also morally wrong."

A judge postponed to Aug. 19 the scheduled sentencing date for Shan Hanes, the ex-CEO of Heartland Tri-State Bank who admitted to embezzling $47 million from the lender, leading to its downfall.

A female employee is now suing ICAP and Citigroup, alleging she was subjected to years of unwanted sexual attention and threats by a Citi trader.

Researchers wonder if similar regulatory attention could eventually hit the bottom lines of independent broker-dealers and RIAs.

Judge Martin Glenn of the Federal Bankruptcy Court of the Southern District of New York greenlighted SVB Financial's bankruptcy plan Monday, but $1.93 billion in FDIC-held deposits remain contested pending further litigation.

With the Consumer Financial Protection Bureau joining the growing list of top enforcement agencies recognizing the value in whistleblowing, companies should take heed and avoid any provisions in employment and severance agreements that in any way impede or penalize whistleblowers.